2015-89 - Water View News

Water View News
April 2015
Edition 89
NEWS FROM THE BOARD——Deanna Smythe
Another few weeks and our snowbirds will be back with us. Coffee hour will become a loud din of
voices as everyone tries to talk at once. News will spread quickly again! In the Water View our popular pot luck dinners, euchre, movie nights, and the new games afternoon helped the winter days pass
quickly and pleasantly.
The April 1st Maintenance Fee will reflect the changes that were made to the Declaration a few months ago. It took
some time for all the legal wheels to complete their work and then Brookfield to change its system to the new rates.
Please be aware this issue is separate from the annual budgetary increases which will go into effect June 1, 2015. More
on the budget preparation later in the newsletter.
Your Board has been actively working on the many projects that fall under our fiduciary responsibility.
We continue to work out the issues relating to the Shared Facilities Agreement. The stumbling block is the actual definition of what is legally the Shared Facilities – who owns what – and who is responsible for what. Unfortunately the
original documentation was written before the Water View was even “a twinkle in Daddy’s eye” to quote my Dad – so
there was absolutely no concept of how this document would/could be administered. There is no reference to exterior
walls – plumbing – electrical etc. There are no documents that show the boundary lines for the terrace. Brown and
Beattie have been commissioned to sort through all this information – plans, documents, equipment, utilities etc. Their
report will allow us to move forward with accurate, timely information. It is a jumble of information that causes friction
between the two Boards because of lack of clarity. To make matters even worse, the Condominium Act barely addresses the challenges of Sharing Facilities. It is the number one cause of dissention between joined corporations and is why
many ‘sister corporations’ are looking at the option of amalgamation.
The next big project is our budget for 2015-16. As you are aware, this year we changed our year end to May 31 to coordinate with Grand Harbour and Shared Facilities, also to accommodate the AGM at a much more appropriate time for
the snowbirds who had to decide between information about their investment in our building and the sun and sand of
the sunny south. This change in scheduling has meant a 10 month fiscal year for 2014-15, so we are into a budget earlier than last year.
I have enclosed two articles about condo fees as well as some interesting documentation provided by Brookfield, our
Property Management Company. Brookfield manages approximately 275 corporations in Toronto and as far north as
Orillia, Collingwood and of course Barrie. Many people have asked me “What is an average price per square foot for
maintenance fees”. This document was truly shocking to me – out of the 275 corporations, the Water View and close
behind, the Bay Club were in 9th and 10th position and those with lower per square foot charges did not have amenities
such as pool, sauna, and fitness rooms. The average (2014) fees per square foot were $.624 but ours were $.399. Our
concern as a Board is that some budget items that keep the appearance and value of our home up are being short
changed by our low fees. Prices for everything go up (this year we have been advised that our insurance fees will rise
by anywhere from 25% to 40% - and our deductible has risen from $2500 to $5000). As our building ages, maintenance
is critical to keeping our equipment working. There is very little room for fine tuning.
Water View News
April 2015
NEWS FROM THE BOARD …. Continued
One initiate we have taken is to coordinate some work with other condos in the area to get better pricing (for example,
we have the roof anchor inspections done when Bay Club has theirs done at a greatly reduced rate) and we continue to
tender for the large ticket items. We have replaced many of our bulbs with LED which will last longer and result in lower
hydro bills. However, we also must address other issues such as the security of our residents in this downtown area.
The Board is ‘reworking’ some scheduling to have improved security service, one additional security camera under the
front portico and weekend coverage by a relief superintendent etc.
So, yes, this is a heads up that this year’s budget will meet with some opposition. The owners at the Water View have
elected a group of people that have a responsibility to look ahead and protect your investment. We are currently running with a very small surplus and any unexpected expense will be difficult to manage. It is a difficult job to balance the
required income with what our owners are wanting to pay.
In this same vein, we have made you aware of the issues in the Change Rooms. The odours there have been identified as
sewage pooling under the floor as a result of pipes coming loose from the fixtures as the soil under the concrete slab settled. This will be a major project to correct. We have commissioned Brown and Beattie to evaluate the damage and we
have received the first quotes for the work. Our Board discussed these quotes and came to the conclusion that a more indepth investigation was necessary before we committed to such a large expenditure. This work must be done quickly
and we will keep you apprised of the progress. Should the news be that the repairs are to be extensive (as we suspect
they will), we will be looking at financing options. The Board will hold an owners information meeting to answer any
questions at that time.
