President's Report to the Owners
1) Callingwood Court Siding Replacement Project
Callingwood Court was built in the mid-1970s so it is approaching its 50th anniversary. 50 years also happens to be about the expected lifespan of the siding on our buildings. This issue was addressed in our last Reserve Fund Study done in 2015. Reserve fund studies must be based on the cost of replacing the siding with the same style of siding. Any other style would count as a capital improvement, not a capital replacement, and reserve fund studies do not consider the cost of capital improvements. Therefore the 2015 Reserve Fund Study estimated the cost of replacing stucco siding with stucco, aluminum siding with aluminum, and wood and brick trim with wood and brick. That cost was estimated by the study to be $7.5 million or $57,000 for each of our 131 units.
Last year your Board of Directors decided that residing Callingwood Court in the original style wasn't the best option. Not only would that be one of the most expensive options but the original style is quite dated. As mentioned, a style different from the original style counts as a capital improvement and, under Callingwood Court's bylaws, capital improvements must be approved by 75% of the owners. That presents the Board with a challenge. If we were to present the owners with several residing options it is very unlikely that 75% of the owners would agree on any one of them. So your Board of Directors commissioned an architectural firm to conduct a study of our siding and to propose an attractive residing option that would offer the best value to the owners.
The residing report from the architects is included in this AGM package. In summary, the report proposes to reside Callingwood Court with a siding called hardie board, a cementitious material that is attractive, very durable, and available in a wide range of colours. This option is estimated to cost $4 million or $30,000 per unit. We currently have $1.4 million in our reserve fund and are building up the reserve fund at a rate of about $1 million every three years. If the residing project is spread out over three years then we might expect to begin the residing project in six years or 2025 without a special assessment and without condo fees exceeding $400 per month. (They are currently $373 per month.)
2) Status Of Other Maintenance Projects
Five of our eight parking lots now have the new parking stall plugin system. With EPCOR's cooperation we expect to finish two more parking lots this summer. The pavement in all of our parking lots has been repaired and one parking lot was completely repaved. It shouldn't be necessary to do any further major pavement repairs for several years.
Last year four blocks of units received new roof shingles. The shingles that were replaced should have lasted longer but they were of inferior quality. The lesson learned here is that doing maintenance on the cheap can be more expensive in the long run. It is a lesson that can be applied when Callingwood Court is resided.
The major problems with the storm doors have been fixed. It turned out that most of these problems were due to sloppy installation rather than poor materials. Most of the problems with the fence gates that we repaired were due to the use of inappropriate hinges. When we reside Callingwood Court we are considering hiring an engineering company to oversee the project to make sure that the job is done right.
Every spring the parking lot in the north-east corner of Callingwood Court floods and has to be pumped out. We will have the storm sewer under the parking lot inspected this summer to determine why it is freezing solid in winter.
Over the years there has been significant subsidence of the ground near the foundations of many of our units. This causes drainage problems which could damage the foundation walls. So we will be regrading near many of the units including within the fenced-in yards. This may cause some inconvenience so your patience and cooperation will be appreciated.
Years ago many cedar trees were planted very close to the buildings. Some of these trees have grown above the roof lines and they are interfering with the eavestroughs. So we will be pruning back these cedar trees and any other trees that are dropping material into the eavestroughs.
3) The Condition of "Maintenance Areas"
"Maintenance area" is the term used in our bylaws to refer to the fenced-in yard associated with each unit. Under our bylaws a yard associated with a unit is not the owner's property. Yards are "common property" meaning that the Condominium Corporation has the authority to regulate their use under Bylaw 71. And under Bylaw 78: "Nothing shall be hung or placed on any part of the Common property, or within a Unit that is, in the opinion of the Board, aesthetically displeasing when viewed from the outside of the Unit." The phrase "any part of the Common property" includes yards.
Unfortunately the phrase "aesthetically displeasing" is vague and subjective and your Board has generally left it up to the residents to use their best judgement regarding the condition of the yard adjacent to their unit. However many owners feel that the Board has been too lenient in this matter. So the Board will be conducting a survey of the owners to get your opinion about what standards we should apply regarding the condition of our yards. This survey will be conducted via email. If you've never received a notice emailed from callingwoodcourt@gmail.com that's because we don't have your email address and you should send an email to this address with your name and unit number so we can send the survey and other notices to you.
4) Satellite Dishes
When our units are resided in about six years satellite dishes will not be allowed to be mounted anywhere on the exterior of the units or on common property. Furthermore, permission will not be granted for new satellite dishes to be mounted externally effective immediately. So owners with existing satellite dishes have about six years to make other arrangements. Both Shaw and Telus are upgrading their networks to the one gigabit per second range which makes satellite technology increasingly obsolete.
5) Closing Remark
In making the decision to hire an architectural firm to recommend the best residing option, in addressing the condition of our yards, and in deciding to phase out satellite dishes your Board of Directors is trying to adopt a set of coherent policies that are intended to enhance the overall value of our units. We recognize that some of these policies will not be universally popular. But limiting some individual choice for the sake of the common good is inherently part of owning a unit in a condominium. We welcome your comments on this matter and look forward to seeing you at the AGM.