A signed copy of these and all minutes going back to the 1980’s are available from the Management Office upon request.

Board Members Present

Vince DiFruscio, President; Herbert Hellauer, 1st Vice President; Bob Pierce, 2nd Vice President; Rosalie Sutcher, Treasurer; Nessim Hanna, Secretary

Management Representatives

Mary McQuillan, Property Supervisor; Christina Epple, Property Manager; Mavis Mather, Assistant Manager

These are the minutes of the Board of Directors of the PARK TOWER CONDOMINIUM ASSOCIATION, an Illinois not-for-profit corporation.

Unit Owner Comments

Prior to the meeting there was time for Homeowner questions and comments.

Call to Order

Vince DiFruscio chaired and called this meeting to order at 7:18 pm.

Minutes September 26, 2005

The Board Meeting commenced with consideration of the minutes of the Board of Directors’ meeting held on Monday September 26, 2005. Upon due motion by Nessim Hanna and seconded by Bob Pierce, the Board voted unanimously to approve the minutes of the September 26, 2005 Board meeting.

The Board Meeting resolved to approve of the minutes of the Board of Directors’ meeting held on Monday October 17, 2005 with amendments as suggested by Bob Pierce. Upon due motion by Bob Pierce and seconded by Nessim Hanna, the Board voted unanimously to approve the minutes of the October 17, 2005 Board meeting with amendments as suggested by Bob Pierce.

Treasurer’s Report

Rosalie Sutcher stated that according to the September 30, 2005 Financial Statements there was an operating cash fund of $374,607.  The account at Cosmopolitan Bank has reached $314,150.   The Smith Barney account totaled $2,455.   Eighteen Certificates of Deposit totaled $1,747,191.  The total of all investments and accounts was $2,435,948.

Management Report

Christina Epple, Property Manager provided the following information from the Management Report:

• Armon, a subsidiary company of F.E. Moran, has proved to be a valuable asset to the operating economic energy and efficient operations of mechanical systems.  Armon provides and efficient business structure and overall strategic direction while enabling each building to develop a strategy and capacity to operate mechanical systems best suited to the individual needs of that building.   Draper and Kramer as part of their commitment to provide services to its residential and commercial portfolio arranged for F.E. Moran to assign engineers to the building and inspect for ways to decrease energy consumption through new technology, preventative maintenance, and proper equipment handling wherever possible.  In keeping with the intent to review and rate the overall efficiency of the plant operations the following mechanical systems were inspected: 2 boilers, 2 chillers, all air handlers, domestic water systems, 2 booster pumps (we have 3 but one is in for repair), circulating pumps, the pool heater, hot water heaters, and the automation system and document controls.  After two weeks of inspection on October 20th Vio and Management met with two of the principles of F E Moran to discuss the results of the inspection preformed over the course of several weeks.  The overall rating was extremely favorable with the efficiency of operating systems with no need for upgrades or control enhancements recommended.  The energy consultants did make several suggestions for future replacements to lower energy use.  They recommend that in the future we replace all booster pumps with diaphragm belt pumps which use a contained pressure system, and that we rewire the fans in the lobby set those to timers and replace the fans with commercial grade fans that allow for reverse air flow.
• The life safety evaluation was preformed on Park Tower in July of 2005.  The report includes a listing of specific areas of noncompliance with corrective recommendations.  The life safety evaluation provides an assessment of the building to determine the level of safety afforded by the existing building features as intended by the Chicago Building Code.  This evaluation is based on a point system where each category is assigned points keeping within the parameters of the life safety ordinance and the Chicago building code the Park Tower Condo Association with its existing features did not pass in the areas of fire safety, means and egress, and general safety.  It should be noted that during the site visit and document review no imminently dangerous or hazardous conditions were noted.  Some minor recommendations such as patching the holes running with adjacent stairwells will be corrected, all vertical penetrations in electrical rooms will be patched, and we continue to prepare for the 2005 connection to the last modernization car in the final phase of the automatic elevator recall.  Automatic sprinklers in the corridor, storage areas, elevator lobbies and a two way communication system are required by the Life Safety Ordinance by the year 2012.  With these improvements the building will pass the Life Safety Ordinance as it is currently written.  The report will be filed with the City of Chicago Building Department electronically on or before November 1st.  Copies of the filed ordinance will be available after November 15th at the Management office or at the Door station.