On a sad note - The Board has received a letter of resignation from Greg Waldo. Greg’s work and personal commitments
have made for very difficult scheduling for him. Greg has agreed to accept a position of Mechanical Consultant for the
Board, meaning he will be called on for assistance with issues where he has the expertise to advise the Board – but he
will not have a vote or be privy to confidential information. The Board has asked Diane Rowat-Walton, who has been
acting as the appointed Treasurer, to fill Greg’s position on the Board until the next AGM and we are thrilled that she has
accepted.
Water View Board
President: Deanna Smythe, Suite 708
Vice President/Secretary: Gerry Noble, Suite 302
Vice President/Secretary: Marinus Logtenberg, Suite 1410
Treasurer: Diane Rowat-Walton, Suite 1509
Director: Jeff Brook, PH 09
Email: waterviewboard@rogers.com
Thank you Diane for filling in for Greg.
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Water View News
April 2015
PROPERTY MANAGER REPORT………….. Cindy Beaudoin
Our Superintendent, Jeff, has made us aware of a very disturbing situation. When heavy garbage is
put down the chute and has not been double bagged, it ‘explodes’ as it hits the walls on its downward
journey making a smelly mess in the system. Also, even more disturbing, is that some used adult diapers have been put down the chute without any bagging. We have also been made aware that some
‘doggie dropping bags’ have been left in the garbage chute rooms. Both of these issues pose a serious
health issue and must cease immediately. We will be monitoring this situation closely.
At times there are expenses levied to owners (batteries, new fobs, etc.) Our office is not allowed to accept cash payments. Cheques or money orders are the only acceptable form of payment. All payments made to the office are sent to
Brookfield head office for deposit as there is no procedure for the on-site office to deposit monies locally. Also, for
bookkeeping purposes a record of any payments made is necessary for the Brookfield accounting team to reconcile accounts.
This month, to ensure the safety of our staff and residents, Cindy, Jeff, Karrie and Janette have participated in several
courses. Cindy, Jeff, Karrie and Janette all have up to date WHMIS accreditation. Brookfield provided a course on Fall
Arrest (Jeff/Cindy /Karrie- ladder safety) and Electrical Tag-out (Jeff/Cindy – safety processes when working with electrical equipment) as well as a Supervisor’s Safety course (Cindy/Jeff) for all staff at Brookfield managed properties in
Barrie. As well, all of the staff, Cindy, Jeff, Karrie and Janette will be taking the AED Defibrillator Course that we are arranging for April or May.
If you are considering leasing your suite, we have provided an information package in the mail room to help guide you.
This package is a guideline only and not to be considered legal advice.
Spring maintenance plans are underway. Please watch the notice board and elevator for items such as garage cleaning,
carpet cleaning, HVAC servicing, window washing, etc. It is a busy time of year.
Over the past six months we have heard of at least four instances where our water alarms have warned people of leaks –
one from a chest freezer which had come unplugged by accident. Check with the office for further information on purchasing one.
Soon the ice will be gone. Last year the
bay was ice free on April 27th.
The Marina was ice free last year on April 22nd.
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Water View News
April 2015
Maintenance fees take a toll on Toronto condo owners.
TORONTO STAR: Friday, February 13, 2015
By: Susan Pigg Business Reporter
Four years ago, Craig Gagliano did something virtually unheard of in Toronto’s condo industry.
The resident of the west-end Toy Factory Lofts and president of its condo board cut monthly maintenance fees for
each of the building’s 213 units — by a stunning 30 per cent.
While the price of living the carefree condo life continues to climb in buildings across the GTA — often at rates well
above inflation — the well-kept Toy Factory Lofts still boast some of the lowest monthly maintenance fees in the city.
They now run just 31 cents per square foot for units without parking or a locker, almost half the city-wide average of
59 cents per square foot for similar units, according to new building-by-building analysis of Toronto condos done by
the innovative site Condos.ca
That adds up to about $306 per month, compared to the city-wide average of $530 per month, for a 900-square-foot
unit.
