Comments on Professonal Management

COMMENTS ON PROFESSIONAL MANAGEMENT

Because of my teaching schedule, I am unable to attend the May 20, Legum & Norman presentation and discussion. I am convinced that our condominium needs to retain professional management and that Legum & Norman is the right firm for that purpose. In my absence, I am submitting a brief summary of the compelling reasons why we should retain Legum & Norman.

First, it bears emphasis that our building’s physical structure is no longer new or even close to new. For example, our pipes leak and have even spewed filth into apartments, the latter being a failure on our part until now to know that our pipes need to be cleaned. Our structure leaks, sometimes to a dangerous extent. Our equipment is aging. While we have excellent personnel running and overseeing our finances, our system is antiquated. We do not have the breath and depth of support that Legum & Norman can provide. In short, we need professional management’s knowledge and support.

It’s been said that professional management is costly, both due to one-time costs of the transfer and continuing costs. While there are costs associated with the preservation and enhancement in the value of our property that professional management furthers, savings are available as well: Legum & Norman can operate our financial systems in a more modern manner that actually costs less than our present system. There are savings due to their ability to negotiate contracts using their very considerable bargaining power. In a testament to Legum & Norman’s integrity as well as a fine example of the virtues of professional management, Legum & Norman has already, without compensation, pointed us to a very substantial savings: We have needlessly been paying sales tax on costs such as electricity and gas. The gas and electric utilities have already agreed to stop billing us for these taxes (estimated to save over $40 thousand this year alone--and for years to come) and will process at least partial refund requests for past payments.

During the past year, the Board has not been living in the past or tied to systems in place 20 years ago, having finally obtained a decades overdue outside reserve study, and commenced a much needed (just look around you, from floor to ceiling) renovation, this is no substitute for professional management. We need to accept the virtue of delegating day-to-day management (with Board oversight) to professionals rather than seeking to maintain the dead hand of control over a haphazard, poorly organized and insufficiently functioning support operation. Past Boards have had plenty of time to match the advantages of professional management; they did not! It’s a fantasy to think that our current deterioration, compared to other condominiums in our neighborhood, will change without professional management. We have many fine employees; professional management will enable us to maximize their efforts for all our benefit.

The fear of this change that is implanted in some of our owners warrants comment. It is doubly unfortunate that much misinformation has been spread sending some owners into a veritable frenzy of panicky opposition. I urge you to think for yourself. If you do, I have little doubt but that objective consideration of the facts, including the examples recited above, will lead to your support for moving our condominium to professional management.

Jeffrey Axelrad