Monday March 13, 2023 7:30PM
2nd Floor Party Room
6:30PM – CLOSED SESSION
The Board is scheduled to meet to discuss rule violations, pending litigation, Unit Owner account issues and personnel matters.
7:30PM – OWNER FORUM
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.
The meeting chair will confirm a quorum of Board Members is present. Board Members and representatives from Management will be introduced.
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 the most recent report from the Home Improvement Commission.
The meeting chair may give a report on current Association business and activities of interest.
As we understand it, Catherine Kestler will be formally resigning. This item is for discussion of the position.
This agenda item is provided for any resolutions proposed resulting from Closed Session discussion.
Attached to the meeting report for Board Member review, are the proposed minutes for the Board of Directors Meeting held on Monday February 13, 2023, 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 February 13, 2023.”
Attached to the report for Board Member review is the updated 22.1 disclosure as of February 2023 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:
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 February 2023.”
Attached to the report for Board review is the summary for the insurance renewal we authorized pursuant to Board direction from the February meeting. The renewal was authorized for up to $457,840, and as presented it was renewed at $446,732. The budget was set at $432,900. The biggest upsets were the property insurance and umbrella which combined pushed our premiums up $86,250.
The increases were not related to anything connected to Park Tower directly such as losses, rather market forces outside our control as discussed at previous meetings. Particularly, the inflation in construction related materials and labor pushed the replacement value of the building up almost 30% over the past 3 years.
There were some key changes. First the Umbrella limit decreased to $10 Million from 15, and it does not cover the Directors & Officers policy, so for Directors and Officers there is now only $1 Million (though legal fee coverage is unlimited). These changes are not unique to Park Tower. They are indicative of things occurring in the insurance marketplace at large.
If you wish to address this, Alliant did get quotes for excess coverage. The lowest bids (summary attached for Board review) with a reasonable carrier are as follows:
$5 Million Excess Umbrella Coverage – James River $16,262
$1 Million Excess D&O Coverage – Atlantic Specialty $12,393
$2 Million Excess D&O Coverage – Atlantic Specialty $24,786
$3 Million Excess D&O Coverage – Atlantic Specialty $37,179
The Board should consider whether to integrate this additional coverage into the Association’s program. A motion can be proposed at the meeting.
Attached to the report for Board review are proposals to conduct a building value appraisal, as well as the previous appraisal conducted in 2019. We suggest this be done because of the uncertainty caused by the inflationary economy we are in. We believe it would be wise to anchor some of the assumptions being made by our insurance carriers.
Integra Realty Resources (IRR) $2,000
Reserve Advisors $2,750
IRR is the incumbent and Reserve Advisors has conducted the past Reserve Studies, so they have a significant advantage over competitors with their history and data already collected in the past. We see no reason not to proceed with IRR as proposed.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association approves to have an insurable value appraisal done by Integra Realty Resources as proposed for $2,000.”
Attached to the report for Board review is correspondence with Unit Owners who have volunteered to work on the Commission considering the renewal of the bulk cable and internet contract. The Owners are:
As you will see, one of the Owners suggested we enlist a renter, Mariano Zermeno, who apparently has experience working with internet firms.
Also, I’ve attached a letter from a Unit Owner who is unable to join the Commission, but urges that the Board drop bulk cable, and only pursue bulk internet service.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association hereby appoints _________ to the Ad-hoc Cable/Internet Commission considering the renewal or replacement of the bulk cable and internet contract with Astound Broadband.”
As the Home Improvement Commission reported, they chose to move forward with a brushed aluminum signage product, proposed by Alphabet Shop, Inc. Attached you will find the initial proposals and each vendors’ sample worksheets they shared. The proposals will need to be finessed once we formally choose a vendor and get the mock-up floors done. However, after reviewing them with the reps, per floor the approximate expected cost is:
Alphabet Shop $1,765 (waiting for labor figure)
Corporate Sign Systems $2,290.14 (plus an initial set up fee of $1,600)
We are expecting a labor figure for Alphabet Shop in time for the meeting, but don’t believe it would be anymore than $500. Also, Both Corporate and Takeform are proposing cheaper insert signs for the evacuation route, as we have now where Alphabet Shop is proposing an embedded image. From talking to the reps, we would expect each Corporate and Takeform to charge around $100 more per floor for such signs.
