BOARD OF DIRECTORS MEETING

Monday October 10, 2022 7:30PM

Agenda & Report 

6:30PM – CLOSED SESSION

The Board is scheduled to meet to discuss rule violations, pending litigation, Unit Owner account issues and personnel matters. 

OWNER FORUM – 7:30PM

The Board of Directors and Management will 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.

Board Report

The meeting chair 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 September 12, 2022

Attached to the meeting report for Board Member review, are the proposed minutes for the Board of Directors Meeting held on Monday September 12, 2022, 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 September 12, 2022.” 

3. Updated 22.1 Disclosure

Attached to the report for Board Member review is the updated 22.1 disclosure through August 2022 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 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 August 2022.” 

4. 2023/2024 Budget Calendar

Management’s work on the proposed budget for the 2023/2024 Fiscal Year is underway. All Meetings are expected to be held in the Party Room as scheduled by the Board unless otherwise directed by the Board.

Friday October 28, 2022 – Management to present Proposed Budget.

Saturday November 5, 2022 @ 9am to 12pm – Budget Review Meeting #1 – Categories: Expenses – Administrative, Utilities, Building Operating, Contracts, Maintenance, and Recreational.

Saturday November 12, 2022 @ 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 19, 2022 – @ 9am to 12pm – Budget Review Meeting #3 – Categories: Revenue, Capital Reserve, and Final Review and Questions.

Monday December 12, 2022 – Board of Directors Meeting for final considerations and approval to mail proposed budget for Unit Owner Review.

Week of December 19, 2022 – Budget to be mailed for Unit Owner Review.

Monday January 9, 2023 – Special Unit Owner Meeting To Review Budget.

Monday January 9, 2023 – 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.

A sample motion: “I move the Board of Directors of the Park Tower Condo Association formally accepts the budget calendar for the 2023/2024 fiscal year as proposed by Management.” 

5. Disposition of 2021/2022 Audited Surplus

The audit of the 2021/2022 Financial Statements reported an operating surplus of income over expenses in the amount of $342,056, as reported at the last Board Meeting. We’ve identified the expense of the tax appeal ($10,000) and the cost of the rent credit for the market operator ($29,752), as relevant costs approved for prior fiscal years, which should be deducted. We suggest the Board approve transferring the balance of the surplus minus these adjustments ($302,304) to the Association’s Reserve fund, particularly considering the very inflationary economic environment we are presently facing, as well as the likely and unexpected need for replacing the lobby area revolving doors.

A sample motion: “I move that WHEREAS, the Board of Directors (the “Board”) of Park Tower Condominium Association (the “Association”) is the governing body of said Association and is charged with the direction and administration of the Property subject to that certain Declaration of Condominium for Park Tower Condominium, as from time to time amended (the “Property”); and

WHEREAS, the Declaration provides that the Association is obligated to maintain, repair, and replace the common elements located in the Property; and

WHEREAS, an accounting for the 2021/2022 fiscal year revealed that there is an accumulated amount of cash in excess of the amount required for actual expenses (“excess”) in the amount of $342,056; and

WHEREAS, the Board has identified $38,752 in prior year costs which should be deducted from resulting in an adjusted surplus of $302,304; and

WHEREAS, the Board has reviewed the status of the Association’s capital reserve account; and

WHEREAS, the Condominium Property Act requires, pursuant to section 9 (c) (2), the Association to maintain reasonable reserves for capital expenditures and deferred maintenance for repair or replacement of the common elements located in the Property; and

WHEREAS, the Board has considered the following factors relative to the reasonableness of the Association’s reserves:

1) The repair and replacement cost, and the estimated useful life, of the property which the Association is obligated to maintain, including but not limited to structural and mechanical components, surfaces of the buildings and common elements, and energy systems and equipment;

2) The current and anticipated return on investment of the Association’s reserve funds;

3) The amount that the Association’s most recent capital reserve study provides should be on deposit in the capital reserve account;

4) The financial impact on the unit owners in the market value of the condominium units of an immediate assessment increase to fund the reserves and

5) The ability of the Association to obtain financing or refinancing as a supplement to the capital reserve account; and

WHEREAS, after due consideration of the foregoing factors, the Board contends that their fiduciary duty demands that the excess funds be transferred into the capital reserve account.