Ratifications

Certificates of Deposit Resolved to ratify the approval of rolling over two certificates of deposits.  The first rollover is of a CD at Barrington Bank for 12 months at a 4.03% APY and a yield of 4.10% in the amount of $95,000.00.  The difference of $5,239.51 accumulated in interest will be deposited in the reserve account at Cosmopolitan Bank.  The second rollover is of a CD from Nexity Bank to Charter One Bank for 12 months at a 4.41% APY and a yield of 4.50% in the amount of $95,000.00.  The difference of $4,860.20 accumulated in interest will be deposited in the reserve account at Cosmopolitan Bank. Upon due motion by Nessim Hanna and seconded by Bob Pierce, the Board voted unanimously to ratify the approval of the rollover of a CD at Barrington Bank and a rollover of a CD from Nexity Bank to Charter One Bank.

Requests to Remodel Resolved to ratify the approval of remodeling of units 5414, 1404, and unit 612 with the recommendations of the chief engineer and in accordance of the Rules and Regulations and remodeling guidelines. Upon due motion by Nessim Hanna and seconded by Bob Pierce, the Board voted unanimously to ratify the approval of remodeling units 5414, 1404, and unit 612.

New Business

2nd Floor Deck Repairs Resolved that the Board of Directors of the Park Tower Condo Association does hereby approve the repairs to the 2nd floor sun deck at the 2 east side drains not to exceed 30 sq. ft. The scope of work includes removal of delaminated material; preparation of surface to the membrane material; and application of the repair material and decorative aggregate topcoat. Upon due motion by Nessim Hanna and seconded by Herbert Hellauer, the Board voted unanimously to approve the acceptance of the proposal by Compass Concrete to perform the membrane repairs to 2 drains on the sundeck in the amount of $1,960.00.

Door Re-cladding on Car #1 Resolved to approve the proposal from Otis Elevator to re-clad the door of car #1 in the same material as used in car #2 in the amount of $4,682.73.  This decision will be done as a change order to the Elevator Modernization Contract. Upon due motion by Nessim Hanna and seconded by Bob Pierce, the Board voted unanimously to approve the proposal from Otis Elevator to re-clad the door to car #1 in the amount of $4,682.73.

2004/05 Bad Debt Write-off/Uncollectible Bad Debt Resolved to approve the bad debt write off in the amount of $26,830.00 for bad debt not collected during the audit year of 2004/05.  Some accounts should have been written off in prior years by the former managing agent and appear in the audit year of 2004/05.  Of further note, one unit paid a past due amount originating in 2003 in the amount of $21,296.31.  This amount will be adjusted on the books for the 2005/06 audit. Upon due motion by Nessim Hanna and seconded by Herbert Hellauer, the Board voted unanimously to approve the bad debt write off as recommended by the auditor, Chris Nyborg of Nyborg and Nyborg, in the amount of $26,830.00.

Other Discussion Items

State Representative Harry Osterman our state representative will be the guest speaker at the November 21st Board meeting at 7:00 pm.

Cable Focus Group – Results The cable focus group has completed their research and reported their findings to the Board.  Out of 6 companies interviewed RCN is the cheapest by $5.00 dollars per unit for a savings of $3,640.00.  The cable contract will be renewed with RCN in the coming months.

Adjournment

Upon due motion by Herbert Hellauer and seconded by Bob Pierce the meeting adjourned at 7:32 pm.

Vince DiFruscio, President

Nessim Hanna, Secretary