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Project costs - need advice - BP Jun 24, 2009


We have major projects ahead and our board thinks that, due to the economic downturn, we can get "great prices" now on projects like new elevators, lobby reno or roof replacement because consultants/vendors need the work and will probably lower their costs significantly to get more contracts.

Have any of you found this to be true? Our board hasn't looked into this closely yet but they think this is a good time to start major projects so we'll pay much less for them than we may in 2-3 years. Aside from the fact that most costs go up in time anyway, is it likely that professionals in the building industry in NYC are "discounting" their prices in this sluggish economy just to get more work?

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I think what you will find is that contractors are generally more available for these projects and will likely be somewhat more flexible in their pricing. Like all of us, they have obligations that they must meet regardless of the economy, so while you may get a modest discount that you would not have received a year ago, you may find that it is not providing the "great prices" that your board is hoping for. On the other hand, you will likely get a faster start time, fewer delays during the project, and improved service afterward.

Most of their costs are in materials and labor which to a great extent are out of their control. Labor costs may not rising as quickly these days but they are not going down, particularly if you are engaging in union work.

Like you said yourself, costs go up in time regardless, so waiting for two or three years will only result in a more expensive project. We are in the middle of a major elevator modernization project. Times are tight and the work could have waited for two or three years, but we knew the work had to be done and we also knew that it was not going to get cheaper later. Bottom line, if you have the funds available and the project is essential, now is the time.

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If you have a roof replacement project upcomin please look at our website/references you will see we are more than qualified and are competative, however we do not skimp on quality and yes we do have certain obligations that we have to meet and certain standrads that we consistantly maintain. Good luck

www.aparestoration.com

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Ridding of the UNION - Vertiginous Jun 24, 2009


This is a small CO OP with 2 union staff Super and parttime doorman (4hrs) Mon-Fri.
The cost of living rising so much the CO OP cannot afford "The UNION"

Does anybody have advise on how to go about ridding the building of the UNION the monetary cost etc.. I know we will be seeking the advise of a Lawyer but I want to do the homework first and hear all possibilities. Thanks all who contribute to this subject.

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We just recently rid ourselves of the union, co-op in Queens.

Our lawyer knew the process and did a great job.

We used services of
Matthew Persanis
670 White Plains Rd. Suite 321
Scarsale, NY 10583
mp@elefantepersanis.com

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Unions have been about the only way working people have been able to make anything other than a subsistence wage in this country.

And in the only Westernized nation without national health care, the social contract is that private enterprise would fill that role, in exchange for not being taxed at European levels. Yet private enterprise largely has not kept its end of the bargain, except when unions have negotiated for that.

Co-ops spend money on new lobbies, expensive, union-busting lawyers, and other suh things, and yet won't pay workers a living wage and offer proper benefits. Shame on you. Unless your co-op is on the verge of bankruptcy - in which case the union can negotiate with givebacks, and countless unions, such as in the airline industry have done - then you are morally bankrupt.

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And I especially like how you capitalize "THE UNION" as if it were some horrible monster. That betrays your anti-worker, right-wing stance like nothing else.

You know, management bands together in solidarity, and shares the cost and burden of hiring attorneys, etc. Why shouldn't workers have the same right or organize? You are sickening.

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Thank you Anonymous_is it possible that you give me some idea of the approx monetary cost_without disclosing who you are or your whereabouts other than Queens.

As you may note it took 2 weeks for a response, which I am sure it is a difficult subject to pose.

Did the process take long and what were the major impeding obstacles or objects that caused any hinderance if any?.

Again, I thank for sharing your experience.


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I would like to know how the staff reacted to this move? How is their pension and health benefits going to get paid. What happens to the staff member who now has to freeze his union book, since he is working in a non-union building!!!

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Thanks for the information. We will contact them, and see if they can assist us with ridding 32bj

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I do not see anything incorrect about getting out of the union - In our coop we have a Super who does nothing and is costing us a massive amount of money - not only does he do nothng but he is calling outside vendors to do simple repairs like fixing leaking faucets and toilets and putting in light bulbs all part of his duties - Yet to get rid of him he wants us to buy him out - He is also not physically able to do these things so if you can get out of the union I say do it - I also understand that the union is trying to back charge buildings for benefits, etc for persons employed who were part time and did nothing and these charges are massive - so exactly what is the benefit of having a union - and then also there would be no strikes

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Your knee-jerk anti-union reactionism is appalling. You know very well there are arbitration proceedings available, and supers have been known to have been fired after such proceedings.

