BOARD OF DIRECTORS MEETING

Post Meeting Roundup Report

Monday March 11, 2019  7:30PM

2nd Floor Party Room

6:00PM – Closed Session (Held by Board in Management Office)

7:30PM – OWNER FORUM

The Board and Management addressed feedback and questions from Unit Owners.

OPEN SESSION – Call to Order

The meeting chair, Board President Michael Parrie called the meeting to order at 7:48pm.

Roll Call – Confirm Quorum

The meeting chair confirmed a quorum of Board Members were present. Present from the Board was Board President Michael Parrie, 2nd Vice President Cheryl Ronnett, Treasurer Jean Shamo, and Secretary Kenneth Anderson. Member and 1st Vice President Monique Fouant was absent.

Present from management was Property Supervisor Dave Barnhart, Property Manager Timothy Patricio, Assistant Manager Tricia Bulaclac.

Committee Reports

On behalf of the Social Committee, Unit Owner and Committee Member Bob Shamo delivered a report. He reported on a successful Oscar Party on February 24th and Super Bowl Party on February 3rd. He said the People To People initiative continues, with about 40 active individuals; cards continue to be available at the front desk. Upcoming Events include the next Tower Hangouts on Saturday the 23rd at 8pm; the Easter Egg Hunt and Brunch on Saturday April 21st; announcements will soon come out about this years Art Walk, to include Park Tower and most the other communities that participated last year; the next movie night will be May 11th; and the Committee is planning a bigger and better 4th of July Celebration.

Health Club Committee Chair Kenneth Anderson reported the Committee was addressing the faulty multi-gym. A decision was made to repair the equipment rather than replace it. Also, they are considering lighting improvements but waiting for needed electrical repairs to occur first.

ASCO Liaison Cheryl Ronnet reported ASCO will hold a Sheridan Road Beautification fundraiser at Marty’s Martini Bar on Sunday May 24th from 2 to 5pm, 1511 West Balmoral. ASCO’s Annual Meeting will be on Wednesday April 10th at 7pm, at Malibu East 6033 North Sheridan Road. And she reminded that Senior’s can apply for the annual Senior Sewer Rebate; contact the Alderman’s office with questions or for assistance, 773-784-5277.

Board Report

Board President Michael Parrie expressed thanks to the management office and maintenance team for the super bowl party and to the social committee for the academy awards party.

He encouraged all residents to make arrangements with RCN through April 1st to have the new modem installed for faster service, per the new RCN 5-year contract.  Any installation after that time is subject to RCN’s regular installation fees.

He stated that beginning on March 25th and lasting through May 9th, it anticipated the main water lines serving all units from the 30th to 55th floor will be replaced in what has been called the “upper loop project” on the 55th floor ceiling.  Please expect periodic water shut downs, noise coming from the top of the tower, and specifically dust on the 55th floor.  Everyone’s understanding is appreciated while this important work is completed.

He reported that the Board is considering assignment of the management contract.  After 15 years of service to Park Tower, Draper & Kramer is leaving.  First Service Residential has purchased their condo management division and will officially take over May 1st.  The current 3-year management contract terms will still apply, and all Draper & Kramer employees we are accustomed to interacting with will simply become First Service Residential employees.  In addition, there will be no change in accounting procedures.  Overall, the First Service Residential corporate office has to prove to Park Tower that it deserves to keep our business for the long term by treating us well.

Action Items – New Business

1. Closed Session Business

After a motion by Michael Parrie, seconded by Kenneth Anderson, the Board of Directors voted unanimously in favor of a resolution to fine 17 unit owners $100 for the first month, to double thereafter for each subsequent month, up to the maximum fine of $1,000, for not having adequate proof of insurance.

After a motion by Michael Parrie, seconded by Jean Shamo, the Board of Directors voted unanimously in favor of a resolution to fine 2 unit owners $50 for the first month, to double thereafter for each subsequent month, up to the maximum fine of $200, for not attending the new residents’ meeting.

After a motion by Michael Parrie, seconded by Cheryl Ronnett, the Board of Directors voted unanimously in favor of a resolution related to case #2.21.19, to fine a unit owner $250 for unauthorized construction and $250 for a city code violation, each to double thereafter for each subsequent occurrence, up to the maximum fine of $1,000 per occurrence.

