March
6, 2013
Information to All
Homeowners regarding our State of Affairs.
There
has been a petition circulated by some concerned homeowners with regard to an “Information
Meeting”.
There
has also been a lot of misinformation and rumors about what we are doing with
the Special Assessment funds collected.
We
wish to clarify our position.
Any
and all homeowners are welcome to hold any kind of meeting they like with no
restrictions.
If
business is to be conducted (motions), it has to be sanctioned by 25% of owners
with a petition calling for an official General Meeting.
Owners
in arrears cannot make motions, or vote at any meeting.
The
meeting that they have called appears to be that type of meeting and would
therefore be called an Extraordinary Meeting of the Corporation. This is
unclear at this time.
The
owners would be able to have motions placed on the floor and with it being
seconded, a vote would be called on the motion.
They
can give direction to the board on any action they wish to take place via the
motions presented and passed.
However,
the board is not bound by any direction resulting from this meeting.
We
are however bound by the Condominium Property Act which clearly states we must
maintain our common property. The CPA also describes the responsibilities of
all owners to contribute to the expenses incurred to maintain the common
property.
We,
the corporation, decided to call our own “information meeting” to openly
discuss issues and communicate our course of action at the January 22 board of directors meeting.
Early May has been discussed as a date for OUR
“Information Meeting” with the owners and will be finalized once a venue has
been booked. We will communicate the date, time, and place, well in advance of
this meeting.
It
is hoped that some of the information herein contained will illuminate our
current status of affairs prior to holding this Information Meeting the board plans
to hold.
Special
Assessment Update
It
was clear in the information provided calling for the Special Assessment the
reasoning for the amounts to be collected. I will reiterate what that notice
stated. We had expended approx. 110k on engineering, 54K on construction and
35K on defense costs,(All this money came from the reserve fund and depleted it
to a point where we were scrambling to do long term, planned for, and needed repairs
to the buildings. These repairs are and shall be accounted for separately from
the litigation case and any SA required to fund work necessary due to
investigations on the plaintiffs claims by reputable Engineering firms we have
engaged. Therefore, approx. $200,000.00 was
a recapture of funds to replenish the Reserve Fund to allow for these
needed repairs to take place. (roofing, stucco to siding replacement, siding
replacement))
This
leaves us with approx. $513,000.00
called for in the SA to do work directly associated with the litigation case
investigations completed by Engineering Companies engaged by the corporation.
To
date, we have collected approx.
$400,000.00 of this amount.
We
have voted on and passed a motion to award a contract worth approx $295,000.00 to Emcee
Construction to do the exterior work around B3-5 only.
We
have asked MH to get quotes on the interior portion of B5 only so we can
proceed on it once we have actual prices and the SA in the bank. Unfortunately,
collection of this $112,000.00
expected cost to do the necessary work is still outstanding.
Note: Special Assessments can be called
for any reason the board deems necessary and used for any deficits or capital
projects necessary to operate the corporation.
Common
Property Expenses from Our Bylaws
85. Common Expenses
The common
expenses of the Corporation shall, without limiting the generality of the
definition thereof in Part I hereof, include the following:
a) All levies or charges on account of
electricity, water, gas and fuel services supplied to the Corporation
b) The cost of and charges for all
management fees;
c) All costs and charges on account of
landscaping maintenance for and snow removal from Common Property;
d) All reserves for repairs and
replacements of Common Property and portions of Units of buildings the repair
or replacement of which is the responsibility of the Corporation;
e) All costs of and charges for
maintenance and repair of those portions of each Unit for which the Corporation
is responsible;
f) All costs of and charges for
maintenance and repair of Common Property for which the Corporation is
responsible;
g) All costs of and charges for insurance
for which the Corporation is responsible
h) All cost of and charges for all manner
of consultation, professional and servicing assistance required by the
Corporation including without limiting the generality of the foregoing all
legal and accounting fees and disbursements;
i) The amount of all costs and expenses
whatsoever including (without limitations) all maintenance and repair costs,
financing charges, common expense Unit charges, and all utility charges, for or
in respect of any Unit owned by the Corporation itself;
j) Reserves for future maintenance and
expenses
86. Assessment for Common Expenses
a) At least Thirty (30) days prior to the
beginning of each calendar year, the Board or, at its request, the Manager,
shall estimate the amount of the common expenses that will be incurred or
required in such calendar year (including a reasonable allowance for
contingencies and replacements plus any deficiencies from the previous year and
less any expected income and any surplus from the fund collected in the
previous year) which estimate of common expenses is herein called (estimated
common expenses”. Each year’s estimated
common expenses shall be apportioned, levied and assessed to and upon the
Owners in proportion to the Unit factors as shown on the Condominium Plan. The Corporation shall be liable for the
amount of any assessment against Units owned by the Corporation. If the amounts so estimated prove inadequate
for any reason, including non-payment of an Owner’s assessment, the Board may
at any time and from time to time, levy a further assessment of such further
assessments as are required in like proportions as hereinbefore provided. Each Owner shall be obligated to pay any and
all assessments made pursuant to this provision to the Board or the Manager to the
account of the Corporation, as directed by notice, in equal monthly
installments on or before the first day of each month during the calendar year
for which such assessment is made or in such other reasonable manner as the
Board or the Manager with the consent of the Board (as the case may be) shall
designate and further to
pay interest on all assessments or payments in arrears at the rate of Fifteen
(15%) percent per annum calculated from the date due until payment.
