Good Board or Bad Board?

A Good Board:

  1. Communicates with owners and residents on a regular basis, explains its decisions, openly discusses problems and victories, has a policy of transparency and truthfulnes. Postings on bulletin boards accessible to all residents are key in this respect. Information meetings may take place occasionally.
  2. Addresses residents’ legitimate complaints/concerns/requests and respects useful suggestions.

Lack of communication and disregard for owners and condo assets are at the root of most condo problems. It’s the main red flag and it is reflected below in many problems in the section on what constitutes a “bad” board.

  1. Follows and enforces condo rules consistently and for everyone: Board members have to follow rules themselves if they expect others to follow them and should not show favouritism.
  2. Exercises due diligence regarding contracts for repairs, maintenance, and staffing. In other words, a good board seeks tenders. When maintenance problems arise, a good board not only seeks advice from non-interested parties (to avoid conflicts of interest), but  also asks if there is a better and less expensive solution than the one suggested by contractors. (Click here for Issues of Fraud, Kickbacks and Conflict of Interest for problems raised by readers.)
  3. Is constituted of members who have no axe to grind or a vested interest or a personal agenda.
  4. Always respects a condo’s finances, assets, and owners’ monies.
  5. Makes certain that the premises are well maintained and that the staff is competent and hard working.

A Bad Board:

  1. Rarely communicates with owners on substantive issues and prefers to inform them as little as possible. This seems to be a key ingredient in a lowered quality of life in condos and is reflected in the many other problems that seem to accompany this issue.
  2. Responds dismissively or angrily when owners justifiably complain to them about problems (such as noise and broken rules) and lack of services (such repairs, cleanliness, garbage, recycling, and odours) or unnecessary expenditures.
  3. Or, yet, simply ignores owners’ concerns.
  4. Threatens owners with legal action when they complain justifiably or make suggestions; or yet when owners complain about management, staff, and contractors. (See new letters in Abuse of Legal Letters and Liens)
  5. Mistreats, harasses, threatens, or refuses services to owners who have justifiably complained or made useful suggestions.
  6. Rubberstamps decisions made by the manager, administrator, superintendent or contractors without independently studying the issue. Does not get quotes for projects or services. (See the new section on Misuse of Funds and Fraud)
  7. Spends monies for upgrades just to suit themselves, contractors, or managers. Refuses owners’ requests to view corporation records and documents.
  8. Does not supervise manager and staff sufficiently. As a result, the work and services may be of lower quality or very little work may be accomplished. Or, yet, the staff is actually the power in the condo.
  9. Forms a clique, often with management, against owners, and fails to understand that a board represents owners and not themselves nor the management/staff.

Resident Funds used for Commercial Owner Expenses

The commercial owner has refused to pay thousands of dollars in outstanding amounts they owe to the Spadina Condominium Corporation. Further, they have rejected all requests for a review of invoices following a resident review of 2014 invoices where some $30,000 in inappropriate expenses were either paid or submited for payment at the time. Thousands more in illicit or inappropriate expenses since that review are suspected.

Subsequent to that review, the commercial owner refused to pay their share of Reserve Fund expenditures as are outlined below. Obviously, a further resident review is urgently required.

  1. Fob access installation 4th floor            $ 5,013
  2. Bike racks                                                2,360
  3. Carts                                                        1,069
  4. Fob access front door (unit #1) (est)        2,000

Invoice to be provided                                   $10,442

$10,442 x 44.31% =  commercial share     $ 4,626.85

Commercial tenant improvements paid by    7,000.00

Spadina (Nickel invoice-additional heating lines

for new tenant) est.                                     $11,625.85   Due from commercial owner            The commercial owner is responsible for payment of the above including interest as per the following Bylaws and the Condominium Property Act:

BYLAW NO. 3 (vii) 44.31% of the common expenses and all other reserve fund expenses relating to the common room, hallway, kitchen, bedroom, exercise room, washrooms, shower, sauna, and pool area as shown on Level 4 of the Condominium Plan, other than for decorating, furnishings or exercise equipment 

BYLAW NO.3 (xi) 44.31% of all other common expenses and reserve fund expenses not otherwise allocated 

BYLAW NO.1 (10.3)(d) The common expenses fund which has been designated for the Commercial Property shall be used only for the common expenses allocated to the Commercial Owner as set out in Bylaw No.3. 

CONDOMINIUM PROPERTY ACT 59(1) A contribution that is required to be made by an owner to a reserve fund or a common expense fund and that remains unpaid on its due date is to bear interest, calculated for the period commencing on the due date and ending on the day of payment, at a rate fixed from time to time by special resolution.  

 

Spadina Towers Residents Pay Highest Condo Fees in Saskatchewan

It is time that residents act and address a most serious matter which is obviously of out of control at Spadina Towers.

