Residents Discuss Many Issues During Open Board Meeting

During an open board meeting that lasted for more than two hours, the conduct of employees of residents and ongoing litigation were among the topics discussed.
As the open board meeting on Thursday, May 15 began, President Chuck Robbins said that at a recent board meeting the directors unanimously voted in favor of extending the proprietary lease, which currently ends in 2042, by 50 years. Shareholders will vote on it during the June elections.
In regards to Time Warner Cable, Robbins explained that during a contract negotiation about nine years ago it was agreed that rates for basic and standard cable would not be increased for a 10-year period, which will be coming to an end in 2010.
Robbins also elaborated on an issue he wrote about in a recent letter to shareholders. In regards to employees of residents, such as health aides and cleaning persons, he said that they are asking residents to instruct such employees about do’s and don’ts in order to “create decorum.” He said that the board is trying to avoid a “get-tough policy.”
As board members began to give their committee reports, Political Action Committee Chair Murray Lewinter said that in the near future he plans on bringing Senator Frank Padavan and New York State Comptroller Thomas DiNapoli to address residents. He also said that a bill Padavan introduced to extend the property tax abatement for co-ops and condos. A similar bill is also in the assembly.
Herb Cooper, the Capital Improvements Committee Chair, said that the Towers has gotten the necessary approvals and permits to install smoke detectors and is expected to have bids in by May 31. They have also obtained approval to install sprinklers in the arcade and have completed several other improvements, such as installing emergency lighting in the stairwells.
House and Grounds Committee Chair Alan Gardner said that the landscaping by the Marcus Avenue entrance has been upgraded, plants have been put in outside each building entrance, and finishing touches continue to be made to the lobbies. Also, a barbecue grill and picnic table have been purchased and will be put by the basketball court. Gardener also said that the House Rules Subcommittee drafted a proposal for a code of conduct for the employees of residents. Although it was not adopted by the board, he said that they can adopt a formal rule if it becomes necessary.
As of the end of April 2008, Finance Committee Chair Robert Ricken announced that the combined amount in the three reserve accounts is $7,748,000. In June, Ricken said there will be an assessment of 30 cents per share. Ricken also said that two sources of income maybe be reduced this year. Due to lower interest rates there may not be as much of a return on investments and there has been a reduction in apartment sales.
Phyllis Goldstein gave updates for the Marketing Committee and Screening Committee. She reported that during the first four months of 2008 nine apartments were sold, with an average sale price of $459,944 and share price of $163.08.
Some of the work being done by the Marketing Committee is the redevelopment of the website in order to reach baby boomers and creating a press kit to send to human resource departments and companies that provide relocation services. The kits will include a short video that has been made.
Country Club Committee Chair Mort Gitter announced that there will be an open Country Club meeting on June 5. He also discussed the membership numbers.
“This year we seem to be doing quite well, notwithstanding that a number of people are delayed in coming back from Florida,” Gitter said. “I think within the next month or so we will have a much better focus on where we stand…”
Gitter also spoke briefly about a possible partnership with LIJ, which Robbins touched on during his opening remarks. It would be a program for overweight children. He said it would most likely take place at the end of the year while many residents are away and would not be an inconvenience to them.
The final report was given by Legal Committee Chair Marvin Rosenberg, who spoke about work that had been done to set standards for proceedings during the Board of Directors elections. He said they were developed over the course of several months and have been approved by the board. They will go into effect for the 2008 election.
As the floor was opened up to shareholders for the questions and answer period, the behavior of employees of residents was further discussed. Lenny Halpern said that the rules should be put in writing and asked how they can be enforced if they are not made part of the house rules. Robbins responded that the reason those proposed by the subcommittee were not adopted was because they were unable to get a set of ideas that the majority of the board agreed on. He said that it was felt that the way to start addressing the problem was not with tough rules, but added that if it becomes necessary the board would put something in writing.
Ongoing litigation brought against the corporation by Dianne Stromfeld following the 2007 board elections was brought up when Mel Fox asked why the decision was made “to pay attorneys from our funds the sum of approximately $83,000 rather than to spend approximately $7,000 to engage in a recount for a mere difference of about 800 votes.”
North Shore Towers Attorney Errol Brett spoke about the background of the case. He said that immediately following the election Stromfeld requested various documents and was given all of them except the ballots.
“I believe, and I hope you join with me, that the most important thing is to protect the sanctity of the secret ballots and by [making] the ballots available to a candidate to look at and investigate I don’t think is appropriate,” Brett said.
Brett eventually said that the situation is not about money but about rights and that is a “chilling effect” when shareholders are allowed to see how others voted. He also said that not fighting the lawsuit would also set a precedent that anytime someone was unhappy with losing the election they could sue the corporation.
Nearer the end of the question and answer period, Stromfeld got up to speak about the litigation and said that by the time the matter got to court a recount was not asked for because by that time it had “already been taken off the table.” She said that during the first meeting in front of the judge, an agreement was made to release the ballots subject to the signing of a confidentiality agreement. When the letter was issued, she said everyone except her attorney was precluded from looking at the ballots, which is why they did not accept it since they wanted to bring in a forensic accountant to examine them.
Other issues that were brought up were preventing people from eating
or drinking in the lobby seating areas, support for the LIJ program, performing background checks on the employees of residents, concerns that the restaurant needs to be renovated, getting Wi-Fi in
the buildings and bringing back computer classes.