The low fees amount to more than just hundreds of dollars in savings per month for owners of the sought-after historic former factory in Liberty Village. They can have a major impact on a condo’s resale price.
“Our rate of property value increase has outpaced similar buildings and I believe it’s by virtue of the attractiveness of
the low maintenance fees,” says Gagliano.
Condos.ca, which has already taken a hard look at price appreciation in various buildings, is now pulling back the veil
on maintenance fees with a new online feature. It will allow buyers to get a sense of maintenance fees — and how
much they’ve climbed — in almost 700 buildings, as well as townhouse projects, across Toronto. What it can’t really
tell you is the reasons behind the costs.
The site’s creators — condo specialist Carl Langschmidt, his data-crunching brother Ahren, and realtor-partner Andrew Harrild — are still collecting and analyzing fee details on an additional 900 projects.
“One of the first things every buyer asks about is maintenance fees. They are the thing that is hurting the condo industry the most,” says Carl Langschmidt.
“People who buy homes don’t have monthly (costs) nearly as high as what some of these condos are charging. Granted,
you don’t have to shovel your driveway or take your garbage out, so there is a service component in a condo that
needs to be reflected. But condo fees are largely out of whack.”
They are also confusing, seemingly uncontrollable and the second-biggest cost of condo ownership, next to a mortgage,
which is why the Condos.ca team has been amassing data for well over a year now from MLS and other real estate
sites.
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Water View News
April 2015
Maintenance fees take a toll on Toronto condo owners….Continued
One of their most shocking discoveries was the high costs of a parking spot, on top of the $35,000 and up it costs at
time of purchase.
Buried in monthly fees are parking charges averaging $43 a month but as high as $148, the team found. “That makes it
cheaper to just rent parking in some cases,” says Harrild.
Not surprisingly, luxury condos and hotel-condos like the Four Seasons Private Residences are in the Top Five list of
highest maintenance fees at well over $1 per square foot.
But there are a number of other standouts, like The Indigo in the St. Lawrence Market area, where fees are now 90
cents per square foot. Units sell, on average, for $229 less per square foot than others in the area, according to condo.ca research.
Toy Factory suites have seen an almost 21 per cent price appreciation between 2009 and 2014. Indigo units dropped
an average of five per cent, according to Condos.ca data.
Indigo property manager Joanne Selvagio was highly critical of the comparisons: “Every building is different and
unique and has differentials in costs based on its age and infrastructure. Toy Factory is an eight-storey building with
213 units. We have 104 units and there are increased costs to running an elevator 27 floors as opposed to eight floors.
“You can’t compare a seven-year-old building to a 25-year-old building. It’s apples to oranges.”
But Condos.ca has taken some of those factors into account, insists Langschmidt. In fact, one of the biggest surprises in
all the data crunching was that old buildings don’t necessarily have higher fees.
Of condo buildings built or converted between 1975 and 1980 (Indigo was built in 1993), fees averaged 57 cents a
square foot, says Langschmidt. He singled out the 121-unit Candy Factory Lofts on Queen St. W., converted in 2000,
where fees average 39 cents per square foot.
Buildings with a pool, gym and concierge tend to pay a 31 per cent premium in fees, Langschmidt says. He also cites
property management companies for escalating costs: The team is now compiling a list of companies that will show
the average fees in buildings they manage.
Developers are also aware of growing concerns about fees and are quietly questioning the need for basketball courts,
movie rooms, wine storage and libraries that may seldom get used.
“There’s a rethinking going on that less is okay,” says Paul Golini, executive vice president of Empire Communities.
“People are telling us, ‘We’re here for the neighbourhood.’ ”
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Water View News
April 2015
Maintenance fees take a toll on Toronto condo owners….Continued
Tasso Eracles, chairman of FirstService Residential, which manages about 300 condo buildings, says cutting costs is
much harder than it appears, especially without compromising the state of the building. Heat, hydro and water can
account for 40 to 50 per cent of costs and are climbing 8 to 10 per cent per year. (Post-2010 buildings have meters in
each unit, giving owners more control over energy costs.) Concierge, cleaning and other services can be another 25
per cent.
