7:30 p.m. by Marjorie Cannon, Vice President.

Board members in attendance: Miriam Biren, Robert Boynton, Joseph Cann, Marjorie Cannon, Stacey Cohen, Nora Colford, Michael D’Angelo, and Al Lamoglia. Debbie Shapass and Linda Romolo attended from Wentworth Property Management.

1) Minutes: Minutes of the May 20, 2008 meeting were approved.

2) Board appointment: Natalie Hendrix was appointed by the board to fill the vacancy created by Richard Re’s 06/11/08 resignation. Once appointed, she was called and invited to attend the remainder of the meeting.

3) Election of new officers: With President Richard Re’s resignation, the current Vice President, Marjorie Cannon, was elected President and Stacey Cohen was elected Vice President. Following his prior acceptance of Assistant Treasurer at the 04/15/08 meeting, Michael D’Angelo was elected Treasurer. Robert Boynton continues as Secretary.

2) Financial Report:

a) FY2006 audit: Debbie Shapass did not have an update.

b) FY2007 audit: Cannot begin until FY2006 audit is completed.

c) FY2008 budget: Waiting for completion of FY2007 audit. It was discussed that the building is running short of both operating and reserve funds. Highview’s financials are managed on an accrual basis, not cash basis; making an accurate accounting of the FY2007 carryover critical.

d) Unit owners arrears: April arrears report not available in advance of meeting. The complete April financial report including arrears was distributed at meeting on CD by Shapass. It was agreed that in the future Wentworth will distribute the monthly Financial Report as an email attachment to president, treasurer, and assistant treasurer as soon as completed (week in advance of regular board meeting). The rest of the board will receive a CD copy on the evening of the board meeting. In reviewing the March financial report, it was noted that unit 6-D which was sold during TKR’s management term appears to still be listed in the name of previous owner. Several units are in arrears and will be moving to legal.

Discussion of Special Assessment: It was discussed that the building’s Capital Reserve is insufficiently funded and there is no budgeted savings plan for the regular and necessary capital repairs Highview can be anticipated outside of general operation costs of the building. In lieu of sufficient Capital Replacement reserve funds, the building’s Operating Reserve has been used to cover recent Capital repairs, slowly depleting Operating Reserve.

At the same time, Common Charge revenue has fallen short of regular Operating expenses; most recently requiring the Highview to finance the building’s annual insurance bill this past spring while also withdrawing $25,000 from Operating Reserve to cover other general building expenses.

As the guideline for Operating Reserve (25% of the prior year’s expenditures) needs to be at approximately $80,000 on December 31, 2008, management recommended at the May board meeting that an immediate Special Assessment be considered to cover: 1) the cost of accrued Capital Replacements made in recent months for which Special Assessments have not been instituted, 2) the Capital Replacements determined as necessary in the weeks ahead for continued safe operation of the building, and 3) replacement of Operating Reserve funds in order to achieve the recommended December 31^st operating reserve balance which will become subject to public scrutiny through FY2008 audit and the disclosure requirements of lending institutions. The accrued replacement expenditures discussed included several elevator system replacements, a new video security recorder purchased last fall to replace the system’s failed unit, renovation work last fall in the super's apartment prior to a new super’s move-in, boiler system replacements and code compliance, upcoming boiler system replacements including both the primary and secondary pumps which are both failing and must be replaced prior to turning on the heat for the winter, and the addition of a water filtration system to address repeated complete water service-line blockages which have occurred in the last approximate 3 years.

f) Discussion of Common Charge increase: There was discussion of the possible need for a Common Charge increase to cover additional operating costs since the last increase several years ago. It was noted that the last increase did not include any budget for adding to the Capital Reserve or the cost of Capital Replacements as they occur. It was also noted that although operating costs have gone up every year (taxes, fuel oil, natural gas, electricity, and insurance), there has been no matching incremental increase in the common charge each year. The board agreed that the need for a common charge increase can only be determined by accurate completion of the FY2006, FY2007, and FY2008 audits which are in progress. It was noted that the Highview II financial records from TKR Management continue to cause problems with Wilkin & Guttenplan in achieving completion of the building’s audits. It is anticipated that by fall all critical information will be available for a decision in this matter.

Approval of Special Assessment: After lengthy discussion of Highview finances, the board approved a Special Assessment. There were seven votes in favor of the assessment. Albert Lamoglia voted against the Assessment. Nora Colford voted against the assessment on account of the board’s apparent first priority for the assessment in assuring adequate operating reserve (25%). Nora indicated her belief that installation of the water filtration system needed to be a higher priority than maintaining operating reserves at the 25% level.

