BOARD OF DIRECTORS MEETING

Monday October 14, 2024  7:30PM

2nd Floor Party Room

AGENDA & REPORT

6:30PM – CLOSED SESSION 

7:30PM – Review Of Audit By Ralph Picker Of Picker & Associates 

OWNER FORUM

CALL TO ORDER – Board Meeting Open Session

The meeting chair, expected to be Board President Michael Parrie will call the meeting to order. 

Confirm Quorum

The meeting chair 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.

Attached to the report for Board review are the most recent reports from the Home Improvement Commission and the Social Commission.

Board Report

The meeting chair may give a report on current Association business and activities of interest.

Action Items

1. Closed Session Business

This agenda item is provided for any resolutions proposed resulting from Closed Session discussion.

2. Minutes – Board Meeting September 9, 2024

Attached to the meeting report for Board Member review are the proposed minutes for the Board of Directors Meeting held on Monday September 9, 2024, as submitted by Community Manager Danny Bravman, for Board consideration.

A sample motion: “I move the Board of Directors of the Park Tower Condo Association hereby approves the minutes from the Board Meeting held on September 9, 2024.” 

3. Updated 22.1 Disclosure

Attached to the report for Board Member review is the updated 22.1 disclosure through August 2024 for formal Board approval.

The 22.1 Disclosure, is a standard document we provide upon request in the event of any sale and make available for inspection to the prospective purchaser. This incorporates:

• A copy of the Declaration, by-laws, other condominium instruments and any rules and
• A statement of any liens, including a statement of the account of the unit setting forth the amounts of unpaid assessments and other charges due and owing as authorized and limited by the provisions of Section 9 of this Act or the condominium
• A statement of any capital expenditures anticipated by the unit owner’s association within the current or succeeding two fiscal
• A statement of the status and amount of any reserve for replacement fund and any portion of such fund earmarked for any specified project by the Board of
• A copy of the statement of financial condition of the unit owner’s association for the last fiscal year for which such statement is
• A statement of the status of any pending suits or judgments in which the unit owner’s association is a party.
• A statement setting forth what insurance coverage is provided for all unit owners by the unit owner’s association.
• A statement that any improvements or alterations made to the unit, or the limited common elements assigned thereto, by the prior unit owner are in good faith believed to be in compliance with the condominium
• The identity and mailing address of the principal officer of the unit owner’s association or of the other officer or agent as is specifically designated to receive

As a matter of routine, we continue to update this regularly and will present it periodically for Board review and formal approval.

A sample motion: “I move the Board of Directors of the Park Tower Condo Association approves the 22.1 disclosure as drafted with the best available information through August 2024.” 

4. 2023/2024 Audited Financial Statements

Attached to the report for the Board (previously distributed for their advance review) is a draft of the Association’s audited 2023/2024 Financial Statements as presented by Picker and Associates. This will need to be formally accepted by the Board so any appropriate adjustments can be made to the Association’s books and records.

It does appear we have a surplus here of about $491,000. However, the budgeting is underway for the 2025/2026 fiscal year and we are determining how much of this surplus is dollars we are actually holding onto, and how much is on paper. Including, how much on paper we may not realize. We expect to propose action on the surplus at a future meeting.

A sample motion: “I move the Board of Directors of the Park Tower Condo Association formally accepts the audit of the Association’s financial statements for the fiscal year ending February 29, 2024 as performed and presented by Picker and Associates.”

5. 3810-3811 Unit Combination Amendment

As previously reported and discussed, the Unit Owners of 3810 and 3811 have completed the work necessary to formally combine the two units into one. Attached to the report for Board review is the Declaration Amendment documentation drafted by Association counsel.

Similar to other such combinations, the new unit will be known as Unit 3810-3811. Once the Board approves the amendment, the Association’s attorney will file it with the County Recorder’s office, and a new single Tax PIN number will be issued to the Unit Owner for the unit.

Counsel provided a sample motion: “I move the Board of Directors of the Park Tower Condo Association approve the Owner’s application to combine Unit 3810 and Unit 3811 into a single Unit to be known as Unit 3810-3811, and approve the proposed Unit Combination Amendment to the Declaration of Condominium to memorialize this transaction.” 

6. 1P, 2P and 2nd & 1st Floor Signage

Attached to the report for Board review are the planned drawings for the signage replacements throughout the lower non-residential levels of the building. The intent as discussed previously and as reported by the Home Improvement Commission is to have the signage consistent throughout the building.

We do not yet have the formal proposal from Alphabet Shop, as we await a thumbs up or any further revisions from the Commission Chair (as indicated in their report). The vendor is reluctant to issue a proposal until the revisions are accepted so they don’t have to revise the proposal over and over again. Should this all come together in time for the meeting we will forward the proposal.