After a motion by Michael Parrie, seconded by Jean Shamo, the Board of Directors voted unanimously in favor of a resolution to write off bad debt for a unit in the amount of $10,592.48, as the unit was foreclosed, the association recouped its entitled 6-month past due balance already, and the remaining balance has been determined to be uncollectible.

2. Minutes – Board Meeting January 28, 2019

After a motion by Kenneth Anderson, seconded by Cheryl Ronnett, the Board of Directors voted unanimously in favor of a resolution to approve the minutes from the Board Meeting held on Monday January 28, 2019.

Click Here, to review or download the approved minutes.

3. Assignment Of Management Contract

After a motion by Kenneth Anderson, seconded by Jean Shamo, and discussion, the Board of Directors voted unanimously in favor of a resolution to assign the current management agreement with DK Condo, DKRE, Draper and Kramer, Inc. to FirstService Residential effective May 1, 2019.

It was noted that the transition would not occur overnight. Owners would not notice any immediate changes, even as of May 1st. Rather, a transition of services and operations will occur over a 12 month period, and notices and announcements will be issued, preceding any changes or information Owners and residents should be aware of.

4. 2019/2020 Insurance Program

After a motion by Cheryl Ronnet, seconded by Kenneth Anderson, and discussion, the Board of Directors voted unanimously in favor of a resolution to ratify the action by management to approve the renewal of the Association’s annual insurance program for the 2019/2020 fiscal year, as proposed and recommended by Alliant/Mesirow Insurance Services for Property Insurance, General Liability Insurance, Equipment Breakdown Insurance, Crime Insurance, Director’s & Officers Insurance, Workers Compensation Insurance and Umbrella Insurance, at a total combined premium expense of $197,323.

It was noted, because of the timing of the renewal needed for March 1st, and the obvious need to have insurance coverage despite there being no meetings in February, Management acted after consultation with each Board Member individual regarding the renewal proposals.

5. Market Space Lease

After a motion by Jean Shamo, seconded by Cheryl Ronnett, and discussion, the Board of Directors voted unanimously in favor of a resolution to approve the lease for commercial rental of Unit 14c in the Park Tower Mall area to ‘Go! Grocer 7, Inc., an Illinois Corporation’ dated March 8th, 2019 for the purpose of operating a grocery market, café, pharmacy and other specified operations, for a term of ten (10) years, with two (2) five (5) year options to renew, and other general terms and conditions as negotiated with the Board of Directors and Management, including a base starting rental rate of $4216 per month to increase annually consistent with the terms and conditions of the lease.

It was noted, the prior operator was paying $1750/month at the time of their departure.

6. Market Space Flooring

After a motion by Kenneth Anderson, seconded by Jean Shamo, and discussion, the Board of Directors voted unanimously in favor of a resolution to approve the proposal by Munoz Epoxy Floors to remove the vinyl tile in 14c and install a polished epoxy coated flooring system at the proposed expense of $19,200 to be funded by the Reserve Fund.

It was noted, flooring work was budgeted in past years for 14c, but due to a lack of cooperation by the previous operator, it was never completed.

7. Plaza/Market Signage

After a motion by Kenneth Anderson, seconded by Jean Shamo, and discussion, the Board of Directors voted unanimously in favor of a resolution to approve the proposal by tfasigns for replacement of the plaza market sign and LED panels, as they’ve proposed, at a cost not to exceed $54,241.88, and with approximately $23,428.20 of the cost to be shared with ‘Go! Grocer 7, Inc., an Illinois Corporation’, for the installation of their ‘Go Grocer’ marquee as proposed, to be funded by the Reserve Fund.

8. Unit Owner Request – Leasing Policy Exception

After a motion by Jean Shamo, seconded by Cheryl Ronnett, the Board of Directors voted unanimously in favor of a resolution to deny the request of the Unit Owner of 4509 for an extension of their exception the Association’s Leasing Policy.

