Board Meeting Monday Sept. 12th 7:30pm
September 12, 2022
BOARD OF DIRECTORS MEETING
Monday September 12, 2022 7:30PM
Agenda and Report
6:30PM – CLOSED SESSION
The Board is scheduled to meet to discuss rule violations, pending litigation, Unit Owner account issues and personnel matters.
OWNER FORUM – 7:30PM
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.
Review of 2021/2022 Audited Financial Statements By Picker and Associates
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.
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.
- Minutes – Board Meeting August 8, 2022
Attached to the meeting report for Board Member review, are the proposed minutes for the Board of Directors Meeting held on Monday August 8, 2022, as submitted by Property Manager Timothy Patricio, 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 8, 2022.”
- Updated 22.1 Disclosure
Attached to the report for Board Member review is the updated 22.1 disclosure through July 2022 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:
(1) A copy of the Declaration, by-laws, other condominium instruments and any rules and regulations.
(2) 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 instruments.
(3) A statement of any capital expenditures anticipated by the unit owner’s association within the current or succeeding two fiscal years.
(4) 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 Managers.
(5) A copy of the statement of financial condition of the unit owner’s association for the last fiscal year for which such statement is available.
(6) A statement of the status of any pending suits or judgments in which the unit owner’s association is a party.
(7) A statement setting forth what insurance coverage is provided for all unit owners by the unit owner’s association.
(8) 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 instruments.
(9) 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 notices.
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 July 2022.”
- 2021/2022 Audited Financial Statements
Previously distributed for Board Review was the draft of the audited financial statements as presented by the Association’s auditors with 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.
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 28, 2022 performed by Picker and Associates.”
- Disposition of 2021/2022 Audited Surplus
The audit of the 2021/2022 Financial Statements reported an operating surplus of income over expenses in the amount of $104,393. Attached to the report for Board review is the key page from the Audit Report identifying the surplus. We suggest the Board approve transferring the surplus to the Association’s Reserve fund, particularly considering the very inflationary economic environment we are presently facing, as well as the likely and unexpected need for replacing the lobby area revolving doors.
A sample motion: “I move that WHEREAS, the Board of Directors (the “Board”) of Park Tower Condominium Association (the “Association”) is the governing body of said Association and is charged with the direction and administration of the Property subject to that certain Declaration of Condominium for Park Tower Condominium, as from time to time amended (the “Property”); and
WHEREAS, the Declaration provides that the Association is obligated to maintain, repair, and replace the common elements located in the Property; and
WHEREAS, an accounting for the 2021/2022 fiscal year revealed that there is an accumulated amount of cash in excess of the amount required for actual expenses (“excess”) in the amount of $104,393; and
WHEREAS, the Board has reviewed the status of the Association’s capital reserve account; and
WHEREAS, the Condominium Property Act requires, pursuant to section 9 (c) (2), the Association to maintain reasonable reserves for capital expenditures and deferred maintenance for repair or replacement of the common elements located in the Property; and
WHEREAS, the Board has considered the following factors relative to the reasonableness of the Association’s reserves:
1) The repair and replacement cost, and the estimated useful life, of the property which the Association is obligated to maintain, including but not limited to structural and mechanical components, surfaces of the buildings and common elements, and energy systems and equipment;
2) The current and anticipated return on investment of the Association’s reserve funds;
3) The amount that the Association’s most recent capital reserve study provides should be on deposit in the capital reserve account;
4) The financial impact on the unit owners in the market value of the condominium units of an immediate assessment increase to fund the reserves and
5) The ability of the Association to obtain financing or refinancing as a supplement to the capital reserve account; and
WHEREAS, after due consideration of the foregoing factors, the Board contends that their fiduciary duty demands that the excess funds be transferred into the capital reserve account.
NOW, THEREFORE, BE IT RESOLVED that the Park Tower Condominium Association Board of Directors approves the transfer of $104,393, the identified year-end operating fund surplus cash for 2021/2022, to the Association’s reserve account, after taking into consideration the criteria for establishing a reasonable reserve set forth in Section 9(c)(2) of the Illinois Condominium Property Act, in order to more properly fund said reserve account.”
- Biannual Exterior Sealant Inspection
Attached to the report for Board review is a proposal from Wiss Janney Elstner Associates to conduct the budgeted exterior sealant inspection, recommended to keep professional eyes on the condition of the sealants and exterior. The purpose is to properly monitor the exterior sealant health and better gauge when they will require replacement.
The budget for this activity is $22,500. They’ve bid $9000 for their fee to conduct the examination and draft the report. Two bids were sought for a contractor to operate the needed swing stage:
JLJ Contracting $24,500
Service One $13,592
We suggest proceeding with Service One, and would also recommend a provision should WJE believe an additional drop is necessary if conditions warrant. Based on these bids, we would suggest $6000. While this would put us over budget, it would be wise to continue inspecting if findings suggest the need.
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 $9,000, and approves Service One as proposed for $13,592 to operate the needed swing stage for up to 3 inspection drops, and a provision of $6000 should Wiss Janney Elstner Associates and Management believe an additional drop is warranted by any findings from the first 3 drops.”
- Heat Exchanger Project
Previously the Board approved for Kroeschell Service to begin the budgeted Heat Exchanger Testing and Repairs planned for this year, for the fin tube heat network and pool area heating. $105,000 is budgeted all together, and in March the first step in the testing process was approved for $9,560. This was the first part of what we expected would either be a larger project, or what would provide us with information for future planning. Then on August 8th, $10,832 was approved to replace failing gate valves.
