Management Company

[Mario]

Hello all,

This is Mario of 794 A7. First, I would like to thank the board
members for their continued efforts in improving our lives.

Second, I am curious to know why we are rushing this selection. Does
our contract with paradigm end June 1? I am personally looking up
some management companies myself. Unfortunately, my due diligence has
required the management companies to provide references from current
managed buildings and also to provide the names of their current
contractors so research can be done to see if they are reputable
businesses. This also includes a personal visit to their current
managed buildings. I am obviously not making the deadline. However, I
hope my submissions will be given fair consideration. If not, then I
will trust the owners' judgement in choosing the next managers.

I look forward to the exciting decisions to be made for The Lofts on
DeKalb.

[Marc Ackerson at Field Lines]

I have had a few days to reflect on our current path of action and wonder
how others think we should proceed.

Here are my thoughts... we now have 5 proposals (+ the old paradigm proposal
to use as a baseline)...to me, they all look standard and seem to all be
relatively consistent...so how does one choose?

It seems to me that there are three paths of action:
1. choose the cheapest...I would not think this is the best path...cheapest
does not mean best...you get what you pay for...etc
2. choose our home team, DeKalb Management, because they have shown a
history of responsiveness, but it does seem that we collectively are not
comfortable doing this out right and I believe further clarification is
needed.
3. interview a few of the companies + talk with other boards they work with,
but this means delaying the process and moving forward with less haste.

I do not know how all others feel and would love to get more feedback.

Since I am familiar with Nate and Sabrina, for now I would like to ask
clarification on their proposal which does deviate from the other proposals
slightly:
1. Why is DeKalb Management a company under Grand SA, LLC...what company is
this?
2. It appears this computer system will cost the building $750 to set
up...listed as a management transfer fee (others seem not to have this fee
or to waive it...is this correct?) My concern here is that the proposed
internet based system is not completely clear or tested. How are we
protected from cost overruns? I do not want to pay $750 for a half
completed system, requiring further funds to complete.
3. All the other proposals note that charges over $1000 would need board
approval...DeKalb Management notes that charges over $2500 would need board
approval...why the difference?
4. On page 4, Business...the terms seem to be vague enough to insinuate that
if DeKalb Management missed something they did not account for (or did not
know they needed to do), they would charge additional fees...it does not
seem that the others have this included...maybe I missed something.
5. Lastly, DeKalb Management's fee is not in fact the same as Paradigm as
discussed at the meeting but is rather $200 more per month. How did DeKalb
Management determine their fee?

One thought I have, if we went with our home team, is maybe we could work a
deal that the monthly management fee was approx 14% of the monthly
maintenance acquired that month...this would provide an incentive for
collection on the delinquent accounts...just a thought.

Lastly, we are about to hold new board elections....which have not occurred
in the past two years (to my knowledge). I think we should move forward
with this as a separate item from the management company issue. I know that
both Nate and Sabrina would not stay on the board if we select them to
manage us, so they would like to know sooner than later which direction they
are going to proceed. I would say that if they want to remain on the board,
they should run and if we later decide to use them as the management
company, we can hold replacement elections. How do the rest of us feel?

Who is on the board currently? I think we all know, because of their hard
work, that Nate is the President and Sabrina is the Treasurer...but who is
the secretary and who are the vice presidents? Sorry for my lack of
knowledge...Is everyone on the board running again?

In the interest of assisting the Building to gain momentum and shift from
focusing only on solving immediate problems to also focusing on the long
term vision, I am offer to become one of the Vice Presidents on the board.

In particular I am interested in assisting to establish a preventative
maintenance plan for the building...ie, establishing a yearly HVAC system
maintenance that owners could opt into or out of, etc.

I think that we have so many good things going for us: responsiveness of
some of the Board beyond the call of duty, passionate concern of most owners
who see these Buildings as their home, not just an investment and the
generous services of Kim and her team.

Now is the time to position ourselves to leverage these assets to our
advantage as we look to stabilize our leadership, establish consistent
systems of management and plan for our future.

Should we set a deadline to "register" to run for the board.

