Board Meeting Monday Oct. 14th
October 10, 2019
BOARD OF DIRECTORS MEETING
AGENDA & REPORT
Monday October 14th, 2019, 7:30pm
2nd Floor Party Room
6:30PM – CLOSED SESSION (Management Office)
7:30PM – OWNER FORUM – 15 minutes, 2 minutes per person
The Board of Directors and Management will welcome and address questions and feedback from Unit Owners.
CALL TO ORDER – October 14, 2019 Board Meeting
Roll Call – Confirm Quorum
The meeting chair, expected to be Board President Michael Parrie, will confirm a quorum of Board Members is present. Board Members and representatives from Management will be introduced.
Commission Reports
Commission chairs or members so designated will be invited to update the Board and Owners on business and activities.
Board Report
The Board President may give a report on current Association business and activities of interest.
Action Items
- Closed Session Business
This agenda item is provided for any resolutions proposed resulting from Closed Session discussion.
- Minutes – Board Meeting September 23, 2019
Attached to the report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Monday September 23, 2019, as submitted by Timothy Patricio, Property Manager.
A sample motion: “I move the Board of Directors approves the minutes from the Board Meeting held on Monday September 23, 2019.”
- Proposed Rules & Regulations
Attached to the report for final review and consideration by the Board is the Proposed Rules and Regulations. At the very end of the document, are notes presented by Sheldon Atovsky, who was given the draft following his appointment.The Board should:
- Consider any further changes.
- Consider forwarding to counsel for review.
- Consider a timeline for distribution to owners, a Special Meeting for review, followed by adoption.
If any resolutions are necessary, motions can be suggested at the meeting.
- Annual Auditing Contract
The contract for annual auditing of the Association’s financials has expired with the 2018/2019 audit.
Attached to the report for Board review are two proposals for consideration. The incumbent, Picker & Associates presented a 5 year renewal proposal, with years 1 and 2 locked in at the present rate of $5500 for the first two years. And otherwise only nominal increases for years 3 through 5:
2020 – $5500, 2021 – $5500, 2022 – $5,700, 2023 – $5700, and 2024 $5800
They will also lock the Annual Meeting vote tabulation at $500 for the duration of the contract.
We reached out to one competitor, just to test their numbers, with PBG Financial Services. Their representative actually worked on Park Towers audit in the past, formerly being employed with Picker & Associates:
2020-2024 – $6500 Locked
We suggest the Board renew as proposed with the incumbent, Picker & Associates.
A sample motion: “I move the Board of Directors approves a 5 year contract as proposed with Picker & Association, to audit the Association financial statements annually at a cost of $5500, for years 2020 and 2021, $5,700 for years 2022 and 2023, and $5800 for year 2024.”
- Waste Removal Contract
The contract for waste removal expires in 2020, so we issued an RFP. The base proposals are attached to the report for Board review, and the incumbent is Republic Services. The key numbers for comparison are as follows:
- Advance Disposal – $5042/month/year with 3% annual increase.
- Lakeshore Recycling – $2,559.55/month/year with up to 4% annual increase.
- Republic Service – $2,378.75/month/year with up to 4% annual increase.
Lakeshore had an interesting proposal for electronics removal with our Green Week activities, and we are negotiating with the incumbent as a result to try to get a more favorable arrangement for that service. However, overall, we see not reason not to renew with the incumbent, Republic Services.
A sample motion: “I move the Board of Directors approves for management to negotiate terms and conditions to enter a 3 year renewal contract beginning in 2020 for waste removal services as proposed by Republic Services, at a starting base rate rate of $2,378.75 per month, and annual increase capped at 4%.”
- Window Washing Contract
The contract for window washing and spider kill treatments expires in 2020, so we issued an RFP. The base proposals are attached to the report for Board review, and the incumbent is Corporate Cleaning Services. The key numbers for comparison, for 3 washes per year with 2 spider treatments, are as follows:
- Corporate Cleaning – $28,615/year with 3% annual increase locked for 5 years (though only 2 years are attached, they’ve confirmed they can lock year 4 and 5 at 3% increases).
- Service One – $100,620 /year with 4% annual increase locked for 5 years.
- Superior Services – $39,426/year with 3% annual increase locked for 5 years.
We suggest renewing with the incumbent, Corporate Cleaning services.
A sample motion: “I move the Board of Directors approves for management to negotiate terms and conditions to enter a 5 year renewal contract for window washing and spider kill treatments as proposed by Corporate Cleaning Services, at a starting base rate of $28,615 per year, and annual increase capped at 3% per year for 5 years.”
- Go Grocer Signage/Awning Request
As previously reported to the Board, attached to the report for Board review are drawings of proposed new signage and an awning at the commercial entrance, which Go Grocer requests the Board approve. The purpose of the additional signage and awning is to help draw more attention to the market’s presence.
The signage, proposed for atop the current sign was previously approved, they just did not want to pay for it unless it appeared business would be going well. However, if the Board chooses to allow the awning, we suggest an addendum to the lease be drawn up by counsel, to hold the Association harmless for its presence and ongoing maintenance and to require they keep it in a good state of repair at all times.
