Memo to John Ricci

Paul Josephart Controller Westchester Property Management Group
Called me Thursday November 19th 2015 -
and stated  the following , "Nothing will be done - 62 other properties receive the same budget information."
MY RESPONSE, Budgeting is the most important function of a Board of Directors , I don't care about 62 other properties - this is the 21st century and not comparing the budget to the actual results is nonsense.


To:     John Ricci      - Westchester Property Management Group, Inc.
From: Peter Merson - Riveredge Cooperative Yonkers NY 10701 
Date: June 15, 2015
RE:    Riveredge Co-op Budgeting Process

In December 2014 I sent you a memo inquiring about the huge variances in the 2013 co-op budget and have yet to receive a response. (6 months ago)

I was somewhat surprised since the following statements had been made about you and/or your company.

They bring to Riveredge a more sophisticated, professional, responsive and congenial management style that is more in keeping with our vision for Riveredge.” Ms. Karen Gongora May 2011 – Riveredge Board of Directors

“He has vast experience and shall work with the Board of Directors and Shareholders to make sure that Riveredge Owners, Inc. is a well-managed property.” Mr. John T. Lamorte Dec 14, 2010 – President Westchester Property Mngt

I would like to press the restart button and begin again.


My issue is, the annual budgeting process at the co-op, which I would consider the most important function of a Board of Directors, does not work for shareholders.

A proper budgeting process involves:
1. Preparing and presenting something which someone can comprehend
2. Including a cover page with explanations as to the decisions made
3. Making sure all shareholders receive a copy per the co-op rules
4. Comparing the year end results to the Audited Annual Reports
5. Explaining any significant variances to shareholders
6. Inclusion of a 3-5 year capital expenditure budget

Since none of these processes are currently followed, I am requesting:
1. new procedures (or people) be put in place so that they are
2. an explanation be provided to all shareholders detailing the need for $216,000 or $2.54 per share or 13% of the 2015 budget for Reserves or Capital Expenditures. Make sure it is intelligent and based upon facts.

I hope you take my request more seriously this time.

I would like to see you, your company and the Board of Directors live up to the hype presented to shareholders when you became the Managing Agent of the co-op in January 2011 at an additional cost of $10,000 a year.

Additionally, reading about a situation like this from another source is generally not helpful.

If you wish to contact me, send an email.

Sincerely,


Peter Merson
1 David Lane Apt 8T
Yonkers, NY 10701
petermerson@hotmail.com

Attached:
Timeline and Tenure
2013/2014/2015 Actual co-op budgets from the Board of Directors
2013/2014/2015 My interpreted co-op budgets & year-end comparisons



CC:
Riveredge Board of Directors – board@riveredgeowners.com
John T. Lamorte - jlamorte@wpmginc.com
Nancy Margeson - jricci@wpmginc.com




To:         John Ricci
From:     Peter Merson  - Riveredge Cooperative Yonkers NY 10701
Date:      December 15, 2014
RE:        RIVEREDGE OWNERS, INC. 2013 FINAL BUDGET  


I received the attached RIVEREDGE OWNERS, INC. 2013 FINAL BUDGET and RIVEREDGE OWNERS, INC. FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 AND INDEPENDENT AUDITOR’S REPORT.

I then compared the two and my results are attached in hard copy form. I will email you the link to the equivalent on-line version.

Would you please explain to me the reasons for the variances in Mortgage interest and principal and the Reserve-Cap Projects-(Cash) item’s.

It is apparent the Board of Director’s budgeting skills have not improved since 2006, see attached memos.

If you could provide some of your professional Property Management skills to improve the budgeting process for shareholders, I for one would appreciate it. This would definitely help to increase the marketability and value of my apartment.

Thank you.

Peter Merson
1 David Lane Apt 8T
Yonkers, NY 10701
914-476-2183


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