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Home » Announcements » 4. News Flashes » RE: Tonight's Board meeting

Announcements

RE: Tonight's Board meeting

11/21/2013

Dear Neighbor;

Earlier today you may have received an email message from one of the many armchair architects who reside here at Lake Point Tower. While it had some good information in it, much of what was stated was either blatantly untrue (#2—that we didn’t competitively bid the project) or was simply an opinion offered up by someone whose personal style may differ from the styles of your own or others. In these next few paragraphs, I will walk you through the details of the project in more depth, so that perhaps you will feel more comfortable about this very important project here at LPT.

1. Yes, at tonight’s LPTCA Board of Directors meeting there may be a vote on the next milestone gateway of the Hallway Project—which is whether to go forth with a full build-out of what has conceptually been presented to everyone in the form of the 40th floor’s mockup.

a) A point was raised as to whether this items is an attempt to “rush to judgment” prior to the December 6th Board Elections. This is an irrelevant comment, since we only have 6 people running for the 5 open slots on the Board; which means that at least 2 of the persons up for re-election to the Board are going to be returned to the Board, and at least 2 of the new persons running are also in favor of the project—so in all actuality, the Board Elections have nothing to do with the Project’s Schedule.

b) Another point was raised that this project is moving along “way too fast”—in reality, we are actually behind schedule the Hallway Commission’s original schedule to be already in construction at this point. The project has been slowed down considerably to permit more transparency than ever before in a project of this magnitude, as well as to entertain different scope creep items (such as a threshold standard). The project is moving along at a pace that we believe the Unit Owners can digest while being mindful of deployment costs—the longer it takes to get started, the more things are going to cost when we get there. The time to act is now, not another 6 months – 5 years from now (as was suggested during the Hallway Town Hall Meeting by yet another armchair architect).

c) Everyone should keep in mind that it has been nearly 18 months since our hallways were desecrated with bare dangling wires from an ill-executed Comcast building wiring project. Yes, moving from RCN to Comcast was a great idea and an excellent thing to do for our building and its residents—the decision to “let Comcast off the hook” by the prior Board and not make them (Comcast) put the wires into at least some form of molding was a really ill-advised thing to do. So, the sooner we get started with the Hallway remodel, the faster that old project finally gets put to bed.

2. The statement by the armchair architect that “the project is not being bid out competitively” is simply and totally untrue. From the very start of the project, we issued a very competitive RFP (Request for Proposal) process that went to 12 design firms to select our design team (WEA Design won, by the way). All of these firms “lost” to WEA:

a. Antunovich Associates, Inc.

b. Gettys

c. Holabird & Root

d. Kadlec Designs

e. Kaufman Segal Designs

f. Robert Pope Associates

g. Scott Himmel Associates

h. Susan Fredman Design Group

i. VOA

3. Following that, we went through a 2nd RFP process to pick our General Contractor (GC). Our GC for this project is Bulley & Andrews; they were awarded the contract for the work, meaning that they beat out all of these GCs:

a. Walsh Construction

b. Norcon

c. Power Construction

d. CCS Development

e. Veseli Design

4. With the GC in place and the Design functionally complete, we took the major aspects of the project out to a full round of competitive bidding, which was managed by Bulley & Andrews with the oversight of both WEA Design (being the masters of our hallway design), and LPT’s Management Company—First Service Residential (formerly known as “Wolin-Levin”). The key categories that were bid out as are follows, with the firms bidding on each item next to the Category below, separated by slash marks:

a. Modifications to 40th Floor Mockup - will be made by the appropriate Trade.

b. Demolition – Bulley & Andrews, LLC / Kinsale / US Dismantlement

c. Asbestos Abatement – Balestrieri / Kinsale

d. Thresholds – Bulley & Andrews, LLC / United Woodworking / Schilling

e. Doors & Hardware – Chicago Doorways / M-D Building Material / LaForce / Block Iron & Supply

f. Drywall/Plaster – Kole / JP Phillips / RG Construction / 5 Star

g. Carpeting & Base – Carpetland USA / Chicago Floor Systems / Noland Sales / DTI of Illinois / Mr. David's

h. Porcelain Tile – DTI of Illinois / Carpetland USA / Bourbon Tile / Mr. David's / Chicago Floor Systems

i. Painting – All Tech / Ascher Bros. / National Decorating / 5 Star

j. Prefinished Aluminum Valance – United Woodworking / Bernhard / Cain Millwork / Indianapolis Woodworking / Sprovieri's Custom Counters

k. Artwork – Taylor Visual / National Reprographics / Vision Integrated

l. Signage – Bulley & Andrews, LLC / API

m. Electrical – Total Electric / Rex / Jamerson & Bauwens

5. Were there any items that were not competitively bid? The answer is, yes, of course—none of the following items were competitively bid, as we had determined to use the services of our General Contractor for each of these (as is the course in nearly all construction projects, no matter how large or small):

a. General Conditions

b. Elevator Operator

c. Field Measuring/Templates

d. Temp Protections

e. Rough Carpentry

6. The final topic brought forth is yet another misconception that stated that “the costs of the loan have not been fully revealed”. This one baffles me, because the Hallway Remodeling Project has been discussed at every Finance Commission meeting this year; it was discussed during the Capital Project Budgeting cycle; it was discussed at the Hallway Town Hall Meeting; and our Board Treasurer (Mark Skoog) has been in the details of every aspect of this project since Day 1 last December. The LPT Management Team (led by Jhoanna & Marguerite) along with Mark have been involved in this process, and they have put together (along with the hard work of many others on the Finance Commission) a great 10-year Reserve Study that has also been validated by a 3rd Party Engineering Firm. The costs have been modeled ad nauseam, and they come out the same—it’s far better to take out a loan rather than depleting the Reserve Budget completely and still not being able to complete the project as designed. While a Special Assessment could be considered an “option” to pay for the project too, this Board has ruled that out for this cosmetic building project.

a. At present, we expect the total cost of the Hallway Remodeling Project to be $9,743,504 – an amount that includes the following:

i. Carpeting

ii. LED Lights

iii. Paint (walls, doors, ceiling, vents, etc.)

iv. Thresholds

v. Custom aluminum coverings for the fire alarm and cable TV moldings

vi. Baseboards

vii. Artwork

viii. Tile in Passenger Elevator Lobby

ix. Asbestos Removal

x. Tile in Freight Elevator Lobby

xi. Emergency Lighting

xii. Signage

xiii. Labor, construction materials, etc.

b. This then gives us an ~8% contingency, which is the difference between the $10.5 million loan and the full project cost or $756,496 to be exact

c. If we do decide to include new Door Hardware as part of this project, that would consume about $500,000 more – that is something that has yet to be determined.

d. Any monies left over from the Loan will be used to pay down the loan in a lump sum at the end of the project.

  In short, if you would like to learn quite a bit more about the financials of this project, please do come to the Board of Directors meeting this evening. Mark Skoog (our Treasurer) will be there with a presentation that is likely to address any Unit Owner's concern. If you cannot attend tonight's meeting, please do not hesitate to contact me directly anytime with any questions--all of my contact info is below. We can also address any questions that you might post to the LPT Message Board. Thank you.


Sincerely,

Keith Powell

Keith Powell | keithpowell@lakepointtower.org

LPTCA Board of Directors | Board President

505 North Lake Shore Drive, Suite 2903 | Chicago, IL 60611

Work # 312.920.5861 | Mobile # 312.560.1556




Lake Point Tower Condominium, 505 N. Lake Shore Drive, Chicago IL 60611

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