9. HVAC – Chiller Pump

After a motion by Kenneth Anderson, seconded by Jean Shamo, the Board of Directors voted unanimously in favor of a resolution to approve the proposal by Fluid Technologies Pumps and Controls, Inc., to replace Chiller Pump #3 as proposed at an expense of $12,510 to be funded by the Reserve Fund.

10. HVAC – Chiller Purge Units

After a motion by Jean Shamo, seconded by Cheryl Ronnett, and discussion, the Board of Directors voted unanimously in favor of a resolution to approve a cost not to exceed $29,020 for the installation of new Chiller Purge units, to be funded by the Reserve Fund.

It was noted, Management is awaiting a 3rd bid, and that they successfully negotiated a cost decrease of 5% for the proposal already presented by Johnson Controls.

11. HVAC – Lobby Air Damper

After a motion by Cheryl Ronnett, seconded by Kenneth Anderson, the Board of Directors voted unanimously in favor of a resolution to approve the proposal by DEMCO Mechanical, to replace the lobby air damper as proposed at an expense of $11,995 to be funded by the Reserve Fund.

12. Low Zone Hot Water Heater Replacement

After a motion by Kenneth Anderson, seconded by Cheryl Ronnett, and discussion, the Board of Directors voted unanimously in favor of a resolution to ratify the action by Management to approve the replacement of a Low Zone domestic hot water heater, as proposed by W.J. O’Neil at a cost of $18,855 to be funded by the Reserve Fund.

13. 1P/2p Flooring – Mall Elevator Vestibules

After a motion by Cheryl Ronnett, seconded by Jean Shamo, the Board of Directors voted unanimously in favor of a resolution to approve a budget not to exceed $2500 to expand the 1P and 2P flooring project to the elevator vestibules on 1p and 2p, serving the mall elevators #7 and #8.

14. Compactor Replacement

After a motion by Jean Shamo, seconded by Kenneth Anderson, the Board of Directors voted unanimously in favor of a resolution to approve the proposal by Republic Services, to replace the trash compactor as proposed at an expense of $12,636.15 to be funded by the Reserve Fund.

15. Garage Proximity Reader

After a motion by Kenneth Anderson, seconded by Jean Shamo, and discussion, the Board of Directors voted unanimously in favor of a resolution to approve the installation of a proximity reader at the the garage exit, as proposed by Chicago Building Services Inc., at a cost not to exceed $2,763.94, as well as bulk purchase of the portable transponder for stock.

16. Construction Requests

After a motion by Michael Parrie, seconded by Cheryl Ronnett, and discussion, the Board of Directors voted unanimously in favor of a resolution to approve the remodeling plans of units 3806 and 4810/11 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.

Management was directed to double check the underlayment requirement for the 4810/11 project.

Business Reports
1.     Treasurer’s Report

Board Treasurer Jean Shamo reported that at the end of January 2019, there were Operating Funds of $608,948 (increase of $41,619 from prior month), and Reserve Funds of $2,027,297 (increase of $141,927 from prior month), for Total Cash and Investments of $2,778,172 (increase of $183,546 from prior month).

She also reported for January 2019, there was Total Operating Revenue of $507,170, Total Operating Expenses of $408,086, Income From Garage operations of $21,497 and the scheduled Contribution To the Reserve of $136,675, for a net Total Deficit of $16,093.

CD Transaction

After a motion by Jean Shamo, seconded by Cheryl Ronnett, the Board of Directors voted unanimously in favor of a resolution to approve the renewal of a $105,110.66 Certificate of Deposit with a 2.65% interest rate for 12 months with International Bank of Chicago, for the Reserve Fund investments, scheduled to mature on January 24, 2020.

2.     Management Report

Property Manager Timothy Patricio reported on current business and activities of interest, including the 1p/2p flooring project and the RCN modem upgrades – residents should call ASAP to schedule their upgrade to the modem which will support the higher 250mbps speed. He also reported on the most recent sales activity.

ADJOURNMENT

After a motion by Jean Shamo, seconded by Cheryl Ronnett, the Board of Directors voted unanimously in favor of a resolution to adjourn the March 11, 2019 Board Meeting at 8:48PM.

OWNER FORUM

The Board and Management addressed feedback and questions from Unit Owners.

Next regular Board Meetings – March 25th and April 8th, 7:30PM in the Party Room