Management 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 may 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 is the most recent report from the Home Improvement Commission.
Board Report
The meeting chair may give a report on current Association business and activities of interest.
Action Items
This agenda item is provided for any resolutions proposed resulting from Closed Session discussion.
Attached to the meeting report for Board Member review, are the proposed minutes for the Board of Directors Meeting held on Monday August 12, 2024, 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 12, 2024.”
Attached to the meeting report for Board Member review, are the proposed minutes for the Special Meeting of the Unit Owners to review proposed amendments to the Rules and Regulations, held on Monday August 12, 2024, 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 Special Unit Owner Meeting to review proposed amendments to the Association’s Rules and Regulations held on Monday August 12, 2024.”
Management completed negotiating a listing agreement with Strauss Realty, Limited, for rental of the “market” space 14c. This was forwarded to the Board for consideration following review by legal counsel and follow up negotiation, and we’ve since come to a final agreement. The key provisions are the term of 1 year, and the base commission was reduced from 8% to 5% through the negotiation process.
This will need to be formally accepted by the Board so that the unit can be put on the market. The Broker has been engaged and will begin marketing the unit to appropriate businesses for potential occupancy.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association hereby approves the listing agreement as negotiated with Strauss Realty, Ltd., for the marketing and rental of the Association owned commercial space known as 14c, for a period of one year and including a base commission rate of 5%.”
Attached to the report for Board Member review is the updated 22.1 disclosure through July 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:
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 2024.”
As previously approved by the Board of Directors, a full professional Reserve Study Update was recently completed. Following review by Management, a draft was forwarded to the Board for review and consideration.
It is routine for a condominium Board to review and accept such reports, which will then be used for budgeting considerations. Unless there are either questions about the contents or any potential objections to the facts and information presented, we would suggest the Board formally accept the Study. After that, it can be provided upon request to Owners, and we will distribute it to the Budget & Finance Commission so they can begin reviewing for budget season.
While the budgeting process is just getting underway, one very positive thing that we can point out, is that their Reserve Funding projections starting with the next fiscal year, has actually lowered…the previous Reserve Study for the budget period ending 2026 called for a contribution of $2,346,800, where the updated study calls for a contribution of $2,227,800. At present, we are funding $2,066,800 annually. So there is work to do as we begin working on the budget. And we are awaiting results from the 2023/2024 audit which could impact the big picture as well. But it is a positive sign that inflationary pressure is calming down (at least for now).
A sample motion follows: “I move the Board of Directors formally accepts the 2024 Reserve Study as presented by Reserve Advisors, LLC, and hereby directs it be made available to Unit Owners electronically upon request.”
Management’s work on a draft of the proposed budget for the 2025/2026 Fiscal Year is getting underway. Below is our preliminary expected calendar of activities for review and consideration by the Board. (All Meetings expected to be held in the Party Room unless otherwise directed by the Board.)
Friday October 25, 2024 – Management to present draft of Proposed Budget.
Saturday November 2, 2024 @ 9am to 12pm – Budget Review Meeting #1 – Categories: Expenses – Administrative, Utilities, Building Operating, Contracts, Maintenance, and Recreational.
Saturday November 9, 2024 @ 9am to 12pm – Budget Review Meeting #2 – Categories: Garage Income & Expenses; and Payroll and Legal Expenses during Closed Session at end of Open Meeting.
Saturday November 16, 2024 – @ 9am to 12pm – Budget Review Meeting #3 – Categories: Revenue, Capital Reserve, and Final Review and Questions.
Monday December 9, 2024 – Board of Directors Meeting for final considerations and approval to mail proposed budget for Unit Owner Review.
By Week of December 16, 2024 – Budget to be mailed for Unit Owner Review.
Monday January 13, 2024 – Special Unit Owner Meeting To Review Budget.
Monday January 13, 2024 – Board Meeting to accept and/or amend proposed budget. (If the Board amends the budget in a material way, for example changing the assessment level or contribution to the reserve, it should be mailed to Unit Owners again, and another Special Meeting should be scheduled.)
The Board can of course amend this schedule how they see fit.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association hereby accepts the budget activity calendar for the 2025/2026 fiscal year, as presented by Management.”
Attached to the report for Board review is a proposed charter to form a Green Commission, consistent with discussion at the August 2024 meeting. As stated in the charter, the Green Commission “shall provide guidance, direction and recommendations for energy and water usage, waste disposal and other improvement projects to the Board of Directors. The Commission may also be given specific direction or requests for particular projects including budget and deadlines by the Board as projects are proposed. Ideas, suggestions, and recommendations may come from within the Commission itself or from the Board.”
It is our understanding that the following Unit Owners have volunteered to join such a Commission:
Joseph Guzzardo – Unit 1801
Sherman Lundy – Unit 4306
John Yardley – Unit 401
Additionally, we understand Monique Fouant has offered to act as liaison with the Commission, if no other member would like to volunteer, however she stated she would need to give up her position on the New Resident Commission.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association approves the formation of the Green Commission, to be commonly referred as the ‘Green Committee’, and hereby accepts the charter as proposed, and appoints the following members, Joseph Guzzardo (Unit 1801), Sherman Lundy (Unit 4306) and John Yardley (Unit 401), and appoints Board Member _________ as Board Liaison to the Commission.”
Our contract with Lechner & Sons for maintenance and garage uniform rental and cleaning, is up October 31.
First, just to put things in perspective, this contract represents about $7000 of our annual operating budget each year. Nonetheless, we put it out to competitors for pricing since it has been about 5 years. The incumbent however, only bid an increase of about 12% their original 2019 price. Pricing summaries are attached to the report for Board review. Keep in mind, they were asked to bid substantially similar materials to what our crews are outfitted with now:
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 are awaiting formal terms and conditions.