What's the catch? You have to prove your allegations. If the allegations are true, that shouldn't be a problem. If your super is acting in violation of the union contract, then contact the RAB, which is the management signatory of the 32 B/J contract. You're deliberately not exploring the available options, out of anti-union prejudice.

Go read some history -- see what it was like for workers before unions. Learn about "company stores" and sweatshops and all the ordinary men and women killed -- actually, literally killed by police and company mercenaries -- for wanting decent working conditions

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I am quite aware of union history - however what they did in the beginning changed quite a long time ago, and definitely not for the better - what about our auto industry, newspapers, steel industry etc -
If we have the options for the RAB that is well and good but apparently most our board is not availing themselves of that choice - which leaves the coop in a very difficult position

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Blaming the unions for the historical changes to our auto industry (the Japanese are unionized and the auto industry there flourishes), the newspaper industry (crumbling due to free content on the Internet and not unions) and the steel industry (too many changes in manufacturing and materials-use to mention) is a straw dog.

Why not look to the financial industry, where mismanagement and the taking of millions and millions of dollars in bonuses for producing nothing, and where there ARE no unions, has created a domino effect on everyone.

Do you really think unionized police officers, teachers, etc., are living like lawyers and CEOs? The vast majority make an adequate living, but certainly aren't living high on the hog.

I'm sorry, but the idea of organizing for collective bargaining -- as opposed to a each single worker trying to "negotiate" against an entire company with all its resources -- in order to have a middle-class existence, health care and a couple of weeks vacation a year -- as opposed to slaving away 60-80 hours a week, having HMO "coverage" that fights you for every prescription, and being fired for any reason or no reason, probably like many white-collar workers you know -- is only fair and just.

That the rest of your board refuses to go into arbitration, almost certainly violating the union contract, is unconscionable. If you can get a lawyer to twist the law and find some loophole, well, good for you. You're only making things harder on the rest of the world.

By the way, I found this article in Habitat about union and management working together in a particularly challenging situation. Why not read it and get more facts before going down this road?

Union No More
July / August 2006 Hotline
http://www.habitatmag.com/archive/add_to_cart.php?article_id=3457

An unusual win-win-win scenario among workers, the union, and a co-op that
decided to reduce its number of union maintenance staff.

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If your Resident Manager is "Doing Nothing" you don't get rid of the union! You get on Managements back to draw the line with the staff. If they don't get it straighten out then you get another management company!

Resident Manager in NYC

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Once in a great while when I think it might be a good idea to look back into the residential side of this business I first stop by Habitat. Thanks for posting this, it made me happy to be on the commercial side of the business. How easy it is to forget the yahoos that wake up with great ideas like ridding the union and self management. I would ask the poster how he would enjoy having a volunteer come into his office and slashing his health, retirement, and medical benefits.

If your building has union staff they have a contract, breaking this contract, harassing workers, and acting out of ignorance will only serve to realize additional expense to neighbors.

If your building is so cash strapped that they can not keep union staff it is either time to move or consider an increase in your monthly maintenance.

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i know our managing agent did this in our building a few years ago. You can contact Harry at 212-582-9080. I don't know if he does this for anyone or for only the buildings they manage.

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Investment Policy - Alex S. Jun 23, 2009


Does your board have an investment policy / guideline for your reserve fund?

If so, what is a sample of such a policy / guideline?

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I work with a large pension plan (over $3 billion in assets). Our Co-op has four reserve funds (or self escrows) totaling $800k separating the funds by purpose: capital, mortgage reserve, annual insurance reserve and annual water/sewer reserve. We earned 80k in investment income last year on a base of $600k or so. We hope to add $900k into the reserve fund this year due to the sale of treasury stock. I don't like a static investment policy as the market is not static.

Right now we are invested in FDIC insured CD's which are timed to release funds on occasion or when the need for the reserve/self escrow fund occurs. For example, we ladder our mortgage reserve fund to have a quarter of the reserve reset annually (become liquid) once a quarter just in case we ever have to use it. We also have the annual water/sewer reserve mature in June each year. We also have a line of credit to tap just in case – not used in three years.

Last year, we put everything in a Vanguard Long Term US Treasury Bond fund and watched with joy when the FED lowered interest rates. Then we moved everything into CD's to maintain principal in anticipation of the FED raising rates in the future. My point is that investments do great if dynamically managed in this way - you just have to have someone watch them for you.

Others may have different ideas too.

