Highview Condominium II
Board of Directors - Meeting Minutes
November 16, 2009, 7:30 p.m.

The first meeting of the 2009-2010 Highview Condominium II, Inc. Board of Directors was called to order at approximately 7:40 p.m. by Stacey Cohen, President.  

Board members in attendance:  Robert Boynton, Joseph Cann, Marjorie Cannon, Stacey Cohen, Nora Colford, Natalie Hendrix, Angelo Morelli, and Joseph Skonieczny.  Board member Michael D’Angelo was absent, but was called for discussion of particular issues.  Linda Romolo attended from Wentworth Property Management.  

1)   Minutes:  Minutes of the September 29, 2009 meeting were approved.  

2)   Maintenance update from super:  Chris Brighina joined the meeting for a short period of time to report on building maintenance items and concerns.  

3)   Financial Report:  

      a)   Unit Owner Arrears.  Status of legal actions were discussed.  

      b)   Operating and Capital Reserve Account balances were discussed.  

      c)   Audit for FY2008:  The final version of the FY2008 audit will be completed shortly, but was not available at the FY2008 General Membership Meeting on October 28, 2009.  The independent auditor from Wilken & Guttenplan was present at the General Membership Meeting and indicated that only be a couple minor corrections to the final document remained, but that the building’s general financial health was satisfactory.  

      d)   Capital Reserve discussion:  There was discussion of the need to increase Capital Reserve and the opinions expressed by unit owners at the FY2008 General Membership Meeting:  At the General Membership Meeting on October 28^th, unit owners were polled for their opinion on increasing the Capital Reserve fund.  The auditor attending the meeting from Wilken & Guttenplan recommended to the general membership that the Board consider updating the Capital Reserve Study of 2003, since the 15-year forecast is now 7 years old and does not take into account replacements beyond 8 years.  In the past 7 years, the building has completed approximately $150,000 of the ~$750,000 in capital replacements anticipated in the 2003 report –  leaving approximately $600,000 in potential replacements in the next 8 remaining years.  At the same time, an updated report would reach a full 15 years into the future for expenses that the board should prepare for.  

            The 2003 Study had recommended an immediate assessment over six months of $100,000 and continued additions to the reserve fund of approximately $37,000 each year.  However with dramatic increases in building expenses for energy (heat, electricity), insurance, and taxes, delayed implementation of the Study’s recommendations for Capital Replacement savings.   

            In discussion of 1) how the cost of either a boiler or elevator replacement would exceed $100,000, 2) both systems have exceeded their typical life span, and 3) a failure either boiler (heat/hot water) or elevator might force a system shut down until the required funds could be raised from all of the 67 unit owners, there was general agreement that the increase in reserve is urgently needed.  It was also noted that while the building had arranged for a building loan when the roof was replaced several years ago, getting an emergency loan for future replacements might be unlikely in today’s financial climate and with the condominium corporation not having any real property to offer as collateral.  

            Without dissenting opinion when the General Membership was polled at the annual meeting and with a quorum of unit owners represented, membership’s opinion was that 1) Capital Reserves should be increased by $200,000-$300,000 and 2) a significant special assessment should be conducted for this purpose (instead of a small common charge increase that could cover the same amount but take a much longer period of time to accumulate the amount discussed).  

            As the final decision in the matter rests with the Board, there was lengthy discussion in the matter at this November meeting.  D’Angelo recommended a three-year assessment for the full amount.  Cohen suggested waiting until summer be begin the assessment.  Skonieczny requested an option for unit owners to be able to pay their entire share at the outset of the Assessment.  Boynton recommended incremental/annual renewals of the Assessment to provide some flexibility in the decision and annual review by the board of capital needs.  The board decided to hold a special board meeting on December 8, 2009 for the purpose of determining the amount and term of a special assessment to increase the Capital Reserve.  The matter was tabled until December 8^th.  

4)   Legal Report:  

      a)   Rules & Regulation fines:  A $500 moving fine was issued to a unit owner for the action of their tenant.  A $100 parking fine will be issued to a unit owner for parking in the driveway for 3 hours over the weekend.  

      b)   Damage to common property:  In review of management’s decision, a unit owner was determined to be liable for the building’s cost of replacing a unit door and frame as common property of the building.  The same unit owner was found to be liable for the cost of repairing damage to the front entrance door and security system.  Romolo was asked to complete the replacement without further delay and bill the owner.  There was concern that the damaged door needs to be replaced before the Thanksgiving/Christmas/Chanukah holiday season when the guests of unit owners will be visiting.  

      c)   Unit owner liability insurance:  The Board approved changes in the Rules & Regulations and a new rule was approved that will require unit owners to carry liability insurance covering potential damage to surrounding units and common property.  The final wording of this regulation will be reviewed by the building’s attorney prior to final approval by the board.  

