BOARD OF DIRECTORS MEETING
Management Report & Agenda
Monday May 13, 2019 7:30PM
2nd Floor Party Room
6:30PM – Closed Session (Held by Board in Management Office)
7:30PM – OWNER FORUM – 15 minutes, 2 minutes per person
The Board and Management will address feedback and questions from Unit Owners.
OPEN SESSION – 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.
Committee Chairs or others so designated will be invited to update the Board on business and activities.
The Board President may review business or other matters of interest with the Board and audience.
This agenda item is provided for any resolutions proposed resulting from Closed Session discussion.
Attached to the report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Monday April 8, 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 April 8, 2019.”
Our auditor with Picker & Associates, Olya Yashchenko has advised she is available on Monday June 24th, to attend a meeting to review the draft Audit for the 2018/2019 fiscal year, and discuss the Association’s financial health with the Board. Since this meeting has already been noticed, the Board could simply acknowledge the attendance of the auditor, and direct any preparations be made in time for the meeting including providing the draft audit for Owner review.
A sample motion: “I move the Board of Directors does hereby approve a meeting with the Association’s Picker & Associates auditor prior to the June 24th, 2019 Board of Directors Meeting, and hereby instructs Management to make any necessary preparations including posting notice of the meeting, and making the draft audit report available to Unit Owners in advance of the meeting.”
At the prior Board Meeting, April 8th, the Board tabled consideration of the Package Room policies and procedures, and asked we research size and weight restrictions for UPS and FedEx deliveries. This was in response to concerns about the size and weight of packages being stored, and for possible consideration of additional policies to address them. As a reminder, these policies would be posted, and should be formally integrated into the Rules and Regulations in the future.
As it turns out, their restrictions are identical.
UPS Posted Restrictions
FedEx Posted Restrictions
As discussed on April 8th, the purpose of this Action Item is for the Board to discuss and consider proposed policies to post for management and use of the Package Room. The Board should discuss whether to integrate reasonable size and weight restrictions. Below are the original proposed basic guidelines to begin consideration:
Any policies adopted should be formally incorporated into the Rules at some point in the future.
A sample motion: “I move the Board of Directors approves the policies for the Package Room, as discussed at the May 13th Board of Directors meeting and hereby directs Management to post and distribute said policies.”
Pursuant to the design presented by the Health Club Committee, bids were sought for replacement of the Lobby entryway carpeting. For reference by the Board, the plan and bids are attached. The proposals were as follows:
Chicago Floor Systems $9,600
Forward Space $7,904.10
MPD Construction $14,300
Forward Space is the vendor who completed the 2nd Floor carpeting project.
A sample motion: “I move the Board of Directors approves the replacement of the lobby entryway carpeting as proposed by Forward Space, at an estimated expense of $7,904.10.”
The Association budgeted $500,000 in reserve funds for the 2019/2020 fiscal year to continue the next 3 Domestic Hot Water Riser Replacement Projects. For the upcoming 2020/2021 fiscal year, the preliminary outlook was a budget of $525,000 to complete the next 3 risers.
The purpose of this action item is to begin discussion of our plans for timing of the projects for the balance of this year and next, and the outlook for expenses. We began collecting bids for the next 2 years of anticipated work which includes the high zone risers for the 01/03 tier, the 10/11 tier, the 05/06 tier, the 07/08 tier, the ’06 tier and the 09/10 tier. We’ve already begun planning to get the first Riser for this year, the ’01 Guest Baths and ’03 Kitchens, underway on Monday July 8th.
As of the drafting of this report, the potential expenses we are looking at are as follows:
We need to collect several more bids to drill down on these numbers, and expect to present final proposals and recommendations at the next Board Meeting, June 10th.
At the last meeting, the Board approved the Bike Room Exterior Masonry repairs as proposed by JLJ Contracting, at a cost of $41,900, plus an additional provision for unknows of $12,500 (or about 25%).
As previously reported to the Board, unknown conditions were found, but the expense exceeded the approved $12,500 provision. Attached is the change order from JLJ, with pictures explaining the conditions, and the estimate of $14,360 for the needed repairs.
As the wall was open and time was of the essence to address the conditions and protect the work area from any adverse weather, after speaking with the Board President and providing these materials to the Board, we gave the contractor the ok to complete the needed work. Since the cost is inconsistent with the approved resolution, we request the Board ratify the action.
A sample motion: “I move the Board of Directors approves the change order for additional masonry repairs to address leaking along the exterior wall of the bike room, as proposed by JLJ Contracting at a estimated cost of $14,360.”
Attached to the report for Board Member review are remodeling packets for the following Unit Owner construction projects:
#1406-Flooring and Kitchen Remodel
#2201-Flooring and Kitchen Remodel
A sample motion follows: “I move the Board of Directors approves the remodeling plans of unit 1406, 2201, 3002 and 4504 as submitted by the unit owners, following the recommendations of the building engineer as outlined in their written specifications and in accordance with the Rules and Regulations and remodeling guidelines of the Park Tower Condo Association.”
Fund Balances End of March 2019
Operating Funds $498,129 (increase of $80,064 from prior month)
Reserve Funds $2,272,801 (increase of $9,103 from prior month)
Total Cash and Investments $2,770,929 (increase of $89,166 from prior month)
March 2019 Revenue and Expenses
Total Operating Revenue: $513,556
Total Operating Expenses: $368,107
Income From Garage: $12,051
Contribution To Reserve: $144,975
Total Surplus: $12,525
Management acted in consultation with the Board Treasurer to move funds from maturing Bridgeview Bank CDs into CDs at International Bank and BMO Harris Bank. Attached to the report for Board review are the memos from Draper and Kramer with specific details summarized as follows:
A CD with Bridgeview Bank for the Operating Fund matured, and was moved to a CD at International Bank of Chicago for 13 months, totaling $94,123.28 with a 2.65% yield:
A sample motion follows: “I move the Board of Directors approves the purchase of a $94,123.28 Certificate of Deposit with a 2.65% interest rate yield for 13 months with International Bank of Chicago, for the Operating Fund investments, scheduled to mature on May 9, 2020.”
A CD with Bridgeview Bank for the Reserve Fund matured, and was moved to a CD at BMO Harris Bank for 18 months, totaling $156,890.18 with a 2.75% yield:
A sample motion follows: “I move the Board of Directors approves the purchase of a $156,890.18 Certificate of Deposit with a 2.75% interest rate yield for 18 months with BMO Harris Bank, for the Operating Fund investments, scheduled to mature on October 25, 2020.”
The Property Manager, Timothy Patricio, will review business and activities of interest, and recent sales activity.
There being no further business, the Board will consider adjourning the meeting.
A sample motion: “I move the Board of Directors adjourns the May 13, 2019 Board Meeting at ____PM.”
OWNER FORUM – 15 minutes, 2 minutes per person
The Board and Management will address feedback and questions from Unit Owners.
Next regular Board Meetings – Monday June 10th (along with 2019 Annual Meeting), and June 24th, 7:30PM in the Party Room.
The 2019 PTCA Annual Meeting of Unit Owners will begin at 7:30pm on Monday June 10th in the 2nd Floor Party Room. It will be adjourned for election vote tabulation, during which time the June Board Meeting will be held.