Once the gate valve replacement was finished and the testing got underway, problems with both the fin tube and pool exchanger were found. Because the pool area is reliant on this heating system and because we are only a few weeks away from heating season, our team approved for the contractor’s work to continue. This should be ratified by the Board. The proposal from Kroeschell is attached to the report for Board review.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association approves and ratifies the decision by Management to replace the Heat Exchanger serving the pool area, as reserve expense, and as proposed by Kroeschell Service, Inc. at a total expense of $15,415.”
It also appears the fin tube Heat Exchanger, which provides the perimeter radiant heating for the 2 bedroom units will need to be replaced. This system is usually not put into operation until November, so it is likely we have some time to maneuver. Kroeschell has submitted the attached proposal to install the replacement at a cost of $55,985. Our maintenance team is currently investigating options for replacement and our goal is to have recommendations for consideration in time for the meeting.
- Revolving Door Repair vs. Replacement
The purpose of this action item is to discuss the condition of the damaged revolving door, and the potential solutions our team has been looking into. There are three options we are looking at: repair of the damaged door, replacing it as is and replacing both with sliding doors and a vestibule. Attached to the report for Board review are the initial quotes from Door Systems to do each:
Repair $8000 (Conditional estimate, not guaranteed or warranted.)
Replace $31,569
Auto-slide Door $28,824 (one vestibule, two doors)
Industrial Door Company provided a quote only for replacing the existing revolving door as-is, which is also attached:
Replace $75,248
Either way for repair or replacement, sadly there is a 8 to 10 week lead time.
As of the drafting of this report, our team is still collecting information. At a minimum we would suggest the Board discuss the options and set a preference.
If necessary, a resolution can be proposed at the meeting.
- Management Office Carpet and Painting
This year, $39,700 was budgeted for improvements to the Management Office. For now, we’ve identified the carpet, entry flooring and paint finish in need of attention, and potentially replacement of the chairs. Attached to the report for Board review are quotes for Management Office (as is) carpet replacement and painting.
Green Tech Decoration $10,725 (paint & entry tile)
MPD Construction $11,100(paint & entry tile)
DK Construction $14,400 (paint & entry tile)
Chicago Floor Systems $6,900 (carpet tiles)
As a team we do not see the need to look at additional carpet options. CFS which is the licensed distributor for the present carpet, is only quoting $800 more than they did 10 years ago when the present carpet was installed. It has performed well and we see no need to change the style. If the Board would like to see a change, we will look into additional options.
The guest chairs do not need to be replaced – they remain in excellent condition overall, but we are looking at options for desk and conference room chairs. Several of these are falling apart which makes sense after 10 years of sometimes daily use. All together we need 12 chairs and hope to have options ready for the Board to consider in time for the meeting.
A resolution can be proposed at the meeting.
- Snow Tractor Replacement vs. Overhaul
This year, $25,000 was budgeted for replacement of the snow removal tractor. However, the same vendor that bid an as is replacement for our budget, would not hold their number due to inflation and supply chain issues. They’ve revised their bid to $33,379. The updated bid from Russo is attached to the report for Board review.
Our team was unable to get a bid on similar equipment from John Deere who reported it is not available in our region at this time. However, the team is contacting other local equipment dealers.
As an alternative, we are getting a quote to have our current tractor completely overhauled. We are expecting such an overhaul would be $5,000 to $10,000, though it would not get us a warranty. Realistically we believe such an overhaul could buy us another 5 to 10 years.
We intend to have more information in time for the meeting for discussion and consideration.
- Kitchen Air Handler Project
Attached to the report for Board review is a proposal for rebuilding of the kitchen make-up handler and ancillary coils and dampers. This was budgeted for $169,000.
Oak Brook Mechanical $563,740
We intend to have more information in time for the meeting for discussion and consideration.
- Emergency Expansion Joint Replacement
Attached to the report for Board review is a proposal for replacement of an expansion joint on the main fin tube supply line for heating, as well as a photo of the joint in question.
Upon finding this condition, the first available contractor was asked to do the repair which was WJO Chicago This was approved and completed on an emergency basis because the condition could have resulted in catastrophic flooding.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association approves and ratifies the decision by Management to replace the 29th floor main fin tube heating line expansion joint on an emergency basis as proposed by WJO Chicago at a total expense of $7,750.”
- Construction Requests
Attached to the report for Board Member review are remodeling packets for the following Unit Owners’ construction projects:
Unit 3702 Floor Living Room
Unit 4004 Window Add-on Glass
Unit 1206 Window Add-on Glass
A sample motion follows: “I move the Board of Directors approves the remodeling plans for units 3702, 4004, and 1206 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.”
- Social Committee — Holiday Chorus
The Social Committee is asking for input for where and when a Holiday Chorus might sing. In addition to singing at the Holiday Cheer Reception, they are also thinking about singing in the Lobby, Atrium, Deck, sidewalk around Circle Drive, Plaza by the mall entrance, Plaza by the railing next to the sidewalk, and 2nd floor hallway. They are also wondering whether there hours besides early morning/late at night which should be avoided.
Business Reports
- Treasurer’s Report
Attached to the Report for Board Review is the July 2022 Balance Sheet and Statement of Income & Expenses as reported by the Habitat Company.
Fund Balances End of July 2022
Operating assets totaled $1,723,924 and the Reserve cash and investments were $3,776,728 for a total of cash and investments of $5,500,652.
July 2022 Revenue and Expenses
Total Operating Revenue: $576,102
Total Operating Expenses: $399,977
Income (Loss) From Garage: $20,980
Contribution To Reserve: $149,567
Total Surplus/(Deficit): $66,230
- 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 activity of interest from the Maintenance team.
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 12, 2022 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 26th and October 10th at 7:30PM in the 2nd Floor Party Room.
About the Author: Tim Patricio
Park Tower Horizons
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