Highview Condominium II
Board of Directors - Meeting Minutes
January 14, 2003, 7:30 p.m.

The second regular meeting of the 2002-2003 Highview II Board of Directors was called to order at 7:45 p.m. In attendance were Board members Sanchie Bobrow, Robert Boynton, Marjorie Cannon, Stephanie Greenberg, Frank Mattera, and Miriam Montalvo. Board members Victor Bellini and Carl DiLorenzo were absent. Bellini was represented by proxy to Boynton. In accordance with the Bylaws, on Sunday, January 12, 2003, Christopher Manginelli was appointed by Board vote to the vacancy created by Virginia Re's Friday, January 10, 2003 resignation. Chris was unable to attend the regular Board meeting due to the short notice. Jennifer Ogman attended from J.A.L. Diversified Management. Building super Rob Besser was present to bring several maintenance concerns to the Board's attention. Stefanie Greenberg's financial advisor, Don Kologaris, was also present to discuss investment of the Board's Reserve Funds.

1) As the first order of business, the vote for Christopher Manginelli's appointment to the Board was reviewed. Victor Bellini, Robert Boynton, Marg Cannon, Carl DiLorenzo, Stephanie Greenberg, Frank Mattera, and Miriam Montalvo had voted for Chris. Sanchie Bobrow had voted Miriam Biren. The appointment is valid until the next Annual Meeting at which time the general membership will elect a Board member to fill the remaining two years of Virginia Re's 3-year term.

2) At Stefanie Greenberg's request, Marg Cannon agreed to fill the vacant position of Vice President. There were no dissenting votes.

3) The Board and Jennifer Ogman discussed maintenance issues with building super, Rob Besser.

a) Rob reported that the Sunday maintenance provided by G&D has often been unsatisfactory (lobby windows left unwashed, litter remaining in the recycling area and compactor room). Rob suggested that he was willing to perform Sunday maintenance himself. Ogman and the Board agreed that the super should have a day off. The Board also expressed a concern for having a second person familiar with maintenance procedures and systems of the building - able to step in when the super is sick or on vacation. Bobrow recommended that the super should participate in hiring the weekend person, as the weekend person should be maintaining the building to our super's standards. Per Jennifer Ogman's recommendation, the Board authorized Ogman to discontinue regular Sunday services of G&D Maintenance. Jennifer will hire a new weekend person (or service) with Rob's input. Ogman said she would have no difficulty in hiring a new and dependable weekend maintenance person for the building. The Board agreed not to participate in the interview process.

b) Rob reported continuing problems with residents not complying with recycling and garbage disposal policies of the building. A number of residents on upper-level floors continue to walk their garbage to the lobby-level while leaving debris along their path and creating added clean-up work for the super. The garbage containers in the recycling area are primarily for lobby-level residents who do not have an access chute to the compactor like the other floors of the building. Apartment 3-A was cited for repeatedly disposing of construction refuse in the recycling area. Rob had spoken to the owner, but the offense had been repeated.

Discussion continued with Jennifer Ogman providing a contractor's estimate for adding a compactor access-chute on the lobby level to entirely eliminate the lobby-level garbage can in the recycling area. Ogman noted that the current garbage handling in the recycling area represents a fire hazard to the building. When resident choose to walk a garbage bag to the lobby, they often spill or drip along the way. And once left in a lobby-level garbage can, the super still needs to take the garbage bag out and manually feed it into the compactor to meet NYC Sanitation rules and avoid a building fine from NYC Sanitation. She explained that this task of manually feeding garbage into the compactor is a time consuming and messy job. The Board discussed the costs of adding the lobby-level chute, but agreed that if residents will comply with building rules and regularly use the chutes, the expense of remodeling can be avoided. There was discussion as to how residents with large items that do not fit into the compactor chutes will need to take their refuse around to the Martha Street garbage cage. However, regular garbage still needs to be compacted before going to the cage to avoid City fines. Jennifer Ogman will memo residents about garbage disposal policies of the building.

4) Highview II received a Health Department violation for $400 for garbage handling issue. The Board authorized payment of the fine.

