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Removal Of Board Memberr - NYC May 01, 2015

Our co-op is going to propose to remove one of the board members at our annual meeting.

Are the people who have received absentee ballots also entitled to vote on the issue to remove the board member?

We have been informed that the proposal to remove the board member will be voted on separately,

Sounds like they are going to vote this proposal by a majority of members that are present at the meeting, If this be the case; will it negate the absentee ballots who are entitled to vote for the directors?

It seems to me that if you have been given the authority by another member(s) to vote for the directors, you should also be able to vote on their behalf to keep or remove the board member in question.


> Join the conversation Comments (2)

You can't vote to remove someone! You vote that person off the board by replacing him/her with someone else ... and that cannot be a "separate" vote.

The sole purpose of the annual meeting is to elect a board. There can be only one election.

It is completely illegal to disallow proxies/absentee ballots. It's a fundamental shareholder right.

By the looks of it, that director seems to have quite a bit of support from proxies, which explains the "separate vote without absentee ballots".

ps: Many bylaws allow the shareholders to call for a new election, before the annual meeting, via a petition signed by at least 10% of the shares.

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> Join the conversation Comments (1)

Hi V.P.
Are you saying that only the members (10%) through a petition can request to have a board member removed? That this cannot be suggested by the other board members and then put to a vote at the annual meeting?

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> Join the conversation Comments (3)

I find it hard to believe that you require only 10% for a petition; if you had 100 owners, that's only 10 signatures; petitions would be rampant. It should be the same as voting (whatever that may be for your environment; ours is 40% of the owners).

They cannot remove absentee votes from the count unless that is one of their written by-laws or rules and regulations and for example "off-premise owners that do not attend in person or provide a proxy will be removed from the owner base" - or something like that.

There should be a Rule & Regulation that identifies when and how a board member can be removed including fellow board members asking them to resign and for example, a conflict of interest.

Suggest you get a copy of your Rules & Regulations/ By-Laws and scour through them. Don't only look at what's there - also look at what's not there.

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No NYC

That is 10% of the total shares issued ... check your governing documents, there is usually a paragraph about this process. And that petition is to call for a new election, again you can't remove someone, you replace that person.

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VP & Ned,
Thanks for the info

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I agree completely with VP. There can be only one election and that is to fill seats which are becoming vacant due to term expiration. It sounds to me like the entire board needs to be replaced if they are contemplating actions which are in violation of your operating documents and probably in violation NYC corporation laws and regulations.

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Voluntary Work by Owner - CondoPrezDC Apr 09, 2015

Hi,

I received a request from an owner that wanted to add insultation to the parking area. The owner stated they would perform the work and absorb all the costs. At first, I thought it was a good idea, but then started thinking about all the liability that comes with it. Any thoughts on how to approach it when an owner is volunteering for the work? or does this mean we should treat the owner as an independent contractor? Any advice is much appreciated. Thanks!

DC

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I feel you definitely need to treat the owner as an independent contractor. Same license, permits, and insurance requirements as with any outside contractor. There is an extra level of complexity - if there are problems during or after the job, holding a shareholder and your neighbor accountable will be more difficult.

You should discuss this with the co-op's attorney to get her/his opinion on the arrangement.

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> Join the conversation Comments (1)

I agree with Steven. I would thank the owner "for their gracious offer, but due to potential liability issues and for example, if he or someone else gets hurt in the process, or something gets damaged or something is wrong with the work, it cannot be permitted. It's to protect him as well as the ownership". I would go onto say that "if the ownership deems this work as required, in the future, and we solicit quotes, we would certainly include you in that process".

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Steve, Ned,

Thank you for the feedback. Much appreciated.

DC

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Lease-To-Own Agreements with Sublets - NBYonkersCoop Apr 06, 2015

Have any of the Board members had experience with sublets/renters wanting to enter a lease-to-own agreement with the cooperative? If so, please opine on the process/requirements.
I had a sublet, who's been renting with the coop for nearly 2 years, asking if that's possible. Any insight/comments are welcome. Thanks in advance!

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We have sub-letters who entered with the intent to buy, and others who had no intention to buy. For us the process is the same: before subletting they had to pass the normal board review process as if buying. When they decide to buy, they repeat the process, but the focus is not on who they are, but their current financial position.