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Selling Units While Board Litigation - gluegirl Jun 21, 2009


Our board has litigation going on with a shareholder that could go on for years, we're told. Some shareholders have asked me about whether they can sell their units while this is going on--the Corp has accrued massive legal fees due to this awful situation and if we lose, there will be large assessments levied on shareholders to pay the legal bills. We believe we will prevail, but how does litigation impact those shareholders who want to sell? Thanks

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First of all, I hope you have the proper insurance coverage in place and that the insurance company is aware of the litigation. Whatever the dispute, as long as the board is acting in good faith and within Business Law the insurance should protect the corporation and the directors against large assessments. If you do not have adequate coverage, get it.

That being said, there should be no legal reason to prevent anyone from selling during the litigation; however if this has been going on for some time, your legal fees would show up in the financial statements which a prospective purchaser would review prior to contract. Even if there is no legal obligation to reveal, in my opinion there is an ethical obligation.

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UNSOL D SHARES - ET Jun 21, 2009


iN OUR BUILDING THE SPONSOR DEFAULTED THE UNSOLD SHARES WERE AUCTIONED. NOW THERE IS AN INVESTOR WHO CLAIMS HE IS HOLDER OF UNSOLD SHARES WE DO NOT KNOW WHO HE IS,HE ONLY IDENTIFIES HIMSEL AS INITIAL LETTERS. CAN HE SELL WITHOUT THE NEW BOARD KNOW WHO HE IS .ARE WE ALLOW TO ASK FOR DOCUMENTS SHOWING HIS STATUS AND WHICH DOCUMENTS THESE WILL BE

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Co-op reverse mortgages - Richard Russell Jun 20, 2009


who does co-op reverse mortgages --under 417K

and what is the dollar limit on these loans !!

Richard Russell

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Backyard Storage - Anonymous Jun 18, 2009


We have a large backyard paved with concrete.
Are there any city regulations which would prevent us from installing one or two large sheds for shareholder storage? How about 20 smaller rubbermaid type personal storage units?

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CELL PHONE TOWER INFO - AB Jun 18, 2009


I am currently on the board of directors in a COOP in Brooklyn. If any one has information on companies that help with Cell Phone Towers and WIFI please post it. I have already contacted US Cellular and 3G solutions. I know this is great way to raise money for a CO-OP.

thanks

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In my experience it may not be worth the rent. I've been in 2 buildings with cell tower experience, in the first there was so much rancor that for the first time there were enough people to hold a special election and almost unseated the board when they had towers installed and the residents, especially on the top floors where not told or asked. In the second case the issue was just dropped for fears of the same happening. So before moving on this you should get buy in from at least the people on the top floor

That said there are cell tower brokers that know who is buying nad how to market you and get you the best price, and as I recall it wasn't that great

Try searching the archives here for cell tower

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We have a large roof space with excellent exposure; however last year we rejected offers from one of the major mobile providers. Even after refusing the first offer and having them redesign the unsightly antennae that they originally proposed, their subsequent offer was nowhere near enough to warrant the potential political rancor that Jack in Brooklyn also described.

There is a lot of misinformation out there about the effects of RF and having an engineering background, I am not particularly concerned. However, no matter what evidence you may present to the contrary, you are unlikely to convince those living on the top floor that they should not be concerned. I agree with Jack - it's not worth it.

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You haven't posted in a long while. Please don't say you've given up your blog. We need differetn voices!

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Sorry for being MIA for the past several weeks; however I have been devoting myself to some business interests. Good news is that I will be back on the blog in the next few days - thanks for asking!!

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Super & Porter gets OT pay working at 40hrs - POTP Jun 17, 2009


My Bronx 45-unit building recently went coop. We have 1 super and 1 porter. We just received the payroll report from our managing company, and notice the following pattern: Each week an employee call out sick. If the Super or Porter calls out sick or leave early due to sickness, the one that is still working, is paid that amount of hours in OT at time and a half. This employee is not working extra hours, they work their standard 8 hour day, and the one that went out sick is paid his sick pay. Isn't this double dipping?

The management company insist this is what 32bj contracted for their union members. Unless I'm misreading this contract, I have not located such nonsense.

I'm a union member, our has been in arbitration for 6 months, if 32bj Executives was able to negotiate a contract like that, my union needs them.


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If the porter calls in sick and the Superintendent has to perform his duties during the same time of work, he should not get OT. Same goes for the porter.
If the porter calls in sick say on a Sat. when the Superintendent is off and he performs the work then he is entitled to OT.

Resident Manager in Manhattan.

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This is trickery. If employees are alternatively calling in "sick" and you picked up on their pattern to gain OT pay. The co-op should have the right to fire.

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Chubby
Thanks for your response. The board is dealing with the chronic sick pattern between the two employees.
The management company will be responsible for creating this mess.