I await others feedback and understand that all the above is just one
owner's thoughts and do not directly represent the Building as a whole. I
do look forward to knowing the Building's collective thoughts and how we
plan to proceed.

Regards,

Marc Ackerson, RA
Field Lines Architecture
279 E Houston Street
New York, NY 10002
T: 1 646 530 8301
F: 1 646 530 8315
ma...@fieldlines.net
www.fieldlines.net

[Nathaniel Kessman]

Hi Marc,

Thanks for your questions. I have taken the time to answer those questions regarding the company here. I will follow up in a separate email on the other points you brought up. I'm excited that you'd like to run for VP!

1. Why is Dekalb Management a company under Grand SA, LLC...what company is this?

Grand SA, LLC is a limited liability company that I created with the intention of doing business consulting projects. We decided to run the property management company under this entity if we were ultimately hired to manage the building, however we find the name Dekalb Management more appropriate. We didn't see the need to create an entirely new entity for management company.

2. It appears this computer system will cost the building $750 to set
up...listed as a management transfer fee (others seem not to have this fee
or to waive it...is this correct?)  My concern here is that the proposed
internet based system is not completely clear or tested.  How are we
protected from cost overruns?  I do not want to pay $750 for a half
completed system, requiring further funds to complete.

The short answer is there will be no cost overruns to get everything set up. We have already been in contact the company who created the system on multiple occasions and have tested it for a few weeks. I've also reached out to a developer I know who uses a version of the software to manage his properties. It will take us less than a week to set up accounts for all of the owners and mail out letters and emails with information about the accounts. It will be roughly 2-3 weeks before the Association will be able to accept e-check payments through the system.

There are a few things we'd like to establish for the building that we believe will help resolve some of the issues we have and create transparency for the board and owners. We are created a company designed specifically to handle our buildings needs.

A. We wanted to create a web-based system that would allow owners access to make payments and submit work orders, but also allowed the owners to interact and post discussion, thus serving as a one-stop shop for the community. The combination of function and community would benefit everyone. The blog has not worked effectively since people need to check it regularly, and it has irregular updates. The googlegroup is a great utility except everyone has not signed up for it; less than half the units seems to be a member and even after we mentioning it on the board, the membership hasn't changed. For board members, its just nice to have easy access to contact information for the owners in a simple format.

B. It is necessary to provide more transparency for the board members, so that they don't need to wait for current or historical financial information for the building. With both Paradigm and LHI this was an issue. If I needed to see information, I had to wait several days, and in some cases weeks just to get simple cash flow related or arrears information for the building. Additionally, if we wanted past information on the building, I would have to either go through my records or past emails to get this information, which were mostly like in different formats. During our transition, we intend to create a database of information for the building, requiring us to go through the buildings history. This will take time, my estimate is three weeks to a month, and plenty of coordination with the old management companies, but it will be very useful going forward in managing the building from the board level.

C. As a second part to creating more transparency, we'd like to set-up a separate checking/savings account for Dekalb Association using the Association's EIN number. Currently, we have a savings account and most of our bills are transferred to a greater account which Paradigm pays its bills on behalf of their clients. While I've been able to keep track and account for all of our funds, its just time consuming and messy. By having an account for the Association, the treasurer will be able to have access to the account and see how the building is doing. Additionally, by working together with a business banker, we believe we can find ways to leverage a banking account to make extra money for the association simply by making transactions. Not a lot, but a couple of hundred dollars here and there.

D. Set up an account to accept the e-checks and possibly collect credit card payments online for the association. For e-checks only, this costs roughly $130. For credit cards, the cost varies with range from $100-300. The approval process will take from 2-3 weeks.

3. All the other proposals note that charges over $1000 would need board

approval...Dekalb Management notes that charges over $2500 would need board approval...why the difference?

Its been $2500 with both LHI and Paradigm, we just left it the same. I noticed one other proposal in the bunch that also had $2500, but this is certainly negotiable. The water bills are typically our largest bills and would have to be approved for payment if we adjust this, but again, this is not a problem for us to change.

4. On page 4, Business...the terms seem to be vague enough to insinuate that if Dekalb Management missed something they did not account for (or did not know they needed to do), they would charge additional fees...it does not seem that the others have this included...maybe I missed something.

