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Must Proxy voting be allowed? - Marty Nov 19, 2016

Our co-op was formed in 1960 under the NY Cooperative Corporations Law. We know that The Business Corporations Law trumps any by laws which don't permit proxy voting.

But is the same thing true for co-ops formed under the NYCCL? Our by laws don't permit proxy voting.

We are very uncomfortable with the whole proxy process, feeling that it increases the possibility of voter fraud. Thus, you should be present to cast your vote (which is what our by laws state).

If the co-op does not have to allow proxy voting for NYCCL co-ops, does anyone know where I can find the legal basis which supports this?

Thank you in advance for any help.

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Hi every one there, I have been a Board President for a few years, and my opinion is that as long as it's allowed by your Bylaws it's OK, there are building like mine that without this stipulation there will never be a meeting's quorum.

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Gloria - Thank you for your reply.

Our by laws do NOT permit proxies. We have never had a problem getting a quorum.

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According to BCL 609

"§ 609. Proxies.

(a) very shareholder entitled to vote at a meeting of shareholders or to express consent or dissent without a meeting may authorize another person or persons to act for him by proxy".

I would write a letter to the BOD and Property Manager requesting that they are in conflict with the BCL by not allowing shareholders the right to vote. The co-op attorney will look into the certificate of incorporation to confirm the restriction of proxy voting.

Good Luck

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Also 602 of the BLC
Meetings of shareholders may be held at such place, within or without this state, as may be fixed by or under the by-laws, or if not so fixed, at the office of the corporation in this state.

A meeting of shareholders shall be held annually for the election of directors and the transaction of other business on a date fixed by or under the by-law
- See more at: http://codes.findlaw.com/ny/business-corporation-law/bsc-sect-602.html#sthash.twGj1tpV.dpuf

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Queens - Our attorney confirmed that our co-op was formed under the NY Cooperative Corporations Law, so BCL 609 is not applicable.

There is no authorization for proxy voting in the coop's by-laws, so proxy voting is not permitted.

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Part Time Super - Cecile Nov 02, 2016

We are a 10 unit coop in Tribeca. We would like to know what similar buildings pay for a part time super and what services are performed.

Thank you

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This is a recent (Oct 2016) pay scale of superintendents, New York (cut & paste into your browser): http://www.payscale.com/research/US/Job=Building_Superintendent/Salary/5c8ed29a/New-York-NY

You have to decide what are the key duties that you want a part-time super to perform and have them focus on those duties. For job duty examples, I suggest you Google the recruitment service Indeed and review the superintendent job postings to see job duties for other buildings then pick the duties that are most important to your building.



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How many part time Supers get free rent and free parking? I don't see that in your link regarding Supers salary. Our Super is part time and gets free rent and free parking.

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I don't know of any superintendents that are p/t and get free rent (and parking).

Let's assume that the value of their rent is equal $1,500 per month or $18,000 per year and that your super fits into the median salary range of $49,930 which includes the unit estimated at $18,000. That means that the salary paid is $31,930 or for p/t, 50% of that or $15,965. If the super is only part-time but lives on premise f/t and is therefore expected to be "on call" full time, you need to pay him for this too.

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Actually our Super has a night job away from our building and is not available by any means from 10:00pm through 7:00am. So he's not 'on call' most the time. He gets a $605.00 per month cash salary, free rent, free parking, and free phone. Usual?

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A parking space and phone are "usual" so I would not add those into the equation. I think your salary is on the low end (based on industry stats) however if your arrangement works well for you and the super, then I would not be concerned.

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A property's needs, and expectancy, is ultimately how to determine what you should be paying for a Super.

Most buildings that are 10 units don't need a Super and hire a janitorial company, that offers a la carte handyman services to fill the void. If there is an issue with a boiler its best for the building to have a dedicated boiler company that can guarantee services.

If you need any additional guidance, feel free to reach out to me directly. RolandoV@Clean-Habitat.com

I hope that was helpful.

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Bonus for Property Manager - 270NB Oct 28, 2016

The Property Manager has played a significant, instrumental role in helping the Board and the cooperative improve its financial and operational condition in a relatively short amount of time, far exceeding our expectations.

Outside of the normal management fee, I wanted to survey if it's unusual or frowned upon to consider giving the PM a bonus gratuity to show the corporation's appreciation? If you have any thoughts or experience regarding the above, please share.

Thanks in advance!

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You should review your contract to see if it mentions bonuses at all or any restrictions (e.g. bonuses are made to the Property Management company versus individual).

-If the PM is a free-lance property manager (i.e. contracted individual) then it would be appropriate to bonus
-If they are an employee of a property management company, then I would say no - it's up to their company to bonus them for their work efforts

What you could do is give them a "thank you" card signed by all board members with, for example, a gift card to recognize their contribution to successful operations.

