BOARD OF DIRECTORS MEETING

Report and Agenda

Monday September 9, 2019

2nd Floor Party Room

6:30PM – CLOSED SESSION (Management Office)

7:30PM – OWNER FORUM – 15 minutes, 2 minutes per person

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

OPEN SESSION – Call to Order

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

Chairs or others so designated will be invited to update the Board on Commission business and activities.

Board Report

The Board President may review business or other matters of interest with the Board and audience.

Action Items

1.         Closed Session Business

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

2.         Minutes – Board Meeting August 12, 2019

Attached to the report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Monday August 12, 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 August, 2019.”

3.          22.1 Disclosure

Consistent with FirstService Residential standard operating procedure, the standard 22.1 Disclosure the office distributes for resales, is to be approved by the Board for distribution. The present draft of the document for September 2019, is attached for Board Members to review.

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 revise this monthly, and will present it for Board approval.

A sample motion: “I move the Board of Directors approves the 22.1 disclosure as drafted for September 2019.”

4.        Building Value Appraisal

Attached to the report for Board review is a bid from IRR (Integra Realty Resources) formerly Appraisal Research Counselors, to conduct a building value appraisal. The last one was done in October 2010 by Appraisal Research Counselors. It is important to do periodically, to be more certain our insurance coverage is adequate. For 2011 the result was $141,400,000. Alliant/Mesirow does add industry value rate of inflation, and for this year a value of $165,0000 was used.

But, a lot more variables can impact replacement value, and because so much time has passed, we recommend an appraisal be done. IRR proposed an expense of $1000. In 2010 they charged $800, so the increase seems reasonable. Present clients include other curtain wall buildings such as Lake Point Tower, Harbor Point and the Hancock building, so they have a solid resume for this effort.

A sample motion: “I move the Board of Directors approves the agreement as presented by IRR (Integra Realty Resources) to conduct a replacement cost appraisal for insurance coverage purposes, as proposed at an expense of $1000.”

5.          Fire Safety Director Training

One of the projects our new Engineer Jason Delgado prioritized, is arranging Fire Safety Director training, consistent with the City of Chicago Life Safety Ordinance. Over the past 18 months, we’ve lost 4 employees we held the certification. Janitor Efrain Santan and myself are the only employees presently certified. Jason is certified, but not for Park Tower.

He reached out to the City to get information. The certification costs $500 per individual – which is the same it cost 3 years ago. However, they’ve agreed to come to our location if we have a minimum of 10 students. It is a 2 day course, 5 hours each day. In a perfect world, we would only need 6 employees to be certified to get reasonable coverage. BUT, there are multiple reasons we believe it is wise to have the class on site. Just a few:

a. Definitely an advantage to train as many employees as possible. The safety procedures and fixtures you learn about, is excellent, and in this case they can cater quite a bit to Park Tower.

b. 10 employees would be a good number – in 18 months we lost 4 who were trained and now we have to train others, so 10 at once should give us more flexibility in the future.

c. On site, the staff can come to work on those days, complete at least some of their duties and attend the class.

We budgeted $4100 for training efforts this year, and reasonably expect we will spend at least $3000 of that by year end on what we were hoping to accomplish. However, this is a rare opportunity we believe worthy of exceeding the budget. If not for the reasons listed above, to strengthen our teams life safety abilities.

A sample motion: “I move the Board of Directors approves a budget of $5000 for City of Chicago Fire Safety Director training for up to 10 members of the staff.”

6.         Service Animal Request

Attached to the meeting report for Board review is a request from a Unit Owner for authorization to keep a Service Animal in the unit, as well as a written opinion in response from the Association’s legal counsel.

A sample motion: “I move the Board of Directors approves [or] denies a Unit Owner’s request for a service animal.”

7.         Lobby Air Handler

There are two air handling units serving the lobby and mall, targeted by the budget for approximately $84,000 in capital repairs and replacements. Some work was already approved earlier in the year, when intake dampers serving the lobby failed during the winter. However, the air handlers themselves need work. For both the lobby and mall we need a new motor, variable frequency drive and bearings on the return fan. Shaft and fan work may also be needed.

We are expecting bids from AMS Mechanical, Oakbrook Mechanical, Quality Mechanical and possibly Stanton Mechanical. We hope to have at least two bids in time for the meeting. If so, we will propose a resolution at that time so we can get this work going between cooling and heating season.

8.        Garage Exhaust Fans

At the August 12th Board meeting, the Board approved Garage HVAC improvements targeted by the budget for a reserve expense total estimated at $94,200. The Board specifically approved $53,364 of work. $40,000 of that was approved for replacement of the exhaust fans, based on a bid from WJ O’Neil.  We’ve since received a 2nd bid from Kroeschell Service, and the engineer is awaiting two more from Continental Electric and Quality Mechanical. The Board authorized us to proceed after receiving additional bids.

However, through the process of meeting and discussing the work, as well as work the engineer has conducted on his own, unknown conditions were identified. In hindsight it would have been wise to request a provision to deal with potential unknown conditions, specifically additional electrical work. As we await the additional bidding, and work with WJO and Kroeschell to revise their bids, we would like the Board to consider authorizing a provision of 25% above the resolution already approved so we can proceed once we have apples to apples proposals including the additional work.