NOW, THEREFORE, BE IT RESOLVED that the Park Tower Condominium Association Board of Directors approves the transfer of $302,304, the identified year-end operating fund surplus cash for 2021/2022, to the Association’s reserve account, after taking into consideration the criteria for establishing a reasonable reserve set forth in Section 9(c)(2) of the Illinois Condominium Property Act, in order to more properly fund said reserve account.”

6. Garage Power Wash Compliance Policy

The purpose of this action item is for the Board of Directors to discuss the Garage Power Wash compliance policy. During the last power wash, more than 60 vehicles in all did not move in time for the work to be completed. This results in over 8000 square feet of the surface, not being cleaned – when you consider the average square feet of a car and using a conservative estimate of 1 feet of distance needing to be maintained from each vehicle that remains.

It is recommended that the surface of the membrane be cleaned at least twice per year to help support the lifespan of the protective membrane. Regular cleaning of the concrete on 2p is similarly healthy for that surface. Regular cleaning also improves appearance and reduces the amount of gunk and debris tracked into the building.

Presently, if a vehicle does not move, it results in a fee of $50 to the corresponding Unit Owner. Each resident is entitled to have one fee waived for the duration of their occupancy.

What was proposed for discussion at the last meeting, was a $150 fee which cannot be waived; if the parker does not move a second time, they could be subject to losing their license.

If determined necessary, an appropriate resolution can be proposed at the meeting.

7. 1P Garage Access

The purpose of this Action Item is for proposed discussion of 1P access policy for all residents. It is proposed that all residents have fob access at 1P so they can escort guests to and from the garage with greater ease.

If determined necessary, an appropriate resolution can be proposed at the meeting. 

8. Revolving Door Repair vs. Replacement

The purpose of this action item is to discuss the condition of the damaged revolving door, and the potential solutions our team is looking into. There are three options we are looking at: repair of the damaged door, replacing both as is and replacing both with sliding doors and a vestibule. Attached to the report for Board review are the initial quotes from Door Systems to do each:

Repair                                 $8000 (Conditional estimate, not guaranteed or warranted.)

Replace                               $31,569 ($63,138 for both)

Auto-slide Door                $28,824 (one vestibule, two doors)

The sliding door option did not include electrical work, a heater, or floor repairs. We estimate all such work – some of which can be coordinated and conducted by our staff, would be within $12,000. About $6000 for a heating unit, $2000 for electrical work, and $4000 for terrazzo.

Industrial Door bid $75,248 ($150,496 for both) to replace the revolving door, and JLJ Contracting gave a verbal budget of $125,000 for a single door. While a wide range, this is not shocking to us as Door Systems has the type of specialists needed for this type of work on their staff.

For repair, sadly all vendors have said there is a 8 to 10 week lead time. For replacement we are now being told 12 weeks.

As clearly the more reasonably priced vendor, we’ve been working with Door Systems since the last meeting to do further consulting. Attached to the report for Board review is their updated proposal for sliding doors addressing questions from the last meeting. This includes a more magnified drawing and relevant dimensions for the sliding door option, and an alternate for a heating unit. Altogether, the expense would be $72,822 plus flooring and electrical work.

Also attached is a suggestion for consideration from the Home Improvement Commission Chair, which was discussed at their October 5, 2022 meeting, for a single larger door in a location between the two center columns under the canopy. A majority of members indicated a preference to proceed with replacing the revolving doors with new ones.

We believe, with the exception of repairs, whatever direction the Board instructs us to take with perhaps the exception of as is replacement of the revolving doors, may require at least review by the Chicago Building Department and potentially permitting.

This project has not been budgeted.

If determined necessary, an appropriate resolution can be proposed at the meeting. 

9. Party Room Air Handler VFD

At a previous meeting the Board instructed management to look into installing the necessary device to control the fan speed in the party room. Right now, as originally set up there is one speed. Presumably, this is why the fan has been shut off years past.