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I think it is a perfectly fine idea, but as Ned said, check your contract with the management company company first, and/or speak with the company's president. It would be improper for the PM to give the board gifts, but recognition of a job well done via a financial award should be perfectly acceptable.

I would suggest that when you give the award you indicate that it recognizes a particularly valuable contribution the PM made to your co-op and not something that is provided annually. I would not use the word "bonus" because that implies a re-occurring event. I would also not give it at the end of the year when most re-occurring bonuses are given out.

My building has a particularly good PM and he has been effective year after year so we usually give him an AMEX gift card (good almost everywhere) at the end of the year. If you foresee a long relationship with this PM then it might be ok to establish the precedent.

Don't let him go! Good PM's are very hard to find!

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Per your positive experience with your managing agent, would you mind telling me which managing agent you're using? Our building has not been as fortunate and we are looking for a managing agent that takes a proactive approach and takes pride in their services.

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Where are you located?

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Our co-op consists of two buildings located in Forest Hills, New York.

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Our condo in Queens uses ALG NY Management. We switched about a year ago and are very happy with them. I recommend them. Contact Linda or JoAnn at (718) 925-8200.

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Co-Op alterations - Wet Over Dry condition - Board Prez Oct 26, 2016

We have a new shareholder who is proposing to expand his bathroom into an adjoining hallway. He would not move any plumbing or fixtures into that area. He is replacing the tub with a shower, however. The shareholder would be required to add a waterproof membrane to the new area.

We do not have a policy about this, and it has never come up before. I am told "many, many" co-ops prohibit it.

The co-op's architect says that it is up to the Board whether or not to approve it, though he gives details of some risks.

In our 70 year old building, we have had many leaks from bathrooms from plumbing inside the wall and from shareholder installed fixtures which caused damage to apartments below and adjacent.

Curious to know whether other board routinely grant permission to install wet-over-dry conditions? If you have granted permission, have you had shareholders who feel themselves compromised complain?

Let me know of your experiences.

Thanks so much

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We do not allow these types of projects in our co-op. We would not let a s/h replace a tub with a shower. If there's a tub before renovations, there must be a tub after renovations.

We feel you're opening up a door by allowing this type of renovation. Our building has piping for the bathrooms as they were originally installed. It's not set up to be changed, especially in an old building. That's asking for trouble.

No complaints from s/h. We just tell them that these are the rules and they've all complied.

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Many of my friends pre-war coops allow this. As long as you have a smart architect look it over and the plumbing done correctly and safely by qualified persons. Especially if the appliances stay over a wet area - there is no reason not to expand the footprint of a tiled floor or kitchen area. In fact many apartments in our building have wet over dry layouts from the days when the apartments were divided during the depression.

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Elevator Maintenance Companies - Marty Oct 25, 2016

Does anyone have any experience (good and bad) with the following elevator maintenance companies?

...Genco
...Champion
...Solid State

Any insight would be appreciated.

Thank you.

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There is only one company to go with and that's Centennial.
Available 24/7, 100% professional every-time.

CEI currently has 57 Modernization Teams, 50 Maintenance & Service Technicians, 15 Repair and Testing Teams, 7 Modernization Supervisors, 7 Maintenance Superintendents, and 5 Area District Maintenance managers. In addition, we have our fleet truck drivers, stock room warehouse personel, and 30 office staff, located at our main office in Queens.

CEI’s in-house dispatchers are employed by us and are located in our main office 24 hours-a-day 7 days a week. They are in direct contact with our Maintenance & Service Technicians and supervisors through both radio and phone. This, with the combination of having a studio apartment at 435 Central Park West in Manhattan for our off-hours service technicians to stay overnight, enables us to give our clients prompt and efficient service 7 days per week, 24 hours per day. The other boroughs have the same level of coverage; however they are handled separately with a technician and supervisor for each.

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We switched to Genco last year from OTIS, we're in Brooklyn. Several of the techs live in the area, we get 24 hour service usually in an hour or less. We're about to perform some recommended upgrades, as well as one per new NYC regulations. The service has been excellent.

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Thank you JG for your input. Much appreciated.

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Settlement proceeds taxable? - Mark Oct 24, 2016

Our condo recently settled a case where we sued the sponsor for structural damages. Are the proceed taxable? I don't think they are but I am not sure.

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Not meaning to sound flippant, but simply ask your condo's accountant. He has much more information about the structure of the settlement and how it relates to your condo's finances than anyone in these forums.

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Free Newsletter Template? - H. Oct 22, 2016

Can anyone suggest where I can find a free user friendly co-op newsletter template for Apple Pages?
(I'm not happy with the ones provided by Apple.)

