- Let’s read the excerpt from the AGM report issued on Jan. 29 2024. The reserve fund study was done in 2022, the following study would be in 2025
- Even though we were hit with a 200,000$ unexpected cost by the fire code upgrade, our reserve fund balance still increased from 600,000$ to 800,000$, reading this report in Jan. or Feb of 2024, our building was healthy.
- In that AGM meeting, a new board was updated. Why in April, we were informed that each unit had to pay 20,000$ for HVAC repair? What happened in the two months when the new board came on board, started operating? And 600,000$ check was already cashed? That was almost our total reserve fund we had. How can you do that? We know that, for all these heavy questions, they can always give us a ready, quick and easy answer, which won’t convince homeowners.
- What was the Request For Quote (RFQ), how was it prepared? What was the scope, the deliverables? Why was the project initiated in such a hurry? What was the emergency? For such a big area, the pipes won’t suddenly burst everywhere, resulting in the need of complete replacement. What due diligence was done to do the research?
- In my understanding, there are 183 units, and more than a dozen units had the in-unit HVAC pipes replaced. By looking at the section of the pipes, we would know the integrity of the pipe lines, how much thickness is still remaining.
- Look at this picture – it was from a pipe kept in the board office, which was used to show homeowners how bad the pipe condition was. This pipe is actually very healthy. Look at how much “meat” is left. It will still hold for 20 more years. If you grind and smoothe the section area, you will see, in the last 45 years, the pipe probably still has 80% of the good material remaining.
- Yes, leakage happened in some units, we have to have it repaired. Was such questions asked, as, what time did the leakage happen? More likely in heating or cooling seasons? I know that, usually at the beginning of the cooling season, May or June, there is condensation water that drips, not from the inside of the pipe.
- Spend some time with the contractors when they are doing the job, take some pictures, keep, and inspect the pipes that were removed, document the process, get some rough estimate on the material and parts cost and their labour cost. This information will help with our decision-making in the next repair.
- A quick search, we have the following, you may tell me that these are bandages, they won’t work. But what alternatives have been investigated? If anyone shows me that, there are such and such investigations, and 20 hours have been spent on the possible solutions, and we chose this particular one, at the time, we regard this as the best solution. Ok, we will listen and trust. Don’t just tell us, “Each unit leakage repair costs 7000$, pay 20,000$ now, to replace all the main pipes and the unit branch pipes”
- For the 200,000$ fire code upgrade, what effort was made to look into grandfathering the code? How much effort was made? Show us the record, show us the evidence.
The Takeaway
The takeaway
- Focus on big projects, we can use the reserve fund to replace the branch lines in a few units, accumulate experience, understand the market, and we will have better negotiation power in future projects.
- Compile Request For Quote package, receive sealed quote package from independent bidders, evaluate according to common criteria. We may not be able to draft a perfect RFQ, we may not be able to make the wisest selection. But we will accumulate and pass the experience to the future board of directors.
- The Condo Act won’t help us with these. Current by-law won’t help us with these. Homeowners can propose new by-laws, and make it into a tentative version.
- We understand that the board members are all volunteering, and they have limited resources to contribute to our daily business. In the case, when excessive time and energy from board members are needed to deal with heavy situations, I would rather pay them, 40$ to 60$ an hour, I would rather pay for their special service, instead of, like some people were suspecting, that some board members were sneaky and trying to get kickbacks. Or we can build a volunteering fund, we can pay the board members after they show us their effort with a solid log file and supporting documents.
- People don’t fail. Systems fail, procedures fail. The first order of business is not to hurry into forming a new board, instead, we can build a system that a new board would welcome and follow.
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