However, the Board is also welcome to make adjustments and ask questions. So we are at least providing the drawings for you to consider.

A sample motion can be proposed at the meeting, if necessary.

7. Exterior Sealant Inspection

Attached to the report for Board review are proposals for the planned inspection of the exterior sealants. We’ve been conducting these inspections every other year to keep a pulse on the window sealant conditions. This year we are planning to increase our review from 3 drops to 4, to continue being proactive in our evaluation efforts as the sealants age. Our engineering firm WJE has bid $9500 to complete their report – previously it was $9000 to complete 3 drops, and so this is just under a 3% annual increase while agreeing to complete a 4th drop.

For the scaffolding and swing stage team to accompany the engineers, our team sought the following proposals:

JLJ Contracting                  $25,800

Mark 1 Restoration         $45,895

Service One Access          $17,336.40

We have used Service One in past years, as they are typically the low bidder. That brings the total as proposed to $26,836.40  We also recommend a provision for unforeseen situations. It is possible that conditions may warrant additional drops or even some spot repair work. We would suggest about $10,000, for a total provision for the project of $37,000.

The budget for this effort is $42,800.

A sample motion: “I move the Park Tower Condo Board of Directors approves the proposal by Wiss Janney Elstner Associates, Inc., for an inspection and report on the condition of the exterior and sealants, at a cost of $9,500, and approves Service One as proposed for $17,336.40 to install the necessary scaffolding and operate the needed swing stage for up to 4 inspection drops, and a provision of $10,000 should Wiss Janney Elstner Associates and Management believe an additional drop or spot repairs is warranted by any findings.” 

8.   Staff Uniform Contract

As reported at the last meeting, our contract with Lechner & Sons for maintenance and garage uniform rental and cleaning, is up October 31. We presented the following proposals, Lechner being the incumbent:

Cintas                                    $278.06/week

Lechner & Sons                 $137.40/week (3 year contract; up to 8% increase annually or CPI)

UniFirst                                $141.41/week

Vestis (aka Aramark)       $78.56/week (Year to year contract; 5% annual increase or CPI – or with 15 day notice)

We were awaiting some additional information for each vendor, and indicated we were not keen on the low bidder, Vestis.  As a team, we prefer to stick with who we know, Lechner. We have a good system with them in place and starting over right now would not be worth $60/week (about $3200/year). We are pleased to report the agreed to cap the increase to 5% or CPI and have reasonably addressed all other issues we’ve had.

We suggest this as a sample motion: “I move the Park Tower Condo Board of Directors hereby approves the staff uniforms contract with Lechner & Sons Services, as proposed at a base rate not to exceed at $137.40 per week for three years, with an annual increase capped at 5% or the consumer price index for inflation.” 

9. Construction Requests

Attached to the report for Board Member review are remodeling packets for the following Unit Owners’ construction projects:

Ste. 116  – Rooftop HVAC

609 – Electrical Upgrades

A sample motion follows: “I move the Board of Directors approves the remodeling plans for Suite 116 and Unit 609 as submitted by the unit owners, following the recommendations of the chief 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

Attached to the Report for Board Review is the August 2024 Balance Sheet and Statement of Income & Expenses as reported by the Habitat Company.

PLEASE NOTE – As of the drafting of this report, we are expecting a revised August set of Financials from Habitat due to revisions from our review of the 2023/2024 audit. We should receive this in time to provide to the Board in time for the meeting, with an updated summary of income and expenses.

Fund Balances End of August 2024

Operating assets totaled $2,138,652 and the Reserve cash and investments were $4,297,118 for a total of cash and investments of $6,435,770.

August 2024 Revenue and Expenses

Total Operating Revenue: $647,356

Total Operating Expenses: $484,389

Income (Loss) From Garage: $28,831

Contribution To Reserve: $172,233

Total Surplus/(Deficit): $19,565

Management Report

Attached to the report for Board Review is the updated Monthly Activity Report, and the Sales and Lease Reports.

1. Business and Activities – Property Manager Tim Patricio will review current business and activities of interest.
2. Engineer’s Report – Property Manager Tim Patricio will review activity of interest from the Maintenance team.
3. Recent Sales Activity – Property Manager Tim Patricio will review the most recent Sales.

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, 2024 Board Meeting at ____PM.” 

OWNER FORUM

The Board of Directors and Management will welcome and address feedback and questions from Unit Owners.

The next regular Board Meetings are scheduled for Monday November 11th and 25th at 7:30PM, and the next Resident Forum is scheduled for Thursday October 24th at 7pm, all to be held in the 2nd Floor Party Room unless otherwise posted. Board and Finance Commission Budget Meetings are scheduled for Saturday November 2nd, 9th, and 16^th from 9am to 12pm.