PRESENTATION – 7:30pm PTCA Audit Firm Picker and Associates
Presentation on Audit Process Followed By Q&A
OWNER FORUM – 15 minutes, 2 minutes per person
The Board and Management will address questions and feedback from Unit Owners.
OPEN SESSION – Call to Order
The meeting chair will call the meeting to order. Please be courteous – no audience participation is permitted. If applicable, speakers will be recognized by the Meeting Chair.
Roll Call – Confirm Quorum
The meeting chair will confirm a quorum of Board Member is present. Board Members and representatives from Management will be introduced.
Committees will be invited to deliver updates to the Board on business and activities.
Board Report: Board President Michael Parrie
The meeting chair may make comments or provide updates on Association business and activities or otherwise address the Board and Owners present.
Action Items – New Business
Closed Session Business
This agenda item is provided for any resolutions proposed resulting from Closed Session discussion.
Minutes – Board Meeting June 27, 2016
Attached for Board Member review, are the proposed minutes from the Board Meeting held on Monday June 27, 2016, submitted by Timothy Patricio, Property Manager.
A sample motion follows: “I move the Board of Directors approves the minutes from the Board Meeting held on Monday June 27, 2016.”
Accept Reserve Study
Previously distributed for Board Member review and consideration was the Reserve Study Update for 2016 as presented by Reserve Advisors, Inc. To incorporate this as an official book and record of the Association, the Board will need to accept it.
A sample motion follows: “I move the Board of Directors accepts the 2016 Reserve Study as presented by Reserve Advisors, Incorporated.”
2016 Bad Debt
Following the audit of the 2015/2016 Financial Statements there are 4 uncollectible accounts management is monitoring for write-offs as Bad Debt. However, only three of those accounts are bank owned and until they are sold to a third party, we will not know the dollar value that qualifies for a write-off. Only 1 account was sold and we propose the previous owners account balance of $8,700.71 be written off as bad debt.
The budget for Bad Debt this year $60,000.
A sample motion follows: “I move the Board of Directors approves a write-off in the amount of $8,700.71 for a prior Unit Owner’s account which is determined to be uncollectible due to the foreclosure and sale of the unit.”
Opening Owners Forum To All Residents
It has been proposed the Board consider opening the quarterly Unit Owners Forum to all residents; Owners, renters and otherwise authorized occupants. This action item was requested by a Board Member for Board discussion and possible action.
A motion can be suggested if necessary following discussion.
Recommendations From Ad Hoc Committee Reviewing Decs & Bylaws
Previously distributed to the Board was the Report from the Committee regarding their considerations into a number of topics for potential amendment to the Association Declaration and Bylaws. Following is a brief summary of their review and recommendations addressing the issues they considered:
Issue No. 1 – Adding leasing restrictions to the Declaration (page 1) AMENDMENT RECOMMENEDED
Issue No. 2 – Banning smoking throughout the building, including in all units (page 4) AMENDMENT RECOMMENEDED
Issue No. 3 – Lowering the voting threshold to adopt certain amendments (page 10) AMENDMENT NOT RECOMMENEDED
Issue No. 4 – Removing the ban on pet cats and dogs (page 4) RECOMMEND PROPOSING AN AMENDMENT
Issue No. 5 – Having the Association buy residential or commercial units when they become available and/or sell such units when they are unoccupied for extended periods (page 16) RECOMMENDED SEEKING PURCHASE OF UNIT 12c, BUT NO OTHER CONSIDERATIONS
Issue No. 6 – Changing parking, especially on 2P, to deeded spaces versus the current licensed spaces (page 17) NO CHANGE RECOMMENDED
Issue No. 7 – Making the Health Club a common element amenity included in unit owners’ assessments and available to all residents (page 20) AMENDMENT RECOMMENEDED TO ALLOW NON-RESIDENTS TO BE CHARGED HIGHER FEES
Issue No. 8 – Updating PTCA’s governing instruments to reflect changes in law (page 24) APPLICABLE UPDATES RECOMMENDED
Issue No. 9 – Allowing specifically identified detection animals to work and/or reside in the building (pagd 25) AMENDMENT RECOMMENEDED
Issue No. 10 –Change parking on 1P to be entirely self-parking, eliminating the car hikers and valet parking (page 27) NO CHANGE RECOMMENDED
The Board should identify which “Issues” to pursue, if any. The next step would be for any recommended changes to be vetted by the Association’s legal counsel. The Board will receive guidance from counsel as to the next steps which need to be taken to pursue any such amendments.
Direction can be given to Management, by the Board, as to which “Issues” should be vetted by counsel.
Budget and Finance Committee Membership
This Action Item has been provided should any recommendations be made related to membership to the Budget & Finance Committee. As of the date of this report, Management has received one volunteer whose information was forwarded to the Board Treasurer and B&F Chair. However, we are not aware of any formal recommendation for action at this time.
Should any membership changes be proposed, the Board would have to take two actions:
a. Suspended membership requirements under the Commission Charter.
b. Formally appoint the members.
A motion can be proposed should there be any recommendations presented.
Inclusion On City Short-term Rental Prohibited Building List
Pursuant to changes to Section 4-13-260 of the Municipal Code of Chicago, specifically Section (a) Part (9), we propose the Board direct Management to present an affidavit (such as the copy attached for Board Member review) to the City of Chicago, for Park Tower to join the Prohibited Building List. This will allow the City to recognize that the Park Tower Condo Association prohibits the activity of short-term rentals for 31 or fewer consecutive days. Our present rules require leases no shorter than 2 years in duration.
Being included on this list will formally prohibit such rentals which amount to hotel style occupancy of the building. This will help prevent short term rentals and online services which promote and market short term rentals and hotel style transiency in Park Tower residential units.