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I see a small but potential issue. Banks are hesitant to approve mortgages in buildings with too many apartments as rentals/sublets. While the lease-to-own agreement is in effect, and it could be in effect over many years, it will count as a sublet. One of the reasons most buildings have a maximum limit on concurrent sublets is so they don't run afoul of mortgage originator guidelines

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Board Document Retention and the Chappaqua Affect - H. Apr 05, 2015

I understand that some coops have rules or guidelines regarding shredding sensitive information like buyers" financials. What about sensitive e-mails (with attachments). Shoukd they eventually be deleted? And what of Board related e-mails once Board members leave office?

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I have a few different answers depending on what we are talking about. In one example, if a sales package is sent around via email and there is sensitive information for those purchasers attached, it would be good practice to delete the file or the entire email once the sale has been approved or not approved, this way there is no digital trace on the board members' individual computers. A hard copy can always be retained in the building management file and/or a file cabinet kept at the building.

For emails that are board business, it may be a good idea for the Board to set up an additional e-mail address, such as buildingxyz@gmail.com. You can always include this email address in the CC of the emails that are going around and you will always have a detailed record of board business that can be reviewed at any time, and all of the file and sensitive information can be confined to that email address should they be deleted by other individual board members. Of course, the password to that account should be changed along with a change in the Board as well.

If a Board member has e-mails on their computer from during the time that they served, I don't see the harm of keeping them after the fact. It's always possible that a lawsuit or other issue may pop up from the time that they served, and so long as there is nothing sensitive on the e-mails relating to individual shareholders, it's a matter of keeping record of the events that occurred during their tenure.

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BTW, What is the "Chappaqua Affect"?

I've been on the board for quite some time now (8 yrs). Came on after it was uncovered that 20 yr board veterans were also the "sponsors" and besides conflict of interests issues also did nothing to protect the other shareholders interests, did not enforce house rules, didn't even know the house rules and once a lawyer came into the building (which we were told "no lawyers") we found ourselves in years of litigation. It was a mess and topic deserves a separate conversation.

Anyhow, I found that when the board consisted of women or people others had "personal" vendettas against, the board was constantly challenge by non board shareholders. Our lives were made awful, elevator rides or any encounters were hostile. People just behaved like children. There were constant demands on the new board, constant complaints and criticisms, "secret meetings" where held to discredit the board and individuals were negatively discussed. It was awful.

I found whatever records were kept for 25 years Records were scattered about. Some things still in unopened envelops. Meeting notes were pitiful, if there were any, inadequately documented. Personal information was not protected (which was used against people when the board was replaced). I spend months shredding 25 year old materials and organizing whatever minutes and important documents I could find. I contacted the building's attorney and got correct format for minutes , notices, and agendas. I made a book of templates and for over 7 years kept pristine records!

I got flack all the time for mis-spelled words in an email! But, no one seemed to care about the previous years of improper board behavior and non-existent record keeping!

What I am finding now that I no longer keep the records is that they are not getting done and all the work I did is now lost or "misplaced". No one took charge!

All that work for nothing.

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> Join the conversation Comments (1)

By "Chappaqua Affect" I was referring to the current public discourse regarding the fate of Hillary Clinton's official e-mails, which raises broader issues of what happens to e-mauls when someone leaves the entity, whether the Department of State or Board of Directors, and attendant confidentiality issues.

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Shareholder Input on Competing Building Projects - H. Apr 04, 2015

If there are two building projects competing for priority, e.g., non emergency garage ramp rehab versus new planters, of similar cost, what is the best way to gauge shareholder preference? Is a written survey ever used for this purpose?

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We have used surveys and quite successfully with excellent participation. We have 2 buildings and Suggestion Boxes at each in the foyer so it makes it easy for co-owners to deposit the surveys. For seniors or co-owners that may not have good command of the English language, we go door to door to ensure that they understand and to collect the survey.

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New Laundry Service - David Mar 27, 2015

We are in the process of replacing our current laundry service provider. We have been using Service Directions for years but it's getting almost impossible to get service on the machines in less than 3-4 days.

We have received bids from both CoinMach (though a little concerned since we found out they took over Service Directions about the time service times started declining) and Hercules.

Any other services that can be recommended? Suggestions on things to consider and or avoid? Top Load vs front load, etc. Thanks!!

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Perhaps you should look at Metered Appliances. Its a smaller and family run outfit. You will get more personal treatment, and you will deal directly with the owner. They've been around a long time.

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We have in are coop sky laundry systems excellent company they upgraded the entire laundry room highly recommend them 718 639-7070

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Metered Appliances has been terrible for our building. Gross old refurbished machines, poorly maintained room, unresponsive to service requests and they never issue refunds for the money that is frequently lost in their machines. Maybe they are better in other buildings in different neighborhoods but I'm counting the days until we can fire these people and have them take their gross machines somewhere else. PS - our machines actually had ROACHES in them at one point.

