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 are the most recent reports from the Home Improvement Commission and Social 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 for the Board of Directors Meeting held on Monday October 9, 2023, as submitted by Property Manager Timothy Patricio.
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 October 9, 2023.”
Attached to the meeting report for Board Member review, are the proposed minutes for the Board of Directors Meeting held on Monday November 4, 2023, as submitted by Property Manager Timothy Patricio.
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 4, 2023.”
The minutes for the planned November 11th Board meeting are expected be submitted by Property Manager Timothy Patrici, for Board Member review and 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 11, 2023.”
Attached to the report for Board Member review is the updated 22.1 disclosure as of October 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 hereby approves the 22.1 disclosure as drafted with the best available information as of October 2023.”
The purpose of this action item is to a appoint a new member to the Health Club Commission, Neil Averick, Unit 4015.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association appoints Neil Averick of Unit 4015 to the Health Club Commission.”
The audit of the 2022/2023 Financial Statements reported an operating surplus of income over expenses in the amount of $127,604, as reported at the last Board Meeting. We’ve identified the expense of potential of bad debt for a particular Unit Owner from last year ($18,904) and the likely uncollectible rent from a commercial space ($22,997.68), as relevant subtractions from this total. Considering the recent inflationary economic environment and uncertainty we are presently facing, we suggest the Board approve transferring the balance of the surplus minus these adjustments ($85,722) to the Association’s Reserve fund.
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 2022/2023 fiscal year revealed that there is an accumulated amount of income in excess of the amount required for actual expenses (“excess”) in the amount of $127,604; and
WHEREAS, the Board has identified $41,882 in prior year expenses which should be deducted, resulting in an adjusted surplus of $85,722; 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 $85,722, the identified year-end operating fund surplus cash for 2022/2023, 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.”
The purpose of this action item is to discuss the need for some exterior masonry repairs. Durning a recent rainstorm, leaking was reported at a number of locations on the North and South exposures, and it appears some tuckpointing will be needed. There is an ongoing investigation and our team is working to get competitive proposals.
We will be more prepared at the meeting to discuss this in greater detail.
Attached to the report for Board Member review is a quote from Hayes Mechanical for rebuilding one of two of our gas booster pumps. As heating was coming on line for the season, this pump was malfunctioning. To properly investigate, it had to be removed and taken to their shop. The choices were to either replace the pump or rebuild. Replacement could have taken several months, and we received a verbal estimate of about $33,000. The alternative was to have it rebuilt, which would take 3 to 4 weeks, with parts already in stock for this particular pump, at $9,685.
Because we are in the midst of heating season and this pump is one of two used for this purpose, we authorized the rebuild be done on an emergency basis as soon as possible. As such repairs are presently underway. However, since this is beyond Management’s spending authority, we respectfully request the Board formally approve this action.
Due to the nature of this work, it would be reasonable as a reserve expense, however the Board could choose to designate this as an operating expense.
A sample motion follows: “I move the Board of Directors of the Park Tower Condo Association approves rebuilding the gas booster pump, as authorized by Management on an emergency basis and as proposed by Hayes Mechanical for an expense of $9685, from the [operating/reserve] fund.”
Following a suggestion from the Home Improvement Commission, we sought quotes to replace the unit entry mats in the mall area, with ones that would match the new custom runners. There are presently eight, and Facility Supply Systems who replaced the runners earlier this year quoted $1,206.
The Board could choose to treat this as a change order to the reserve project to do the full replacement – it would still be under budget. $35,000 was budgeted for mall area improvements. The runners totaled $23,860.29.
A sample motion follows: “I move the Board of Directors of the Park Tower Condo Association approves replacing mall entry unit mats as proposed by Facility Supply Systems for $1,206.”
Attached to the report for Board Member review are remodeling packets for the following Unit Owners’ construction projects:
Unit 403 Kitchen Electrical Improvements
Unit 905/906 Combining Unit/Electric Panel Replacement
Unit 2306 Hard Flooring Installation
Unit 2307 Hard Flooring Installation
Unit 2905 Hard Flooring
Unit 3403 Full Unit Remodel
Unit 5114 Full Unit Remodel
Unit 5512 Electric Panel Replacement
A sample motion follows: “I move the Board of Directors of the Park Tower Condo Association approves the remodeling plans for units 403, 905/906, 2306, 2307, 2905, 3403, 5114 and 5512 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 September 2023 Balance Sheet and Statement of Income & Expenses as reported by the Habitat Company.
Fund Balances End of September 2023
Operating assets totaled $1,853,977 and the Reserve cash and investments were $4,727,042 for a total of cash and investments of $6,581,019.
September 2023 Revenue and Expenses
Total Operating Revenue: $630,114
Total Operating Expenses: $461,062
Income (Loss) From Garage: $4,947
Contribution To Reserve: $164,975
Total Surplus: $9,024
Attached to the report for Board review is the most recent Monthly Activity Report and Sales & Lease Reports. Property Manager Tim Patricio is expected to review current business and activity of interest and the latest sales.
There being no further business, the Board will consider adjourning the meeting.
A sample motion: “I move the Board of Directors adjourns the November 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 expected to be held on Monday November 27th and December 11th 7:30PM. Board Meetings are also scheduled to review the proposed 2024/2025 budget, and the final one will be held on Saturday November 18th at 9AM. All such meetings are expected to be held in the 2nd Floor Party Room unless otherwise posted.