A sample motion: “I move the Board of Directors approves the additional signage and awning and the commercial entrance as proposed by Go Grocer, at the expense of Go Grocer for materials and installation, subject to an agreement to be drawn up by Association counsel requiring Go Grocer to hold the Association harmless the presence of the added sign and awning, require ongoing maintenance to be the responsibility of Go Grocer and requiring Go Grocer keep these fixtures in a good state of repair at all times after installation.”
- Garage Surface Repairs
As previously reported to the Board, approval and direction is needed for invoices for garage repairs related to the membrane, spalling concrete and leaking drains. Attached to the report for Board review are the revised invoices, as well as the report from JLJ Contracting regarding the conditions that were addressed.
The first invoice is for the repairs to 2 drains and adjacent concrete for $14,570. These were areas of leaking and concrete deterioration, including loose concrete at the base of on drain, at the ceiling of the 2p level – an imminently hazardous condition. These conditions were actually noted in the project manual for the coming Garage Project, so we suggest it be coded to the reserve.
The second invoice is for concrete repairs and patches to the membrane in various locations on 1p. This activity is budgeted in operating and done routinely on an annual basis. However, the repair areas needed exceeded our expectation and budget at $10,000. The total, $22,967.35 could rise to the level of a Reserve expense, however as a budgeted operating activity – though a large number, and considering the overall financial performance of the Association year to date, we believe it is worth considering leaving it as an Operating expense.
A sample motion: “I move the Board of Directors approves the payment to JLJ Contracting for garage surface repairs, including concrete, drain and membrane repairs, totaling $37,537.35, with $14,570 to be designated as a reserve expense, and $22,967.35 as an operating expense.”
- Carpet Cleaning Machine
The Association budgeted $7000 to replace the carpet cleaning machine, used in house to maintain the carpets. The task of identifying an appropriate replacement has been a priority for the new Engineer Jason Delgado, who will be in attendance to discuss the options he looked at. Some of the options seriously considered are attached to the report for Board review.
The machine the team suggests is the Nobles Falcon 2800, $9,535 plus tax and delivery.
They are requesting we exceed the budget to get a self-propelled machine the team believes will greatly reduce the time it takes to do this work. Jason will be at the meeting to discuss his research and the review process he went through, as well as the equipment he’s chosen for consideration and discussion with the Board.
A sample motion: “I move the Board of Directors approves a budget and purchase not to exceed a cost of $9,535 plus tax and the cost of delivery for the purchase of a professional carpet cleaning machine.”
- Garage Heater Replacements
The Association budgeted $133,000 for garage heater repairs and replacements. Attached for Board review are three options the Association’s engineer has narrowed the search down to for replacement options:
Oakbrook Mechanical – $13,465 per unit (Total $80,790)
Quality Mechanical – $6,662.50 per unit (Total $39,975)
WJ O’Neil – $6,670 per unit (Total $40,0020)
Each heater has been determined to be relatively similar in capacity and quality to the existing heaters. Quality and WJ O’Neil are bidding the same heater, while Oakbrook was unwilling to release their brand and model name until it is determined whether they would be getting the job.
The Engineer will be present to discuss his research and findings in more detail. But at present, we suggest pursuing an agreement with Quality Mechanical, and beginning by only replacing 6 heaters, and setting a budget of $40,000 for the equipment and $10,000 as a provision for unknown conditions. It is believed we may not need more than that at this time, and that the old machines can be cannibalized to repair other heaters in the garage.
A sample motion: “I move the Board of Directors approves a budget not to exceed $50,000 to replace up to 6 garage heater units as proposed by Quality Mechanical.”
- Construction Request
Attached to the report for Board Member review is the remodeling packet for Unit 2607.
#2607 – Kitchen & Bath Remodel; Flooring throughout
A sample motion follows: “I move the Board of Directors approves the remodeling plans of unit 2607, as submitted by the unit owner, following the recommendations of the building engineer as outlined in their written specifications and in accordance with the Rules and Regulations and remodeling guidelines of the Park Tower Condo Association.”
Business Reports
Treasurer’s Report
Fund Balances End of August 2019
Operating Funds $553,117 (decrease of $147,784 from prior month)
Reserve Funds $2,103,753 (increase of $100,626 from prior month)
Total Cash and Investments $2,656870 (decrease of $47,158 from prior month)
August 2019 Revenue and Expenses
Total Operating Revenue: $554,155
Total Operating Expenses: $415,931
Income From Garage: $37,615
Contribution To Reserve: $144,975
Total Surplus: $30,863
Management Report
Management will review current business and activities of interest, and the most recent sales activity.
ADJOURNMENT
There being no further business, the Board will consider adjourning the meeting.
A sample motion: “I move the Board of Directors adjourns the October 14, 2019 Board Meeting at ____PM.”
OWNER FORUM – 15 minutes, 2 minutes per person
The Board of Directors and Management will welcome and address feedback and questions from Unit Owners.
Next Board Meetings Scheduled for Monday October 28th at 7:30pm, Saturdays November 2nd, 9th and 16th at 9am, and Monday November 11th at 7:30pm. All meetings in the 2nd Floor Party Room unless otherwise posted.
About the Author: Tim Patricio
Park Tower Horizons
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