Whereas the total of the identified expenses was approximately $90,000, the board voted a limited $41,250 Special Assessment through 12/31/08 for an average $125/mo. for unit owners. By fall’s completion of financial audits, the Board will have to determine in concert with Wentworth and Wilkin & Guttenplan whether to continue the Special Assessment into early FY2009 or increase the Common Charge effective January 1, 2009 for a smaller sustained increase in building income.

It was noted that the 1993 Capital Reserve Study, updated by Becht Engineering in 2003, recommended a $109,920 contribution in 2003 to Capital Reserve, with additional annual contributions beginning in 2004 of approximately $50,000/yr. in order to anticipate the cost of all capital replacements needed over the next 15 years according to the estimated life-expectancy of various systems like the building’s $100,000 boiler which has already exceeded its typical life expectancy by 10 years. Although the 2003 report has not been acted upon by the board, it was also noted that the building’s auditors, Wilken & Guttenplan, recently recommended an update to the Capital Reserve Study and pointed out that mention of the building’s Capital Reserve Study (or the absence of a current Study) is required to be mentioned within their audit.

3) Legal Report:

a) Driveway Parking: On the evening of 06/04/08, a car remained parked in the driveway overnight. There was discussion of the parking rule and the building’s contract for towing services. If the super is not home to notice and call Wentworth, any unit owner noting a car parked for any length of time may bring the situation to Wentworth’s attention and the car will be towed. It was agreed that the $25 fine is not sufficient. Tabled for later discussion.

b) Local Law 11: The Local Law 11 inspection report has still not been filed. Wentworth indicated report is with board president for signature.

c) Leases: Several unit owners have not provided copies of their unit leases to tenants. Fines of $500 are being issued.

d) Unit Arrears: Several delinquent owners have moved to legal for collection.

4) Building Repair & Maintenance Report:

a) Water filtration system: Estimates for engineering received. Wentworth will get similar estimates from two additional engineering firms.

b) Boiler return pump replacements: Further discussion of proposals for boiler return pump and tank replacements. Joe Cann questioned electrical relays. Debbie will get additional information on cost of replacing relays at the same time.

c) Garage Door repairs: When the electric eye on the overhead garage door was recently replaced, the contractor extended the equipment 6-10” farther into driving space and thereby increasing the likelihood of additional damage. Debbie will speak with contractor to have eye moved and to have the perches protected from auto damage. Once damaged, the door no longer operates and quite often the building end up with a late-night repair to assure owner access and building security.

d) Fire escape repairs: Fire escapes were inspected and determined to be in need of repairs. Welding estimates for fire escapes and rusted out handrail near garage stairs approved by board.

Exhaust fan system: On 05/13/08, Marco Air investigated several reports of ventilation problems.

i) A-Line kitchens: Marco determined no flow of air in the kitchen of 2-A while the system was operating. Marco will inspect all A-line units to determine whether there is a blockage and/or possibility that a unit owner in the A-line has installed private equipment on the common line.

ii) A-Line bathrooms: It was determined that the problem with the A-line bathroom fan motor running to fast and rattling was that it was the old fan motor and hood – the new fan unit had apparently never been installed and was laying on the roof. Marco Air will provide estimate for installation. Since it was not installed while the T-Mobile Wireless equipment was removed, additional ductwork will be required for the fan motor to reach the duct which is inadequate space for a successful fan installation beneath the T-Mobile equipment.

iii) E-line kitchens: The E-line kitchen vent was operating adequately at the time of inspection, but since the unit owner had reported fumes blowing out of the vent into her kitchen, Marco will inspect remaining E-line units for illegally installed private equipment on the common line

f) Tree trimming: Gary’s Landscaping provided an estimate of $1,000 to entirely remove mulberry tree near garbage cage. Typically the tree is trimmed every couple years at about $400. Board declined to approve tree removal.

g) Painting projects: The super is in the process of completing the garage wall painting and stairwell floors. Unit doors was added to the list. Board approved a super’s use of credit account at Reiman’s Hardware. Reiman’s will call management whenever super needs to charge Debbie indicated.

h) Overhang in front of lobby windows: The roof/overhang in front of the lobby windows is leaking. Management getting estimates.

The meeting adjourned at 10:05 p.m.

Minutes submitted by Robert Boynton, Secretary