Deferred Maintenance Liability Requires Immediate Attention!

The cable infrastructure within the building requires upgrading. Problems have been reported to the Board for a number of years now, with no response received. As has been suggested in the past, the Board should be negotiating with Shaw Cable to address this problem. The Corporation may in fact have to contribute to the cost of this repair or upgrade.

A number of years ago, a review of communication infrastructure issues was conducted by the appropriate authorities including the CRTC. As a result of this review, it was determined that the ownership of the communication infrastructure within a building is in fact owned by the property owner. In turn, the property owner could be held responsible for modifications or improvements to this infrastructure.

In any event, the Board is responsible for prompt review of this matter, and ensure that unit owners are provided with a communications infrastructure that accommodates unit owner requirements and complies with current industry standards. This deficiency is a further example of yet another addition to the long list of deferred maintenance in the building.

Therefore, unit owners must ensure, that the Board address ALL DEFERRED  MAINTENANCE projects before any unnecessary and ILLEGITIMATE Reserve Fund expenditures are approved. A halt of the inappropriate RESERVE FUND EXPENDITURES, including those related to the exercise room, must take place immediately, in order to address the growing liability of these DEFERRED MAINTENANCE projects. Some of these deferred projects have been noted in recent posts to this site.

Deferred maintenance and its correction, should be included in the Reserve Fund budget. As unit owners were informed at the last AGM, the treasurer advised that there were no reserve fund expenditures anticipated in the next fiscal year, and therefore there was no need to provide unit owners with a Reserve Fund budget.

Very troubling indeed.

 

SCC Financial Reports – A Growing Concern

Once again, residents have been provided with incomplete financial statements. There is no balance sheet, no Reserve Fund statement and no supporting notes pertaining to the larger expenses each month. Again, this lack of information and transparency is in violation of both our Bylaws and the Condominium Property Act and further displays a lack of moral respect as well.

This delayed and sloppy financial reporting continues month by month. The Board continues to be most reluctant to answering questions of residents regarding financial matters. As is well known, the Board skips through the financial statements at every AGM without proper response to the questions of residents. They would prefer to not be bothered with the simple questions of residents.

Residents have been informed that rather than providing them with a strategic plan within the Reserve Fund in respect of the many recommendations of the Reserve Fund Study, they will simply be subject to cash calls when the Board feels them to be necessary. Reserve fund expenditures are required to be approved by unit owners and at no time can Reserve Fund expenditures be made that exceed the dollar amount approved by unit owners. The cost of the recent heating system resulted in a final cost that exceeded the cost submitted to residents at a general meeting by more than $500,000. This violation resulted in residents paying for the majority of this unnecessary and unapproved expenditure. In addition, it also resulted in the depletion of the Reserve Fund to the lowest level in the history of the building.

Yet the Board with egg on their face, attempts to disguise their major blunder with yet further deceit by telling residents that they are doing them a favour by not having a strategic contribution plan to manage the Reserve Fund according to the recommendations of the Reserve Fund Study. This deceit can only go on for so long. One of these days, when the Board once again suddenly demands funds without appropriate approval, residents who will finally speakup and voice their concerns over this most insidious conduct of the Board.

Comments to April, 2014 Board Report

ENERGY COSTS

For the first two months of 2014, net energy costs are up a staggaring $10,000 plus (over 30% increase) compared to January and February, 2010, prior to installation of the new hot water heating system. The median temperature for both periods were about the same. Energy rate adjustments have of course been considered in this comparison.

The Board of Directors however, continues to report to residents that “we continue to see savings in our energy costs”. Unfortunately, it is apparent that our newest Board member is being provided with inaccurate and misleading information from management and his fellow board members.

EXERCISE ROOM

The Board has again approved yet another Reserve Fund and Capital expenditure, that being the exercise room. Residents must be provided an opportunity to participate and voice their preferences as to what they wish to see done in this area including the cost.

ELEVATOR REPLACEMENT

This Reserve Fund and Capital Expenditure, must also include the participation and input of residents before they are asked to make any financial contribution. As per our Bylaws and the Condominium Property Act, this expenditure cannot be considered until consultation with residents is completed and their approval is received.

PARKING DECK REPAIR

It has now been several years that we have heard that the parkade surface is in critical need of replacement. Yet as the years go by, this area continues to be neglected with no effort to conduct any annual maintenance. Once again, this expenditure cannot be considered until consultation with residents is completed and their approval is received. It is interesting to note, that the proposed option of the repair of the surface area, is simply an adherence to what has been recommended in our Reserve Fund Study, which was conducted more than five years ago. The failure of the Board to respect the recommendations of normal maintenance in this study, has now resulted in yet another  deferred maintenance project that could have been avoided.

SUMMARY

The Board has failed and refused to recognize that spending other people’s money without their consultation or approval, is not permitted by our Bylaw’s or the Condominium Property Act. The Board has apparently failed or refused to recognize the importance of responsible maintenance in the building. This deferred maintenance is continuing to accumulate at a rapid pace. Painting and repair of balconies, maintenance and repair of perimeter heat lines and heat pumps, replacement of the humidifier, preventive maintenance and cleaning of drain lines, purchase of spare Enercon units, inspection and replacement of water shut off valves, installation of water supply isolation valves, are only a few examples of maintenance that has been deferred. Neglect of proper maintenance by management and the Board, has of course led to a great amount of unnecessary damage and inconvenience to residents for a number of years now. We are also now paying for this neglect with probably the highest insurance premium and deductible for a condominium property in Saskatoon. It is time for management and the Board to begin taking their responsibilities seriously.