Provincial requirements, like an adequate reserve fund to cover major maintenance and repairs, are also a major fixed
cost, says Eracles, and those costs could increase further as the province revamps the Condominium Act.
But Gagliano strongly disagrees. What’s needed, he stresses, are more condo boards with “the collective courage required to make difficult decisions” like reducing staff. (Selvagio points out that Indigo has 24-hour security, at owners’
insistence.)
Gagliano went line-by-line through The Toy Factory’s reserve fund, along with engineers who have to give it final approval, questioning every assumption of future costs, some far beyond a reasonable rate of inflation.
It’s not a question of bleeding reserve funds, but “bringing the engineer onside with a new view of austerity, as to how
to meet the new limits prescribed by law (in the reserve fund) and protect the interests of the owners.”
The Toy Factory board stepped up preventative maintenance aimed at prolonging the expected lifespan of major components of the seven-year-old conversion. Hallway heating was reduced by four degrees in winter and air conditioning
turned down four degrees in summer.
Some residents complained, but the building’s budget for gas, water and hydro was $352,000 in 2010, Gagliano says.
Last year, it was $261,000.
The Toy Factory’s property manager gets a 10 per cent bonus for viable cost-cutting solutions.
There’s growing concern in the condo sector that board members need training to handle budgets and other condo
responsibilities, which is being considered in the Condo Act review.
Some condo residents, like Gagliano, have come to believe it’s better for buildings to impose the odd special assessment — a one-time fee for unexpected expenses — than continue to boost monthly fees.
“The reason The Toy Factory is so successful is that it has a board with smart, business-minded people,” says LangSchmidt. “It is proof that maintenance fees can be kept in check.”
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Water View News
April 2015
TORONTO STAR: March 2, 2015, Toronto
Audrey M. Loeb, LSM, B.A., LL.B., LL.M
Miller Thomson LLP
MT Condominium Group responds to Toronto Star article "Killer Condo Fees"
We read with interest the article about Craig Gagliano, his views on condominium fees and how they lowered them by
30% in his building. While we understand the concern about high common expenses we were concerned by the approach taken by this board.
We have over 30 years of experience working in the industry as lawyers for condominium corporations and feel that
the suggestion that common expenses can be “kept down” to make the units more marketable is a short-sighted approach to the issue of ever-increasing condominium fees. It should be noted that the same increases are being incurred
by house owners, as all costs are rising. If all other condominiums have fees that are double the Toy Factory’s then
there must be a good reason. The board of the Toy Factory Lofts cannot be the only smart condominium board in the
GTA.
Condominiums are an expensive way to live. The convenience of this style of living means that owners must pay for
everything that needs to be done on the property and must, according to the Condominium Act, save for the inevitable
rainy day. We worry that artificially keeping common expenses low for the purpose of increasing the market value of
units will benefit those who are going to sell in the short term. It is, however, unfair to the community in the long term.
People who buy condominiums that offer “services” often buy for that reason and to arbitrarily cut back the hours or
levels of these services may not benefit those who live there. Currently under the Condominium Act, owners’ approval
is only required when a service is added or modified and there is an added cost for same. Individuals who view condominiums as speculative investments will, of course, be happy with decisions to cut back. Their common expenses will
be reduced and their income streams improved. But what about the owners who live in their units as their primary
residences and are less concerned with immediate return on investment? How will their lives be affected?
Owners in condominiums with high levels of service, including management, concierge and security, as well as major
amenities and fewer units, will pay much more in monthly fees than will those in large complexes with the same levels
of service but many more units over which to spread the costs. This is part of the choice to live in a smaller community.
New buildings likely have low flush toilets, water saving shower heads, energy saving systems and recycling programs.
Old buildings do not, but may offer much larger units. Some older buildings are heated by hydro and we all know what
has happened to our hydro costs. All of these differences impact monthly fees. The comment in the article about apples
and oranges is absolutely true.
A significant hidden issue is that many buyers face higher fees because developers have not always fairly disclosed the
true costs of living in the condominium. There are many ways to avoid giving the complete information to buyers. Both
the artificially low first year common expense contributions set out in the developer’s budget and the inadequate initial contributions to Reserve Funds are part of the reason common expenses rise so significantly. Also, many developers, in an attempt to make common expenses appear lower, individually meter units for hydro, make owners rent
heating and cooling equipment by separate contract rather than including it in the purchase price, and rent or sell
suites and equipment to condominiums, sometimes with payments not beginning until year two of operation.
