BOARD OF DIRECTORS MEETING

Management Report

Monday September 14, 2020, 7:30pm

Via “ZOOM” Meetings Online

6:30PM – CLOSED SESSION (Via ZOOM With PT Board)

OWNER FORUM – Via Zoom Chat (Via ZOOM – Meeting ID# 811-3463-4824)

Link:   https://us02web.zoom.us/j/81134634824

Phone: 1-312-626-6799

NOTE – For Owners attending the meeting, please feel welcome to share questions via the ZOOM Chat feature online.

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 via ZOOM. 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 an update from the Social Commission.

Board Report

The Board President may give a report on current Association business and activities of interest.

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 10, 2020

Attached to the meeting report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Monday August 10, 2020, as submitted by Timothy Patricio, Property Manager.

A sample motion: “I move the Park Tower Condo Board of Directors hereby approves the minutes from the Board Meeting held on Monday August 10, 2020.”

3. Updated 22.1 Disclosure

Attached to the report for Board review is the updated 22.1 disclosure 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 update this regularly, and will present it for Board review and approval.

A sample motion: “I move the Park Tower Condo Board of Directors approves the 22.1 disclosure as drafted for September 2020.”

4. 2021 Triennial Tax Appeal

The Triennial Reassessment will take place in 2021 for all properties in the City of Chicago, establishing the assessed valuation factor for Cook County property tax bills in 2021, 2022 and 2023.

We received the following proposals (attached to the report for Board review) for tax attorney services; one from the incumbent Terrence Kennedy and one from the Association’s general legal Counsel KSN.

Terrence Kennedy – 10% of 2021 tax savings residential capped at $10,000 (reduction of $2500) 15% of 2021 tax savings commercial capped at $3000.

Kovitz/Shifrin/Nesbit – 4% of 2021-23 tax savings

Overall, Terrence Kennedy has the competitive edge, both with the cap and familiarity with Park Tower. Not to mention, they’ve reduced their cap since the last Triennial Appeal proposal. We suggest remaining with Terrence Kennedy.

A sample motion: “I move the Park Tower Condo Board of Directors approves entering a contract with the Law Offices of Terrence Kennedy, for the purpose of filing an appeal on behalf of all Unit Owners of the 2021 triennial reassessment of Cook County property tax valuations, as proposed on a contingency fee basis of 10% for residential units tax savings for 2021, capped at a total fee of $10,000, and 15% for commercial units tax savings for 2021.”

5. Annual Roof Anchorage Inspection

Attached to the report for Board review is a proposal from Wiss Janney Elstner Associates to conduct the annual Roof Anchorage inspection, required in order to keep the anchorages available for future use by window washers and any exterior work requiring swing stages or other such activity.

The team at WJE proposed no increase, with a fee of $3500 for the testing and drafting the necessary report.

A sample motion: “I move the Park Tower Condo Board of Directors approve the bid by Wiss Janney Elstner Associates, Inc., for the annual façade anchorage inspections at a cost of $3,500 in order for Park Tower to remain in compliance with all relevant regulations we are aware of for maintaining the roof anchorage system.”

6. 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 exteriors health and better gauge when the sealants will require replacement.

The budget for this activity is $38,600. They’ve bid $7000 for their fee to conduct the examination and draft the report. They sought two bids for a contractor to operate the needed swing stage. We’ve received one bid so far from JLJ Contracting at $23,110. We expect the 2nd bid to arrive on Monday in time for the meeting. Being below budget though, the Board could approve up to $30,110 to conduct the inspection work. We would also recommend a provision should WJE suggest an additional drop should conditions warrant. Based on these bids, we would suggest $6000.

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 $7,000, and approves a budget of $23,110 to hire a swing stage operator for up to 3 inspection drops, and a provision of $6000 should WJE believe an additional drop is necessary.”

7. Ratify Additional Boiler Repairs

Attached to the report for Board review is a proposal from W. J. O’Neil to conduct unanticipated repairs to our heating boilers’ refractories. After speaking with the Board President, we proceeded with the repairs, and as a formality would suggest retroactive approval.

Acting was necessary, as municipal ordinance requires we provide heat if needed beginning September 15th.

A sample motion: “I move the Park Tower Condo Board of Directors approves the additional repairs to heating boilers number 1 and 2, as authorized by Management to complete unexpected repairs to the refractory of each boiler, completed as proposed by W. J. O’Neil for $4689.”

8. Plaza Aggregate Wash & Seal

Attached to the report for Board review are proposals for the cleaning and sealing of the plaza area aggregate stone. This is the stony surface just outside and hugging the windows of the lobby. The purpose of this is not only to clean it up and make it look better, but to help with long term health of the surface and protection from salt and pollution. Although we would like to do this every year for the best appearance, it has not been done for two years. Our goal is to get this done before the winter.

Our team sought three bids for this activity:

Corona Craft Restoration             $12,212

JLJ Contracting                              $11,985

Monson & Nichols                        Expecting Monday

This is in line with our budgeted expectations and is considered an Operating Expense under the previous category “General Building” on the budget, which is now “Building Repairs” under the Habitat accounting codes.

A sample motion: “I move the Park Tower Condo Board of Directors approves a cost not to exceed $12,000 to complete the cleaning and sealing of the plaza aggregate stone surface.”

9. Pressure Reducing Valve Replacement

Attached to the report for Board review are proposals for the replacement of three main pressure reducing valves. These serve the low-rise domestic water. They are devices that reduce and regulate the pressure of the City’s incoming water, so it is the appropriate level for the building. These have recently become more and more problematic and are presently at the point where continuing to repair and maintain them, would be more costly than replacing.

Work got underway by W. J. O’Neil when two valves failed, resulting in recent water outages. So, some initial work was done on an emergency basis.

You will see three bids: 2 from W. J. O’Neil and one from Fluid Pump. The first from W. J. O’Neil was for an “as is” replacement. However, the staff felt there might be a better solution so a vendor who is more specialized for this type of work – Fluid Pump – was contacted. They presented a solution with suggestions for materials and a bit of a relocation of the valves so they were more accessible. Both the engineer and plumber recommend proceeding with Fluid Pumps proposed solution. The 2nd number from W. J. O’Neil was based on that spec, for competitive purposes.

Fluid Pump Service – $9,709.10

W. J. O’Neil – $12,305 (the engineer advises about $200 in back up gauges were bid for stock in this figure.)

We suggest proceeding with Fluid Pump Service.

A sample motion: “I move the Park Tower Condo Board of Directors approves the replacement of 3 pressure reducing valves as proposed by Fluid Pump Service, Inc., at an anticipated expense of $9,709.10.”

Business Reports
1.     Treasurer’s Report

Attached to the Report for Board Review is the July 2020 Balance Sheet and Statement of Income & Expenses from the Habitat Company.

Fund Balances End of July 2020

Operating assets totaled $1,264,636 the Reserve cash and investments were $2,469,208 for a total of cash and investments of $3,733,844.

July 2020 Revenue and Expenses

Total Operating Revenue: $538,314

Total Operating Expenses: $417,547

Income From Garage: $5,504

Contribution To Reserve: $149,258

Total Defecit: $22,987

2.     Management Report

a. Business and Activities – Property Manager Tim Patricio will review current business and activities of interest. The Monthly Activity Report is attached to the meeting report for Board review.

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

c. 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 14, 2020 Board Meeting at ____PM.”

OWNER FORUM – Via ZOOM Chat

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

The next Board Meetings are scheduled for Monday September 28th and Monday October 12th at 7:30pm.