FOREST HILL ASSOCIATION
SPECIAL EXECUTIVE BOARD MEETING
JANUARY 4, 2010


Board members present: Mel Bachmeier, Katie Balestreri, Kathe Farrell, Dan Kelly, Sally Kipper, Warren Krauss, Diane Wara.

Others in Attendance: Steve Lawrence, Steve Halpern, Walt Farrell, Harold Wright, Anna Bolechowski, Nancy Hagosian, John Balestreri, Yen Bachmeier, Rike Grasshoff.

Call to Order: by President Dan Kelly at 7:10 PM.

Minutes of the Meeting on November 2, 2009 was approved with the following clarification by Treasurer Sally Kipper: "...the large payroll tax withholding payment in April resulted from a retroactive payment of previous quarters that, if done timely, would have been charged to previous fiscal years." Minutes of the Special Executive Board Meeting on December 8, 2009 was passed without correction.

Treasurer's report: Sally reported that the major expenses have been approximately $7700 to the accounting firm and $7400 for landscaping work.
Sally gave a progress report on accounting expenditures: May Pon, who is a specialist in tax accounting for nonprofits, is about to complete work on the 2009 tax forms; the engagement of a CPA is a time limited job to clean up our Quickbooks files; a bookkeeper will be hired on an ongoing basis - time TBD, at $55/hour as an independent contractor. Diane moved, Mel seconded, and the Board passed, the motion to hire such a person. 64% of the budget has been used for 75% of the year. However, there are several outstanding bills which means expenditures are probably closer to 70% of the budget.

Referring to the legal expenditure YTD, Walt Farrell asked why the insurance company did not cover legal fees. Warren responded that the insurance company covers FHA against lawsuits filed against the Association, but not for property disputes, e.g., Baum-Glass.
To date 4 properties remain unpaid and unliened. Six liens have been placed as of December 21, 2009, bringing the total number of liened properties to 11.

Special Order of Business: Adoption of Assessment Rates for 2010-2014
President Dan Kelly referred to the Resolution proposed at the October 5, 2009 meeting of the Board of Directors in which the assessment for Forest Hill Association property owner members would be increased from $0.057 per square foot to $0.085 per square foot. This proposal was mailed to Association members within ten days of the October 5 meeting, as required by the Forest Hill agreement; and was followed by announcements in two separate newsletters in November and December. He related that he has received both written and oral comments from members since, and solicited additional testimony from those members present.

Harold Wright asked for a detailed explanation as to why the increase is needed, and Sally referred to a written analysis of future expenditure projections (distributed at the meeting and on file at the Clubhouse office). She estimated the projected 2010-2011 revenue need to be $285,182. The net collection capacity for 2010 is $177,484, and anticipating a $40,000 income from Clubhouse rentals, a deficit of $67,698 would result. ($285,182-$217,484) In addition, there are future expenditures anticipated, including Clubhouse work. She additionally noted that inflation has been flat but can be expected to increase over the next years. For the purposes of supporting the assessment, she submitted inflation adjustments of 2% and 3%, resulting in a total projection by 2014-2015 (the next time at which assessments can be changed, according to the Forest Hill agreement) of $314,864 with a 2% inflation rate and $330,604 with a 3% inflation rate.

Steve Lawrence asked why there could not be special assessments for kitchen remodeling, etc, instead of raising the overall assessment, and Dan replied that the FH agreement does not allow special assessments.

Harold Wright objected to adding $20,000 as reserves to the '09-'10 budget and commented that the projection sheets distributed at the meeting should have been promulgated prior to the meeting to allow detailed study.

Following discussion, Sally Kipper made a motion to adopt the Assessment Resolution increasing dues to $0.085, and each Director passed the motion individually. The dues notices to be mailed this month will reflect the increase.

WTPCC Report: No meeting in December

FHGC Report: Katie Balestreri reported for Sima Talai that

1- The group requests indoor color-coded cans to aid in recycling.
2- The Holiday Party was well attended and featured good cooperation by all     members.
3- FHGC is happy to help with the labor involved with Lunar New Year festivities.
4- FHGC, because of printing mistakes, has been given a credit for $150 from     the printer. The group offers transfer of the credit to FHA for use with their     printing needs. This transfer would then take the place of FHGC's gift to FHA     for piano tuning. It was MSP to accept the offer.
5- The January 18 meeting features craft projects.
6- The St. Patrick's celebration will feature a silent auction.

Advisory Committee Reports
Activities: Dan Kelly reported
     1- Lunar New Year - Celebration will be February 28. A planning meeting is          scheduled for Sunday, January 10.
     2- Holiday Party for Children - well done, but criticized for not enough publicity.
     3- Newsletter - An office printer is needed. Motion by Mel, seconded by Dan,          passed unanimously to purchase.

Architectural Review: Steve Halpern reported
     - 160 San Marcos - Sponsors have decreased the amount of excavation and         increased the square footage of the third floor. Objectors still object, and no         permit has been issued as yet.
     - 44 Mendoza - Penalties in place on 1/11/10, if violation not abated.
     - 344 Pacheco - Landscaping has been reduced by 25%.
     - 200 San Marcos - Permits have been granted 1) to legalize garage conversion         into habitable space while maintaining 7.5x15' compact car parking space,         and 2) to raise curb and reconstruct sidewalk.
     - 51 Sotelo - Dan Reported on the installation of brick hardscape in the parking         strip. The Bureau of Urban Forestry issues permits to remove concrete; it         might also see fit to prevent bricking over of areas. Diane recommended         convening a subcommittee to formulate a FHA policy/preference statement         about parking strip treatments.

Clubhouse Report: Dan Kelly reported that spot light inspection would be done.

Infrastructure: Dan Kelly will finish collecting the Curb Survey and will forward it to DPW. It is the Association's responsibility to trim tree roots where necessary for sidewalk repair. Diane asked that a request be made to coordinate sidewalk repair (homeowners' responsibility) with curb repair (DPW's responsibility).

Landscape: Diane Wara reported that Valley Crest's estimate for winter pruning and for cabling four trees has been received: $19,132. MSP to approve expenditure.
Harold Wright reported that three large pine trees were removed on 21 Sotelo property. He suggested that there be an article in the next newsletter recommending that homeowners contact the FHA to have trees evaluated when there is doubt about their health.

Legal: Warren Krauss related that there is a need to develop a conflict of interest policy that would require disclosure by all Board members and employees about personal, professional, or business interests that might affect the Association.
He recommended an additional hold harmless agreement with Valley Crest, but is awaiting evaluation of other aspects of the contract.
Also needed: an expenditure limit policy - a set of directives about who has the right to spend money on unbudgeted items.

New Business
Will Connolly sought permission for the Pocket Opera to use the Clubhouse for 2 closed and 1 open rehearsal as in the past. The Board agreed in principal. Depending upon the calendar, the Pocket Opera may be able to temporarily store sets between rehearsals.
John Balestreri mentioned the possibility of a quartet performing in the Clubhouse in February or March.
Mel Bachmeier reminded the Board that the time is approaching to seek candidates for Board positions. Dan announced that notices would be sent in February.

Adjournment
There being no further business, in response to a request, the meeting was adjourned in memory of Dr. Arthur Corfagni

Respectfully submitted,

Kathe Farrell, Secretary