Channel & MTCC #710
MTCC # 710 is one of three condominium towers that sit on the west bank
of the Humber River off Albion Road near Weston Road and Highway 401.
It was registered in July 1986 and has 251 residential units that in
2010 were selling for between $85,000 and $140,000.
The original Declaration called for a three-person board and that had not been changed.
In 2006, Marko Djurdjevac was the corporation's lawyer and the
president of the board assumed the property management position and was
paid a salary.
The corporation was in serious financial trouble. At the AGM for the
fiscal year 2005, (held on 27 July 2006), the owners approved the
financial statements for the fiscal years 2003 and 2004. There was no
audited financial statements since then.
The operating deficits for 2004 & 2005 came to $268,000 and the
corporation was paying the mortgages on two superintendent units.
In 2005, the condo took out a loan of $300,000 to pay for garage and balcony repairs.
The operating account continued to run annual deficits. It later became
known that the corporation owed $200,000 in outstanding water bills.
Although there was $731,000 in the Reserve Funds, (end of 2005), the
property required millions to repair the underground parking garage and
the balconies. The hot water risers were old and needed to be replaced
and there were other outstanding repairs that required attention.
In the last half of 2006, Cherrell Williams resigned as president but
remained the property manager. Kathy Walduck quit her position as
secretary but remained on the board. The daycare moved out of the
shared facilities and Audrey Loeb became the new corporate lawyer.
The board discussed the need for a special assessment to raise $1.5 million to repair the garage.
The board fired the office secretary.
A new board
On 08 November 2006 two new directors joined the board. Hamed
Baloutch became president and Jeevandeep Singh Saini became a director.
Kathy Walduck, the only remaining director, resumed her position as secretary.
Channel arrives
On Sunday 12 November 2006, at the very next board meeting, a
resolution was passed, by the majority of directors, to hire Channel to
manage the corporation and Fine and Deo as the corporation's law firm.
The two new directors also stated that they did not approve the
nomination of the officer positions at the previous first board meeting.
Interestingly, this was just after Channel resigned from PCC #143 after that condo board started investigating Khan's financial dealings which later showed that he cheated that condominium for as much as $600,000.
After this meeting, Kathy Walduck resigned her director position. Mr. Said Duale was appointed as her replacement.
Channel takes charge
At the next board meeting on 17 November 2006, the board positions are changed.
President
|
Jeevandeep Singh Saini |
|
Secretary/Treasurer |
Hamed Baloutch |
|
Director |
Said Duale |
The new board and Channel got to work.
They were unable to locate the financial documentation for the period 01 September 2006 to 30 April 2007.
The prior management company stated that they left all information with
the building but it could not be found. This made the accurate
preparation of the comparative financial information impossible.
It was clear that the finances were in a mess with huge operating
budget deficits. However, the board and Channel focused on fixing the
structural problems the city inspectors ordered repaired.
The problem was costs. The corporation was broke. Channel suggested
that, after an engineering study determines the costs, the condo take
out a loan rather than a special assessment.
Channel obtained eight quotes for the required work.
Channel is fired
At an emergency meeting on 18 December 2006, the board past a
resolution to fire Channel. Their last day was to be 02 January 2007.
(Channel was paid two months in lieu of notice.)
They also fired the engineering company and cancelled
all eight contracts that were issued for work on the garage. The board
then hired Best Consultants to survey the garage and prepare tenders.
Datsun arrives
Datsun Property Management was awarded the contract to manage the corporation starting at the beginning of January.
Discouraging nosy owners
On New Years Day, the board passed a resolution stating that if any
owner requested corporation documents, they would be charged a $25
administration fee and $1.50 per copy.
These charges must be paid in advance by certified
cheque or money order. If a request is made, and if the owner does
not pay, the charges will be added to the unit's common maintenance
fees.
On 20 January 2007, Fine and Deo was replaced by Misir & Company, a
general practice law firm, as the corporation's law firm.
Datsun on the job
A man identified in the records only as Danny, was hired to manage the
building and there were issues with his performance.
Danny changed the corporation's bank and was to find a good auditor to prepare the 2005 and 2006 financial records.
Martin Gerskup, from Best Engineering, started working on the garage project
The
board soon were dissatisfied with Danny's performance. Records were not
kept up during his tenure and Datsun was fired after three months. For
the second time in three months, the board needed a property management
company.
The Khan came back
Manzoor Khan said that Channel could help out and so it was brought back.
Channel Property Management was awarded a three-year contract, (from 01
May 2007 to 30 April 2010). A week later, Fine and Deo were re-hired
and Maria Dimakas became the new corporate lawyer.
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