Roosevelt Island Board Of Directors Meeting Today At The Manhattan Park Community Center - Presentation Of RIOC's Proposed Fiscal Year 2011 -2012 Budget

 Image of August 2010 RIOC Board Of Directors Meeting At Manhattan Park Theater Club

The Roosevelt Island Operating Corp. (RIOC) will be holding it's October Board of Directors meeting tonight October 12 starting at 5:30 PM. The meeting is being held at the Manhattan Park Community Center instead of the Good Shepherd Community Center. Prior to the start of the Board meeting there will be a period of time for members of the community to comment and ask questions of the Board Members. According to RIOC:

A 30-45 minute public comment period wherein those who sought to address the Board would have pre-registered, with time for any speaker limited to two (2) minutes. Pre-registration would be accomplished by addressing RIOC at its web site or in person at RIOC's office prior to the day of the meeting. Public comment should be for the purpose of receiving comment, not to engage in debate or colloquy with board members. The Chair would control the time and limit for each speaker.

By scheduling the public comment period as above, the town hall style session following alternate Board meetings should be obviated. The RIRA meetings now held the evenings before each Board could function as the equivalent of a town hall meeting, with Board members attending as they wish, but with the expectation that a senior RIOC staff person would also attend to answer questions on Agenda items.

Below is the Agenda for RIOC's October 2010 Board Of Directors Meeting.

AGENDA

OCTOBER 12, 2010
MEETING OF THE ROOSEVELT ISLAND OPERATING CORPORATION BOARD OF DIRECTORS
THE MANHATTAN PARK COMMUNITY CENTER,
8 RIVER ROAD, ROOSEVELT ISLAND, NEW YORK,
5:30 P.M.1

I. Call to Order
II. Roll Call
III. Approval of Minutes
1. August 4, 2010 Board Meeting (Board Action Required)
IV. Old Business
V. New Business
1. Authorization to Amend the Engineering Consulting Contract with Shea Carr Jewell, Inc. in Connection with the Aerial Tramway Modernization Project (Board Action Required)
2. Authorization to Enter into Amendment of Cell Antenna License Agreement with Verizon (Board Action Required)
3. Authorization to Enter into Amendment of Cell Antenna License Agreement with Sprint (Board Action Required)
4. Authorization to Take Certain Actions to Comply with Chapters 174 and 175 of the 2010 Laws of the State of New York (Board Action Required)
5. Presentation of the Proposed RIOC Budget for FY 2011-2012 (Materials to Follow)
6. Presentation of the FY 2010-2011 QTR 1 Procurement Report
7. Committee Reports
a. Audit Committee
b. Governance Committee
c. Operations Advisory Committee
d. Real Estate Development Advisory Committee
8. Public Safety Report
9. President's Report

VI. Adjournment

1 The RIOC Board Meeting will commence following a public comment period, which is not a part of the RIOC Board Meeting.

Agenda Item # 5 is the Presentation of the Proposed RIOC Budget for FY 2011-2012.

Budget highlights include (Page 2):

Overall, budgeted net income (before depreciation) is projected to increase a healthy 6%, as shown above. Please note that when comparing the FY2012 numbers to the FY2011, the revenues and expenses are somewhat skewed upward due to a full year of operations for the Tram (see page 6.) Of the above increase in net income of $130,446, $119,700 is attributed to a full year of the Tram's operations.

Personal expenses (detailed starting on page 17) are projected to increase approximately 5%. Through attrition, 2 full-time positions will be eliminated reducing the number of full-time personnel to 116. Included in the staffing plan are COLA increases, performance bonuses and wage adjustments. As was the case last year, all increases will be contingent upon the State's budget constraints and will require Board approval.

Fringe benefits are projected to increase a hefty 10%, primarily due to a 25% increase in pension costs and a 10% increase in health insurance. In order to contain personal costs, Management is committed to limiting staff levels wherever possible.

As noted on page 9 under "Budget Risks", the development of the remaining 3 Southtown buildings will have a significant impact on future projected cash flow. Until the fate of development is known, major capital projects not deemed as "necessary" will be deferred. Major capital projects slated to start next year are: Good Shepherd Plaza & Roof Restoration ($1.4M), Main Street Road Repair ($0.8M), Seawall Railing Replacement ($2M), Sportspark HVAC Replacement ($0.6M) and Motorgate Lighting and Interior Renovation ($1.4M).

As to the development of Hudson/Related Riverwalk Southtown Buildings 7-9 the Proposed Budget reports (Page 9):

... As noted in last year's budget, the development of Southtown 7, 8 & 9 will have a significant impact on the future cash flow of the Corporation. The developer, Hudson/Related holds an option to develop the site which expires on December 31, 2012. Early discussions with Hudsion/Related appear to be positive although development would depend on market conditions. If Hudson/Related did not go forth with development of 7,8 & 9 they would owe the Corporation a de-designation fee of Approx. $1,500,000 and the net effect on projected cash flows would be as follows:(See Chart on Page 9)

As disclosed above, if the development of Southtown #7, 8 & 9 does not go forward and current projected spending levels remained the same, the Corporation would incurr a negative beginning in 2021. Until the fate of development is known (the latter part of 2012), major capital projects not deemed as necessary will not be initiated...

You can listen to RIOC's CFO Steve Chironis explain the Proposed Budget to the RIOC Audit Committee on October 6 at this audio web cast. Mr. Chironis also reported that the Hudson/Related condo building at 415 Main Street, Riverwalk Court, has sold 90 of 123 condo units to date but that the remaining unsold units will be now be leased as rentals.

The entire Proposed RIOC 2011-12 Budget is here for your review. The Budget will be presented to the Roosevelt Island Residents Association (RIRA) in November and voted upon by the RIOC Board of Directors in December.

A web cast of the RIOC Board Meeting well be made available a few days after the meeting.