Operations Report
The following is a report on the operations of the Corporation.
Water Escape
During the Christmas period we had two separate water escape events. We believe that both were the result of human error. Repairs to the affected units are now complete and we are pursuing the appropriate parties for payment of the resulting repairs and related expenses,
Heating
The heating in our building continues to be a major concern to the Residents, Board and Property Manager.
We have replaced one circulating pump to increase our flow of hot water to the units. We will be replacing the second pump this summer. We also continue to actively filter the water in the heating loop.
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. Due to workload of our engineers, we expect a report in the summer of 2014.
Security
We have signed a new security contract with Securitas which goes into effect April 1st 2014. We will now run on 3 shifts per day 7 days a week. We are confident that this new contract will improve service to residents and it will also reduce our security costs.
We have now re-keyed all suite entrance doors to a secure type of managed key system. As well all lockers have been rekeyed. This will prevent unauthorized access to suites and lockers that owners have experienced in the past.
Securing of the 4th floor stairwell entrances is almost complete. We are just waiting for one more piece of the cage system. We anticipate this being completed in the next 2 to 4 weeks.
Building Cleaning
As of April 1st 2014 we have changed cleaning companies. We were not satisfied with the service being provided by our previous contractor. The new contract is with Spot Cleaning for slightly less money. The new contract includes many checks and audits of the contractors service and performance.
Lobby
The lobby floor repairs have now been completed. We have added a decorative yet functional stainless steel trim around the lower edges of the pillars and walls to help protect from daily traffic damages.
We are currently exploring a few options for improving and protecting our elevator cabs from regular usage related damage.
We have added some tasteful background music to the lobby area.
Room Service
We are very excited to announce the long awaited arrival of Room Service to the residents of 90 George St. Real Sports will be offering their full menu to residents.
You can order on line through our website at www.90georgeliving.com where you will find the menu, via email at 90george@realsports.ca or via special hotline for 90 George Residents at 613-680-6724
Real Sports will make every effort to have your order delivered to your unit within 20 minutes.
If you wish to set up an account for payment please contact Real Sports management.
*No alcohol can be delivered due to liquor licensing regulations.
*During event days and private functions service might be delayed or suspended.
*Hours of Room Service are Noon until 11:00pm
Carts
As per resident request, we have made available 3 folding shopping carts located in each P level elevator lobby to assist residents when bringing items up to the units. Please ensure that the carts are returned to their home immediately after use.
Service Request System
We have developed a new service request ticket system. This will help us track owner service requests as well as keep you informed of the progress of your request.
The new system will work in the following manner:
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As usual you will request service from either the Building Relations Manager (BRM) or the Property Manager
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The BRM will then enter the service request into our system creating a ticket.
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You will be notified via email that a ticket has been created.
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Each time your ticket is actioned, you will receive an email update as to what is taking place.
This new system will help keep residents well informed of their request and should be operational by early summer.
Provincial Election
We are pleased to report that Elections Ontario has agreed to locate a private polling station for 90 George residents only in our lobby on voting day. This polling station can be used by RESIDENTS ONLY.
Financial Report
Legal Update
1st year Budget Shortfall
In our last quarterly report, we informed you that 90 George Street Ltd is seeking leave to appeal the awards by the Honourable James B. Chadwick of the full first year budget shortfall plus interest, costs and disbursements totalling just over $250,000. That motion was heard on April 29, 2014. Leave to appeal was granted and is expected to be heard in mid-November 2014. In the meantime, interest continues to accumulate on the awards. Owners are reminded that we have in hand a court order securing our award, costs and interest and have a Writ of Seizure and Sale filed against the commercial assets at 90 George Street Ltd.
