BOARD OF DIRECTORS MEETING

Agenda & Report

Monday December 9, 2019, 7:30pm

2nd Floor Party Room

6:30PM – CLOSED SESSION (Management Office)

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

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

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

Commission chairs or members so designated will be invited to update the Board and Owners on business and activities.

Board Report

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

Action Items

Closed Session Business

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

Minutes – Board Meeting November 9, 2019

Attached to the meeting report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Saturday November 9, 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 Saturday November 9, 2019.”

Minutes – Board Meeting November 11, 2019

Attached to the meeting report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Monday November 11, 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 November 11, 2019.”

Minutes – Board Meeting November 16, 2019

Attached to the meeting report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Saturday November 16, 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 Saturday November 16, 2019.”

Management Contract

Attached to the meeting report for Board Member review, following legal counsel review and editing, is the final revised contract with The Habitat Company. Base terms and conditions are entirely consistent with those agreed to at the November 16, 2019 Board of Directors meeting, and it has since been executed by Board President Michael Parrie. Given that the document itself underwent drafting and legal review, resulting in some edits, this should be ratified by the Board.

It is worth noting the draft contract was based on the contract between Park Tower and prior managing agent Draper and Kramer, Inc. That agreement was substantially agreed to by the Habitat Company, and following a legal review by both parties, it was modified and accepted.

A sample motion: “I move the Board of Directors ratifies the Management Contract between Park Tower Condominium Association and The Habitat Company LLC, as reviewed and modified by Association legal counsel, for a 3 year term beginning January 1, 2020, with 4 one year options to renew, at a base rate of $10,600 per month, locked through the first 5 years, a rate of $10,812 per month for year 6 and a rate of $11,028 per month for year 7, with the right for either party to terminate the contract at any time without cause and without penalty with 60 days notice.”

Amended Rules and Regulations

Attached to the meeting report for Board review is the final revised and proposed Rules & Regulations handbook to be mailed to Unit Owners for their review and consideration. It is suggested that the required Special Meeting of the Unit Owners be held following the necessary review period and prior to adoption of the Rules, which could be held prior to the Board of Directors Meeting scheduled for January 13th, 2020.

A sample motion: “I move the Board of Directors accepts the proposed draft of the Rules and Regulations handbook as presented by the Ad Hoc Commission to Review the Rule and Regulations, and hereby directs Management to mail the document in its entirety to all Park Tower Condominium Association Unit Owners for the required review period and for their consideration, as well as a notice for a Special Meeting of the Unit Owners to be held prior to the January 13, 2020 Board of Directors Meeting for the purpose of Unit Owner discussion of the proposed Rules and Regulations, as required prior to the Board of Directors considering formal adoption.”

2020/2021 Proposed Budget

Attached to the meeting report for Board review is the final draft of the proposed budget as edited following the November 16, 2019 Board of Directors meeting. This will need to be mailed to the Unit Owners for their review period and consideration.

In addition, you will find the cover letter Board President Michael Parrie drafted to include with the budget, highlighting the key adjustments and changes.

A sample motion: “I move the Board of Directors accepts the proposed draft of the proposed Park Tower Condominium Association Budget for the 2020/2021 fiscal year, and hereby directs Management to mail the document in its entirety to all Park Tower Condominium Association Unit Owners for the required review period and for their consideration, as well as a notice for a Special Meeting of the Unit Owners to be held prior to the January 13, 2020 Board of Directors Meeting for the purpose of Unit Owner discussion of the proposed budget, as required prior to the Board of Directors considering formal adoption.”

2020 Professional Reserve Study

Attached to the report for Board review, following direction of the Board at the November 16, 2019 Board Meeting, is a proposal from Reserve Advisors to conduct a full professional Reserve Study. The last such study was completed and accepted by the Board in 2014, and updated in 2016.

A sample motion: “I move the Board of Directors approves to hire Reserve Advisors, LLC to conduct a full professional Reserve Study as proposed, at an expense of $12,650.”

Landscaping Maintenance Contract

Attached to the meeting report for Board review is a copy of our RFP for Landscaping services beginning in 2020. This is for contracted maintenance seasonal plantings and cleanup, turf and sod maintenance. The RFP goes into more detail so Board Members know the specific information we are looking for with proposals. We look at 2 primary categories: 1. Base rate for landscape maintenance (budgeted $8800/annually), and 2. Aggregate cost of ancillary materials as may be needed (budgeted $1000 annually).

This was put out to bid to the incumbent, Brightview Landscape Services, and 5 other service contractors, a process that started in August. Meetings and walk throughs were held with the incumbent and 4 other vendors who chose to respond to the RFP.

For this review, we are providing a comparison by each firm, based on the 3 categories I named above.