Altogether, we will still be about $30,000 under the target for these efforts in the garage.

A sample motion: “Be it resolved the Board of Directors approves an additional provision of $10,000, for a total of $50,000 to complete the replacement of two garage exhaust fans, as a reserve project, and approves for management to accept a proposal within that figure once at least two additional competitive bids from reputable vendors are received.”

9.          Garage Garbage Elevators

The purpose of this Agenda item is for discussion about the upcoming budgeted project to replace the Garage Garbage Lift controls and electrical panel. We would like to seek direction as to how the Board would like to proceed with this project. For example, whether to solely have OTIS look at this project for consideration, bid it out to multiple elevator firms, or even whether to consider hiring an elevator engineering firm to develop bid specifications.

We do not anticipate the need for a resolution, just discussion and Board direction.

10.        Maintenance/Garage Uniform Contract

As a part of the budget process for the 2019/2020, we sat down to discuss our uniform contract with Lechner and Sons. We are in the midst of a 5 year contract with them, however we identified some problems to iron out.

As a part of this process, they’ve agreed to lower our prices, and negotiate some more advantageous terms and condition. For example at present, we pay a fee of about $150/weekly and they are proposing to drop that rate to $100. Also, the present contract allows for up to 8% increase annually. The new terms would cap that at 5%.

The new proposed agreement is attached to the report for Board review, though we are still working out the terms and conditions. We would like the Board to consider approving a resolution to extinguish the present service contract and authorize management to enter a new one. However, we would like to use a weekly figure of $110/week so we have leverage to negotiate some of the other fine print.

A sample motion: “Be it resolved the Board of Directors approves extinguishing the present uniform rental contract for maintenance and garage employee uniforms, with Lechner and Sons, and authorizes management to negotiate and enter a new 5 year agreement with Lechner and Sons, at a fixed cost not to exceed $110 per week for the first year, not to increase more than 5% per year thereafter.”

11.        Health Club Equipment

The Health Club Commission proposes the purchase of a sitting Bicep/Tricep Curl machine with a weight-stack. We have a similar machine, but it requires members to work out in a standing position which is very hard on some members.  The machine includes a weight-stack so members would not have to lift weights to load or to unload the machine if someone left heavier weights on the rack. This would be important for members who are not able to lift heavier weights and those with back problems.

We received the following quotes (attached for Board Review) for machines from our service provider The Fitness Connection.  Currently, the Health Club has Matrix equipment, but Matrix does not offer this equipment with sit down capability.

BODY SOLID, GCEC-STK-PRO, Curl Station with 210 lb. Stack                   $1,789.75

TRUE, PSFS56, Dual Bicep/Triceps Machine with 220 lb. Stack                $2,386.50

The Commission recommends the purchase of the TRUE machine because it is the most similar to our existing equipment. Management supports this recommendation, as TFC reports the TRUE machine is better built with less screws and more welded connections, and they do not have exposed wires holding the weights.

We are presently operating within budget under the relevant category, Fitness Center. However, this piece of equipment was not specifically budgeted.

A sample motion: “Be it resolved the Board of Directors approves the purchase of the TRUE Dual Bicep/Triceps Machine, as proposed by The Fitness Connection for $2,386.50.”

12.        Garage Project Specifications

Previously distributed to the Board for review, was the proposed Project Manual by Wiss Janney & Elstner for the Parking Garage Repair Project. Unless there are any questions from the Board for WJE, this document should be accepted and WJE can be directed to put it out to bid. Consistent with the budget, this would be bid out to occur in two phases. The 1st phase would be for 2P and the 2nd phase for 1P.

A sample motion: “Be it resolved the Board of Directors accepts the Project Manual for the Parking Garage Repair Project, as presented by Wiss Janney & Elstner, and directs the project be put out to bid.”

13.        Construction Requests

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

#3614 – Flooring Remodel

#4003 – Flooring Remodel & Washer/Dryer Install

A sample motion follows: “I move the Board of Directors approves the remodeling plans of unit 3614 and 4003, as submitted by the unit owners, 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

1.     Treasurer’s Report

Fund Balances End of July 2019

Operating Funds $700,901 (decrease of $44,825 from prior month)

Reserve Funds $2,003,127 (increase of $147,769 from prior month)

Total Cash and Investments $2,704,028 (increase of $102,944 from prior month)

July 2019 Revenue and Expenses

Total Operating Revenue: $521,399

Total Operating Expenses: $410,701

Income From Garage: $33,308

Contribution To Reserve: $144,975

Total Deficit: $970

2.     Management Report

a. Business and Activities

b. 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 September 9, 2019 Board Meeting at ____PM.”

OWNER FORUM – 15 minutes, 2 minutes per person

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

Next Board Meetings Scheduled September 23rd (following “Bed Bug Prevention” Town Hall Meeting at 6:30pm) and October 14th 7:30PM. All meetings in the 2nd Floor Party Room unless otherwise posted.