New York's Cooperative and Condominium Community

Habitat Magazine June 2020 free digital issue




A Co-op Board Learns How to Handle a Long-Running Crisis

Tom Soter in Board Operations on June 10, 2019

Laurelton, Queens

Claudette Sergeant

Claudette Sergeant at the Laurelton Gardens co-op in Queens (photo by Danielle Silverman).

June 10, 2019

Claudette Sergeant, 65, moved into Laurelton Gardens in Laurelton, Queens, just as it became a co-op in 1988. The property consists of 17 two-story buildings with 384 apartments. Sergeant started serving on her five-member co-op board as secretary in 2004 and became president in 2010. Two years after she joined the board, an oil leak was discovered. It dragged on for seven years – and taught Sergeant lessons every board member should know about handling a long-term problem. 

Tell me about this oil spill crisis. 

The state Department of Environmental Conservation (DEC) came to us and said that a non-working, in-ground oil tank [one of eight tanks that fed the boilers in the 17 buildings] had started to leak. Oil was seeping into the soil; we tried to extract it from the soil, but the monitoring and extraction caused problems. 


It was taking too long. Once the banks learned that there was a DEC violation, they denied financing. As long as we had the problem, the banks were refusing to finance anyone [either potential buyers or shareholders who wanted to refinance]. People weren’t pleased to know that was happening, so people were becoming frustrated, and they complained. 

How did you handle the complaints? 

We had quarterly shareholders meetings and updated them regularly. 

How did you pay for the project? 

We budgeted each year for this expense so the residents did not have to pay [an assessment], and we pulled some money from our reserve fund

What ultimately happened? 

We extracted that tank, and over the next few years we extracted all of the tanks. We’re now tank-free and running on gas. 

What did you learn that would be helpful to others who have underground tanks? 

Our managers, Vincent and Kelly Occhipinti of Precision Management Group, told us that the Bulk Petroleum Storage Certificate [a clean bill of health from the state] requires a pressure test and a certificate renewal every five years, and Kelly said that it would be wise if old oil tanks have pressure tests more often. Also, you should have the super pay close attention to the level of oil to see if it seems to be disappearing faster than normal. 

I find that a lot of people purchase a co-op but they don’t know what a co-op is. They think it’s going to be the same as owning a house. So they need to be educated before they purchase. 

So how do you educate them? 

We send out newsletters, have regular meetings, and also, when prospective purchasers are being screened, we say, “Do you know this is a co-op and what that means?”

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