Co-op City’s official newspaper serving the world’s largest cooperative community. Š Copyright 2016 Co-op City Times
Vol. 51 No. 34
Saturday, August 20, 2016
President Taylor reports that Co-op City recently completed its best financial year ever BY BILL STUTTIG
In a sneak preview of the recently completed audited financial statements for the past fiscal year ending this past March 31st, Riverbay President Cleve Taylor at the Board business meeting Wednesday evening told his fellow directors, management and DHCR officials in attendance — as well as residents who watch a rebroadcast of the meeting this week — that “Co-op City recently completed its best financial year in its 49-year history.� Starting off the Board business meeting with his report, President Taylor said, “These achievements are reflected in our balance sheet, in our income statement and especially in our cash flow statement.� President Taylor detailed an increase in available cash from $5.3 million to $18 million in the last fiscal year. He added that the increase in the cash balance has continued since the audited end of the fiscal year with an estimated cash balance at the end of June 2016 of $26 million. Mr. Taylor added, “Replacement reserves have continued to decrease as repairs continue to be made in Co-op City.� He also added that there is more good news on the liabilities side as the mortgage continues to be paid off with the mortgage amount owed decreased in the last year by $12.7 million—from approximately $591 million owed last year to approximately $578 million at the end of this past fiscal year and adding that the yearly mortgage payments represent less than 6% of the community’s total revenues.
Later on in his presentation, he compared the numbers associated with this current mortgage with the balloon loan obtained in 2003 by a previous Board and management which cost the community an estimated $80 million in interest payments over several years with virtually no principal paid off – an $80 million net loss.
Director of Internal Audit Averil James Bonnette addresses the Board regarding her department’s recent work along with management to improve financial efficiencies at various Riverbay departments.
At the same time that he reported the good news on the mortgage, he reported that income into the community has increased by more than $8 million while expenses have decreased by $11.3 million. But he added the employee payroll and benefit costs still continue to be the one area that increases (Continued on page 2)
Join us as we broadcast the Riverbay Board Meeting of Wed., August 17th MATV - CHANNEL 12 • CABLEVISION - CHANNEL 591 TO BE BROADCAST: Thursday, August 25th – 7:00 p.m. Friday, August 26th – 7:00 p.m. • Saturday, August 27th – 1:00 p.m.
Chief Frank Apollo (second from left) hears residents’ quality of life concerns over coffee.
BY BILL STUTTIG
Approximately 100 residents from Section 5 and other areas of Co-op City came to the Einstein Community Center yesterday to share coffee, donuts, and ideas with the commanders and officers of Co-op City Public Safety Department. The 90-minute long program entitled Coffee with a Cop, featured more than a dozen Public Supervisors and officers, each sitting around a table with a half dozen or so residents listening to concerns and exchanging ideas for improving the (Continued on page 13)
25¢
Board approves emergency resolution to complete support platform for new high pressure boiler BY BILL STUTTIG
On Wednesday evening, the Riverbay Board of Directors approved an amended emergency resolution to authorize the installation of additional foundation pilings inside the power plant and thus clear the way for the new 150-ton high pressure boiler to be placed inside the Power Plant before the onset of winter. The 150-ton boiler was delivered by barge to Co-op City last October and has sat outside in shrink wrap on a rented support structure since that time, waiting for work to be completed inside the plant to allow the huge boiler to be placed there safely, securely and permanently. According to the emergency resolution, for that to be accomplished, new foundation piling is required in order to support the 150-ton boiler adequately in its permanent home. Boilermatic, the firm contracted to complete the installation quoted Riverbay a price of $754,000 to install the new piling and Riverbay’s management, according to the resolution, negotiated that price down to $600,000. Riverbay’s new executive general manager Bob Klehammer reported to the Board that it is important that the new boiler be placed inside the plant before the onset of cold winter weather in order for Riverbay not to incur more costs, including the additional cost of renting support structures for the boiler through the winter months and additional preparations and protections that would be needed if the boiler had to be stored outside for another winter. While not personally blaming Mr. Klehammer, (Continued on page 4)
Changes in Validation Program for Visitor/Transient Parking The Parking and Storage Department recently completed an audit of its transient parking sales and found that a third of the tickets sold each month were being validated by commercial tenants and organizations in the community. This equates to around $10k per month in lost revenue. The revenue generated from transient or visitor parking supports the operational costs of the Parking and Storage Department and ultimately helps to keep the monthly parking fees low for residents. With that in mind, as of July 1st, with approval from the Board, the department has eliminated courtesy parking and began the validation program which allows discounted parking for patrons: $3 for commercial tenants/organizations; and $2 for churches and religious organizations for the first 3 hours. This fee only applies to transient parkers, as shareholders still have the ability to park in any garage from 8 a.m.–11 p.m. Parking Passes Parking passes are a form of discounted transient parking, intended to be used use by those visiting shareholders for 90 days or less. Over time, many shareholders began purchasing passes for themselves, as a way to circumvent signing a parking lease agreement. Upon review of pass usage we found that many of these individuals were also in arrears of their carrying charges, totaling over $68k owed to Riverbay. In addition, many shareholders were concerned that someone could purchase a pass under their name, without their authorization. To rectify these issues we implemented a policy that shareholders must be present to obtain parking passes for their guests, and that anyone residing in the community wishing to utilize Co-op City’s parking facilities for over 90 days will be required to sign a parking lease agreement. This agreement allows us to revoke parking privileges of those in arrears of their carrying charges, or those in violation or garage rules and regulations. Our hope is that both these new policies will increase revenue for the shareholders and allow us to continue to keep our monthly parking fees as low as fiscally possible. —Danielle O’Connor, Riverbay Parking and Storage Director