At the end of the day, once you iron out the numbers and quantity they are all actually pretty close on a per floor basis. We would suggest the Board approve an initial budget of $10,000 to get this process underway with Alphabet Shop. The budget set in 2022/2023 for signage was $16,000. Originally that had been to include lower floors. But given the timing, the Commission and Management agree that getting this done on 53, 54 and 55 first, makes the most sense.
It should not cost $10,000 to complete these three floors, but that will provide some flexibility if any adjustments are wanted as the mock-ups are being considered.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association approves a budget of $10,000 to proceed with the new brushed aluminum signage recommended by the Home Improvement Commission, as proposed by Alphabet Shop, Inc, to be funded by the Reserve.”
Attached to the report for Board review are bids for the budgeted replacement of the chiller isolation valves. The present valves are beyond their useful life and not holding 100%. At present, we cannot fully isolate the chillers when we need to do repairs, which results in water loss at times.
As suggested by our team $22,000 was budgeted for their replacement, and the best time to do so is now before cooling season. The proposals are as follows:
AMS Industries $21,520
Fettes, Love & Sieben $22,650
WJO Chicago $19,000
We see no reason not to go with the low bidder.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association approves replacement of the chiller isolation valves as proposed by WJO Chicago for $19,000, to be funded by the Reserve.”
As discussed during the budget meetings, funding was requested by maintenance to upgrade domestic pump #1 with a VFD and to replace the old VFD on pump #3 – Pump #2 was replaced after it failed and is operating fantastically. The project would include a new panel so the pumps could communicate together and operate more efficiently. This would result in cleaner transitions and less sediment circulation during needed shutdowns.
Pump #2 never exceeds 56% operation with the VFD, thus using almost half the energy or less than what it used to when it ran without a VFD. We expect this to carry over to pumps 1 and 3 and the combined electric savings could result in a pay off period under 5 years.
The project was budgeted for $90,000, and proposals are attached for Board review. The bids are as follows:
Ewing-Doherty Mechanical $113,927
FTI Pumps and Controls $92,202
Tramco Pump Company $102,423
We would actually prefer the low bidder be chosen, as they have been doing most our pump work in recent years and their team is most familiar with our facility.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association approves the planned installation of VFD controllers on domestic pumps 1 and 3 and a main VFD Control Panel for all three domestic water pumps, as proposed by Fluid Technologies Pumps and Controls, Inc., at an expense of $92,202, to be funded by the reserve.”
Attached to the report for Board Member review are remodeling packets for the following Unit Owners’ construction projects:
Unit 404 Kitchen Remodeling
Unit 1709 Washer & Dryer Install
You will see we only have the approval letter for 404, as the engineer has the file at the moment. We should have the rest for you in time for the meeting on Monday.
A sample motion follows: “I move the Board of Directors of the Park Tower Condo Association approves the remodeling plans for 404 and 1709 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.”
Attached to the Report for Board Review is the January 2023 Balance Sheet and Statement of Income & Expenses as reported by the Habitat Company.
Fund Balances End of January 2023
Operating assets totaled $1,752,403 and the Reserve cash and investments were $4,425,030 for a total of cash and investments of $6,177,433.
January 2023 Revenue and Expenses
Total Operating Revenue: $629,510
Total Operating Expenses: $499,250
Income (Loss) From Garage: $19,456
Contribution To Reserve: $149,567
Total Surplus: $148
2. Management Report
Business and Activities – Property Manager Tim Patricio will review current business and activities of
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
There being no further business, the Board will consider adjourning the meeting.
A sample motion: “I move the Board of Directors adjourns the March 13, 2023 Board Meeting at PM.”
The Board of Directors and Management will welcome and address feedback and questions from Unit Owners.
The next regular Board Meetings are scheduled for March 27th and April 10th at 7:30PM. Also, a Resident Forum is scheduled for Tuesday April 25th at 7pm. All such meetings are expected to be held in the 2nd Floor Party Room unless otherwise posted.