A number of people have expressed to me and others their dismay at the sudden dismissal of our Front Desk Staff. Brian Murphy wrote a letter to the ECA Board of Directors and got this reply from ECA Board President Steven Schattman.
There are a number of things to keep in mind as you read this.
--The elected board of directors is a volunteer group. In the recent elections, we had just enough volunteers to cover vacant board positions. The job is not easy and there is a guarantee that for every decision, there will be many people who will disagree and be unhappy. What can be done? You can run for the Board in the spring of 2015.
--One of the biggest jobs that the board takes on is managing the financial resources that we as an association entrust to the board. The fact is the Association is spending a lot of money to bring this building back to the original standards required of a luxury high-rise dwelling. It is very painful to have to make changes but especially to the staff we have employed for years. But what do you do when jobs are not getting done because the system in place is not working? Do you ignore the situation or take action? How do you know what action to employ? What do you think happens when personnel decisions are opened up to a large group--that is, if this were possible?
--Yes, perhaps there was another way to address the problems of our Front Desk Staff that would have been less shocking for everyone but I bet behind close doors some of these concerns were actually discussed with our legal counsel, Legum & Norman managers, and officials of other condos that faced this kind of situation.
The letter from Steve Schattman:
Let me address the fact that the decision to outsource the front desk staff was made in Executive session not in an open meeting. The Board is under certain legal obligations when it comes to personnel. There are confidentially requirements. In the entire 40 year history of the association personnel issues have always been dealt with in Executive session. The disposition of a new Chief Engineer was an entirely different set of circumstances as it did not deal with existing personnel rather a potential hire.With regards to the decision itself, it was not made in the Executive session following Tuesday’s meeting. It was made some time ago. Several months were required to complete the preparation for the changeover. There were a number of issues that needed to be settled first including severance pay for the affected employees. Just so you are aware these people were not simply shoved out the door and waved goodbye to. Every one of them received a generous severance package. As we speak, our Management company Legum & Norman is working to place several of them in positions at other properties they manage. We were not heartless thugs.If you will allow me I will give you a brief history of what lead to this decision. I believe after reading this you will come to understand this was not a hasty, shoot from the hip decision.It is no secret that our operating expenses are very high. This puts a strain on the finances of the Association especially given the 10 year renovation project now under way. Approximately two years ago the then President of the Board asked L&N to do an analysis of our operating expenses and offer recommendations as to how to reduce them. The first problem area identified was our utility costs. L&N, mostly Jim Santos, worked diligently to reduce them. They were successful. Notwithstanding the fact that utility costs have gone up ours are now lower than they were two years ago. The second problem area they identified was our staffing costs. They were way out of line for a building and community of this size. The main culprits were insurance and overtime. The single biggest staffing problem was the Front desk. We were in a catch 22 if you will. The desk was understaffed causing massive amounts of overtime. Adding personnel would have driven already out of line insurance costs through the roof. The suggested solution was to employ a concierge company to man the front desk. The transition to a concierge company saves the Association a minimum of $50,000.00 a year.This was not a quick nor hasty decision by the Board. We had L&N identify three suitable companies to take over this task. Early in the year they were brought in to make presentations to the Board. The who now mans the front desk was selected as the best option. Debate continued and a decision was put off until the new Board was formed in May. Additional research was conducted. Several Board members including Ms. Bobb and Ms. Batey visited buildings that employed the service. Sometimes they announced themselves, other times they went incognito to see what kind of reception they received. Board members from other Associations were contacted to ascertain their satisfaction or dissatisfaction with the service. Finally the decision was made to forward with this in June.In a very short time allowing for a learning curve to be digested, I honestly believe that in addition the monetary savings you will see a much more efficient and higher level of service from the front desk. Within a very short time frame a plethora of new services will be available to the residents of the Elizabeth.Several people were unhappy with the abruptness of the changeover but we felt this was the most humane and efficient way to do it. The Board was elected to represent the owners. It is not an easy job and as Ms. Batey pointed out in last Tuesday’s meeting, the pay sucks! The Board acted in what it felt was the best interests of the Association. Difficult decisions have been made over the last several months but because of them our future financial picture is looking much better. Quite frankly every time we make a decision no matter what it is there are always 20 owners who are firmly convinced we’re idiots and they have 40 reasons for believing that. Regrettably that’s just a fact of condominium life.Steven Schattman