b) The omission by the Board before the
expiration of any year, to fix the assessments hereunder for that or for the
next year, shall not be deemed a waiver or modification in any respect of the
provisions of these By-laws, or release of the Owner or Owners from their
obligations to pay the assessments, or any installments thereof for that or any
subsequent year, but the monthly installments fixed for the preceding year
shall continue until new installments are filed. No Owner shall
exempt himself from liability for his contributions towards the common
expenses by waiver of use or enjoyment of any of the Common Property or by
vacating or abandoning his Unit;
c) The Treasurer of the Board or the
Manager shall keep detailed accurate records in chronological order of the
receipts and expenditures affecting the Common Property, specifying and
itemizing the maintenance and repair expenses of the Common Property and any
other expenses incurred. Records and
vouchers authorizing the payments involved shall be available for examination
by an Owner at convenient business hours on week days.
87. Default in Payment of Assessments and
Lien for Unpaid Assessments, Installments and Payments
a) The Corporation shall and does have a lien and charge
upon and against the estate or interest of the Owner for any unpaid assessment,
installment or payment (including interest on arrears) due to the Corporation
in respect of his Unit, which lien shall be a first, paramount lien
against such estate or interest subject only to the rights and priorities of
the Mortgagee under any Mortgage registered against such Unit prior to the date
that the assessment, installment or payment fell due and the rights of any
municipal or local authority in respect of unpaid realty taxes, assessments or
levies of any kind against the Unit title or interest of such owner but subject
also to the provisions of the Act, and the Land Titles Act of Alberta. The Corporation shall have the right to file
a Caveat against the Unit title or interest of such Owner in respect of the
lien or charge for the amount of such unpaid assessment, installment or payment
and for so often as there shall be any such unpaid assessment, installment or
payment, provided that each such Caveat shall not be registered until after the
expiration of Thirty (30) Days following the due date for the first payment in
arrears. As further and better security,
each Owner responsible for any such unpaid assessment, installment or payment
which is in arrears for more than Thirty (30) Days shall, upon demand of and at
the sole option of the Corporation, give to the Corporation a Mortgage or
encumbrance for the full amount thereof providing for their payment on demand
with interest thereon at the rate of Fifteen (15%) percent per annum calculated
from the due date of the same, and the Corporation shall be entitled to enforce
its lien, charge and security and pursue such remedies as may be available to
it at law or in equity, from time to time.
Nothing herein shall restrict or abrogate any rights or remedies given
to the Corporation by or under the Act;
b) Notwithstanding any other term,
condition or provision herein contained or implied, each unpaid assessment,
installment or payment shall be a separate, distinct and personal debt and
obligation of the Owner against whom the same is assessed and collectible as
such. Any action, suit or proceeding to
recover such debt or to realize on any judgement therefor shall be maintainable
as a separate action suit or proceeding without foreclosing, or waiving the
lien, charge or security securing the same.
The
board has a policy for dealing with non or late payment of fees which the PM is
to enforce.