      d)   Board member elections at the FY2008 General Membership Meeting:  The FY2008 General Membership Meeting took place on Wednesday, October 28, 2009.  Joseph Cann, Angelo Morelli., and Joseph Skonieczny were elected to three year terms.  

      e)   Local Law 11 façade inspection (cycle 6):  There was no update.  At the September meeting, Romolo indicated that the building would be re-submitting the Cycle-6 engineering report for Local Law 11.  City will then inspect and provide certification along with any needed repairs.  

      f)    Unit Leases:  Romolo indicated that all unit owners are currently in compliance with Highview’s lease approval and renewal requirements.  

      g)   Update on NYC rebuilding of Clove Road:  Super is including search for building cracks in structural walls in his unit inspections.  Once completed, Becht Engineering will follow up.  

6)   Building Repair & Maintenance Report:  

      a)   Exhaust fan system:  Super is currently verifying adequate operation in lobby and first floor units, inspecting all units for illegal within-unit fan installations or construction which may have blocked building access to common property vents, and that the building’s ventilation system is operational as required by NYC code.  With completion of his inspections, a ventilation contractor will inspect any non-functioning lines by camera by the end of the year.  

      b)   Painting projects:  Brighina has completed painting of most unit doors and common area doors.  

      c)   Semi-annual smoke detector replacements and unit inspections:  Brighina reported that he has completed about a third of the fall unit inspections and is to complete remainder of building before Thanksgiving.  Board reminded residents at the annual General Membership Meeting on October 27^th that super will require access to all units.  

      d)   Replacement/upgrade of exterior and lobby lighting timers:  The two bids were not for identical work.  Joe Cann will review bids with Chris and authorize most appropriate work without further board input.  

      e)   Parking lot crack repairs:  Chris has been repairing the parking lot cracks.  It was again noted that since the parking lot walls were painted last year and the wall lines painted over, the wall lines urgently need to be restored prior to winter, when even a dusting of snow will make the pavement lines invisible to the owners of the spaces and difficult for them to stay within their very limited space allocations.  

            From the September board meeting, Linda Romolo was to get bids for parking lot sealing and resurfacing for the board’s information and future consideration.  Romolo had no bids at this meeting.  

      f)    Boiler circulation pump #2 replacement:  Completed.  

      g)   Landscaping:  The board approved a new landscaping contractor (Prime) for 2010 season.  

      h)   Plumbing investigation of possible break in drain pipe:  Plumber suggested that current leak may be in sprinkler system pipes instead of building drain pipes.  Now that sprinkler system has been drained for the winter, super will monitor for further signs of leakage into parking garage.  If flooding occurs, board authorized super to call plumber in to camera the line.  Prior break was identified in the drainage line and a temporary patch was installed at that time.  

      i)    Garage door operation:  There was discussion at the September meeting of the garage door’s emergency systems.  It was determined that the overhead door does not stop and reverse when it is closing and encounters an object in its path, there is no emergency release for the door, and super noted that a load bearing cable had started fraying.  No update from Romolo at this meeting.  

      j)    Underground fuel oil tank.:  No update from Romolo.  Operating license from NYC expires in November  

      k)   Entrance area tile cracks:  There was discussion of cracks in exterior entrance area tile and loose grout at the September meeting and management was to investigate and provide repairs bids so that repairs can be completed before winter.  There was no update from Romolo at this meeting.  

      l)    Carpet cleaning:  Carpet cleaning was completed last week.  

      m)  Lobby ceiling:  The building super will replace the ceiling access panels and touch-up the ceiling as needed before the holidays.  

      n)   Plumbing repair:  The sprinkler head in the laundry room is still dripping.  

      o)   Flower bulb planting:  Nora Colford will oversee planting of additional bulbs.  $200 was authorized.  

      p)   Entrance area:  There was discussion of the tile cracks and grouting problems in the exterior front entrance area.  Romolo will get bids for repairs to be made before cold weather leads to additional damage.  

      q)   Damaged compactor chute door on third floor:  Romolo reported that the 3^rd floor compactor chute door will be replaced by NuWay.  

      r)    Telephone pole damage:  Romolo was asked to follow-up with the City concerning the damaged telephone pole as a risk to building property and residents.  

      s)   Carpeting replacement:  Romolo and Cohen investigating.  

      t)    Fire Escape repairs:  Romolo tending to fire escape inspection and getting multiple bids for and repairs outside unit 3-E.  

      u)   Elevator repairs:  Romolo to arrange 3^rd party inspection of elevator.  

Other business:  

      a)   December Holiday Party:  The date of December 15^th was set for the annual holiday party.  Marjorie Cannon was authorized $500 for food and beverages.  

      b)   Building staff:  Super due for evaluation.  Meeting will be scheduled with Cohen and Romolo.  

The meeting adjourned at approximately 9:45 p.m.  

Minutes submitted by Robert Boynton, Secretary