For those residents who have conducted a thorough review of financial reports since Colliers McClocklin Property Management was contracted to manage our property, they would have unfortunately discovered that responsible building operations and financial accountability have seriously deteriorated. Residents of Spadina Towers have been forced to pay for this mismanagement and the numerous projects demanded by the commercial owner for their exclusive benefit. In the meantime, residents have now been subjected to the following:

  1. Removal of residential humidification. The building operations committee was very untruthful about this removal and falsely stated that the “engineer advised that humidification was not necessary”. Evidence from a recording of a meeting with the engineer, disclosed that the “operations committee” (Tom McClocklin Sr.) requested removal of humidification in order to save on the cost of the new hot water heating system. Residents were at no time advised of the removal.
  2. Failure to repair leaking windows. The Board has failed to respond to resident complaints regarding leaking windows which continue to damage their interiors.
  3. Failure to repair balconies. The Board has for MANY YEARS, made no attempt to address resident’s complaints about concerns over failed and material damage to the surface, walls and adjacent window to balconies, which are very much a severe potential liability and risk to residents below who may be subject to falling debris. The Board has failed to respond to this matter in any way.
  4. Board refusal to permit resident review of invoices and relevant source documents. Residents are entitled to verification of where their money is being spent. Just what does the Board have to hide? A great deal is suspected.
  1. Reduced caretaker services to residents. It has now become very obvious that the caretaker’s duties and resident services have been substantially reduced, with no corresponding reduction to compensation. Residents are entitled to a review of the caretaker contract and as well, input into its renewal. A previous review of invoices for the calender year 2014, clearly demonstrates that the caretaker has been providing services to the commercial units at the expense of residents. Further, the caretaker’s have submitted to management, invoices for services which are clearly part of their paid services under their contract. We now have minimal cleaning of the garage floors, residential hallways, etc.. Residents are being disrespected while the Board tends to Commercial owner interests.
  1. Refusal of mechanical maintenance within residential units: Over the past ten years, NO REGULAR INSPECTION OR MAINTENANCE HAS BEEN CONDUCTED WITHIN RESIDENTIAL UNITS. This has of course resulted in many costly mechanical failures of ENERCON heating and air conditioning units within residential units.
  2. Unapproved landscaping. Many residents were rather shocked to see the major and material changes that have been made to the landscaping at Spadina Towers during 2017. No more lawn and no more flowers. Our building is primarily a residential property, yet you would no longer know it. None of this work was presented to unit owners for their approval as is required by both our Bylaws and the Condominium Property Act. Again, it has been reported that these material changes have been demanded by the commercial owner. Unfortunately, it appears that our resident Board members have simply once again, bowed to the wishes of the commercial owner interests. Residents require Board representation that provides clear representation of their interests and not their ongoing clear representation of commercial Board member wishes.

There are many other items that can be added to this list. Please refer to the post of July 7th, 2017 at spadinanewscenter.com. As a result of Board rejection of the required approval process of building expenditures, Spadina Towers has for some time, continued to have the highest monthly condo fees in not only Saskatoon, but in Saskatchewan. Further, it reportedly has the highest level of UNAPPROVED RESERVE FUND EXPENDITURES IN the province as well (THE INFAMOUS SPADINA CASH CALLS). Take a look at the following comparison of condo fees:

SPADINA TOWERS – Monthly condo fees (01 units)  1800 sq. ft.        $1,031.00                

WILLOWS-Cartwright Street- Monthly condo fees       1900 sq. ft             729.00                                                                                                   $ 302.00 more paid per month by Spadina Residents

  • YES! WE PAY $302 PER MONTH X 12= $3624/ A YEAR MORE THAN OUR FRIENDS WITH SIMILAR AMENITIES! 41% MORE! PLUS many thousands more in CASH CALLS!

The totally unreasonable condo fees include many unnecessary costs upon residents, yet the Board adamantly rejects resident requests to review these expenditures and invoices. The only review permitted was a review of 2014 invoices where more than $30,000 in illegitimate expenditures were revealed. Such expenditures included thousands of dollars in COMMERCIAL OWNER renovations, caretaker service to the COMMERCIAL UNITS, ADDITIONAL COMPENSATION TO the caretakers for services already included in their regular duties, etc.

The Board is clearly in avoidance of any further revelations of illicit conduct such as that revealed in the 2014 review of invoices. Residents must seriously ask themselves if such conduct is acceptable to them or should they act responsibly and demand of the Board, address of the 2014 irregularities along with a review of invoices following December 31st, 2014.

Finally, the Board has recently inferred that they intend to demand even more money from residents in the current year for the Reserve Fund. What happened to the Board’s advisory at the 2016 AGM that they in fact collected larger cash calls than necessary and the option remained open to return these funds to residents? It appears now that the Board has spent much of that money without the required approval of unit owners and will be asking for more.

As residents were recently advised, the Board intends to establish new Bylaws intended to subject residents to new Board powers which extend far beyond those within our current Bylaws and the Condominium Property Act. Their proposed Bylaw amendment to Section 12.6 is already more than sufficiently addressed in our Bylaw Section 11.11 and the Condominium Property Act Section 99, both addressing Enforcement of Bylaws.

The Board as well, intends to further subject residents to new powers which prevent residents from the use and convenience of online banking to make payments to the Corporation, while the Board and management are on the other hand able to use online banking for their sole benefit.

These proposed Bylaw changes reflect the ulterior motive of the owner of management and the Board, in further empowering themselves with their thirst for ever increasing autocratic control over residential interests. Such acts can only be found within Nazi or Communist doctrine.

SPADINA NEWS CENTER – Dennis M. Tofin

*This report may be viewed online at spadinanewscenter.com (both username and password are the capital letters SCC)