Co-op City’s official newspaper serving the world’s largest cooperative community. © Copyright 2011 Co-op City Times
Vol. 46 No. 7
Saturday, February 12, 2011
High tech valves could cut water bills by $1M or more each year BY JIM ROBERTS A new experimental technology that could save shareholders a million dollars or more every year in ever-increasing water costs is proving successful during testing here in Co-op City. Over the past two months, the new “water management valve” system has been installed and tested in Building 4 and has cut the water meter readings by 10% to 15 %, according to Riverbay Director of Maintenance, Michael Sanders, who discussed the new valve system at the Open Board Meeting at the Dreiser Center on Wednesday, Feb. 9. Cutting Co-op City’s water expenses each year by 15% or more would produce large savings for shareholders. The annual water and sewage bill for Co-op City from New York City jumped to a projected $16.5 million in the 2010-11 fiscal year that ends this March 31 from $11.35 million in 2008-09 following annual rate hikes by the city of 11%, 14.5% and 12.9%. At the February 9th Open Board Meeting, the Riverbay Board voted 11-0
to approve a contract between Riverbay and Airlock Inc., a wholly-owned subsidiary of Green Energy Management Services Inc., to lease Airlock’s patentpending water valve and install it throughout Co-op City at no cost to Riverbay. Under the terms of the deal, Airlock will receive up to 50% of the actual water savings, but will receive no payments if there are no water bill savings. Based on projected water costs of $16.5 million this year, the Airlock system would have cut Co-op City’s water bill by $2.48 million if the savings came to 15%. Shareholders would split that savings with Airlock, reducing water expenses by $1.24 million annually for Riverbay. According to Airlock, actual savings next year could be even higher, possibly as much as 20% or more. “The deal is very simple,” wrote Herbert Freedman, principal of Marion Scott Real Estate Inc, the managing agent for the Riverbay Corporation, in a memo (Continued on page 4)
Federal energy tax credit no longer applicable to Co-op City shareholders BY BILL STUTTIG Co-op City shareholders are no longer eligible to take advantage of the federal energy tax credit on their federal tax returns. According to Riverbay’s Finance Department, last year Riverbay shareholders were eligible for the Federal Income Tax energy credit due to the installation of the new windows and terrace doors performed throughout the complex in 2009. However, the energy tax credit on the 2010 federal returns no longer applies to Co-op City because the new windows and doors no longer meet the new more stringent federal energy efficiency guidelines. On February 17, 2009 President Obama signed into law the American Recovery and Reinvestment Tax Act of 2009. This bill extended and modified the tax credits for windows, doors and skylights established in the Energy Policy Act of 2005. The modification that the government made was that for windows and doors purchased after June 1, 2009, the required energy efficiency for qualifying products was raised. The windows and doors being installed in Co-op City do not meet the higher energy efficiency requirements. Riverbay’s windows and doors specifications were developed five years ago, and at the time met the requirements for the Federal government’s energy tax credits. According to Riverbay’s Finance
Department, management checked with Riverbay’s outside accounting and tax consultants and also its own legal counsel who confirmed that Riverbay’s windows and doors do not meet the newly-established higher energy efficiency requirements for the 2010 federal energy tax credit. Shareholders were able to claim the credit last year on their 2009 returns and also on their 2007 returns, but were not able to claim the credit on their 2008 returns because the federal government program expired that year. However, for the 2009 tax returns which were prepared and filed last year, the tax credit was resumed as part of the “Emergency Economic Stabilization Act of 2008.” With the American Recovery and Reinvestment Tax Act signed into law by President Obama in 2009, the energy tax credit was retained, but the efficiency guidelines were changed making Riverbay’s new windows and doors no longer in compliance with the more stringent efficiency standards. Under the Federal 2005 Energy Policy Act, taxpayers received up to a 10% tax credit for improving the energy efficiency of existing homes. A subsection of the law related specifically to cooperatives says that “a tenant-stockholder in a cooperative housing corporation shall be treated as having made his tenant-stockholder’s proportionate share of any expenditure of such corporation.”
25¢
Open Board meeting recap: Riverbay Board hires energy consulting firm to help maximize co-generation plant efficiency BY BILL STUTTIG In a step towards having Co-op City’s co-generation plant reach its maximum designed output of 40 megawatts in the near future, the Riverbay Board of Directors approved the hiring of a leading national energy consulting firm to study and produce a report on the plant’s current operation and how it can be made more efficient. NAES Corporation, described as one of the world’s leading energy consulting firms specializing in operations and maintenance and dedicated to optimizing energy generation systems and facilities throughout the world, was hired, in an initial step by the Board, to produce a comprehensive report on the plant’s operation with an eye towards “optimizing the asset” and eventually selling the excess power produced. By a vote of 9 to 1, with Director Othelia Jones being the only “no” vote and President Helen Atkins abstaining, the Board approved a $36,000 preliminary agreement with NAES to do an initial operations and maintenance assessment of the plant. Nausher Kahn, a senior business developer for NAES, told the Board and
the approximately 70 shareholders attending Wednesday’s Open Board meeting, that the initial assessment should take two full work weeks to gather the needed information on the plant’s operation, including among other things, staffing and procedures currently in effect. Shortly thereafter, a report will be prepared for the Board making initial recommendations for maximizing efficiency with an eye towards, in Kahn’s words, “optimizing the asset.” Bill May, a leading energy consultant in commissioning power plants, last year oversaw bringing the long-delayed plant up to its current level of operation after the initial contractor was removed from the project. He explained that one of the challenges that lie ahead is helping the current staff, with years of experience at efficiently operating the heating and cooling plant, to gain the same efficiency at operating the electrical generation component of the plant. After NAES delivers its initial assessment of the operation, it may be contracted to oversee implementation (Continued on page 4)
HCR’s income verification regulations For in for m a t iona l p u r p oses, t h e New Yor k St a t e H omes a n d C omm u n it y R en ewa l (H C R ) r egu la t ion s on in come ver ifica t ion a r e pu b lished on p a ge 10.
MTA bus route brochures available at various Co-op City locations BY BILL STUTTIG MTA service information brochures have been distributed to various public offices throughout the community over the past few days. The brochures—which specifically detail all the bus routes serving Co-op City, explaining through maps and charts the best and most efficient way to get around within the community and to various key points of interest throughout the Bronx, including hospitals, schools and key transfer points—can be picked up during regular business hours at 12 locations in the community. Riverbay’s Director of Community Relations Michelle Sajous received the shipment of 16,000 brochures from the MTA earlier this week and immediately placed them at key offices in each of Co-
op City’s three community centers. At the Bartow Community Center, 2049 Bartow Avenue, the brochures are available at: the main reception area to the Riverbay administrative offices; at the front desk of the Parking Facilities Department, Room 24; at the front desk of the Co-op City Times, Room 21; the Window Guard office, Room S; and in Bartow’s JASA Senior Center lunchroom, Room 31. All these offices are open from 9 a.m. to 5 p.m. weekdays except the senior center lunchroom which is open from 9 a.m. to 2 p.m. weekdays. In the Dreiser Community Center, 177 Dreiser Loop, the brochures can be picked up at: Cooperator Services (Continued on page 5)