State of the Union 2015 Hamzeh Roumani, Board of Directors President March 24, 2015

With the start of a new year (our fiscal year starts March 1st) let me present a quick overview of where we stand and list some of the challenges that we will be facing in the days ahead.

Property Management

• Our property manager, Michael, has not been feeling well lately and will need to take some time off to get better. He has our best wishes for a quick recovery and the best of health. We have asked Del to provide an interim replacement manger and they promised to do so in a few days.
• We will be renewing our property management contract, currently with Del, in late June. Working together with the other two corporations, we are doing our due diligence for this contract by requesting proposals from several property management companies, including Del, conducting interviews, and selecting what is best for our corporations. I will put updates about this process on the forum as they become available.

The Custom A/C Systems

• Production of these custom units (see my previous blog and its associated forum thread) has been finalized and tested. Reliance has installed a few units last week in order to assess installation time and iron out any issues relating to pipe connections. I expect installation to start in earnest in April and hopefully be completed in 4-6 weeks.
• I will post the installation schedule as soon as we receive it.
• For those who did not sign up for the custom A/C order, a second opportunity will become available in June. I am hoping the rates will be the same, or at least not much higher, than the first batch.
• Units facing Kenneth will be contacted by Reliance in May. The monthly rate for them (to rent the Air Handlers only) will be $80/month plus tax.

Garage LED Lighting Retrofit

• Our garage is unique among many others in the city in terms of brightness, and our residents like that. It uses fluorescent light tubes that are on 24/7 making this our largest hydro consumption source. We looked into replacing those tubes with LED retrofits which consume considerably less electricity (at least 25% less) but we were concerned about the brightness level.
• We first experimented with the visitor parking area to ensure no drop in brightness and no noticeable change in colour temperature. Upon success, the project was extended to the entire two-floor parking garage.
• The overall retrofit cost was about $50K. The drop in hydro consumption is about $30K per year, so this project will pay for itself within two years. Moreover, LED has a much longer lifetime so we will also save on tube and ballast replacement.

Money Matters

• Our expenses are all within budget and everything is on track. I will give more details during the AGM in June.
• For the coming year, the budgets for all service contracts and repair works are up by only 0.3%. This is quite negligible considering that the CPI in Toronto is 2.7%.
• Hydro and Water, however, are up by 7.8%. This is due to rate hikes, not consumption increase.
• Our reserve fund contribution have increased by 8.5%. This is a scheduled increase recommended by the engineers after their last reserve fund study.
• Thanks to the savings from the LED retrofit, and with the help of our accumulated surplus from prior years, assessment fee increase was kept within the 5% mark.

In Process

• Our stair coating project started three years ago and proved successful in controlling the chipping of concrete in the stairs of multi-story casitas. The last phase of stair coating will be done this year and it involves the 200-300 north side, the 700-800 north side, and the 500 west side.
• A survey was conducted late last year for the community to pick a colour for the painting of the units front doors. The colour was picked (see this) and the project will commence shortly.
• The increase in the Shared reserve is due to errors made by the engineering firm that did the reserve fund study back in 2002. We have filed a claim against that company and a mediator has been appointed. We expect a settlement to be reached in the coming few months.
• Insurance is increasingly becoming a hot item for condos due to the increase in water damage claims and slip-and-fall lawsuits. Our insurer has increased our deductible (which means residents must increase their contingent coverage accordingly) but it is still low compared to other condos.

Perennials

• Noise continues to be a problem. People partying in the middle of the night, jumping up and down, bouncing balls, operating loud or vibrating machines, talking loudly, or standing / parking outside your unit while talking on a cellphone. As a Board and/or Shared Committee, we continue to take measures that educate, preempt, and sometime legally enforce the quiet enjoyment condo rule. Given the close proximity of the units and their sharing of pipes, concrete slabs, and other structural elements, the prime directive is simply to be considerate and always be mindful of your neighbours.
• Renovations also continue to be a source of frustration. Whether it is as simple as fixing a leaky faucet or installing a water filter, or as comprehensive as removing walls and adding bathrooms, such works can easily endanger the safety of not only the unit in question but also its entire block. We have hard stories of excessive flooding and serious fires triggered by trivial repair jobs. We have adopted new rules to ensure that all such works are performed by professionally licensed and approved contractors.

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Note: Views expressed in this blog do not necessarily reflect the official position of MTCC 1113. They were written by Hamzeh Roumani, the President of the Board, and reflect his personal take on things.