Fall 2014 Report

FALL 2014 QUARTERLY REPORT TO OWNERS

Operations Report

The following is a report on the operations of the Corporation.

Water Escape

In our last report we mentioned that the Corporation would reclaim the cost of the water escape incidents.  We continue this effort and we hope to be able to update you shortly on this effort.

Heating

The heating in our building continues to be a major concern to the Residents, Board and Property Manager.  

Over the last 12 months we have been working very closely with our HVAC contractors and our engineers to improve the heating situation.  Last fall we installed a heating loop filter which helped us clean our heating loop and led to many fewer blockages in our heating system.  The water heating system by its nature will always have some air bubbles or debris blockages but we have reduced these to an industry  acceptable level.  Once we were satisfied that our heating loop was in proper order we replaced one of our two circulating pumps with a higher powered variable speed pump.  This allowed for a higher flow rate in our heating loop while at the same time allowing us to save electricity due to the variable speed motor.  The results of this change were positive and we noticed a much more consistent heat distribution.  Although al of these past actions improved our heating situation, we, on the advice of our experts also replaced the second circulating pump with a identical variable speed pump. This second pump provides us with an increased capability when the heating demand is at its peak and also a redundancy in case our main pump fails.  

The replacement of the second pump required the draining of the heating loop and as a result you might experience air bubbles in your system when you first begin to use it.  These air bubbles usually work themselves out, but, occasionally they require a technician to come in and bleed them.   We ask that  the first few times you call for heat in your unit that you feel each radiator with your hand to ensure it is getting hot.  If it does not heat up, please contact your Building Relations Manager.

We have also requested that our team of HVAC experts examine our building HVAC system in its entirety to provide recommendations on how to improve items such as air quality, insulation and energy conservation.  While this review is ongoing, we have asked them to continue to focus on our HVAC system and our domestic water supply.  The preliminary reports have indicated some interesting ideas and suggestions that the Board and Property Manager are giving serious consideration to.  Due to workload of our engineers, we expect a final report in the winter of 2014/2015.

Insurance

We are pleased to announce that our building insurance policy has just been renewed.  We had a second viable company make an offer this year that provides us the same coverage for almost 20% less premium.  Congratulations to all owners  as we worked hard to keep our building in a positive light with insurers.

Winter Reminders

- During the cold months of winter, please do not leave your windows open for any reason. Do not block radiators with furniture or impeded the air circulation with floor length drapes.

- If we are experiencing extreme cold for a few days in a row, please make sure to check that all of the radiators in your unit are working.

Elevators

We have, over the past few months, been working on a way to protect our elevators from damage.  We currently are trying a plexiglass solution that seems  to be working.

Routine Maintenance

- Window Washing and spider treatment has taken place

- Garage Washing will take place in January

- P elevator lobbies will be focused on in November for rehabilitation

Fall 2014 Legal Update

1st year Budget Shortfall

In our last quarterly report, we informed you that 90 George St. Ltd. was granted leave to appeal the October 2013 awards by the arbitrator in our favour totalling just over $250,000 including the full first year budget shortfall plus interest, costs and disbursements. The appeal will be heard on November 12, 2014. In the meantime, interest continues to accumulate on the October 2013 awards. On September 10, 2014, court ordered 90 George St. Ltd to put $300,000 in trust in our favour in anticipation of the outcome of the November 12, 2014 appeal hearing.

Reserve Fund Claim  

On the same September 10, 2014 hearing date, court heard our counter-arguments in response to those presented by 90 George Ltd. seeking to convert our original application into a trial. The Condominium Act, seen as consumer protection legislation, specifies, in the first instance, the use of an application as the least costly and expeditious procedure to settle such disputes. 90 George St. Ltd. claimed it is necessary to add as defendants Apollo Property Management and Gowling Lafleur Henderson LLP (90 George St. Ltd.’s legal counsel in the period leading to the transfer of ownership to OCSCC 815 in September 2009).  90 George St. Ltd. claims that it relied on their advice when the original reserve fund contribution amounts were set. In our opinion, a trial would be more costly and lengthy, adding no value from our perspective. The judge reserved on the matter at the end of the day.

Shared Facilities Agreement & Property Tax Claim

In February 2014, we reported that the arbitrator had engaged Morrison Hershfield (professional engineers) and Raymond Chabot Grant Thornton (professional accountants) to independently quantify and qualify the salient facts regarding shared facilities costs incurred and payments made. The engineers will opine on what are the shared facilities within the scope of the agreement while the accountants will opine on the sharing of costs and payments since July 2010. The costs of this work is being shared 50/50 by 90 George St. Ltd and OCSCC 815. The consultants’ work has taken longer than originally expected but is now nearing completion.  The parties were given until October 17, 2014 to provide any remaining data to the accountant. The completed report from the accountant is expected to be presented to the arbitrator by November 21, 2014. The arbitration hearing specifically related to these financial issues between the parties is now set for January 8 and 9, 2015. Soon, thereafter, at specific dates yet to be set, the remaining issues, related to the management of the shared facilities and 90 George Ltd.’s property tax claim against OCSCC 815, will be heard.

General

Owners are again reminded that 90 George Street Ltd. commenced a civil action against each of the members of the former board of directors of OCSCC 815 and against OCSCC 815 itself – that is, all of us as owners. Our defense of this action is in the hands of the Corporation’s insurer.