Currently, we see the likelihood of needing to charge additional fees for our service is unlikely. If the board requires us to hire additional professionals for services, such as an accountant or attorney to represent the Association, the fees for those professionals would be paid by the Association.


5. Lastly, Dekalb Management's fee is not in fact the same as Paradigm as
discussed at the meeting but is rather $200 more per month.  How did Dekalb Management determine their fee?

Approximately 15% of the monthly maintenance. Our service will not be comparable to Paradigms.

About collecting 14% of the fees, we would generally be opposed to this. Our job will not be to just collect the fees, but to help the Association to resolve issues with the building. Also, if we do collect everything that is owed, the association loses 14% of the money that belongs to it, over $5k. It is not in our interest to take this money from the association but to simply collect it. We have the motivation to collect it because we want to see our building operate differently.

[Hernan 802 D4]

Hi all,

comments and questions:

- Where do we vote for the proposals?
- I would like to second Mario's concern. I don't think that we need
to rush in to finding another property mgmt company.
- I believe that we need to do a little house cleaning before we get
to that step. We need to strengthen the board by having one
representative from each building on the board.
- I still think that having 2 members of the condo board who are also
residents, and live in the same building, form a management company is
a conflict of interest.
- In my conversation with several of the mgmt companies, it was
suggested that the board regain control of it's finances immediately
by opening a bank account in the boards name and having the treasurer,
seconded by another member of the board (usually pres or vp), cutting
checks as needed, in other words as bills are presented by the mgmt
company.
- I am willing to run for a position on the board, which position is
contingent on how these items evolve. I believe it was mentioned by
Nate and Sabrina that if their proposal was accepted, they would step
off the board. I will take this opportunity once again to thank Nate
and Sabrina for the time and hard work they have put in over the last
couple of years. However, if their proposal is to be considered, I
think they should not be on the board, as a matter of protocol. Also,
if they do remain on the board and the board is restructured or more
people join the board, then will they need to be as involved. In other
words with more people "ACTIVE" on the board and tasks delegated,
would they have to do as much work?
- I believe that in addition to volunteering for positions on the
board, at our next meeting nominations should be taken from the floor/
quorum/those gathered (this is the way it is handled in many
tenant,condo and coop boards).
- At our next meeting we should have copies of the by-laws and go
through the desciptions for each position and discuss how our board
could become more effective.
- Can we also have some clear statement of our finances posted on this
group or handed out at the next meeting? I do not recall seeing or
receiving a financial report for our buildings.
- Can the meeting on the 12th be rescheduled for Wednesday the 11th or
another date the following week? We just realized that we have a prior
engagement that was scheduled long before the schedule of meetings was
announced. If not, how can we go about including the voices of those
(ours and others) that can not be present at that meeting, since there
are several important items on the agenda? Do we know how many owners
have joined the group? And how many owners does it take for changes to
be enacted? Is that spelled out somewhere in the by-laws? (Thinking
out loud at work, will check the by-laws myself in the offering plan).
- Lastly, I strongly believe that the elections for the board need to
be held separately from the selection of the mgmt company. Also, the
selection of a new board should happen prior to selection of a new
mgmt company, not in tandem or the other way around.

Thanks,

Hernan, Apt D4

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[Sabrina Grandchamps]

Hi Marc,
Thanks for your ideas.

A part of me thinks we should have the vote anyway (for the management company). This is what we said we would do, its posted on the lobby. But you raise some good points. In the meeting, Dan mentioned a trial period of 3 or 4 months with us. Or we can stay with paradigm until another company is found. I would say one thing about the process of interviewing companies, it should be finite with pre-set deadlines and the same few people should be involved. We'd would also need to figure out when we are relieving Paradigm of their service. These are just my thoughts.

I agree that the board elections should also occur, in the time frame that we agreed to. The board is currently VPs: Miguel and Kelly Mah, Secretary: Robin Williams. Your the only person that has stepped up to run for a seat, so far. As posted on the flyer, this is the time for people to step up if they'd like to run for a position on the board. Another flyer with more flair can be posted.