5) Financial update:

a) Jennifer Ogman noted that the monthly Treasurer's report that Sanchie Bobrow is to receive was lacking copies of the expenditure receipts. Jennifer will arrange to provide Sanchie the material asap.

b) JAL reported $12,152.69 in the JAL regular operating account. In addition, the Operating Reserve and Capital Reserve funds totaled $104,044.59.

c) According to a standard accounting practice recommended for condominiums (see DeSantis & Shall FY01 report), an amount equal to one quarter of the previous year's actual operating expenses is required for the next year's Operating Reserve Funds account balance. With the FY02 operating expenditure total (as of December 31st JAL report) of approximately $240,000, a $60,000 balance for the Operating Reserve Fund will be required for fiscal 2003, leaving $44,044.59 for the Capital Reserve Fund. Boynton and Ogman discussed the $5,000 which was temporarily withdrawn last summer from the Operating Reserve Fund to cover the delinquent common charge balances of owners. The Board agreed that the $5,000 could now be restored to the Operating Reserve Fund - raising the Capital Reserve Fund balance to $49,044.59. Although JAL does not have withdrawal privileges on the reserve funds, Jennifer Ogman has the account number and will be able to deposit the funds to Reserve.

d) The Board affirmed their intention to engage DeSantis & Shall for the fiscal year 2002 tax return and audit. Jennifer Ogman will confirm this with DeSantis & Shall.

e) Boynton distributed a document from JP Morgan Chase titled "Corporate Resolutions", now required by the bank for their corporate account clients. The document required review and approval by the Board, as well as a copy of corporate Minutes reflecting the approval. Boynton indicated that Michael Swaaley had reviewed the document and found it acceptable for Board approval. Accordingly, the Board reviewed and approved.

f) Discussion of the Highview Reserve Funds continued. Boynton indicated that when the VoiceStream roof-top antenna contract was signed, it was the Board's intention to put this income into the Capital Reserve Account on a monthly basis. Immediate expenses for emergency repairs delayed their plan and the issue was never adequately addressed after that. However, near the end of 2000, the Board authorized Maxwell-Kates to make a single transfer of about $15,000 from the regular operating fund to the Capital Reserve account.

In 1993, a Capital Reserve Study was conducted by Becht Engineering Co. for Highview. Becht thoroughly inspected the building and its operating systems, and presented an analysis of remaining life expectancy of various systems. The document then provided an analysis of the annual contribution to Capital Reserve required by the building to meet capital replacement costs as systems wear out. It was proposed that the Board consider updating the Becht Engineering study. The Board agreed and Ogman will provide an estimate from Becht as soon as possible for Board approval.

Prior management had pointed out to the Board that the common charge had not increased since January 1994. In 1994, a portion of the common charge had been reserved for increasing the reserve fund to accommodate life-expectancy repairs and replacements. Over the years, the regular contributions to Reserve had been eroded by increases in annual operating expenses and inflation - with no matching increase in common charge.

With current monthly income from VoiceStream of $2,000/month, Boynton proposed that the Board agree to move $1,000/month of that income to the Reserve account. The Board approved a regular monthly transfer/deposit of $1,000 from the Operating Account to Capital Reserve. There were no dissenting votes, while noting that $12,000/year set aside for Capital Reserve was still not adequate to meet anticipated future expenses. Several Board members questioned whether the entire $2,000/month of VoiceStream income should be going into Capital Reserve. The Board agreed to consider further adding to capital reserve at a future meeting. Jennifer Ogman will see to it that JAL transfers $1,000 to the Reserve Fund on a monthly basis.

The Board expressed particular interest in costs relating to the boiler and roof. The boiler has already exceeded it's estimated life span, but is in good condition at present. A new boiler would cost in excess of $100,000 according to the 1993 reserve study. The roof has approximately 8 years left on its warranty and replacement costs will probably exceed $200,000.

6) At 8:30 p.m., Stefanie Greenberg introduced financial advisor Don Kologaris. After discussing the size of current Highview Reserve Funds and their intended use, Kologaris noted that the long-term investment commitments that would offer the best returns would not be appropriate for funds that might be needed in case of emergencies or even in a couple years for repairs. Kologaris expressed surprise that the building's common charge does not increase annually with inflation. It was noted that the building's last common charge increase was in January 1994. He also suggested that the building might consider fund raising events. The Board agreed to consider Kologaris as a resource once significant measures are taken to increase the Reserve Fund.