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Water View News
April 2015
MT Condominium Group responds to Toronto Star article "Killer Condo Fees"….Continued
All of this adds to the common expenses that are payable. Some developers do not do this at all. Many do. In a condominium’s second year, when the reality hits home, boards are faced with increasing fees to ensure that the services
promised are continued. We are hopeful the government will address these issues in the amendments to the Condominium Act, which are currently in the works.
The suggestion that the occasional special assessment is a better way to go, rather than keeping common expenses
higher to reflect the true cost of living in the condominium means that those who are benefitting from living in the
property may not be paying their fair share. The burden of large expenditures falls then on those who happen to be the
owners at the time that the special assessment is made, not those who have sold and moved on but enjoyed the benefit
of owning a unit in the building for several years. If the financial plan for a condominium is to levy large special assessments when the time comes for major repairs, we trust that those corporations are disclosing this approach in their
status certificates.
In our practice we are now seeing the results of years of holding the common expense fees down. Reserve funds are
inadequate, maintenance has not been done properly and residents are now facing assessments many cannot afford.
Negotiating with reserve fund engineers to have them change their decisions on costs and time frames is also not appropriate.
While a dialogue is certainly allowable to ensure that the board understands the engineer’s assumptions, we are seeing condominiums facing major shortfalls in their reserve funds because the board has gone further and persuaded the
engineer to reduce the contribution amounts and increase the life span of the components being evaluated.
A balancing act is what boards face. Keeping fees in line makes sense. Not wasting money makes sense. However, when
the goal is to raise the value of the units and levy special assessments on an as need basis, instead of budgeting for the
true cost of living in the development, we believe that is problematic. We are always surprised by the number of people who have an inadequate understanding of the real cost of living in a condominium.
Wellness Committee
Twelve residents went to visit the Waterford Retirement Home on March 5th. They were toured around the building
including stops at the theater, chapel, activity centre which included a golf centre, kitchen complete for baking, library,
hair dresser and many other areas for socializing. The group was also shown the different bedroom floorplans that are
offered. Any questions asked were answered including what the fess are. At the end of the tour the group was served a
three course dinner by a great waitress.
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Water View Activities
Coffee Club: Meets ever yday except Sunday in the Condo Room. 9:15-11:00 am
TV Committee: Watch for movie notices in the elevator .
Any movie ideas contact Mike Ross at 705 719-9311.
Bid Euchre: Tuesday and Wednesday in the Condo Room. Begins at 7:00 pm.
Board/Card Games: Cr ibbage, Aggr avation, or whatever your favour ite is, Thur sday 2pm.
Aqua-Fit: J oin us in the pool. Monday, Wednesday and Fr iday fr om 8:30-9:00 am.
Tai Chi: Wednesday at 11 am
Pea Pool: Tuesday at 7:30 pm
Library Committee: Your Libr ar y committee anticipates that the libr ar y will be closed for appr oximately three months beginning one week prior to the commencement of the change room project
(anticipated to begin near the end of April ) During that time, please withhold any further donations. You
may wish to get three months supply of reading material to tide you over!
Thank you for your anticipated patience!
Jean Hughes, Lenore Logtenberg, Joy Surgenor, Linda Lewis, Faye Hamilton
Pub Night: 1st and 3r d Fr iday of the month
Important Contact Numbers
24 Hour Emergency: 705-725-2200
911 if Police, fire or ambulance are required
Management Office
Cindy Beaudoin, Property Manager or Janette Kingswell, Assistant 705-725-1569
Email: waterviewcondo@rogers.com
Superintendent: Jeff Carrick 705-725-2200 (or to book elevator)
Housekeeper: Karrie Walls 705-715-7181 (or to book condo room or guest suite)
Brookfield Condominium Management After Hours 416-354-1999
Shared Facilities Manager, Hassey Management: Sheri Adams 705-737-9595 x 304
Soon the ice will be off the bay, the fountain will be back and boats will once again fill the bay.
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WATER VIEW Activities
St. Patrick’s Day Pot Luck
And the
winner is….
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