SPRING 2015 REPORT TO OWNERS
Operations Report
The following is a report on the operations of the Corporation.
Heating
We have made significant progress in stabilizingour heating system. This past year, we experienced no unusual heating outages. We also took a proactive approach to inspecting every radiator in every suite to ensure they were functioning properly. During this process, some deficiencies were found and corrected.
Hot Water Cross-Over
We have solved the problem of hot water coming out of cold taps. This was a pressure-related issue which has been resolved with some equipment additions and adjustments.
Grande Allée Carpet
We have just recently replaced the winter carpet in the Grande Allée.
P-Level Painting
The P levels have all been painted and touched up to help brighten the entrances.
Beautification Committee
This committee has been busy providing the Board of Directors with different options to help make 90 George a more beautiful place to live. So far we have seen lobby improvements in the way of fresh flowers and table decorations. More to come…
Building Cleaning
As you may recall, approximately 1 year ago we replaced our residential cleaning contractor. As a result, we are very pleased with the results. To help ensure the quality of the service, we monitor and assess performance on a daily basis. And, we conduct formal monthly reviews with the contractor’s management.
We continue to struggle with the cleanliness of the shared areas that 90 George St. Ltd.(GSL) is managing. These include the Forecourt, Grande Allée, George and Rideau St. entrances, and parking stairwells. We are continuously pressing to improve the quality of cleanliness provided by GSL’s contractor.
Terrace Season
Our Terrace is now open. We would like to take this opportunity to ask you to please review the Terrace and BBQ Policy and rules, which are available on the Website at 90georgeliving.com under Amenities.
Health and Safety
We would like to remind all owners that your health and safety is always a priority. As a result, we are constantly looking for ways to improve the health and safety environment at 90 George. For example, we have clarified our pool area safety rules and regulations and will soon be issuing our revised emergency procedures.
Owner Opinions
In the upcoming months, we will undertake an online longitudinal opinion survey that will be asking various questions regarding the effectiveness of the day-to-day management of our building. We ask you to please take the time required to complete this survey, as it helps us determine your degree of satisfaction and where improvement is needed.
Legal Update
1st year Budget Shortfall Appeal
90 George St. Ltd.’s appeal of the arbitral decision was heard on November 12, 2014. On January 16, 2015, the appeal judge ruled in favor of OCSCC 815. On January 30, 2015, 90 George St. Ltd served its motion seeking leave to appeal to the Ontario Court of Appeal which only considers written arguments. On or about March 27, 2015, we provided the Ontario Court of Appeal with our responding factum seeking to disallow that leave. Notably, interest continues to accumulate.
Shared Facilities Agreement (SFA) & Property Tax Claim
On February 5 & 6, 2015, a hearing was held before the arbitrator at which Morrison Hershfield (professional engineers) and Raymond Chabot Grant Thornton (professional accountants) presented their respective reports regarding the shared facilities and shared facilities costs. The arbitration hearing specifically related to financial issues. The parties agreed that $169,000 was owed to OCSCC 815 by 90 George St. Ltd. for the period from July 2010 to July 2014. The $169,000 does not consider: the settlement of the unpaid share of costs by 90 George St. Ltd. since July 2014; the award of interest since July 2010; costs of the arbitration; or, the claim for property taxes on shared facilities brought by 90 George St. Ltd. The latter is within the scope of the arbitration hearing planned for July 2015.
Since the hearing in early February, notable progress is being made on the role of the Shared Services Committee (SSC) which the SFA empowers to manage the relationship between the Commercial Owner and OCSCC 815. The utility of the SSC has been wholly dysfunctional in the absence of clear responsibilities and policies governing shared facilities management, including the Forecourt. While inconclusive, amendments to the shared facilities agreement to achieve the necessary clarity are now
under active and constructive consideration. If the good faith expressed in these current negotiations prevails, a satisfactory outcome should be expected.
Reserve Fund Claim
On October 22, 2014, court ordered that the OCSCC 815 Reserve Fund application be converted to an action. 90 George St. Ltd. claimed it was necessary to add as defendants Apollo Property Management and GowlingLafleur Henderson LLP. 90 George St. Ltd. claims to have relied on their advice when the original reserve fund contribution amounts were set. OCSCC 815 converted its Notice of Application into a Statement of Claim on March 10, 2015. A complete affidavit of documents is required prior to May 31, 2015. OCSCC 815 has already filed a number of relevant documents on which OCSCC 815 intends to rely. The parties are soon expected to agree on a date for mediation at which settlement offers, if any, may be considered. The intention is that the action against Apollo and Gowlings will ultimately be joined with OCSCC 815’s action against 90 George Street Ltd. With respect to the mediation, the intent is that all of the parties now involved would participate.
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.
FINANCIAL UPDATE
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Legal Claims Account
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Reporting period: | ||||||
| October 1 2014- March 31st 2015 | |||||||
| Expected special assessment cash received | $83,952 | ||||||
| Special assessments cash received (1) | $80,592 | ||||||
| Paid on Account during period | $81,000 | ||||||
| Notes: | |||||||
| (1) Some owners have paid the entire assesment amount upfront | |||||||
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Operations Accounting
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Reporting period: | |||||
| July 1st 2014 to March 31st 2015 | ||||||
| 2014-2015 | Y.T.D. | Y.T.D. | ||||
| Budget | Budgeted | Actual | ||||
| Total Contract Expenses | $313,336 | $235,002 | 266487* | |||
| Total Repair and Maintenance Expenses | $73,000 | $54,750 | 97345** | |||
| Total Administration Expenses | $78,750 | $59,063 | $54,864 | |||
| Total Shared Costs | $558,112 | $418,584 | $442,342 | |||
| Total | $1,023,198 | $767,399 | $861,038 | |||
| * This does not include approx $60,000.00 owed back to the Corporation for water escapes but | ||||||
| does include major investigations and repairs of heating and water systems | ||||||
| ** Contract numbers are affected by timing | ||||||
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Reserve fund account
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Reporting period: | ||||||||
| October 1st 2014 to March 31st 2015 | |||||||||
| Balance as of October 1st 2014 | $272,071.00 | ||||||||
| Cash Deposits from Operating Account (1) | $88,816.00 | ||||||||
| Expected cash from Special assessment | $89,540.00 | ||||||||
| Cash deposited from Special Assessment (2) | $89,102.66 | ||||||||
| Cash deposit from operating for money loaned (3) | $78,845.63 | ||||||||
| Reserve fund interest | -$721.16 | ||||||||
| Capital Expenses incurred | $106,719.00 | ||||||||
| List of Expenditures | $27,115 - HVAC | ||||||||
| $19,289 General Repairs | |||||||||
| $14,552- Windows and Doors | |||||||||
| $5,763 - Reserve Fund Study | |||||||||
| $40,000 | legal portion transferred | ||||||||
| Balance in Reserve fund account at end of period (4) | $421,832.47 | ||||||||
| Notes: | |||||||||
| 1) This line is the amount deposited into our Reserve bank | |||||||||
| account from the Operating account as per the Reserve Fund Study | |||||||||
| 2) Some owners paid assessment all up front | |||||||||
| 3)This is the amount used to repair water escape | |||||||||
| 4) Ending balance includes banking administration fees | |||||||||