Reserve Fund Claim
Our counsel advises that the principal of 90 George Street Ltd was cross-examined during the week of January 13, 2014 based on Affidavits filed in this matter during the week of October 28, 2013, in accordance with the Court ordered timetable. At a scheduled case conference on February 28, 2014, notice of a motion was served by 90 George St. Ltd. seeking to convert our original application into a trial. 90 George St. Ltd. claims 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 in September 2009). 90 George St. Ltd. claims that it relied on their advice when the original reserve fund contribution amounts were set. A one day motion hearing before a judge is scheduled for September 10, 2014.
OCSCC 815 will contest the motion.
Shared Facilities Agreement & Property Tax Claim
In February 2014, we reported that arrangements had been made for the arbitrator to rely on the independent advice of a professional engineer and a professional accountant for the salient facts regarding the shared facilities costs and payments. The engineer will opine on what are the shared facilities within the scope of the agreement while the accountant will opine on the sharing of costs and payments since September 2009. The engineer’s work is progressing but, at last report, was awaiting certain documentation from 90 George St. Ltd. When completed, her findings will form the basis for the accountant to do his work. We have provided the accountant with our records of all validated shared facilities costs and payments made by the Residential Condominium Corporation since its inception. We understand that 90 George Street Ltd is providing its records in due course. The arbitration hearing, currently set for May 27 and 28, 2014, has been postponed pending the production of documents by 90 George St. Ltd. and adequate time thereafter to allow the accountant to do the necessary work.
Forecourt
In mid-March 2014, owners were notified of a telephone conference initiated by the City of Ottawa and Real Sports (RS) regarding a new proposal for a patio occupying the east side of the Forecourt. That call precipitated our notification to you which evoked responses from some individual owners expressing either useful observations or objections. It was not evident at that time who was controlling the proposed patio agenda. Some believed that RS had been given authority by 90 George St. Ltd. to cut a deal with the City and us. 90 George St. Ltd then made clear that it remained in control. For our part, we formally reminded all parties that the Forecourt management remained part of the arbitration.
On March 27, 2014, our legal counsel wrote to the parties, in part: “No discussions should be made with respect to the Forecourt Area without first involving the condominium corporation. Further, it is our position that no binding agreement with respect to any use or amended use of the Forecourt Area can be entered into without first obtaining the explicit written consent of OCSCC No. 815”.
On March 30, 2014, the board wrote to a representative of the City Solicitor as follows:
“The subject License of Occupation remains problematic as you would have seen in recent correspondence regarding the possible Forecourt Patio proposal from Real Sports. Last year, I had advised you and other city officials of our concern arising from the current licensee’s disregard of the prohibition against any charges for the use of the Forecourt. Parking charges continue to be levied on our service providers who, in turn, add such charges to their invoices. The Residential Condominium pays by far the largest proportion of those invoiced parking charges! The process is perverse as you can see.
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Misrepresented the ownership of the 19-story building at the site served by the Forecourt upon the signing of the licence.
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Pays no taxes on the Forecourt consistent with there being no commercial activities permitted on the Forecourt.
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Derives parking revenues as noted.
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Has 80% of the costs of Forecourt operations paid by the Residential Condominium.
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Delivers no material Forecourt services to the residents of the Residential Condominium.
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Prohibits parking other than drop and go privileges to residents or their guests at the doorstep of their homes.
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Offers no effective joint management of the Forecourt as stipulated by the shared facilities agreement registered on title.
Delays and Budgetary Implications
We are currently reforecasting our legal fees and related disbursements going forward to account for the machinations described above. We are working with our legal counsel to manage the pace of fee payments. Adding to our budgetary risk, we acknowledge a clear perception that 90 George Street Ltd. does not share our sense of urgency to resolve the issues.
In anticipation of a just and favourable outcome from the 1st Year Budget Shortfall appeal, we expect that it will help to fund those fees necessary to bring closure to the remaining actions involving 90 George St. Ltd. This new budgetary forecast will be made known to owners once the next fiscal year’s budget is communicated – expected before the end of this month.
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 – all of us as owners. Our defense of this action is in the hands of the Corporation’s insurer.