Highview Condominium II
Board of Directors - Meeting Minutes
May 25, 2004, 7:30 p.m.

A special meeting of the 2003-2004 Highview II Board of Directors was called to order by President Stefanie Greenberg at approximately 7:30 p.m. In attendance were Board members Victor Bellini, Miriam Biren, Sanchie Bobrow, Robert Boynton, Marjorie Cannon, Stephanie Greenberg, Tamara Keshecki, Frank Mattera and Richard Re. John Lipuma attended from J.A.L. Diversified Management.

John Lipuma was introduced and began by distributing a memorandum detailing how the building would suffer an estimated budget short-fall of $33,000 for FY2004.

Lipuma listed the anticipated repair & maintenance projects remaining for FY 2004: refurbishing the elevator brass trim ($800), fixing the elevator door ($500), cleaning the ventilation system and compactor chute ($4,500), the Local Law 11 inspection ($2,500), new flooring outside the elevator on each floor ($400), painting the stairwell ($600), two new recycling chute doors ($3,200), and repairing the bulkhead/parapets ($3,200). These items totaled $15,700.

Lipuma asked the Board members for any other anticipated major projects that might have been overlooked in developing this list. Other than cosmetic projects, it was noted that in November the Board had committed to replacing the heat and hot/cold riser valves over a two year period and to date none had been changed (a liability and maintenance issue), a motion detector system to operate the garage exhaust fan was in the estimate process (NYC code compliance), front lighting replacement wiring (a liability and maintenance issue) was in the estimate process, and entrance area floor mats (a liability and maintenance issue) had been approved for $800. Bellini noted that the landscaping budget that includes lawn care and snow removal had been budgeted for the year at $15,000 and that a little more than $5,000 was still unencumbered funds for the replacement of some of the bushes and other miscellaneous needs.

It was noted that the outstanding/delinquent common charges of six owners currently totaled over $10,000 and Lipuma was asked where this fitted into the current situation. According to Lipuma, the budget forecast assumed that these delinquent common charges would be collected.

There was discussion of common charge increases, special assessments, and longer-term loans to cover additional projects such as roof replacement ($100+) or the 50-year old boiler ($100+).

Lipuma suggested consideration of a $50,000 assessment, covering the current $33,000 short-fall, the approximate $13,000 of additional high-priority unbudgeted maintenance projects for the year, and $4,000 more for either the unexpected or addition to reserve's currently budgeted FY2004 $13,000 increase.

The increase in reserve was discussed relative to the costs of a full replacement of the roof, which will probably cost in excess of $100,000 now that Firestone is refusing to honor the remaining 8 years of their roofing warrantee based on structural problems of the building.

With 67 units in the building, a proposal was offered for a special assessment of $50,000 over six months, commencing on July 1st with all funds collected prior December 31st , breaking down to an average monthly assessment of $125. A second proposal was offered at the same time for an assessment of $40,000, breaking down to an average monthly assessment of $100. Both of these proposals were discussed as attempts to assure that the building closes it's fiscal year on target with the financial health agreed upon for the CPA's 12/31 audit - 25 percent of the previous year's expenditures available as Operating Reserve ($60,000 for FY2004) and an excess beyond that for a Capital Reserve Fund (currently $5,000). A third proposal was offered for a $300,000 loan over several years which would cover the current shortfall, a new roof, and a new boiler.

After discussion of the three proposals, the Board voted in favor (8/1) for a $40,000 assessment over six months, commencing on July 1st with all funds collected prior December 31st , breaking down to an average monthly assessment of $100. Votes recorded in favor: Victor Bellini, Miriam Biren, Sanchie Bobrow, Robert Boynton, Marjorie Cannon, Tamara Keshecki, Frank Mattera and Richard Re. Vote recorded opposed: Stephanie Greenberg.

Lipuma will investigate the possibility of a loan for the building and report back with details.

The meeting was adjourned at approximately 10:55 p.m.