-Sabrina

[Hernan Guerrero]

Hi Sabrina,

 

I also posted some comments shortly before you did. Your posting replies directly to Marc so I am not sure if you have read mine or Mario's comments.

 

I will also run for a position, however I think we have a lot of stuff on the plate right now and perhaps not in the correct order. I explained it more clearly in my previous post.

 

We did discuss voting on a  new mgmt company at the last meeting, but it was also the first meeting in months and we covered many topics, some in much more depth than others. I think it is wiser to rethink certain processes rather than rush in to a third option (after LHI and Paradigm) for a mgmt company, without first adressing underlying issues. Perhaps keeping Paradigm, but shifting our relationship with them by opening our own account, is a better interim solution until we appropriately decide how to proceed with the selection of a new company or self-management sans mgmt companies.

 

And yes, perhaps another flyer with more flair and listing the url address for the google group is needed.

 

Thanks

Hernan

--
Hernan A. Guerrero Applewhite
802 Dekalb Ave
Brooklyn, NY, 11221
917.279.1424

[Sabrina Grandchamps]

Thanks, I just saw that. Those were just my quick thoughts on Marc's email.
The current flyer has the google groups address on it.

[Hernan Guerrero]

I coudn't remember if it was or not. Excellent! In that case maybe we don't need to reinvent the wheel and creat a new one, but maybe photocopy them and leave them under people's doors so no one can say that they didn't see it...it is easy to walk by without stopping to read.

[Jared Deery]

Hello, 

Reading these posts i also feel like we may be possibly rushing things. Would it be possible to when voting for a new board to also vote on possible options for how to proceed with a new managment company? And I am still unsure how we are voting?

Thanks

Jared C. Deery

917 495 4833

Ja...@jareddeery.com

[Sabrina Grandchamps]

Finding an online voting system has been a challenge. For a basic vote, there are many options but since our votes need to be weighted, we think it might be easier to go the old fashioned route.

Karen has agreed to accept votes for us via email. Owners would just send her their vote and the unit number. She will be supplied with the weights for each unit taken from the bylaws and calculate the results for us when the vote closes. Jared, maybe you can be her second set of eyes? If either of you decide to run for a position on the board, we can just find another person to handle this.

[Sabrina Grandchamps]

I'm sorry for all of these emails. I respect that you (and everyone else) have taken the time to come up with ideas and options for the building, which is why I feel the need to respond to all of them individually. I'm glad to finally see that you are running for a position!

I also believe that being part of the condo board and the management company would be a conflict of interest, which is why we mentioned that we would step down and serve the association as managers of the building. We would report to the board with a high level of transparency, which we described in our proposal and in our response to Marc's email. The power we would have would simply be the power the board relinquishes to us. We would have no control in decisions made for the building, we would operate like any other management company except we are offering to integrate a web-based platform into the buildings operations. The ideas we have come directly from our past two years of dealing with the issues of the building and the struggles we have had as board members and largely focus on making things much much easier for the new board, so that they may focus on their actual roles of oversight and quality of life for the owners.

As treasurer, I can open and account for the board.  However given my past experience with Paradigm, and their level of organization and responsiveness, i think the suggestion of cutting checks as bills are presented by the mgmt company would only add a layer of complication to things. Also, this would suggest that we renegotiate our contract with paradigm, that removes part of their service to us and thus renegotiate our fee. Maybe I misinterpreted this idea. The time spent on doing this would probably be better spent in negotiating with a new management.

Yes, a summary of the financials can be provided at the next meeting. Since my computer died, I have lost the spreadsheet that i kept for the building, but I can have something to show for the next meeting, excluding the detailed arrears report.

Presumably, a new management company would alleviate much of the administrative tasks that we have currently been dealing with, then the board can focus on value or quality driven ideas for the buildings.

[Sabrina Grandchamps]

Since we already have several proposals, I would suggest looking into the ones we have unless there is a reasonable argument that those proposals are all deficient.

[Hernan Guerrero]

Sabrina and all,

 

I am glad that we are engaging in a real conversation about where we need to go from here. When money and our properties are at stake, it is worth taking the time to consider solutions. Thank you ALL for that.