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Trick is to have a porter in a near by building who would like some extra pay at (regular salary of course). Some times a porter is looking for extra work, on his days off, if your porter calls in sick you may be able to call him.

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Pigeons - CDT Jun 16, 2009


Despite copious amounts of Bird-B-Gone anti-pigeon spikes on our windowsills, we're still getting complaints from shareholders about pigeon droppings. How have other buildings dealt with this problem? Is there some person or some company you would recommend as a consultant? We're interested in talking with a specialist who doesn't have a vested interest in selling us $5000 mechanical falcons with scare tactics that make pigeon droppings sound like nuclear waste. And at what point do you draw the line and say that you've done everything you plan to do about the problem?

By the way, our attorney has informed us that the Board has no legal obligation whatsoever to do anything about pigeons. They are outside the building and outside the Board's responsibility.

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CDT: We're in Manhattan but we also have an apt in a high-rise NJ condo. Every apt has a terrace and we've had trouble with pigeons landing on and messing up the terraces for years. We finally solved the problem!

We hired a company that put a dish of corn kernels injected with a chemical on every terrace. It doesn't kill or poison pigeons and it wears off. It disorients them so they decide (however they do that!) not to return to where they got the corn kernels. That was in spring 2008. We haven't had one pigeon on or even flying anywhere near any terrace in the building since then.

The company is Bird Doctor, Inc. (subsidiary of a large company called Bug Doctor, Inc.) They're in NJ but they work in the entire tri-state area. Their number is 201-599-1007 and their website is www.birddoctorinc.com. We tried many things but this is the only one that worked, and 100% effectively.

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BP, thanks for the enthusiastic response. Unfortunately, your description sounds like the bird-disorienting drug called Avitrol, which is no longer legal in New York, though it's fine in many other states.

Any other ideas? I'm very interested in hearing real-life war stories about how pigeon problems were handled, whether or not the results were successful. We'd love to banish pigeons from our building, but we don't want to throw away money on ineffective techniques.

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CDT:I don't know if Bird Doctor uses a product containing Avitrol. I was told they use various chemical and other things - mechanical systems, audio-visual devices, wire mesh, etc.

One coop installed small spikes 3" apart along the top of their terrace railings. It seems pigeons usually go on the railings before they go onto the terrace floor, and when their feet land on the spikes they don't like it and fly away. The coop told me this works much of the time but not all the time.

Another coop used "bird netting." It's taut and attached at the top of a terrace railing and at the edge of the terrace ceiling. It's sort of a screened-in porch effect. It's flexi-fiberglass and not a tight weave like wire mesh. The weave is wider but not enough for pigeons to squeeze in. It's clear color so it doesn't interfere with visibility or the look of the terrace, and it allows air to circulate freely.

This coop installed the netting from terrace floor to ceiling. I know people who live there. One has a dog and the other has two cats. They like the full-length netting because it creates an invisible blanket on all the railing posts as well as from the railing top up. They can let their dog and cats out onto their terraces without fear that they'd fall or jump off!

We tried scarecrows that look like hawks which go after pigeons. We tried a glue-y substance you squeeze along the top of the railing like toothpaste so pigeon feet stick to it. That worked briefly until the birds stopped landing there and went straight to the terrace floor. We tried windsocks, hanging plants. Someone suggested painting the railings a weird color to scare the pigeons. He owns 4 apts and tried lime green paint on his railings (without coop permission) which looked awful! The coop made him remove it. I don't even know if pigeons see colors, and if so maybe they like lime green because it seemed to attract even more of them.

As I said, I don't know if Bird Doctor uses Avitrol but if you have pigeon problems it may be worth contacting them for info. It's a large well-known company. "Bird netting" sounds like it might be worth checking to and I would think Bird Doctor would be familiar with it.

Hope something I wrote here is of some help. You should also tell residents not to throw any food/seed out windows or put it on window sills for pigeons or any birds. Some people like to feed the "dear little things" but once they territorialize your place it's very ifficult to get rid of them, and they can carry diseases.

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BP, thanks for all the additional details. In particular, the bird netting sounds less odious than anticipated. I'll talk with the rest of our Board about investigating this possibility. (And I promise we won't paint it lime green.)

By the way, although I've had no reports of our residents feeding the pigeons, we live next door to a hotel where pigeon feeding has been a problem in the past. Someone over there may be doing it again.

Thanks again.

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Learn all the basics of NYC co-op and condo management, with straight talk from heavy hitters in the field of co-op or condo apartments

Professionals in some of the key fields of co-op and condo board governance and building management answer common questions in their areas of expertise

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