A signed copy of these and all minutes going back to the 1980’s are available from the Management Office upon request.

Board Members Present

Vince DiFruscio, President; Herbert Hellauer, 1st Vice President; Bob Pierce, 2nd Vice President; Rosalie Sutcher, Treasurer; Nessim Hanna, Secretary

Management Representatives

Mary McQuillan, Property Supervisor; Christina Epple, Property Manager; Mavis Mather, Assistant Manager

These are the minutes of the Board of Directors of the PARK TOWER CONDOMINIUM ASSOCIATION, an Illinois not-for-profit corporation.

Unit Owner Comments

Prior to the meeting there was time for Homeowner questions and comments.

Call to Order

Vince DiFruscio chaired and called this meeting to order at 7:58 pm.

Minutes December 19, 2005

The Board Meeting commenced with consideration of the minutes of the Board of Directors’ meeting held on Monday December 19, 2005. Upon due motion by Nessim Hanna and seconded by Herbert Hellauer, the Board voted unanimously to approve the minutes of the December 19, 2005 Board meeting.

Treasurer’s Report

Rosalie Sutcher stated that according to the December 31, 2005 Financial Statements there was an operating cash fund of $293,456.97.  The payroll account totaled $36,000.  The account at Cosmopolitan Bank has reached $458,418.   The Smith Barney account totaled $2,381.   Eighteen Certificates of Deposit totaled $1,742,810.  The total of all the reserve funds was $2,201,228.  The total of all investments and accounts was $2,531,185.

Management Report

Christina Epple, Property Manager provided the following information from the Management Report:

• In the month of December there were #38 work orders, $8,298 was received in income from the health club, $580 was received in party room income, and $4,107 was received in laundry income.  There have been a total of 45 sales since March 2005; the average sale price is $144,566.  In December there were 42 late fees totaling $2,100.
• The new cable installation for the security upgrades is 60% completed.  Once the cable work is finished CES will begin work on the installation of the readers for the secured doors.  New strike plates will be installed on the laundry room door, dock door, mall door by the store, and the health club locker rooms.  This work is expected to be completed by mid February.  The final phase of the project will be the installation of the hardware, cameras and the access system.  We plan to announce the distribution of the fobs on or before March 1st.
• A preconstruction meeting was held last week with WJE, the engineering firm who will oversee the bidding process as well as the inspection of the garage repair project.  This project consists of 5 phases, installation of 6 new drainage lines, removal of and repairs to the affected areas of delaminated concrete flooring and preparation of effected rebar, surface removal of the top layer of membrane surface, application of new membrane material, and sealing and stripping of finished surface.  Several meetings will be held with the contractor, Standard Parking, the garage committee, and management during the construction process.  On February 3rd Standard Parking will announce alternative parking arrangements during the length of the construction project.  The project is expected to last until mid June.
• Donnelly and Associates inspected all cars on Friday to evaluate the status of the remaining punch list repairs.  For all cars there were 322 repair items noted; as of today 161 repairs have been completed.  There have been 3 reported service interruptions noted since January 1st.  The outages that occurred last week and were due to technician error while working on punch list repairs.  One of the technicians dropped a metal panel cover from the top of car #4 and as it fell it cut several wires.  Cars #3 and #4 were forced out of service at 3:30; however the cars were brought back into service at around 7:00pm.  Otis is working on pulling the wires through the elevator shafts to the control panel that will finally link the recall panel.  The lobby panel design is expected to be delivered and installed by the first of March.  Once the recall panel is fully operational and pending the results of all inspections, the elevators will be released by the City and the mod project will be completed.
• On Friday evening at approximately 9:30pm the boiler went down for one and a half hours.  Several people reported seeing the lights flicker for a second.  ComEd has reported that there were not any reports of brownouts or interruption of service.  Vio was able to restart the control system that monitors the boiler and circulating pumps.  We believe the network for the software that monitors the boilers crashed.

Ratifications

CD Transactions Resolved to approve the rollover of the CD at Advanta Bank in the amount of $99,000.00 at 4.90% APY for a term on 12-months with the excess funds of $3,516.17 deposited into the reserve account at Cosmopolitan Bank. Upon due motion by Bob Pierce and seconded by Nessim Hanna, the Board voted unanimously to ratify the approval of the rollover of the CD at Advanta Bank.

Requests to Remodel Resolved to ratify the approval of remodeling of units 2803, 1815, 1808, and 4408 with the recommendations of the chief engineer, in accordance of the Rules and Regulations and remodeling guidelines, and with the stipulation that single handled faucets are allowed only if installed with pressure valves in the wall. Upon due motion by Nessim Hanna and seconded by Herbert Hellauer, the Board voted unanimously to ratify the approval of remodeling units 2803, 1815, 1808, and 4408.

New Business

Adoption of Proposed 2006/07 Budget Resolved to approve the 2006/07 proposed budget with no changes at a 6.26% increase in assessments. Upon due motion by Nessim Hanna and seconded by Bob Pierce, the Board voted unanimously to approve the proposed 2006/07 budget at a 6.26% increase in assessments.