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We use Hercules and are very happy with their service and can recommend them. We did use CoinMach in the past.

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Coin Mach and Hercules horrible company we had them in the past I live in forest Hills the worst 7 years with coinmach and the second worst 7 years with Hercules

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We had both Hercules and CoinMach years ago, been with Hi-Rise for about 10 years now. Same day or next morning service is pretty consistent, including weekends. We get some complaints about clothes not rinsing well, but it may be that people are using too much soap and water/energy efficient machines in use. Dryers seem to take longer too, also energy efficient machines. Currently have all front loader washers and dryers. Using cards, card machine takes cash only, $5,10,20. With internet connection, you can get credit card use as well. Check to see if machines offered are energy star rated, and if extra rinse cycle is available for washers. Use 'HE' high efficiency (liquid) laundry detergent.

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Hi,

Be wary of using machines that use recycled water. My co-op found that using someone else's rinse water as your wash water had little acceptance and people started using outside services as a result (less revenue). Plus, if the people failed to use chlorine bleach, the water in the holding tank began to smell.

Also, ask the question about how long the cycles are. We have found that ours were too short.

Steve

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Hi
My experience with laundry equipment when you use soft mount machines they are horrible you definitely want hard mount heavy duty commercial machine stainless steel you want to stay away from machines that only use Eco detergents and are light duty that look small in height look like hard plastic squared box soap dispenser in front of machine that's a sure sign that they going to get mold inside machine and a weird smell will come out of machines and service calls you will always have on equipment. Laundry Machines With those problems are example speed queen, maytag, wacomat. The equipment I would recommend is dexter the only two companies that use them is Fowler laundry and Sky Laundry

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> Join the conversation Comments (1)

I recently purchased an LG washer and dryer (both front loaders) for home use and discovered odors as well. A careful reading of the manual states that the washer needs to go through a cleaning cycle periodically (monthly for me) with a commercial washing machine cleaner product (Tide makes one) or baking soda, etc. My aged Whirlpool top loader also had an odor issue.

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Castle Oil/Sprague Energy - Dirty Heating Oil Scam - NBYonkersCoop Mar 27, 2015

See the link below from an article from the NY Post this morning. I know our coop has used them in the past for some years. Be aware...

http://nypost.com/2015/03/27/dirty-heating-oil-scam-affected-nypd-fdny-stations/

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Insubordinate Super - NBYonkersCoop Mar 05, 2015

We're coming off a rough winter season where one of our snow plow vendorshas refused to service our building due to lack of payment, which is being worked on. However, the super is directly telling shareholders that the Board isn't paying the bills, which is far from true. Would his actions be considered insubordinate and if so can the Board push for a formal reprimand against the super?

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You indicate that they snow plow vendor refused service due to lack of payment, which is being worked on, so the superintendent is telling the truth - just a truth you do not want passed onto the shareholders. And no, this is not insubordination. Unless you told the superintendent the reasons as to why there is no snow plow vendor (non-payment) and asked him to keep the information confidential. Then it is considered insubordination - going against a directive. I think what you have here is a superintendent that talks to shareholders and who may have complained to him about lack of snow removal and who knows the reasons and shared the info, I would do 2 things:
1. Issue a letter to the shareholders or post a notice and explain to them the reasons as to why the snow plow vendor has refused service to your building and as you indicate, due to lack of payment and that you are working on it. Explain "why" you are unable to pay them (is there an underlying cause here?).
2. I would talk to the superintendent and let him know that when there are inquiries as to why a service is not being done, to refer shareholders to the board; let him know it's not his place to tell or share his opinion to shareholders financial problems or financial issues with a vendor. Document your discussion for his file.

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> Join the conversation Comments (3)

I agree with Ned's comments, specifically #1 &2.

I notice that you are in Yonkers, NY, are the staff members of 32BJ? if so, there are specific guidelines to follow when the board or your management company need to reprimand.

Whether or not they are members of the union, due to a very similar experience, I recommend that the staff and all board members sign a confindentially agreement. It should be prepared by your attorney. Their signing the agreement provide the board and shareholders greater leverage, if needed, to reprimand.

We are located in Yonkers as well and will be pleased to discuss this matter with the board.

Good luck

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I also agree with Ned. Very good advice.

What I would add is that you tell the super to refer complaints to the board instead of relying on the super to know what information he can and cannot give ou. He can simply say he doesn't know the reason and the shareholder should ask a board member. This gets your super out of the loop altogether.