Our maintenance team reported a “VFD”, aka variable frequency drive, would be the best option for this. We’ve received two bids in response to inquiries:

Oakbrook Mechanical                    $4,963 (includes motor)

Quality Mechanical                        $4,835

The typical motor we would look at for this, 3 horsepower, would be about $300 plus, so Oakbrook is the better deal. The engineers could coordinate the motor work on their own, however, looking at the math the Oakbrook bid makes sense.

If determined necessary, an appropriate resolution can be proposed at the meeting. 

10. ComEd Electrical Event VFD Replacement

The recent power outage to a line serving our main water pumps, resulted in catastrophic damage to one of two VFD (variable frequency drives) controllers serving our HVAC loop water pumps. Minor manageable damage to the second controller also occurred. This happened following a surge during a ComEd transformer failure in their main vault serving Park Tower. It is predicted the second VFD controller will fail at some point in the short term.

Three bids were sought:

Fluid Technologies           $28,358 (both drives and labor – 1 in stock, 2^nd 30 weeks)

Kroeschell Engineering   $37,484 (both drives and labor – 25 to 30 weeks)

WJ O’Neil                           $29,450 (both drives, labor for one – also newer ‘580’ model not in stock)

We also suggest allowing for a budget of about $2000 for electrical work in connection with this, so the team can get the motors tied back into the BAS system. We won’t know the exact cost to expect for time and material until both VFDs are replaced. This part of the work will likely be done by Kroeschell as they presently have the maintenance contract for our BAS.

Due to the nature of the situation and because it directly affects the availability of heating and cooling, on an emergency basis, Management approved the proposal by Fluid Technologies. We will seek a report from them regarding the damage as well as a formal opinion this was caused by ComEd’s equipment. From that a claim for reimbursement will be pursued.

A sample motion: “I move the Board of Directors of the Park Tower Condo Association approves and ratifies the decision by Management to replace to replace the failing variable frequency drive controllers for two HVAC loop motors as proposed by Fluid Technologies Pumps and Controls, Inc. at $28,358, and approves a provision of $2000 for any necessary electrical work to tie the new controllers into the building automation system, all as a Reserve expense; however, management is directed to file a claim for reimbursement with ComEd due to the nature of the damages resulting in the expense.” 

12. Construction Request

Attached to the report for Board Member review is the remodeling packet for the following Unit Owner construction project:

Unit 1503            Hard Flooring and Kitchen

A sample motion follows: “I move the Board of Directors approves the remodeling plans for unit 1503 as submitted by the unit owner, following the recommendations of the chief engineer and outlined in their written specifications, and in accordance with the Rules and Regulations and remodeling guidelines of the Park Tower Condo Association.” 

13. Proposed Logo

Attached to the report for Board Member review and discussion is a rendering of the proposed new logo for signage and mats, discussed and recommended by the Home Improvement Commission at their October 5th meeting.

A sample motion follows: “I move the Board of Directors approves the new Park Tower Condominium Logo as recommended by the Home Improvement Commission.” 

Business Reports 

1. Treasurer’s Report

Attached to the Report for Board Review is the August 2022 Balance Sheet and Statement of Income & Expenses as reported by the Habitat Company. 

Fund Balances End of August 2022

Operating assets totaled $1,775,749 and the Reserve cash and investments were $3,692,374 for a total of cash and investments of $5,468,123. 

August 2022 Revenue and Expenses

Total Operating Revenue: $648,086

Total Operating Expenses: $411,917

Income (Loss) From Garage: $45,796

Contribution To Reserve: $149,567

Total Surplus/(Deficit): $132,398

2. Management Report

Business and Activities – Property Manager Tim Patricio will review current business and activities of interest.

Engineer’s Report – Property Manager Tim Patricio will review activity of interest from the Maintenance team.

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 October 10, 2022 Board Meeting at ____PM.” 

OWNER FORUM

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

The next Board Meetings are scheduled for Monday October 24th and November 14th at 7:30PM. Also, Board Meetings with the Budget & Finance Commission are planned for Saturday November 5th, 12th & 19th, and the next Resident Forum is scheduled for Thursday October 27^th. All such events are planned to be held in the 2^nd Floor Party Room.