This notice provides an UPDATE concerning the funding of the Window Replacement Project which will be discussed and voted on at the meeting scheduled for:
Thursday, 10 March, 2016 at 7:00 pm (6:30 p.m. registration)
at the Best Western Hotel
1274 Carling Ave, Ottawa, ON K1Z 7K8
Proxy Note: Any Owner who cannot attend the Special Meeting may vote using the Proxy Ballot provided. A quorum is required in order for the meeting to be held so owners who are unable to attend are encouraged to vote by proxy. Your signed Proxy may be Emailed (signed and scanned) to Condominium Management Group at rory@condogroup.ca or faxed at (613-237-3533) or mailed to 335 Catherine Street, Ottawa, Ontario, K1R 5T4 or dropped off at the Service Office no later than 8 March 2016.
This important meeting is to decide on the funding arrangements for the Window Replacement Project. Information was previously circulated about the need to replace all of the Botanica’s windows and the recommendation that the project be funded primarily by borrowing the required funds and spreading the repayment over a ten (10) year period.
So that all Owners, including the Owners who vote by Proxy, are provided with the same information, this UPDATE covers two main topics:
- A review of the Window Replacement Project and the Board’s recommendation for funding the project in order to minimize the number and amount of Special Assessments.
- Plan B – sets out the alternative approach to funding the Window Replacement Project the Board will adopt if the Board’s recommended borrowing Bylaw is not adopted by the Owners.
Window Replacement Project
The Board is obligated by the Condominium Act to ensure the proper maintenance of the Botanica’s common facilities; including windows. As described in the earlier “Issue Summary” document that was distributed with the original Notice of Meeting on February 18, Botanica’s windows are original, having been installed in 1985.
As a result of an increase in the number of window problems and building envelop leaks a Window Condition Study was carried out by Laviolette Engineering. The study concluded the windows needed to be replaced and that it should be done within the next five years.
Consequently, the Board is, on the advice of the Reserve Fund Committee, asking owners for approval to borrow up to $2,500,000. The loan would be used to fund the replacement of all windows in a two year period as well as to complete the previously approved replacement of the Make-Up Air Units, a lighting replacement project and the Midrise Refurbishment Project.
Impact upon owners (If the loan Bylaw is approved)
- Windows will be replaced over two years
- Depending upon final costs, one (1) Special Assessment or possibly two (2) Special Assessments of $100,000 (approximately $825 per assessment for the average mid-rise unit)
Given that the windows must be replaced, the Board wants owners to know what the alternative is in the event there is not sufficient support for the Board’s recommended borrowing Bylaw. Set out below is Plan B which the Board will have to implement in the event the motion authorizing the borrowing bylaw is not approved.
Plan B – Alternative funding plan if the borrowing Bylaw is rejected
In order to generate sufficient funding to replace all windows in a five year period the Board will need to impose five (5) Special Assessments of $300,000 (approximately $2,500 per year for the average mid-rise unit) beginning May 1, 2016. This would allow all windows to be replaced over a period of five years compared to the recommended plan’s two year schedule.
The funding for the Make-up Air Units, and the LED lighting project will proceed as the owners authorized the Board to borrow up to $250,000 for these projects. Any increases in the cost of the MUA project as well as additional funds for the Midrise Refurbishment project would be funded by these Special assessments.
Impact upon owners (If the loan Bylaw is NOT approved)
- Windows will be replaced over a five year period.
- Five annual Special assessments of $300,000 (approximately $2,500 per year for five years for the average mid-rise unit) beginning May 1, 2016.
To be clear, the Special Meeting on March 10, 2016 is only to decide on the Board’s funding proposal for the Window Replacement Project and the other projects as described above. Once the funding plan is known (borrowing or Plan B) the Board and the Reserve Fund Committee will, with support from Keller Engineering and input from the Owners, determine the most appropriate type of replacement window. No decision has been taken on the type of replacement window as of this date.
Owners are encouraged to attend the meeting, or if that is not possible, to complete the Proxy ballot and return it by March 8, 2016 so that there is a quorum for the meeting.
If owners have any questions they are encouraged to contact Peter Simpson – Vice President Reserve Fund at pasimpson@bell.net or (613) 729-0663 or to attend the ongoing Wednesday evening Consultation Meetings in the Library at 7:00 p.m..