BOARD OF DIRECTORS MEETING AGENDA

Monday September 13th, 2021

Agenda & Report

6:30PM – CLOSED SESSION

The Board is scheduled to meet to discuss rule violations, pending litigation, Unit Owner account issues and personnel matters.

7:30PM – OWNER FORUM

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

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 Home Improvement Commission Reports.

Board Report

The meeting chair 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. 

2. Minutes – Board Meeting August 9, 2021

Attached to the meeting report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Monday August 9, 2021, as submitted by Timothy Patricio, Property Manager 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 Monday August 9, 2021.”

3. Budget & Finance Commission Membership

It was reported to Management that Unit Owners Lloyd Allison of 1901 and Christopher Ibrahim of 3911 were recruited to join the Budget & Finance Commission. 

A sample motion: “I move the Board of Directors of the Park Tower Condo Association hereby appoints Unit Owners Lloyd Allison of 1901 and Christopher Ibrahim of 3911 to the Budget & Finance Commission.” 

4. COVID-19 Policies

The purpose of this action item is to allow for an opportunity to discuss the status of the pandemic, and any related Association business and issues. 

5. Garage Heater

Over the past 2 ½ to 3 years, we’ve completed heating and ventilation improvements throughout the garage. Recently, this included repairs the replacement of several heating units, automating intake damper and tying them into the CO detection system, and numerous repairs to fans and fan motors. Some of this planned, some of this mandated by the City as discussed at multiple past meetings.

While our garage HVAC is now well in order, and ventilation is probably as good or better than it has been in a couple decades, our team did notice a problem on 2p. When repairs were done to the dampers serving the main air handler bringing fresh air in, the flow improved so greatly that there is a location an additional heater is needed. This is directly across from the service area access door on 2p, and along the East wall near the underside of the ramp. This location was likely overlooked when we completed the heater project 2 years ago. As we’ve learned, the dampers were not functioning 100%. But they are now, and following that work (in late winter) our team is concerned severe cold conditions could cause discomfort as well as other consequences.

So bids were sought to add an additional heater in this location:

Amber Mechanical         $9,225

Quality Mechanical         $8,350

WJ O’Neil                         $7,725

Our team is presently addressing some questions with the WJ O’Neil bid, which I should have resolved in time for the meeting.

While not specifically budgeted, we would recommend this be a reserve expense. We’ve accumulated enough savings being under budget on more than enough other projects, to fund this relatively small expense.

A sample motion follows: “I move the Board of Directors approves the installation of an additional heater near the fresh air intake on 2p, as proposed by ___________ at a cost of __________, to be funded by the Reserve Fund.” 

6. Electric Car Charging

The purpose of this Action Item is to discuss planning for the installation of the electric car spots. We already have one Owner, actually already parked along the wall in question. Work will get underway soon, so it may be worthwhile to discuss the value to assign to the parking spots and since we do tentatively plan to read meters quarterly, there will be work involved with maintaining the spots going forward.  We will be prepared to discuss our thoughts and suggestions at the meeting.

Beyond that, as instructed we sought 2 additional bids. The proposals (attached for Board Member review) were as follows:

AMS Mechanical                           $54,178

Dunning Electrical                         $44,965

Kroeschell Engineering                 $57,475

The Board already approved a cost not to exceed based on the Dunning Electrical proposal, so their contract was approved.

7. Future Riser Project Materials

As our budget process has gotten underway, one thing is clear. Inflation. With plumbing materials in particular, massive inflation. As a part of our process each year, our team does look at the present cost of commonly used parts and materials versus what they were a year ago. This helps us forecast the budgets each year.