A sample motion follows: “I move the Board of Directors directs Management to present an affidavit to the City of Chicago on behalf of the Park Tower Condo Association, consistent with Section 4-13-260 Section (a) Part (9) of the Municipal Code of Chicago, for Park Tower and its residential units to be included on the Prohibited Building List.”
Attached to the report for Board Member review are remodeling packets for the following Unit Owner construction projects:
1807 Electrical Upgrade
2401 Hard Flooring Installation
2410 Bathroom Remodel
4801 Kitchen Remodel with Dishwasher
A sample motion follows: “I move the Board of Directors approves the remodeling plans of units 1807, 2401, 2410 and 4801 as submitted by the unit owner, 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.”
Unit Owner Request – Formally Combining Units
The Unit Owner of 4306 and 4406 has requested the Board authorize initiating the process to amend the Declaration to formally combine the units for recording with Cook County and acquiring a single PIN.
Procedurally, the owner needs to make a written application to the Board of Directors, requesting an amendment to the condominium instruments (which is allowed under the Act). The application must set forth a proposed reallocation to the new unit of the percentage interest in the common elements of the combined unit, and requesting, if desired, that the new unit be granted the exclusive right to use as a limited common element, a portion of the common elements within the building adjacent to the new unit. Specifically that is the space between the walls dividing the two units. The amendment would include an amendment to the Plat of Survey attached to the Association’s Declaration to show the boundaries of the combined unit and any common elements to be “assigned” as a limited common element of the combined unit. The amendment to the Declaration should be prepared by the Association’s counsel, and the amendment to the Plat would be prepared by a surveyor (all at the owner’s expense – see more below).
The transaction must be approved by a majority of (disinterested members of) the Board of Directors. If approved, the combination is effective upon (1) recording of an amendment to condominium instruments (Declaration and amended Plat of survey) in accordance with the provisions of Sections 5 and 6 of the Act, and (2) execution by the owners of the units involved. The amendment may grant the owner of the combined unit the exclusive right to use, as a limited common element, a portion of the common elements within the building adjacent to the new unit. The request for the amendment must be granted, and the amendment must grant this exclusive right to use as a limited common element, if the following conditions are met:
(1) the common element for which the exclusive right to use as a limited common element is sought is not necessary or practical for use by the owners of any units other than the owner or owners of the combined unit; and
(2) the owner or owners of the combined unit are responsible for any and all costs associated with the renovation, modification, or other adaptation performed as a result of the granting of the exclusive right to use as a limited common element.
Those conditions appear to be reasonably met in this case.
If the combined unit is divided in the future, or if part of the original combined unit is sold, and the grant of the exclusive right to use as a limited common element is no longer necessary, practical, or appropriate for the use and enjoyment of the owner or owners of the original combined unit, the Board may terminate the grant of the exclusive right to use as a limited common element and require that the owner or owners of the original combined unit restore the common area to its condition prior to the grant of the exclusive right to use as a limited common element.
Our Attorney has provided a proposal to prepare the amendment to the Declaration, which has been agreed to by the Unit Owner. The attorney’s fees are capped at $547.50, which will be reimbursed to the Association by the owner. A professional surveyor would have to be engaged by the Unit Owner to provide the amended plat of survey and Associated costs.
The new percentage of ownership will be .428645. That is the current % for 4306, .213921, combined with the current % for 4406, .214724.
A sample resolution follows: “I move that the Board of Directors does approve hiring Kovitz Shifrin Nesbit to prepare an amendment to the declaration to record physically combining units 4306 and 4406 into a singly recognized unit, with a percentage of ownership totaling .428645; all associated legal fees for this process are to be charged back and paid by the Unit Owner, and the Unit Owner will be responsible to hire a surveyor for the necessary amended Plat of Survey and any copies thereof that may be necessary, as well as any other activities and all associated costs which may otherwise be necessary to appropriately complete this process.”
1. Treasurer’s Report
a. Fund Balances End of June 2016
Operating Funds $435,484 (decrease of $76,032 from May)
Reserve Funds $1,736,793 (increase of $124,010 from May)
Total Cash and Investments $2,172,277 (increase of $47,977 from May)
Total June Income: $503,435
Total June Expenses: $353,703
Income From Garage: $16,153
Contribution To Reserve: $122,742
Total Surplus or (Deficit): $43,143
b. CD Transactions
Management acted, in consultation with the Board Treasurer, to renew two expiring Certificates of Deposit at Lakeside Bank. This action should be formally ratified by the Board. Attached for Board review are copies of memos from Draper and Kramer with details of the bank activity.
A CD with Lakeside Bank, for the Operating Contingency Fund, was renewed for 8 months, $26,575.09 with a 1.05% yield:
A sample motion follows: “I move the Board of Directors approves the renewal of a $26,575.09 Certificate of Deposit with a 1.05% interest rate for 8 months with Lakeside Bank for the Operating Contingency Fund, scheduled to mature on March 22, 2017.”
A CD with Lakeside Bank, for the Reserve Fund, was renewed for 8 months, $106,408.47 with a 1.05% yield:
A sample motion follows: “I move the Board of Directors approves the renewal of a $106,408.47 Certificate of Deposit with a 1.05% interest rate for 8 months with Lakeside Bank for the Capital Reserve Fund, scheduled to mature on March 22, 2017.”
2. Management Report
a. Business and Activities
b. Monthly Activity Report
c. Recent Sales Activity
There being no further business, the Board will consider adjourning the meeting.
A sample motion follows: “I move the Board of Directors adjourns the August 8, 2016 Board Meeting at _ _ PM.”
OWNER FORUM – 15 minutes, 2 minutes per person
Next Meeting Dates August 22nd and September 12th