All these companies have mostly terrible reviews (BBB, Yelp and others). Arguably, UniFirst and Lechner get the best reviews. We have had issues with Lechner over the years but they’ve been manageable. To give you an idea of how bad it is though, I sent a message to our managers group asking for our colleagues to share if they have good feelings about the uniform company they work with, and I have yet to get a response.
We are leery of Vestis’s proposal. First, they have some of the most terrible reviews and there is a suggestion in their fine print that they could increase rates at any time they like during their contract with a 15 day notice. Not to mention the rate is so much lower, it’s confusing. Also, as we researched this company (which was spun off in 2023 from Aramark) we learned that it may be sold to a French owned firm.
As a team, we would all 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). But, we could use the lower bid as leverage to get better terms.
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, whichever is lower.”
By approving this motion, it will give us something to go to Lechner with and say our Board saw a much lower bid from a viable competitor – they want to renew but want to ‘sharpen the pencil’. We actually did this last time with Lechner and were able to bring down the weekly rate and the annual increase which they proposed at the time, also 8%.
The Bathroom Exhaust motor and housing was scheduled for possible replacement. It was budgeted after the engineer reported some issues in recent years, and working through the Reserve Study we opted for a worst case scenario, and $162,500 was scheduled for 2024/2025.
The good news is full replacement is not necessary and the even better news is we come in much less than budgeted. After a recent shutdown allowed our team to get inside the housing and have a look around with possible replacement contractors, the problem was found. Just the fan shaft and bearings will need replacement, and after that it should be operational with good maintenance and care for the foreseeable future.
The engineer believes that the motor is showing its age though, and also asked for a spare motor to be bid that could be switched out as needed by our team.
Attached to the report for Board review are proposals as follows:
Biedron Heating & Cooling, Inc. $37,321
Fluid Technologies Pumps & Controls $35,550
WJO Chicago $32,702
We see no reason not to proceed with the low bidder.
A sample motion: “I move the Park Tower Condo Board of Directors hereby approves capital repairs to the main bathroom exhaust system, as proposed by WJO Chicago at an expense of $32,702, to be funded by the reserve fund.”
As reported by the Home Improvement Commission over the last several months, details were worked out with the proposal for remodeling of the passenger cars and the ceiling of car 5. The process will also result in the installation of ADA speakers and the replacement of the door operator sensors on all elevators. The design changes have been detailed in the Commission’s reports. The adjustments have been to the upper wall stone material, the final choice for the banker wire, and the flooring. With the flooring, it was originally bid for carpeting, but through the process, as reported, the Commission felt to do it right the material needed to be stone.
Attached to the report for Board review is a bid worksheet showing the updated figures, as well as the updated quote from OTIS and a bid for the floor material. The original budget for the effort in its entirety, was $250,800.
Accounting for all adjustments the Commission recommended, the updated bid is $356,636. The original total from OTIS was $294,266*. (The competitive bids at the time were from Imperial $320,809 and Eklund’s $343,063.) The primary changes resulting in the increase are the chosen material for the upper walls, increasing by $23,032, and the flooring, which adds $36,437.61. Since the original spec’d materials bid by all three firms were the same, one could presume to add these differences to their proposals to reasonably compare to OTIS’s updated quote.
(*This is actually a corrected figure, from $293,316. As I updated the worksheet I found a couple discrepancies totaling $950 due to a formula error.)
A sample motion: “I move the Park Tower Condo Board of Directors hereby approves the remodeling of elevator cabs 1-4 and the replacement of the ceiling of elevator cab 5, to be done with the previously approved installation of ADA speakers in cabs 1-6 and the new door operator safety sensors, at a total project cost of $356,636, to be funded by the reserve fund.”
Attached to the report for Board Member review are remodeling packets for the following Unit Owners’ construction projects:
906 – Hard Surface Flooring
1706 – Bathroom Remodel
3407 – Washer and Dryer Install
3701 – Unit Remodel with Washer & Dryer
3810-11 – Full Unit Remodel
4515 – Kitchen & Bath & Hard surface flooring
5015 – Kitchen Remodel, Electrical Work & Flooring
5301 – Window film
5507 – Kitchen & Bathroom Remodel
A sample motion follows: “I move the Board of Directors approves the remodeling plans for 906, 1706, 3407, 3701, 3810-11, 4515, 5015, 5301 and 5507, 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
Attached to the Report for Board Review is the July 2024 Balance Sheet and Statement of Income & Expenses as reported by the Habitat Company.
Fund Balances End of July 2024
Operating assets totaled $1,949,399 and the Reserve cash and investments were $4,397,542 for a total of cash and investments of $6,346,941.
July 2024 Revenue and Expenses
Total Operating Revenue: $641,467
Total Operating Expenses: $455,148
Income (Loss) From Garage: $33,521
Contribution To Reserve: $172,233
Total Surplus/(Deficit): $47,607
Action On Investments
An operating fund CD with Gold Coast Bank expired in August, and after consultation with the Board President and Treasurer it was renewed for 60 months at 4.75%. The investment receipt is attached to the report for Board review. It would be appropriate for the Board to ratify this action, and reaffirm the policy for Management to consult with the Treasurer and Board President for ongoing investment considerations.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association approves the renewal of an operating fund CD with Gold Coast Bank, totaling $122,533.11, with an interest rate of 4.75% and affirms that management continue consulting with the Board Treasurer and President between Board Meetings when making any new investments or future adjustments to such investments.”
2. Management Report
Attached to the report for Board Review is the updated Monthly Activity Report, and the Sales and Lease Reports.
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, 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 September 23rd and October 14th 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.
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