BrightView Landscape Services (incumbent)

1. $8560 annually locked for 4 years

2. $500 (approximate)

Landscape Concepts Management*

1. Waiting for revised figure in time for meeting.

2. Waiting for revised figure in time for meeting.

Moore Landscapes

1. $10,755 year 1, $11,080 year 2, & $11,415 year 3

2. $459 (approximate)

Rosborough Partners

1. $21,219 year 1, $22,050 years 2 & 3

2. $993.41 (approximate)

Semmer Landscape*

1. $6905 year 1, $7115 years 2 & 3

2. $254.50 (approximate)

Because of the volume of pages which comes with each proposal, management is limiting our review to providing this summary as a part of the report. However, the proposals in their entirety are available to Board Members at any time if requested and will be available at the meeting.

*Landscape Concepts and Semmer did not fully comply with the RFP. However, Landscape Concepts overlooked specific dollar values of contract items which we are hoping to have resolved in time for the meeting. Semmer did not provide a sample certificate of insurance. We are also not impressed with Semmer’s references.

That being said, our team has had challenges with Brightview, the incumbent. Primarily communication and representation issues. Management will be ready to discuss this in more detail at the meeting, as well as making a recommendation for moving forward.\

Any necessary motion can be proposed at the meeting.

Garage Project

Attached to the meeting report for Board review is the Garage Repair Project bid summary. As previously reported, the bids for the work as specified by the Association’s engineering firm Wiss, Janney & Elstner (WJE), were as follows:

Bulley & Andrews, LLC                 $1,197,340

JLJ Contracting, Inc.                      $838,040

Monson Nicholas, Inc.                  $605,090

Quality Restoration, Inc.                            $924,050

Zera Construction, Inc.                 $999,540

NOTE – this number is the “Base Bid Grand Total” plus “Alternate 1”.

In discussion regarding the Reserve Budget for the 2020/2021, at the November 16, 2019 Board Meeting, we reported that WJE and Management interviewed the two low bidders, JLJ and Monson Nicholas. After considering the proposals, our impressions from the interviews and references, we would be very comfortable proceeding with Monson Nicholas. As reported at the meeting, we suggest the Board approve entering into a contract with them for the project, and budget as follows:

BASE BID:                                                                  $575,090

ALTERNATE 1:                                                          $30,000

PROVISION FOR UNKNOWN CONDITIONS:           $91,000 (15%)

ENGINEERING/OVERSIGHT:                                     $34,000

PARKING CREDITS:                                                   $75,000

Total: $805,090

A sample motion: “I move the Board of Directors approves entering a contract for the Garage Repair Project with Monson Nicholas, Inc., as proposed and as recommend by the Association’s engineering firm Wiss Janney and Elstner, at a base contract bid cost of $575,090, to include Alternate #1 at an additional cost of $30,000, and to include an allowance of $91,000 for unknown conditions as may be deemed necessary by Wiss Janney and Elstner and Park Tower Management, as well as a provision of $34,000 for engineering and oversight, and an allowance of $75,000 for parking credits if necessary for the temporary relocation of parkers while work is underway, for a total budget of $805,090.”

Garage Parking Tax Increase

Attached to the meeting report for Board review, is a notice from the State of Illinois regarding a new tax for non-residential parking spaces, effective January 1, 2020. The most significant of which, by far, is a 9% fee on monthly parking for commercial parkers. This is approximately $14 per spot, per month.

After consulting the Board Treasurer and President, we’ve advised commercial parkers this fee will be passed to them. This takes the monthly “Day Parking” rate from $156/month to $170/month. This will also effect daily parking tickets for visitors of the commercial spaces, by 6%, though that has a relatively minor impact.

This action needs to be formally approved by the Board.

A sample motion follows: “I move the Board of Directors approves increasing all relevant parking rates – in particular ‘Day Parking’ – by the requisite amount to compensate for the new State of Illinois parking taxes effective January 1, 2020.”

Business Reports

1.     Treasurer’s Report

Fund Balances End of October 2019

Operating Funds $383,285 (decrease of $171,995 from prior month)

Reserve Funds $2,348,585 (increase of $131,019 from prior month)

Total Cash and Investments $2,731,870 (decrease of $40,974 from prior month)

October 2019 Revenue and Expenses

Total Operating Revenue: $508,053

Total Operating Expenses: $282,636

Income From Garage: $25,093

Contribution To Reserve: $144,975

Total Surplus: $105,535

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 December 9, 2019 Board Meeting at ____PM.”

OWNER FORUM – 15 minutes, 2 minutes per person

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

Next Board Meetings Scheduled for Monday December 23rd at 7:30pm, and Monday January 13th following the Special Meetings of the Unit Owners to consider the proposed 2020/2021 Budget and amended Rules & Regulations. All meetings are held in the 2nd Floor Party Room unless otherwise posted.