As the reasoning for this fee was clearly stated in
the call for the SA and we gave til Oct. 31, 2012 to pay, there is no reason to
not enforce our policy for those who have elected not to pay or have paid late.
Interest has been applied to late payments and we are now in a position to
caveat those that are over 90 days. (The caveat cost is aprox $350.00 and is
added to the owners account). Letters have been sent to the unit owners and
their mortgage holders for all arrears. This is to inform them of our next steps
to be taken to collect outstanding fees.
If those who have not paid exceed the 180 day
period, legal proceedings will be initiated to foreclose on the delinquent account.
These actions are not a desired response to those that cannot pay, but are
necessary to gather the funds necessary to maintain the common property.
Please see
the Arrears Policy below.
Arrears Policy
(As updated and passed at the March 28, 2011 board
of directors meeting.)
Condo
fees, parking fees and any other charges to units are due and payable the first
of every month. The board has set this policy to ensure
that all owners are aware of the steps taken to ensure that accounts are kept
up to date at all times.
a.
Any
outstanding fees are charged interest at 15% per annum or 1 1/4% per month as
per our bylaw 2 (h).
b.
The
Property Manager will respond by phone to any account overdue at 15 days of the
due date.
c.
The
Property Manager will respond in writing with a GENTLE REMINDER letter to any
account overdue at 30 days of the due date.
d.
The
Property Manager will respond in writing with a DEMAND FOR PAYMENT letter to
any account overdue at 45 days of the due date.
e.
The
Property Manager will respond in writing with a NOTICE TO PLACE A CAVEAT letter
to any account overdue at 60 days of the due date.
f.
The
Property Manager will place a Caveat on the property for outstanding fees at 90
days to any account overdue of the due date subject to the direction of the
board.
g.
The
Property Manager will contact legal council to start foreclosure proceedings at
180 days to any account overdue of the due date. All legal costs are for the
unit owner’s account as per the Condominium Property Act.
h.
The
cost to place a Caveat shall be $275.00 and discharged at a cost of $90.00 and
this will be charged to the delinquent account at the time the Caveat is
placed.
i.
The
Property Manager will promptly remove the Caveat when the account is brought up
to date.
Reserve
Fund Side:
We
have refurbished the Reserve Fund and have awarded contracts funded by it to
get the roofing done, and stucco to siding replacement, completed this year to
a value of approx $203,000.00
Work
on both of these is scheduled for Feb, March (worst case April) to complete.
These
2 projects have been scheduled for at least the last 5 years since the 2007
Reserve Fund Plan was updated. We have
Morrison Hershfield doing design work and inspecting construction to ensure all
work is done to building codes and completed professionally due to the costs of
these projects. This protects us from inferior work and or products.
We
have encountered previously hidden problems with the substrate beneath the
stucco as well as rotten structural members in the walls and decking supports
and surfaces. To date we have been advised of cost increases alone to a tune of aprox. $78,500.00. Materials and
other costs are to be added
to this, as will Engineering costs.
We
cannot stop the work in process and or overlook problems uncovered during
refurbishment work. Again, this is being funded by our current, refurbished,
reserve fund.
The
items identified as being in need of repairs and or replacements in all our
Engineering investigations for the litigation before us will be added to the
Reserve Fund Plan and accounted for accordingly.
We
still do not have some of the pricing needed to firm up the overall costs to us
for all elements identified.
The
board is putting together an update on the Reserve Fund Plan and it is expected
to be circulated to owners at the information meeting.
As
we incur extra costs for repairs, we will endeavor to plan for these costs
over number of years to reduce the
chance for future Special Assessments. However, it will not eliminate the
possibility of them.
Litigation
Side:
No work is being done on the crawl
spaces at this time. We will be starting the weeping tile and site re-grading
as soon as the weather permits excavations.
Emcee Construction advise they will start April,
finish in June for the Litigation side for $298,000.00.
We
will not be in a position to do the interior of B5 until the whole $713,000.00 called for in the
SA is collected.
It
was hoped that everyone would pay the SA promptly which has not happened.
Your
board is available to answer any questions you may have on the contents of this
Update.
Respectfully
Grant
McCargar
President,
2012-13 Board of Directors
