New Heating System Continues to be a Money Loser for Spadina Towers

 

The substantial increase in energy consumption since the million dollar expenditure for the new heating system installed in late 2010, has resulted in an ACCUMULATED INCREASE in costs of NET ENERGY CONSUMPTION equivalent to $72,097.46 over the period January 1, 2011, to April 30, 2015.

This includes a necessary adjustment factor for changes in rates. Residents are encouraged to ask their board for its written analysis which must consider the necessary consideration of the effect of both increased energy consumption and changes in rates of energy costs during this period.

The dramatic DECREASE in natural gas rates during this period has resulted in an inaccurate interpretation by the board and their false report to residents of increased energy efficiency and reduction in energy costs. Further, electrical consumption has INCREASED DRAMATICALLY over this period because of the shift of the energy load to the residential Enercon units. The reason for this, is the board has been unable to demonstrate that the new system is able to provide the same output temperature to our perimeter heating lines as the previous steam system did.

Therefore, residents must now use their Enercons for heating all winter whereas they never had to in the past. Obviously electrical consumption goes way up if the new hot water boilers do not provide sufficient heating and extensive use of their Enercon units is therefore required, as they run on electricity, which is much more expensive than natural gas that fuels the hot water boilers.

In 2010, an internationally recognized and accomplished research scientist in the planning of energy efficient buildings and indoor air quality, attended a general meeting at Spadina Towers and was prepared to offer his opinion on the proposed new heating system. This man was Dr. Rob Dumont MSc, PhD, who just last week on May 29th, passed away in Saskatoon.

A most valued opportunity was lost, when at this meeting, chairman Ben Goldstein, made every attempt and very much succeeded in preventing Dr. Dumont from providing his opinion to the meeting. Those attending will never forget the most rude and disrespectful behavior of Mr. Goldstein and his fellow board members towards Dr. Dumont. Most residents were very much embarrassed by this most unforgivable behavior of Mr. Goldstein and his board.

Mr. Goldstein, would in the following year falsely state, on behalf of the Board of Directors, in a Court of Law, that within just one to two years following completion of this capital project, the building had saved more than $40,000 in energy costs. The presiding Judge, who was a fellow provincial court judge to Mr. Goldstein, rejected even hearing my well prepared analysis of energy costs and simply accepted the position of Mr. Goldstein. My case as presented in objection to the conduct of the Corporation, was simply dismissed and Mr. Goldstein’s word was effectively declared sacred.

Mr. Goldstein and his fellow board members are hereby today, requested to provide  evidence of such savings, presumably a reasonable request in a Court of Law. This request has of course been made many times in the past, but rejected by both he and his board along with subsequent boards. A response remains outstanding and the current board in obliged to respond.

Residents today, must be reminded that Dr. Dumont did provide a written opinion which the board refused to even look at. Dr. Dumont’s opinion, essentially recommended that the building replace the existing steam boilers with the current and upgraded version of the same units with a substantial increase in efficiency and net reduction in energy costs. He considered the total potential cost of an entirely new system with hot water boilers, could very well exceed and rather substantially, the total cost estimate provided by the board. This cost in his view, would never be recovered let alone achieving the energy savings promised by the board. He of course, was proven to be correct.

Dr. Dumont, with his vast experience in indoor air quality, was also a strong advocate of an efficient humidification system particularly in a high rise building. Unfortunately, our board determined that the cost quoted at $28,000 included in a $1,000,000 project to replace both residential and commercial humidifiers was not affordable and therefore removed and not replaced. Residents have paid the price by experiencing an extremely dry environment throughout our long winters, and poor air quality ever since.

It has been four years and four months since the $1,000,000 hot water heating system was installed. During this period, the equivilant cost of increased net energy consumption has accumulated by some $72,000 as opposed to the promised energy savings of $30,000 to $50,000 per year. Not to mention the hundreds of thousand of dollars wasted by unit owners in buying this system.

Our friend, the late Dr. Rob Dumont has proven that he was in fact correct on his unquestionably qualified recommendation to Spadina Towers back in 2010. As was advised by Dr. Dumont at that time, we would never recover the cost of the proposed new heating system. How true. Not only are we unable to recover one dollar of this unnecessary capital expenditure because of NO ENERGY SAVINGS, but we have accumulated a net increase in energy consumption equivalent to $72,000 TO DATE.

Yet our board has over this entire four plus years, continued to mislead residents with their boast of “THE CONTINUING PAYBACK FROM A MOST WORTHY INVESTMENT”.

What should you do? Speak up and demand a full report including all details as referenced above.

*Please note that this report reflects an update as of June 6, 2015