7) Super's performance evaluation: The Board reviewed the new super's 90-day written evaluation performed on December 5, 2002. A 180-day evaluation in March will complete his 6-month probationary term. The guidelines and forms used in the performance evaluation were part of the super's contract agreement signed in early September.

8) There was a brief discussion of estimates for the exterior wall repairs. The estimates are not completed. An engineering firm will review the status of the building's Local Law 11 compliance - which requires by NYC law an extensive evaluation of the building every seven (?) years and dictates immediate repairs. Miriam Montalvo asked if this inspection was voluntary and Ogman explained that neither the inspection nor the necessity of immediate repairs was at the option of the building. The cost of repairs can be quite substantial - leaving the building little time to build funds for the work if funds are not already in hand.

9) The Board approved installation of the elevator floor receiving the greatest number of positive comments from residents. The flooring samples were on display in the mailroom for an extended period of time for comment. Staley Elevator will install the floor. Jennifer Ogman will ask Staley for information on sealing/refinishing the brass trim in the elevator. The Board was reminded that the floor replacement will include replacement of the sub-floor to comply with a current NYC code violation and that funds were approved several meetings ago for this project (as noted in previous Minutes).

10) Parking Garage repairs: There are still two foundation wall leaks evident in the garage. The contractor is waiting for warm weather to complete the project. There is also a six inch clearance around the water main where it comes through the foundation wall and remains a source of water intrusion and foundation erosion. This will also be repaired shortly. The exhaust fan is running too much of the time (draining heat from the garage) and the Board is still awaiting costs on the motion sensor switch for the fan.

11) The Board discussed and compared the CoinMach and Sepco proposals for brand new washing machines and dryers. CoinMach (the vendor currently in use) is now offering a $5,000 signing bonus and $675 monthly rent to the building with new machines. Sepco has offered $600 per month and no signing bonus. Ogman noted that Sepco had inspected the building and at that time been told by a resident that no one uses the machines. That was the reason that Sepco would not offer similar monthly income and the bonus. Ogman and Greenberg had both spoken with Sepco and consider Sepco's offer final. The Board agreed that they would prefer to have Sepco, but that the building could not afford to go without the $5,000 bonus and $75 per month differential in monthly income. The Board authorized Boynton to contact Sepco and attempt to gain an offer similar to the CoinMach's. Boynton will report back to the Board within a couple weeks.

12) Pending repairs: The lobby floor is buckling near the elevator and will require repair. Estimates should be available at the next Board meeting. The 6th floor fire-door's glass widow will be replaced. Glass on the 2nd and 3rd floor fire extinguisher enclosures will be replaced. A portion of the exterior sidewalk lighting has failed and will require professional work (possibly requiring replacement of the of the entire lighting units which have been filling with water over the years and rusting out). The recycling area needs to be refurbished. It was noted that the Board had authorized the building super to paint all unit doors and frames as a regular maintenance item and this project was to be completed in the current color in semi-gloss finish by the holiday season.

13) Completed repairs: A new sensor was installed on the boiler's control system. The lobby was painted. New flag was installed and a spare purchased. A water leak in 6-E damaged 5-E, 4-E, and 3-E. The super gained access and repaired the leak, which was determined to be owner responsibility. Management has notified the owner of 6-E of their responsibility to the other apartments for the cost of their water damage and repairs. A water leak in 4-H damaged 3-H, and management has notified the owner of 4-H of their responsibility to 3-H for any water damage and repairs.

14) Three units are with attorney Mike Swaaley for collection of delinquent balances. . The cost of the attorney and collection is passed along to the delinquent owner as part of the legal process.

15) There was discussion of two situations with owners requesting reimbursement by the building for damage caused to their units by water damage. In both cases, the Board and management agreed that the source of the water damage could not be attributed to common building responsibilities and that neglect by fellow owners was involved.

16) A Community Coffee Hour was proposed for Tuesday March 11, 2003. Jennifer Ogman will attend the Coffee Hour. Stefanie Greenberg will post a newsletter.

The next Board meeting will take place on Tuesday, April 8, 2003.

The meeting was adjourned at 9:55 p.m.