 

I understand where you are coming from Sabrina. However,  when the issue was raised at the last meeting, Nate spoke about the option of self-management and then suggested that you guys form a company. Again, that is not self-management. Self-management is strengthening the board and all of us as owners and board members taking care of the building collectively. Additionally, when we started having issues with the balconies, I distincitly recall finding out entirely by accident that the violations had been reported only for your building, but not all buildings. The hiring of Paradigm was done exclusively by you guys, perhaps more than just you and Nate, but I at least I do not ever recall being asked to vote on one company vs another.

 

You and Nate brought up the issue that being on the board took more time than you thought it would. However, realistically, being on the board takes time, I think that is why so many people have been reluctant to participate. I have also had to spend time on some issues related to the building in the past and although it would be great to get paid for that time, it is something I thought was a part of my responsibilities as an owner.

 

You have mentioned that you have a financial background; I have several years of real estate development experience that involved the bidding and selection of architects, engineers and contractors, construction management and required me to operate multi-million dollar budgets, including payment of utltility bills construction requisitions and balance reporting. In 802 we have contemplated paying for our own utility bills and managing our own building in past months, why is it not an equally viable option for each building to handle it's own bills and management? I don't think that is an option everyone is willing to entertain...

 

Experience with our condo board does not in my mind equate to property management experience comparable to that of a company that manages several buildings and has been doing so for years.

 

Renegotiating a contract with Paradigm could take as long as negotiating a new contract with a different mgmt company. However, lack of involvement from owners generally and information falling through the cracks, ie individual owners having issues, dealing with them theirselves and then calling Sabrina, Nate or Paradigm as a last recourse, I think is indicative of underlying communication issues that need to be resolved before any other mgmt company including Dekalb Management (you and Nate) are selected. And that itself is worthy of a 3-4 month trial. Perhaps by strengthening the board, improving communication and regaining control of our finances we can ask Marc to produce more than he has. Rather than rushing in to another situation we need to clear up our current situation and then go through the process of hiring another company or not. We need to elect a new board prior to moving forward with the selection of another mgmt company. With a new board in place and some time to improve communication a clear and concise statement can be made to any mgmt company that this is what we want to see and are willing to pay for. We are at liberty to negotiate a contract that is most beneficial to us, not the mgmt company and that can only happen if we have a strong board.

 

Again, you guys stepping down IF your company is selected is different than both of you stepping down from the board first, and going through the same evaluation process as all management companies. Your proposal would be reviewed by a new board along with all other proposals and other companies would be given the same platform to speak as you guys have taken. That is a fair process.

 

However, let me say explicitly that I do not see any reason for either of you to step down if you want to first give serious consideration to going through the proper motions: ie, electing a new board, giving that board a select amount of time to gain footing and reviewing current proposals or real self-management.

 

 

 

Hernan, Apt D4

 

 

[KAREN ADISSON]

WELL PUT!!! I agree completely. Let's get our house in order, ie  board, then deal with a new management co.

--
Karen
802 D2

[Jared Deery]

I also agree it's better to organize ourselves first then find a new managment company.

Jared C. Deery

917 495 4833

Ja...@jareddeery.com

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[Kelly Mah]

Hello all,
I agree with a lot of the points that were raised. I think an election
of a new board should definitely be our first step. After the
election, I think the new board should take on the responsibility of
interviewing prospective management companies to get a better sense of
which candidates meet our criteria. The information could then be
communicated to the owners and a vote can take place.

In regards to Sabrina and Nate forming a management company, I think
it would only be fair to step down from their current roles, as it is
a conflict of interest. If Sabrina and Nate have made the decision of
moving over to the management side, it should be as simple as stepping
down, electing a new board, and letting the owners/new board decide
on how to proceed.

At this point, I have very mixed feelings about which management
company to choose, as it is difficult to know how diligent a company
is until they have been tried and tested. With that being said, maybe
the idea of having a trial period with the "Home Team" could be
beneficial, and we could re-evaluate things from there, since we
wouldn't be locked into a one year contract.