Gas Purchases Resolved to approve the purchases of gas with Exelon for the following periods: 40% of gas for the period of February 1, 2006 through March 31, 2009 at $1.028 per Therm, 35% of gas for the period of February 1, 2006 through February 28, 2006 at $0.979 per Therm, and 60% of gas for the period of March 1, 2006 through August 31, 2006 at $0.940 per Therm. Upon due motion by Bob Pierce and seconded by Nessim Hanna, the Board voted unanimously to approve the purchase of gas with Exelon as listed above.

HVAC Preventative Maintenance Contract Two companies were contacted for the annual HVAC preventative maintenance contract.  The following specifications are to be met under a “full coverage” agreement contract: provide 24-hour emergency service, provide insurance to cover the full replacement costs of all equipment, provide annual winter maintenance (all conditions), provide written reports on all inspections, provide seasonal start up for chiller systems, and provide 3 inspections during operating season.

• York International (incumbent): $14,100.00
• Advanced Mechanical: $19,850.00

Resolved to approve the contract proposal from York International to provide 24-hour, full coverage maintenance contract, in the amount of $14,100.00. Upon due motion by Herbert Hellauer and seconded by Bob Pierce, the Board voted unanimously to approve the contract proposal from York International for a 1 year HVAC preventative maintenance contract in the amount of $14,100.00.

Other Discussion Items

R&R Committee Fine Recommendations The Rules and Regulations Committee have submitted the following recommendations for fines.  From the November Rules and Regulations meeting the committee recommends the following: fining an owner $150.00 for failure to submit a lease package and fulfill lease requirements, fining an owner $150.00 for failure to appear at two previous meetings and failure to make repairs to the limited common elements, and fining an owner $150.00 for failure to submit remodeling plans for Board approval prior to start of project.  Also owner is to be charged $85.00 for the removal of construction debris that was left in the dock dumpster.  From the December Rules and Regulations meeting the committee recommends the following: fining an owner $50.00 for failure to follow construction rules by violating the work stop time of 4:30pm, and fining an owner $150.00 for failure to remove construction debris from the common area (this was a 2nd occurrence).  From the January Rules and Regulations meeting the committee recommends the following: rescheduling a hearing with an owner and tenant in regards to a repeated noise violation, fining an owner $150.00 for an illegal move into the building, and fining an owner $150.00 for failure to attend a private party booked by the owner. Resolved to approve the fines as recommended by the Rules and Regulations committee from the November, December, and January hearings. Upon due motion by Herbert Hellauer and seconded by Nessim Hanna, the Board voted unanimously to approve the fines as recommended by the Rules and Regulations committee from their November, December, and January meetings.

Garage Full Sign The management office has given direction to Standard Parking that before the garage full sign is displayed the hiker on duty must call the management office when open during regular business hours, or the doorman after regular business hours to notify that the garage is full.  Similarly the hiker on duty must call when the garage full sign is removed.  If residents notice the garage full sign out when the garage is not full please notify either management or the doorman.

Current Gas Expense The association received the building gas bill for the month of December.  Between the price for the actual gas and the price for the transporting of the gas we have to spend $128,000.  The Board has asked Exelon to give the association 3 months in which to pay the gas bill without interest.  For the next three months the Association will be paying an extra $40,000 added onto that month’s gas bill.  This will put the association in a negative balance for the year of approximately $85,000.

Use of Fobs The new security system that is being installed will be controlled by fobs.  The Board of Directors is considering making it a requirement that all residents use their fobs to gain entrance into the main doors.

Upon due motion by Herbert Hellauer and seconded by Nessim Hanna the meeting adjourned at 8:27 p.m. for homeowner discussion. The Board meeting reconvened at 8:32 p.m.

3 Month Health Club Membership The Health Club Committee has recommended a 3 month membership be offered to accommodate people moving out of the building.  The memberships will be offered at the following rates: a 3 month single resident membership for $100.00, a 3 month double resident membership for $150.00, a 3 month family resident membership for $175.00, a 3 month single non-resident membership for $150.00, a 3 month double non-resident membership for $275.00, and a 3 month family non-resident membership for $350.00. Resolved to approve the three month membership fees for the Health Club as detailed above. Upon due motion by Nessim Hanna and seconded by Bob Pierce, the Board voted unanimously to approve the proposed three month Health Club Memberships.

Office Holiday Schedule Draper and Kramer employees are entitled to a holiday schedule that offers 11 days off during the year.  These days may be taken on the actual holiday or taken as a comp day later on.  Rather than have three days of that the office is short staffed the Board has elected to close the management office on the holidays that the employees are entitled to. Resolved to approve the holiday schedule as is provided by Draper and Kramer for the management office. Upon due motion by Nessim Hanna and seconded by Bob Pierce, the Board voted unanimously to approve the Holiday schedule as provided by Draper and Kramer for the management office.

Adjournment

Upon due motion by Nessim Hanna and seconded by Bob Pierce the meeting adjourned at 8:36 pm.

Vince DiFruscio, President

Nessim Hanna, Secretary