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I disagree. Unless the Superintendent attends Board meetings or is party to Board correspondence, they lack full knowledge of the situation. Their comment shows a lack of respect to the Board or to the Manager. If the Super needed to have said anything, it should have been to ask the Manager or Board member.

The Superintendent is an employee of the corporation and has to walk a fine line between Board, Manager and Owners. They failed in this regard. Does this deserve a reprimand? Probably not unless it is repetitive.

I agree however with the need to communicate. Don’t make your life more difficult (and put the Super in a bad spot) by relying on unofficial communication.

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> Join the conversation Comments (1)

I agree with you Steve; supers walk a fine line and unless this has been clearly spelled out to them; written in their job description or employment contract, they may not realize this (or choose to ignore it). That's why I recommended point 2. Document it and put it in his file. That way you have written documentation that he aware of his responsibility to not comment on items pertaining to the operations that he may not have all the details to and to bring these to the attention of the Board or Manager.

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Email Motion - Bx2504 Mar 05, 2015

Does a Board President have the authority to make a motion and have it voted on by email?

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I am going to say "yes" providing that as a board, you have all agreed to email communication / voting and that email decisions are documented in your minutes.
We do it all the time as we just too darn busy to meet constantly and a number of issues come up regularly that we require a fast decision on.

So first things first: have you all agreed that due to time constraints etc. email voting is acceptable? If yes, then you are go to go. If no, suggest to your president that you first agree as a board to use email for board voting.

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new board needed - Nomorecoop Feb 26, 2015

I'm a shareholder in a midsized Brooklyn coop. My complaint today is regarding the useless BODs my building has in power. A couple of these people are sickly and elderly and others are not involved to the point where they have no idea about common housing laws, what type of boiler the building has, how the financials look from month to month. They never question what money is being spent on. They all depend solely on the management company to not just give guidance but tell them how things should run and what to do about various issues. Most of these people have been living here for decades and have no idea about the current NYC laws, housing changes, finance matters. They're dead weight waiting for the building management to tell them what to do. The problem is replacing these people would not be an easy task since most the people in the building as a whole are long time shareholders who just don't want to get involved. I can't blame them really. I'd like to trust my BOD and trust that they're doing the best job they can and trying very hard to keep on top of things. Truth be told, I don't trust these people one bit and I'm losing sleep over this investment. Any ideas?

> Join the conversation Comments (1)

When is the next annual meeting? Have you considered running for a seat on the board ?
Are there other shareholders who agree with your concerns? if so, do they represent a majority of shares?
Does the board have an attorney? Have you addressed your concerns with them? What do they recommend?
Do you know your management company and trust them?
How many units in the complex? Staff?
Have your Real Estate Taxes been appealed?
What is your source of heating, oil, gas?

Sorry to pose these questions to you, hope they will be of some help to you in pursuing the changes that you would like?

I am a seasoned professional manager and would be delighted to discuss your concerns.

Best wishes,
JFB

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> Join the conversation Comments (1)

Do you received copies of the financial statements each year? You should, if not, contact the management company for a copy. It is supposed to be provided to all owners annually. Then read through them as best you understand, as well as the comments at the end. Does the accountant express any concerns? By law, you're also able to examine the board meeting minutes (minutes of meetings are required by law), but you may have to read them at the management company offices.
You are able to check out your building on the web at nyc.gov (finance, dept of buildings (DOB), EPA, and other sites. You can view sales, property deeds, certificate of occupancy, water and sewer charges, property taxes, property valuation, violations, inspections, property management/ownership registrations, etc. etc.
You can go to the NY State Dept of State website and check the registration for the corporation with the state to see if it's up to date. NYC.gov also has info for managed property registration.
Go on the web, find out what you can. If the board is all asleep, you will see all kinds of violations, penalties, out of date information, etc. That would be a clear sign of a poor board and/or management co.
Does anyone else run for the board at the annual meeting, or does the old board just get rubber-stamped? If there seem to be a lot of issues, you could summarize them and present them to the board at the annual meeting (or pass out copies to other residents prior) and either run for the board yourself or vote for someone else interested in fixing things.
There are upcoming 'trade' shows such as the COOP Expo in midtown Manhattan where you could attend for free and show the financials to an accountant who could explain them for you if you don't understand them. What kind of reserve fund does the building have? You can also subscribe to the Cooperator free newspaper and read a lot on the Habitat website for all kinds of useful information.
The answers to the questions posed by the respondent above (Joe B) would help evaluate whether the board is responding to new NYC laws and taking advantage of potential operating cost savings, to keep maintenance fees down.

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