 

Common Area Misuse & Neglect

Unfortunately, the Board refuses to correct their inappropriate approval and in turn, lack of respect for residents in their turning of a blind eye to unit owner modifications and misuse of common areas in both commercial and residential areas of the building.

In the residential areas of the building, common area finished entry doors in some units have been painted a totally different color and unit numbers have been affixed to the adjacent wall to the door entry, with yet a totally different color again. As building regulations were not respected by neither the Board or the owner at the time of these modifications, it is not the responsibility of a new owner to correct this violation, but is now the responsibility of the Board. Unfortunately, all unit owners will have to pay for the cost of correcting this negligence on the part of the Board.

In the commercial areas of the building, there are also violations that have simply been neglected by the Board of Directors. First of all, the inappropriate approval by the Board to install a pressure reducing valve in order to restrict water pressure levels on the commercial floors, is subject to serious question. All plumbing lines and fixtures since the inception of the building, were designed with consideration of the range of water pressure levels provided by the City of Saskatoon.

The only reason a pressure reducing valve would be required, is if modifications to the water distribution system within the building were not capable of handling what have been to date normal water pressure levels. Therefore, obvious questions include, what modifications were made in the commerical area which were not capable of accomodating normal water pressure levels? Of course, our Bylaws, Regulations and the Condominium Property Act require a detailed report from any unit owner prior to acceptance of any modification which may impact the infrastructure of the building.

The commercial owners have installed an air conditioner unit in a fire lane regulated area in the parkade adjacent to the south east mechanical room. A commercial cooling unit for computer systems has also been installed in a common area in the parkade. These units could have been installed within the commercial unit level one, but as the lost of space  would have reduced revenue to the commercial owner, the Board was unduly influenced (and by way of negligence on their part), to permit the installation, which is contrary to our Bylaws and the Condominium Act.

The commercial owners are now renting  common area to non-unit owners, the north east storage room in the parkade, which is a common area of the building. Further, they are using as storage, an area in the firelane adjacent to this storage room. Does this mean that the opposite south east storage room is now available for income to residents from rental of the south east common area storage room? Of course not. Neither of these areas are intended or permitted to generate rental income.

The commercial owners have for some time, rented to their tenants, the common area parking stall designated in our Bylaws, to be used exclusively by our caretaker. As a result, the caretaker parks his larger vehicle in a lateral stall which creates inconvenience and a hazard to those residents who park in this area. This problem would not exist if he would park in his own designated stall. Further, the caretaker, is now using this same area, for storage which further extends the hazard. Why is the caretaker not using his designated parking stall?

The common area in front of the building is not to be used for commercial signage outside of the banner on the front wall. A resolution was made at the last AGM to install signage which would recognize the building commonly know as Spadina Towers. Apparently, there has been no effort on the part of the Board to act upon the resolution. There has been great support for a larger, professional sign, to be mounted on the front lawn, clearly describing the site and building as SPADINA TOWERS and the address of 728/730 Spadina Crescent East.

The decor at the front of the building is very important to residents. This is where they live, and they are entitled to recognition of their preferences as to the front lawn, the flower bed, and all other areas at the front of the building. A few of our residents have for many years,  been very active in the landscaping maintenance at the front of the building. These residents should be invited to participate in the selection and placement of flowers, and providing direction as to the required maintenance to all landscaping.  Residents deserve responsible attention and respect to their input on landscaping which is very much a part of their home.

A primary common area is of course the underground parkade. Apart from the DUTY OF CARE provision of our Bylaws, and the Condominium Property Act, there is also the principle of common sense, which is obviously not being practised by our Board of Directors.  We may very well have the filthiest underground parkade in all of Saskatoon. There is no responsibly managed property that would allow such neglect to a parkade as the one at Spadina Towers.

Again, this clearly demonstrates neglect of reasonable care and respect for the interest of our residents. Where is the idea comming from where the floor only requires cleaning twice per year? One can only imagine. Do our residential Board members, particulary those who are absent for much of the winter and do not experience the filthy conditions including a fog of dust in the air, have no respect for those residents who reside in the building over the winter? The primary traffic during the week, is of course commercial tenants who enter and exit the parkade at least twice per day. This traffic is well beyond what is experienced in residential condominium properties. Therefore, far more cleaning is required, not less.

It is interesting that snow removal is demanded on a daily basis for the benefit of the commercial owner, when very often it is not required at all. Yet, our Board has the gaul to suggest that the residential parking area requires cleaning only twice per year! How can  our residential Board members be so supportive of this neglect?

It is suggested that the Board act immediately upon these common area issues.

Resident Participation Rejected

The Board continues to proceed with ongoing reserve fund expenditures without any respect for the required procedure which includes the participation, review and approval of residents. The Bylaws of the Corporation and the Condominium Property Act, require that unit owners be provided with a Reserve Fund Budget on an annual basis. This budget includes proposed expenditures for the next fiscal year and requires the approval of unit owners. A further provision within the Bylaws, provides that at no time shall reserve fund expenditures exceed the amount approved by unit owners.

Residents must understand that these requirements of the Bylaws and the Condominium Property Act are in their best interest. The ongoing rejection of the Board to respect these laws and simply approve on their own, these expenditures, and then simply demand payment from residents without providing any opportunity for residents to participate in any way other than writing a cheque upon demand can no longer be tolerated. This practice clearly demonstrates both conceit and deceit on the part of the Board.

For those who have read the reports provided by the Board, it is clearly apparent that the Board has their own agenda as to reserve fund expenditures. The participation of residents is unfortunately not on this agenda. RESIDENTS WILL BE SHOCKED BY WHAT IS COMMING THEIR WAY IN YET FURTHER CASH CALLS. Should residents fail to voice objection to this most troubling situation, they will simply continue to participate by writing cheques upon demand.