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Co-op City shareholders are urged to fill out surveys on proposed carrying charge discount program

Coop City shareholders are indicating their interest in taking part in the proposed Water & Sewer Savings program that would give them a significant carrying charge discount and could reduce the community's annual water bill from New York City by $1.425 million, a 12% reduction.

This is in direct contrast to the Parkchester common charge increase which is bewildering Parkchester, Bronx, New York residents.

Under the proposed voluntary plan being spearheaded by Riverbay Board President Cleve Taylor, any shareholder who prepays their carrying charges for one year would receive a one-time 6% discount on their carrying charges for a one year period. The plan was unanimously approved by the Riverbay Board of Directors at their Open Board meeting held on January 13, 2016.

All shareholders are urged to read through the proposal that was provided with their February carrying charge statement and then complete and return the survey at the bottom of the plan.

The offer to Coop City shareholders aims to raise approximately $10.1 million which would allow all of Co op City to prepay its New York City water and sewer charges under the city's Multi-Family Conservation Program (MCP) thereby saving the community and its shareholders $1.4 million on annual water charges.

Completing the survey is not a commitment, but just a way for management to gauge interest in the community and know who to contact when it becomes time to formally implement the program, which is voluntary.

Given the need for state approval and further inspections and meter installations by New York City should such permission be granted, it could take up to six months before formal implementation of the program begins.

Under the plan, as presented by Riverbay Board President, Cleve Taylor, half the savings of the program would be passed onto the shareholders who participate by prepaying, which comes to an approximate 6% carrying charge rebate, while the other half of the savings goes back to all Co op City shareholders in the form of additional revenue for Riverbay's operating costs.

Taylor wrote in his President's Message on January 6, 2016, "Prepaid carrying charge/rent is not a new concept. It has been around for hundreds of years. Many cooperators currently prepay their carrying charges for various reasons: going on vacation, extended hospital or rehabilitation and they do not want to be late with payment or the convenience of a single payment for a period of time."

Riverbay currently spends approximately $18 million in community wide water and sewer charges to the City Of New York's Department of Environmental Protection (DEP), due largely to astronomical, consecutive rate increases that were implemented by the city in the mid 2000's.

Riverbay currently pays most of its water and sewer charges based on actual usage as measured by a meter.

New York City's Multi-Family Conservation Program (MCP) allows residential housing companies, such as Riverbay, to pay a fixed cost for water and sewer based on the number of apartments in the building.

Riverbay has already switched over some buildings to the MCP. The remaining buildings would cost $11.572 million per year based on actual meter water and sewer usage. Pre-payment would be $10.147 million, a savings of $1.425 million or 12% annually.

By Jim Roberts
The Coop City Times is now online
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