Highview Condominium II
Board of Directors - Meeting Minutes
November 11, 2003 7:30 p.m.

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

1) The meeting started with a discussion of financial issues.

A draft of the fiscal year 2004 budget was distributed and showed a proposed deficit of $16,000. From this point, the Board reviewed any other necessary expenses for FY2004 that might have been overlooked and not included in the proposed budget. Funds for replacement of the shrubbery, riser valves for the heating and water service, and broken sidewalk lighting posts were mentioned. These were already included in the budget, noting that the riser valves will be replaced over two years budgeting instead of one. It was also affirmed that the current special assessment of $30,000 will be completed by December 31, 2003 and the funds transferred to the reserve accounts. There was discussion of the need to build the capital reserve fund for future repairs and how the current special assessment only replaced $30,000 of the $75, 000 actually removed from reserve in FY2003.

There was discussion of increasing the common charge and/or another special assessment. After significant discussion, the Board agreed to set a common charge increase of 15% effective January 1, 2004. It was determined that a 8% increase in common charge should cover the budget deficit and an additional 7% would replenish the capital reserve and begin building the reserve for the significant capital repair expenditures that the Becht Capital Reserve Study indicated the building should be prepared for in the years to come. Several Board members believed that the increase should be 20% instead of 15% to increase the Capital Reserve more rapidly. It was noted that the Becht Study indicated that the building should add $100,000 to the reserve in the just coming year as well as add smaller annual amounts in each of the following years. But at the point of a vote, there was agreement and no dissenting votes.

2) The Board reviewed the purchase of a new snow blower ($1,100 plus tax) made by JAL with the authorization of Stefanie Greenberg. The Board discussed with JAL that the President is not authorized by Bylaws to made such decisions without a Board vote and this vote had not taken place. According to the Bylaws, in order to make such decisions between Board meetings, an Executive Committee can be created by the full-Board, however with the advent of email, recent Boards have not found it necessary to create the committee. Only a full-Board meeting's vote or email vote would be valid in this case and neither had occurred. Similarly, JAL is only authorized to make expenditures of this magnitude in case of building emergency - which was also not the case.

In reviewing the building's needs, it was noted that the Board had voted last year to hire a snow removal contractor for more than a 3" accumulation of snow. Under these circumstances, the purchase of a new snow blower for 3 inches (or less) of snow was questioned. Similarly questioned was the need to consider spending $1,000+ to repair the old one for no more than 3 inches of snow. In the past, the building's super was held responsible for all snow removal without limitation and this responsibility had justified the purchase of equipment capable of the task.

The super's contract was also reviewed and it was determined that there is nothing mentioned about 3" limitation of snow removal in the agreement. The super's contract reads: "In case of snow, the building super is responsible for removing snow on all sidewalks, driveways, stairs, and parking lot. A commercial grade snow blower is provided by the building and is to be kept maintained and ready by the super. In case of major snowfall, the managing agent may engage a contractor to remove significant heavy accumulation, but it is always the super's responsibility to assure safe exiting to and from the building for emergencies, and complete control of icing situations on the property (sidewalks, driveway, and parking lot.)."

The Board reversed the previous decision and the 3 inch rule was eliminated. Once that was settled and it was confirmed that all snow is the super's responsibility, the Board agreed that a snow blower in good condition must be provided to the super. After briefly discussing the expense of repairing the old one, the Board agreed to the new purchase. Jennifer Ogman confirmed that although the super had not been included in selecting the new snow blower, JAL stands behind the decision to purchase this specific unit, that Jerry Lemmermann personally chose the unit, and that the unit is a commercial grade unit capable of meeting the building's specific needs and should last for many years.

4) Recent building repairs:

a) The carpets were recently cleaned.
b) The boiler has been overhauled for the winter and the oil tank is 80% full.
c) The super handed out batteries when he painted apartment doors. (This was questioned by the Board as no one present had been offered battery replacement by the super.) In the future, it was agreed that the super will be required to keep a record of which apartments received the replacement batteries.
d) The super has repainted stairwell and elevator doors in the correct semi-gloss paint for easy cleaning and will repaint all individual apartment doors over the next couple months as time allows.
e) The awning's January damage was repaired at the snow contractor's expense.

Upcoming repairs:

a) Stairwell painting.
b) Garage walls painting.
c) Garage floor steel plates (replacement).
d) Replacement of replacement protective bars on all sewer pipes and water main in garage.
e) Parking lot walls and fence (in spring).
f) Individual unit damage from façade work.
g) Lobby tile is heaving and same tile outside of entrance is cracking. (The Board reviewed estimates and a contractor was approved to move ahead with the work.
h) The roof exhaust fans are being cleaned by the super, however Ogman recommended that a contractor be considered to professionally clean all inside vents and the compactor chute by spring.
i) A letter was sent to Firestone on November 4th concerning nails popping on the roof.
j) Mill Basin Roofing has yet to review the parapet wall repairs that are needed.
k) The NYC code-required Fire Plan will be distributed in January. All residents will have to sign for their receipt of the document.
l) For the Local Law 11 inspection, Ogman submitted proposals from two engineering firms. It was agreed to wait another week for a third anticipated proposal.

5) The Becht Engineering - Capital Reserve Study will be distributed to all owners shortly.

6) There was discussion of the distribution of building security keys. It was confirmed that each unit received two keys when the system was initiated. New owners receive their keys from the old owner. Additional or replacement keys are $25 each. Each key has a unique code and the computer keeps a record of each key's usage, which can be compared to the videotape in case of problems.

7) Landscaping contracts were reviewed. The new contractor under consideration will need to add specifics to a contract prior to review by Swaaley and signing. There was discussion of the $1,000+ of bushes covering the garbage cage which were guaranteed by Walsh Landscaping and the need for Ogman to have them replaced prior to any considered change in general lawn contractor. There was also discussion of asking for proposals for replacement of the front shrubs which would include a design plan.

8) Ogman will be getting contractor bids for cage around the new water main to prevent cars in the garage from bumping/cracking the pipes and masonry work to fill in around the excavation that was required to replace the old main.

9) There was a discussion about the dissatisfaction of some residents in obtaining a prompt response from JAL to their calls. John Lipuma, the president of JAL volunteered that residents may contact him directly if they believe they have not received a prompt response to any concern in the building. He indicated that a memo to that effect will be distributed to all owners in the building.

10) The Board decided to create a Rules & Regulations review committee. Boynton, Greenberg, and Re volunteered.

11) The Board's Treasurer, Tamara Keshecki requested certain specific year-to-date expenditure reports. John Lipuma agreed to Keshecki's requests.

12) Keshecki requested that the Board approve a new accounting firm for the building's fiscal year 2003 audit. The Board approved of her choice -- with a savings in the contract of several hundred dollars.

13) The Board agreed to fund the December Holiday party for $500. About $850 was spent the year before, but attendance was down compared to the year before that and there were a lot of leftovers. There was discussion of a pot-luck dinner, but concerns for the willingness of residents to each cook something yielded a decision to once again use a caterer. Presents for the children will be limited to candy and little things.

The next Board meeting will take place at the regularly scheduled 2nd Tuesday of the month on December 9, 2003. The meeting was adjourned at approximately 10:00 p.m.