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.
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 from the Board of Directors Meeting held on Monday November 8, 2021, as submitted by Timothy Patricio, Property Manager 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 November 8, 2021.”
Attached to the meeting report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Monday November 22, 2021, as submitted by Timothy Patricio, Property Manager 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 November 22, 2021.”
Attached to the meeting report for Board review is the final draft of the proposed budget as edited following the Board Meetings held to discuss the budget November 11th, 18th, and 22nd 2021. This requires mailing to the Unit Owners for their review period and consideration, which we propose be done the week of December 20th.
In addition, the Board will find a proposed cover letter and Special Meeting Notice drafted by Board President Michael Parrie to include with the budget, highlighting the key adjustments and changes, and emphasizing the challenges the Association faces.
A sample motion: “I move the Board of Directors accepts the draft of the proposed Park Tower Condominium Association Budget for the 2022/2023 fiscal year, and hereby directs Management to mail the document in its entirety to all Park Tower Condominium Association Unit Owners for the required review period and for their consideration, as well as a notice for a Special Meeting of the Unit Owners to be held prior to the January 10, 2022 Board of Directors Meeting for the purpose of Unit Owner discussion of the proposed budget, as required prior to the Board of Directors considering formal adoption.”
The purpose of this action item is for the Board to formally accept the audit of the 2020/2021 Financial Statements, performed by Picker and Associates. This was distributed previously for Board member review and discussion and discussed at the November 22, 2021 Board of Directors meeting with auditor Ralph Picker.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association formally accepts the audit of the Association’s financial statements for the fiscal year ending February 28 2021 performed by Picker and Associates.”
The audit of the 2020/2021 Financial Statements reported an operating surplus of income over expenses in the amount of $201,673. Attached to the report for Board review is the key page from the Audit Report identifying the surplus. We suggest the Board approve transferring the surplus to the Association’s Reserve fund. However, a few considerations should be made to reconcile the surplus, it being “on paper” as they say versus actual real “cash” income.
First, a rather large credit of construction fines associated with a particular Unit Owner was made, totaling $30,000. This was reported income in 2020/2021.
Also, the Board has considered a rent credit for the market space operator, and though they have not met the criteria established by the Board, if this is yet a consideration it should be accounted for. If this is yet a serious consideration, whatever the dollar amount the income is already “on paper” and should be subtracted from the surplus.
Finally, this year we’ve collected income for the tax appeal through the assessments, which we expect to cap out pursuant to the contract at $13,000; $10,000 for the residential units and $3000 for the commercial units. Although that is an occurrence in the present fiscal year, we believe it makes sense to account for it now, since we do not yet know if we will run a surplus for 2021/2022.
Totaling these considerations will yield a sensible dollar amount to transfer, and blanks are inserted in the proposed motion so this can be formalized.
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 2020/2021 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 $_________, after considering ___________; 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 $____________, the identified year-end operating fund surplus cash for 2020/2021 after considering _____________, 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.”
Attached to the report for Board Member review is the updated 22.1 disclosure 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 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 October 2021.”
Attached to the report for Board Member review, is the Habitat Company’s corporate holiday schedule. There are 8 holidays being recognized and employees are entitled to a total of 8 paid days off. All together there are also 6 days where early close is acceptable.
The suggested holidays for the office to close are Martin Luther King Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and the day after, the Monday following Christmas Day, and the Monday following New Years Day 2023. Early release with notice is suggested Friday May 27th, Friday July 1st, Friday September 2nd, Wednesday November 23rd, Friday December 23rd and Friday December 30th.
While the corporate office typically closes at 1pm for early release. Traditionally we’ve closed at 3pm.
A sample motion follows: “I move the Board of Directors approves the following holiday schedule for 2022 for the Management Office to be closed on the Martin Luther King Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and the day after, the Monday following Christmas Day, and the Monday following New Year’s Day , and early release on the business day preceding the holidays with appropriate notice (with the exception of Martin Luther King Day).”
It was reported to Management that Unit Owners Christopher Ibrahim of 3911 and Betty Terry-Lundy of 4306-4406 were recruited to join the Home Improvement Commission.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association hereby appoints Unit Owners Christopher Ibrahim of 3911 and Betty Terry-Lundy of 4306-4406 to the Home Improvement.”
Attached to the report for Board review, following discussion and direction during the budget review meetings in November 2021, is a proposal from Reserve Advisors to conduct an update of the 2020 professional Reserve Study.
A sample motion: “I move the Board of Directors approves to hire Reserve Advisors, LLC to conduct an update of 2020 Reserve Study as proposed, at an expense of $11,300.”
Attached to the report for Board review, is my correspondence with a representative from Elavon, who works closely with Barrington Bank and Wintrust, where the Association’s funds are held. This includes flyers describing their equipment, software and credit/debit card charging program, which appears to be an ideal solution to put in place. Ultimately, once we get this up and running, electronic payments would be made with cards and funds will go right to our bank. We should then be able to phase out taking cash in the garage.
After learning of this system being used at another site, we contacted our banking rep at Barrington, who connected with the Elavon Rep. For the equipment, software and support, there is a fee of $39/month ($468/per year). However, they presently have a promotion for a $450 credit so essentially the first year will be free. With no cancellation fee, if we find this system is not for us we can always return to taking cash and continue our search for another solution.
We will need to run an ethernet line and set up wifi in the garage office. I’ve already initiated a discussion with RCN to try to get this coordinated.
A sample motion: “I move the Board of Directors approves for Management to enter an agreement with Elavon, at a minimum on a trial basis, to install a terminal to accept credit and debit cards for guest parking in the garage at an initial cost of $39 per month for the equipment, software and service, and directs that should the program be determined to be successful, to establish a plan to phase out accepting cash in the parking garage.”
Attached to the report for Board Member review are remodeling packets for the following Unit Owners’ construction projects:
4408 – Kitchen and Flooring
4509 – Kitchen Cabinets and Flooring
5012 – Kitchen Countertop
5412 – Kitchen and Bathroom Remodel
A sample motion follows: “I move the Board of Directors approves the remodeling plans of units 4408, 4509, 5012, and 5412 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.”
Attached to the Report for Board Review is the October 2021 Balance Sheet and Statement of Income & Expenses as reported by the Habitat Company.
Fund Balances End of October 2021
Operating assets totaled $1,444,446, and the Reserve cash and investments were $3,027,214 for a total of cash and investments of $4,471,660.
October 2021 Revenue and Expenses
Total Operating Revenue: $574,098
Total Operating Expenses: $420,194
Income (Loss) From Garage: $16,332
Contribution To Reserve: $146,508
Total Surplus/(Deficit): $23,728
Business and Activities – Property Manager Tim Patricio will review current business and activities of interest.
Engineer’s Report – Property Manager Tim Patricio will review items of interest from Maintenance.
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.
There being no further business, the Board will consider adjourning the meeting.
A sample motion: “I move the Board of Directors adjourns the December 13, 2021 Board Meeting at ____PM.”
The Board of Directors and Management will welcome and address feedback and questions from Unit Owners.
The next Board Meeting is scheduled for Monday December 27th at 7:30pm. On Monday January 10th at 7:30pm, there will be a Special Meeting of the Unit Owners for review of the 2022/2023 Proposed Budget, followed by a regular Board Meeting.