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boiler heat adjustment - Stephen Oct 22, 2016

I live in a co-op and until this year, when we wanted to make adjustments to the thermostat, residents who understood the control box and had a key could go to the boiler room, and adjust the length of heating cycle longer or shorter to adjust the amount of heat coming into the building as weather needs dictated. We're being told by our board president that there are new regulations that disallow that, and now only a certified person can do this. We're not talking about touching the boiler itself, just the control panel. Is this in fact disallowed?

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Under the New York Department of Labour code section 4.1.13, it stipulates that any person attending a boiler must be sufficiently trained and logs must be kept. Under no circumstances should residents be doing this for safety and security reasons. In addition, what you may consider too hot or too cold is acceptable to other residents. Complaints or requests to adjust the length of the heating cycle or heat should be made to the superintendent or Property Manager.

In addition to the board disallowing access by residents, they should change the key so that only authorized personnel have access to the boiler room.

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Just curious - how many apartments and how many shareholders had keys?

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2 apts, the warmest and the coldest

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You don't say how many units are in the building, hot water or steam heat (1 pipe or 2 pipe), how many floors, units per floor. If there is a disparity of more than 5 or 6 degrees between units, the system may need to be 'balanced'. On a steam system, radiators usually have a vent that can be easily changed to allow more or less air to escape the radiator as the steam comes up, speeding up or slowing down the steam (heat) to the unit. There are also replacement thermostatic valves for the steam vents that will only allow steam to enter if the individual radiator thermostat calls for heat, and the steam is coming up. Depending on the location of the boiler, those units farthest away, both vertically and horizontally, usually need larger vents and the closest ones need smaller vents. Check out gorton-valves.com for general vent info, and also search on thermostatic radiator vents. Thermostatic valves are also available but they will usually require a plumber to install.
Hot water heating systems should have one or more zones for heat that can be individually controlled via thermostats in each zone/area.
Only the super and maybe a trained board member should have access to the controls.

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I could not agree more with Ned's comments. Unless someone has been sufficiently trained (and in some locations, licensed/certified as well), they should be kept far away from the boiler and its controls. Even if they "think" they know what they are doing or have been doing it for a long time, your boiler is not something lay people should be adjusting. Change the locks and make sure only your super and property manager have the new key.

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Major Gas Pipe Error by Plumber - Lilly Oct 14, 2016

Hi everyone, I am doing a gut renovation in a Manhattan apt. After demolition, I discovered a gas branch line that obstructed passageway into a proposed hallway. I asked my licensed plumber if it was ok to relocate it higher. He said it's "no big deal", it's commonly done; we shouldn't have a problem because we are not touching the building gas riser. After the work was completed, the building architect came by and said I was in a world of trouble. The plumber had replaced the gas valve which is located inside my apt about a foot from the building riser. Now, the Dept of Bldgs (DOB) will require that we do a pressure test of the building riser. The pressure test will likely fail due to the age of the building being nearly 100yrs. The DOB/ConEdison may then turn off the gas to the building until the bldg riser is repaired or replaced; most likely replaced again due to the age of the pipe. I am petrified that I am on the hook for the replacement of the building's riser and related costs such as repair to other shareholders' apts that result from installing the new riser. The new riser benefits all shareholders so I don't feel its fair that I be responsible for the full cost of replacement. The old riser is also an existing condition that would've need replacement in the near future anyways. The Board may argue that I've assumed all expenses when I signed the alteration agreement. What will the plumber's insurance cover in this situation; just the depreciated value of the old riser? Someone please help. I am scared to death right now.

- Lilly

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The building architect was not informed you were moving the gas line inside your apartment - ?

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No. I had the plumber coordinate with the building superintendent who was present when the work was performed. Given the gravity of this error, I don't understand how the super didn't know about this issue either.

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He got a tip - right?
Ours overlooks illegal stuff by contractors all the time. and get's away with it despite the problems that result. Really coops and condos should not involve Supers in significant renovations. I might add that since your Super knew about the situation you are entirely off the hook as he is a coop employee. His mistake = it is the coops mistake. Put it in writing to the board.

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I don't believe he received or even wanted a tip. The gas valve was leaking, typical for an 85yr old valve. I think he honestly thought he was acting responsibly when he allowed it to be replaced.

