Management Report –––

of excess electricity to Con Ed.

All of Management’s actions were undertaken with the knowledge, support and approval of the Board of Directors. I thank them for their support during my tenure.

Yet, like any close relationship, I have had my disagreements and, occasionally, arguments with the Board and individual members. I have avoided airing these disagreements publicly. However, recent viewpoints in the CC Times, authored by a Board member, contain misleading information and innuendo of wrongdoing or incompetence by Management.

I need to respond to these and set the record straight.

As someone who attends regular Board meetings, receives annual auditedcussion and votes on the various resolutions needed to operate the corporation, I cannot understand how this person can tell the community he does not know how your money is spent.

Let’s start with a statement in his viewpoint from last week (Saturday, March 4, 2023) where he asks where the $65 million in the bank in 2019 went. This Director was in attendance at the Open Board meeting last October, where I spent over an hour discussing the need for the 7.5% carrying charge increase implemented on January 1, 2023. I discussed in detail how we used the funds that were in the bank going back to 2018.

First, the Director fails to mention that most of the funds came from the relegally required to be spent on pre-approved capital projects. All expenditures were monitored and approved by Management, Wells Fargo, HCR and HUD, and many of the contracts required Board approval.

As I informed you in a previous Management Report, when I arrived in 2016, projects. These included the installation of a new boiler at the Power Plant; completing the repair of underground water leaks plaguing the Cooper Townhouse area, emergency façade repairs to Buildings 10, 20 and 26, the restoration of the Bellamy Loop basketball complex, and concrete and railing repairs in the Bartow and Dreiser Malls. Also, the terms of the 2012 loan required that the steel T-beams on the roofs of the garages be either repaired or removed. The design and bidding of that project had not even begun.

In addition, planning had already started on the modernization of the elevators, installation of new building entrances and lobby glass and restoration of Dreiser Auditorium. We completed and paid for these projects. We also had to complete City mandated façade repairs and several other projects to stem the deterioration of our infrastructure. In all, we have completed over $170 million of capital projects utilizing the funds on hand in 2019 and operating surpluses. The money did not disappear as is evident every time you step into an elevator, utilize the new lobby doors, or walk under scaffolding. During this same time period, we kept maintenance increases as low as possible. Up until 2023, the compounded carrying charge increases imposed since 2017 were only 9.75%,

The Director also questions why we needed a 7.5% carrying charge increase in January. Again, I documented the need for the increase at the Open Board meeting held last October and in a presentation that ran on the Riverbay Crawler and is still available for viewing on the Corporation’s YouTube channel, https:// bit.ly/3h6CrF7. It is titled, “Riverbay’s Budget & Finance Summary.” The mainto this Director, the entire Board, HCR, HUD and Wells Fargo. After a review of that data, and a public hearing, HCR approved the maintenance increase. Where was this Director’s voice during this process? Did he come forward with any facts to establish the maintenance increase was unwarranted? Did he submit written comments to the Board or to HCR? Does he have evidence that nearly 600%, or that insurance premiums are skyrocketing? He may also want to go back and read my Management Report in the August 27, 2022 edition of the CC Times. He knows that increases in natural gas prices, insurance premipurchase for repairs, cleaning and maintenance were the cause for the carrying charge increase. We started to warn the Board of these changes to our budget as early as November 2021 and gave them several updates to the budget until the increase was approved by a 10-5 vote in September 2022.

Again, he knows that the terms of the prior 2012 mortgage require Riverbay to conduct a comprehensive physical needs assessment of the complex every 10 years. That report was completed in May 2021. The report, conducted by Fargo, determined that we needed to fund $44 million into our reserve fund for immediate repairs. That would have required an over 20% increase to the carryobtained $124 million that was deposited in our replacement reserve fund. This money cannot be used for operations, but only for capital repairs. The Board ap- ing, the same Director offered no alternatives for Riverbay to obtain the money required to make necessary repairs. I wrote a lengthy explanation of the reasons CC Times

Facts and data are important. They are sometimes uncomfortable but they are the only way for Riverbay to make the correct choices to ensure your community survives. Misrepresentation and hyperbole may garner attention but they will not solve problems.

On a personal level, I want to say it has been an honor and a pleasure to serve this community. Over the last seven years, I have been fortunate to be welcomed into your homes and I thank you for your support. Although my teninterests of the community well and that I have created the management structure for him to do so.

Info. Session ––– (Continued from page 1)

Wright. “The goal is for them to have a greater understanding about how to use that give a realistic, non-partisan understanding of what is expected of Mitchell-Lama Board Directors, as well as outline the 2023 candidacy process and election season.”

The election informational seminar will be facilitated by the 2023 Election Committee chair, Director Wright, and Riverbay General Counsel Jeff Buss, counsel to the 2023 Election Committee.

Potential candidates who would like to run for a seat on the Riverbay Board of Directors can begin picking up their “Statement of Intention to Run for Election” on Sunday, March 19, from CCPD headquarters, 2049 Bartow Avenue. The deadline to return the completed statement is Friday, March 24. The Annual Shareholders’ Meeting is scheduled to be held on Monday, May 1, 2023.

REMINDER – Roof Access Prohibited

Shareholders are reminded that the occupancy agreement prohibits shareholders from going onto the roofs of Co-op City residential buildings. Failure to adhere to this rule will

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