RESERVE STUDY UPDATE Park Tower Condominium Association
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Revised RESERVE STUDY UPDATE Park Tower Condominium Association Chicago, Illinois Inspected ‐ June 1, 2016 Revised ‐ July 25, 2016 This Report contains intellectual property developed by Reserve Advisors, Inc. and cannot be reproduced or distributed to those who conduct reserve studies without their written consent. © Reserve Advisors, Inc. 2016 CORPORATE OFFICE Reserve Advisors, Inc. 735 N. Water Street, Suite 175 Milwaukee, WI 53202 Reserve Study Update July 25, 2016 The Reserve Study for Park Tower Condominium Association Was submitted on ………………………………………………………….June 23, 2016 To maintain the most accurate and cost-effective replacement schedule and funding plan for your property elements, this study should be updated on or about ..........Second Quarter, 2018 …but no later than………………………………………………………….….Second Quarter, 2019 As a valued client, we are pleased to offer a future reserve study update with site visit for………$11,500 For a Reserve Study Update with Site visit as noted above. This future update fee is based on the same property components that were contained in your last Reserve Advisors’ reserve study or update. We are pleased to include property additions for an additional fee. To initiate your Reserve Study Update, please sign this authorization and fax or mail to the number below. Upon receipt of this authorization we will contact you to schedule your site visit and invoice for the Reserve Study Update Service. Sign this contract below and fax to 414-272-3663. Or mail to Reserve Advisors, Inc. 735 N. Water St., Suite 175 Milwaukee, WI 53202 Delivery options for your Reserve Study Update Report, Please check one of the following: ____ 1-Full color printed copy PLUS Electronic Report, FREE ____ 2-Full color printed copies PLUS Electronic Report, $100 For: Reserve Advisors, Inc. For Park Tower Condominium Association Name:___________________________ Signature: _______________________ Title:____________________________ Monica Mack Director of Illinois Client Services Date:_______________ [email protected] Phone:___________________________ Ref. # 91089 Agent or Manager: Timothy Patricio (800) 221-9882 Management Firm: Draper and Kramer TABLE OF CONTENTS 1. RESERVE STUDY EXECUTIVE SUMMARY .......................................................1.1 2. RESERVE STUDY REPORT ....................................................................................2.1 3. RESERVE EXPENDITURES and FUNDING PLAN .............................................3.1 4. CONDITION ASSESSMENT.....................................................................................4.1 INTERNAL PROPERTY CHANGES .............................................................................4.3 Deletions ........................................................................................................................4.4 Pipes, Domestic Water, Horizontals with Renovations ...........................................4.4 Pipes, Garage Drain .................................................................................................4.4 Trash Chute and Doors ............................................................................................4.4 Additions ........................................................................................................................4.5 Roof, 2nd Floor, Sun Deck, Steel Railings ...............................................................4.5 Walls, Concrete, Mechanical Penthouse ..................................................................4.6 Windows and Doors, Lobby, North Door ................................................................4.7 Exercise Equipment .................................................................................................4.8 Exercise Room .........................................................................................................4.9 Doors and Operators, Fire ........................................................................................4.9 Significant Changes .......................................................................................................4.10 Roofs, Tower, Main and Mechanical Penthouse .....................................................4.10 Roof, 2nd Floor, Concrete .........................................................................................4.13 Roof, 2nd Floor, Sun Deck, Planters .........................................................................4.14 Roof, Pool Enclosure ...............................................................................................4.14 Walls, Curtain Wall .................................................................................................4.15 Walls, Masonry ........................................................................................................4.19 Elevator Cab Finishes, Traction, Passenger .............................................................4.21 Mall, Market ............................................................................................................4.22 Boilers, Domestic Hot Water, Residential ...............................................................4.22 Elevator, Hydraulic, Refuse .....................................................................................4.23 Heat Exchangers, Building Heating, Main ..............................................................4.24 Life Safety System ...................................................................................................4.25 Security System .......................................................................................................4.26 Plaza .........................................................................................................................4.27 Pool, Outdoor ...........................................................................................................4.29 Photographic Documentation of Select Remaining Reserve Components ....................4.30 Exterior Building Elements......................................................................................4.30 Interior Building Elements .......................................................................................4.32 Building Services Elements .....................................................................................4.33 Property Site Elements .............................................................................................4.37 Pool Elements ..........................................................................................................4.37 Garage Elements ......................................................................................................4.38 Reserve Study Update ....................................................................................................4.39 5. METHODOLOGY ......................................................................................................5.1 6. DEFINITIONS .............................................................................................................6.1 7. PROFESSIONAL SERVICE CONDITIONS ...........................................................7.1 8. CREDENTIALS ...........................................................................................................8.1 Reserve Advisors, Inc. 735 N. Water Street, Suite 175 Milwaukee, WI 53202 1. RESERVE STUDY EXECUTIVE SUMMARY Client: Park Tower Condominium Association (Park Tower) Location: Chicago, Illinois Reference: 91089 Property Basics: Park Tower Condominium Association is a condominium style development of 728 residential and 16 commercial units in a 54-story building. The exterior of the building comprises a curtain wall system, brick masonry and flat roofs. The building was built in 1974 and converted to condominiums in 1979. Reserve Components Identified: 113 Reserve Components. Inspection Date: June 1, 2016. We conducted previous inspections in 1992, 1994, 1996, 2007 and 2014. Funding Goal: The Funding Goal of this Reserve Study is to maintain reserves above an adequate, not excessive threshold during one or more years of significant expenditures. Our recommended Funding Plan recognizes this threshold funding year in 2037 due to restoration of the curtain wall system. The Reserve Funding Plan recommends 2046 year end accumulated reserves of approximately $6,885,000. We judge this amount of accumulated reserves in 2046 desirable or necessary, to fund the likely replacement of the remaining original electrical system components and piping after 2046. These future needs, although beyond the limit of the Cash Flow Analysis of this Reserve Study, are reflected in the amount of accumulated 2046 year end reserves. Cash Flow Method: We use the Cash Flow Method to compute the Reserve Funding Plan. This method offsets future variable Reserve Expenditures with existing and future stable levels of reserve funding. Our application of this method also considers: • current and future local costs of replacement • 1.00% annual rate of return on invested reserves (Board requested) • 3.5% future Inflation Rate for estimating Future Replacement Costs (Board requested) Sources for Local Costs of Replacement: Our proprietary database, historical costs and published sources, i.e., R.S. Means, Incorporated. Cash Status of Reserve Fund: $1,590,336 as of February 29, 2016. Recommended Reserve Funding: The Association budgeted $1,472,900 for Reserve Contributions in 20161. We recommend the Association adopt a reserve budget of $1,600,000 in 2017 and annual inflationary