Kelly (B4)

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[Sabrina Grandchamps]

That's not a problem. I think in this case we can continue to hold the election as planned for Thursday, June 11. This was announced well over a month ago, and posted in the lobby for a few weeks. There's enough time if others would like to run or make a nomination to send an email.

I've posted a scanned copy of the operating plan that includes the by-laws, if anyone needs to take a look at it. I've also posted the minutes for the meeting a few weeks ago. Both can be found in the files section.

[Hernan Guerrero]

How do people who can not attend get to vote?

Both people in my unit, for instance, can not attend due to plans made well before these dates were announced.

Will names of people running and positions they are running for be posted some where?

Will you and Nate run for Treasurer and President again? 

 

Thanks!

Hernan

[KAREN ADISSON]

YOU SAID YOU WERE GONE  JUNE 12 RIGHT? OUR MEETING IS THE 11TH.

--
Karen
"Your Chocolate Star"
www.dampretty.com

[Hernan Guerrero]

Nube 11th and 12th

Sent from my mobile phone

etty.com">www.dampretty.com

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br>

[nkess...@gmail.com]

Nube? :)

Sent via BlackBerry from T-Mobile

---

From: Hernan Guerrero
Date: Fri, 29 May 2009 11:47:50 -0400
To: dekal...@googlegroups.com<dekal...@googlegroups.com>
Subject: Re: Elections and Selection of Mgmt Company

br>

[nkess...@gmail.com]

Yes meeting is thurs. the 11th
I will be running for president
Nate

Sent via BlackBerry from T-Mobile

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From: KAREN ADISSON
Date: Fri, 29 May 2009 11:43:01 -0400
To: <dekal...@googlegroups.com>

Subject: Re: Elections and Selection of Mgmt Company

[nkess...@gmail.com]

Yes meeting is thurs. the 11th
I will be running for president
Nate

Sent via BlackBerry from T-Mobile

---

From: KAREN ADISSON
Date: Fri, 29 May 2009 11:43:01 -0400
To: <dekal...@googlegroups.com>
Subject: Re: Elections and Selection of Mgmt Company

[Hernan Guerrero]

June, sorry am at work.

[Hernan Guerrero]

I will run for Treasurer.

 

Will people running get an opportunity to talk to the owners? Some kind of candidate's night. I have had to monitor home association elections before there is usually a nomination meeting a candidate meeting and an a election meeting although I have seen all three happen in one night. Usualy though it is better to have the election on a separate night from the nominatin and candidate meeting to allow people time to think about their prospects...

 

Hernan

[KAREN ADISSON]

WHEN WE DID OUR FIRST ONE IT WAS ALL IN ONE NIGHT

[Hernan Guerrero]

I guess I will have to prepare something in writing then and have someone represent me...

 

Thanks!

[KAREN ADISSON]

I'M JUST GIVING YOU THE INFO. I'M NOT ON THE BOARD.

[Hernan Guerrero]

Nate,

 

I see you will be runnig for president again. Does that mean that you will take your mgmt proposal off the table?

[Hernan Guerrero]

No problem. I didn't take offense to it.

 

I would like to nominate Sabrina for President. But the question is the same. Are Sabrina and Nate taking their mgmt proposal off the table?

[Jokie]

Hi, 

Any word on  when the HVAC contractors will come to clean this month.  I recalled from the last meeting that Jan was the assigned month?  

Also for 796, is Kim able to take a look at the pump, the water pressure is not functioning any longer. 

Thanks. 

Amy Eng - 796 B5

[nkess...@gmail.com]

I spoke with Kim about the pump we should have one in the next day or so. I will follow up with marc for the HVAC.

Sent via BlackBerry from T-Mobile

---

From: Jokie <jok...@yahoo.com>

Sender: dekal...@googlegroups.com

Date: Wed, 12 Jan 2011 14:11:29 -0800 (PST)

To: <dekal...@googlegroups.com>

ReplyTo: dekal...@googlegroups.com

Cc: <sgra...@gmail.com>; <ke...@kellyhorrigan.com>; <jok...@yahoo.com>

Subject: HVAC update

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