Sadly, prices on some common plumbing parts have gone stratospheric. For example:

Routine Materials:

Tub spouts last ordered in bulk 2018  $32.21 –  today $42.03 = 23% increase

2″ Ball valve last ordered in bulk 2019 $52.25 – today $64.03 = 22% increase

1 ½” P trap last ordered in bulk 2019 $21.94  – Today $34.90 = 59% increase

1/2″ copper T  (use up to 7 in a bathroom re-pipe) last ordered in bulk 2019 .67 now .98  =  21% increase

Riser Materials:

10’ of 1/2″ copper $9.42 in 2019 and the price is now $23.10 = 145% increase

10’ foot of 2” copper $61.88 in 2019 and the price is now $180.00 = 190% increase

Gerber wall stops $48 per valve in 2019 and the price is now $80 = 66% increase

In all cases, far beyond the 5% annual rate we’ve baked into our long term forecasting for the Riser Projects. When we budget the quantities are somewhat estimated and fortunately we’ve ended up underbudget most of the time. That works in our favor. We base numbers on the approximate needs for 3 sets of risers each year. In the case of the present risers, contracts and provisions for materials were approved in 2019. So the next 3 risers, material for most of the work is in stock. However, beginning in fiscal year 2022/23, we will need to order materials. In 2019, it worked out to $15,000 for Gerber Stops, $15,000 for pipe and fittings, $10,000 for carpentry supplies, and a provision of $15,000 for other materials as needed. For 3 risers, about $55,000 per year.

Because copper and construction material pricing can be volatile, and has been tremendously so throughout the pandemic, we propose the Board pre-authorize bulk spending for materials now, for the upcoming two fiscal years. We will use the same budget figure, $55,000 per year plus 5% per year since 2019. That brings it to $64,000 per year; $128,000 altogether. Our team will be keeping a track of pricing, with the hope of taking advantage of downward spike. Volatility does go both ways as we’ve seen in the past with record copper prices prior to 2019 – there was actually a bit of a crash and we purchased during a very favorable window of pricing. It is very possible given world events and the time of year with outdoor construction slowing for the season, we may have a downward spike at some point in coming months which we could take advantage of.

The Board could also designate a member to give final authorization before we pull the trigger on an such purchase. Such as the Board President or Treasurer – or both even.

A sample motion follows: “I move the Board of Directors approves a provision of $128,000 for the advance bulk purchase of materials, for approximately 6 future Riser Projects expected in 2022/23 and thereafter, to be made at a time observed to be most advantageous or strategic based on pricing to be actively monitored by management and staff, and with final approval by the Board President and Treasurer after appropriate consultation.”

8. Construction Request

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

5309 – Hard Flooring & Kitchen Countertop

A sample motion follows: “I move the Board of Directors approves the remodeling plans of unit 5309 as submitted by the unit owner, 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 

1. Treasurer’s Report

Attached to the Report for Board Review is the July 2021 Balance Sheet and Statement of Income & Expenses as reported by the Habitat Company.

Fund Balances End of July 2021

Operating assets totaled $1,445,273, and the Reserve cash and investments were $2,929,684 for a total of cash and investments of $4,374,957.

July 2021 Revenue and Expenses

Total Operating Revenue: $577,640

Total Operating Expenses: $437,965

Income (Loss) From Garage: $108,188

Contribution To Reserve: $146,508

Total Surplus: $101,355*

*Important to note, this surplus is entirely due to the reimbursement to the Garage, from the Reserve Fund for the expense related to the temporary worker hired to help over the course of the concrete and membrane project.

2. Management Report

Business and Activities – Property Manager Tim Patricio will review current business and activities of interest.

Engineer’s Report – Property Manager Tim Patricio will review items of interest from Maintenance.

Recent Sales Activity – Property Manager Tim Patricio will review the most recent Sales. The current Sales & Lease reports are attached to the meeting report for Board review.

ADJOURNMENT

There being no further business, the Board will consider adjourning the meeting.

A sample motion: “I move the Board of Directors adjourns the September 13, 2021 Board Meeting at ____PM.” 

OWNER FORUM

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

The next Board Meetings are scheduled for Monday September 27th and October 11th at 7:30pm, in the 2nd Floor Party Room.