I spoke to a real estate lawyer friend. He said the bldg riser is an existing condition. The alteration agreement holds me responsible for damages I cause. My plumber replaced a leaky valve. To the extent he damaged the branch line or the bldg riser while replacing the valve, I would be responsible. But he didn't damage anything. The plumber's work triggered a DOB rule that any work done on a gas valve requires a subsequent bldg riser pressure test. If the bldg riser was brand new, the riser would pass the test. But the pressure test will fail not because of anything my plumber did but because the bldg riser is 85 years old and already in need of replacement. The poor condition of NYC's gas pipes are well known in the popular news. There have been a few reported cases of people smelling gas and calling ConEd. The DOB/ConEd then come in, shut down the gas, and require the building to replace its riser. Those individuals are never held responsible for the cost of replacing the building riser. They acted responsibly but could not have anticipated the consequence of notifying ConEd. What if I had opened up my wall, discovered an illegal gas line and called ConEd. The same outcome (i.e. bldg riser replacement) would've occurred. I wouldn't be held responsible for replacing the bldg riser then, would I? My plumber did not cause any damage to the riser; did not touch the riser even. To be sure, he may be fined for doing work on a ConEd pipe without obtaining prior ConEd authorization. But that is a completely separate issue. A more complicated case arises had my plumber put a sledgehammer thru the building riser. Then the questions of quantifying the damage and splitting financial responsibility become more murky.

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In the building alteration agreement, did it specify that no alterations are to be done to change the existing layouts of, and for example, gas, pipe, telecommunication etc. lines? If it did and you proceeded regardless, then you may be "on the hook". If it did not, then you are not responsible; it is up to the board of directors to ensure that shareholders understand the limits of renovations that is allowed. Normally there is a clause specifying what is allowed - and what is not.

The superintendent would only be responsible if it has been clearly communicated to him (and in writing) what he can and cannot approve i.e. "cannot approve any gas line work". However your licensed plumber should be aware of any restrictions of his trade (and is a licensed plumber "plumbing" the most qualified to do the work that was performed which could explain why he was unaware of DOB requirements?).

I would make myself available when the tests are done by DOB so that you can hear first hand whether or not the work you had performed impacted the pressure of the risers.

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Safe repairs in a co-op - double standard - DM Oct 14, 2016


Hi,

Our cooperative requires shareholders to retain licensed, insured plumbers to conduct 'in-the-wall' plumbing. However, when there is a leak on an internal pipe that falls under the responsibility of the co-op to repair, they often try to send the unlicensed Superintendent to do the work in order to save money. He is unqualified and this has resulted in more leaks, further damage and faulty work - and is also illegal in NYC. Yet, the co-op persists in pursuing this double standard.

Can we , as shareholders who are obligated to follow co-op rules, refuse entry to unlicensed workers to perform illegal repairs? can the co-op force work that violates city rules, (as well as the cooperatives rules themselves)?

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You have a 2 fold situation:

1) As a Board member, I would never allow unlicensed workers to do any work in our co-op.

2) Our co-op also uses our superintendent to do many onsite plumbing jobs, but he does good work.

Have you and others notified the Board that the super's work is substandard? I would make it clear to the Board that this poor workmanship will cost the co-op $$ in the long run, since the super's work will likely need to be fixed in the future.

If this approach does not work, then I would tell the Board that if things don't change, you'll have no choice, but you'll have to bring this topic up at the Co-op's Annual Meeting, where all shareholders will hear about your situation.

If your description of the super's work is accurate, then there will probably other shareholders who will echo your sentiments at the Annual Meeting. That's probably not a situation that the Board wants to find itself in, so I recommend the direct approach in talking to the Board.

Good luck.

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Good advice. But our Board is very difficult to deal with. I want to know - do I have to let in unlicensed persons who will perform illegal work and breach House Rules we are all supposed to follow or can I refuse?

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The short term answer is that have a choice: you can either let the super do the work or you can pay out of your pocket for a plumber to do the needed repairs if you don't want to use the super.

I understand your frustration, but you'll need to create a paper trail and start documenting things if you want them to change. Only by having a paper trail from you and others will you have concrete proof of the super doing substandard work.

Everything is legal these days, so that's how Boards have to operate. That's why you need that paper trail - to offer proof that what you claim to be happening is actually true.

I'd also recommend that if you're not happy with the way things are, why don't you run for the Board? It's easy to sit back and complain, but you can get involved and help to effect needed changes that you think are necessary. That's why most people initially run for the Board - they have a pet peeve that's not being resolved to their satisfaction.

I've served on my Board for over 20 years. It's a thankless job to help operate a million dollar corporation, and shareholder help is always welcome.

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I have no obligation to pay out of pocket.

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The previous super did the same in our building. He also renovated apts on co-op time. When I addressed it with the board president he said “if you don’t like it you can leave”. He was a complete nightmare but for some reason it continued and I became his target. Now that he is gone the place is springing leaks like a sieve. Most recently a hot water liner broke in an apt where he had done renovations. Steaming hot water entered the apt below and in 5 minutes the damage was extensive. Allowing this to continue is a major mistake, I suffered more than once because of his renovations and had warned them about this. We now have no idea what is behind those walls he worked on and when we will experience another geyser. This is not a question of if just when, good luck, some boards are just poison.

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