Plumbing Systems – Failures and Replacement

August 14th, 2009 | Rick Dickson | Uncategorized

As the strata corporation properties in the Lower Mainland age, there are many internal systems that require additional maintenance and replacement, and a building’s domestic plumbing is one of these vital systems.

Vancouver’s water is beautifully soft, but wreaks havoc on copper piping systems.  The low PH level of our water, combined with site specific poor plumbing practice, has resulted in wearing out copper pipe prematurely.  The resulting leaks can cause extensive damage to many suites at a time, ruining walls, ceilings and floors, extensive property damage, not to mention the inconvenience of the residents.

Burst pipes normally results in very high expense to both strata corporations and individual owners.

Historically, these plumbing leaks were tackled one at a time, patching the leaky pipe or replacing small sections of pipe, and then repairing the walls and ceilings where the damage had occurred.  Unfortunately, leaks often reoccurred in the same locations, sometimes even requiring the opening of the very same walls and ceilings.  This stop-gap approach was extremely expensive and will not solve the overall problem – the pipes need replacing.

Instead of repairing leak after leak, it is recommend that Owners consult with companies that specialize in replacing partial or complete domestic water systems.  These experienced “Repipe” companies offer cost free estimates for the replacement of the plumbing system and will make recommendations based upon the condition of the system and the desires of the Owners.  Whether a partial or complete replacement is recommended, the solution will always eliminate redundant work and solve the plumbing leaks permanently.

When choosing a repipe company, it is generally suggested that Owners make sure the companies they deal with supply the following:

  •  Years and years of experience.  Repiping is a specialized task, and experienced repipe companies have each repiped hundreds of properties.
  •  Their own trades people.  If the Contractor must hire subtrades, there is less direct control over the quality of work and timeliness of the project. 
  •  Cost free estimates.
  •  Show they are bonded, insured, and are up to date with Worksafe BC.
  •  They work with a reputable engineer to save the Owners time and money.

When trying to decide when to repipe, it is recommend that the strata council carefully monitor all current costs associated with plumbing leaks, including plumbing expenses, damaged property, construction repair costs, and insurance costs.  Inconvenience created by these leaks to the residents must also be given a value.  After the estimate to replace the system is obtained, a cost-benefit analysis must be done and the decision must be made by the strata council and Owners whether it is time to proceed with the repipe.

Once a repipe is completed, Insurance deductibles will return to reasonable levels, the asset will be easier to sell, and the Owners will experience leak and worry free living. 

Your strata agent will assist council with noted steps and procedures, if required.

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THE STRATA PROPERTY ACT - BASICS FOR STRATA COUNCIL MEMBERS

June 15th, 2009 | Rick Dickson | Property Management, Uncategorized
Elected strata council members must have an understanding of the Strata Property Act in order to properly govern the strata corporation in a diligent and effective manner.  Your Ascent strata agent will handle the details; however, each council member will have a better understanding of their duties and responsibilities after reading the sections of the act, listed below.

Now for the legal dry part, which I have made as easy as possible by condensing 319 sections into the following 30 sections, plus a little bit of other stuff.

The following information is found in the Strata Property Act (SPA) of British Columbia, a link to which can be found on our website (www.ascentpm.com).  Go to useful links, the Strata Property Act is the first item on the links page.  Read through the following and you will be far more prepared than the majority of strata council members.

 

Section             Description           Notes
Part One Definitions and Interpretations   Reading all four pages will help with the understanding of the other
clauses. There are also some important concepts
Section 3 Responsibilities of Strata Corporation  
Section 4    Strata Corporation Functions Through Council  
Section 26 Council Exercises Power and Performs Duties of Strata Corporation  
Section 27 Controll of Council
Section 28 Eligibility for Council
Section 29 Membership on Council
Section 30  Contracts not Invalidated
Section 31   Council Members Standard of Care Be sure to read this one, it is probably the most important of all of the
sections being a council member
Section 32 Disclosure of Conflict of Interest
Section 33 Accountability
Section 34   Approval of Council Member Remuneration
Section 35 Strata Corporation Records    Important to just know what records are kept. You don’t have to read
every single one of them because your strata agent will be doing it for you
Section 36   Access to Records  
Section 91 Strata Corporation Responsible for Common Expenses
Section 92 Operating Fund and Contingency Reserve Fund (CRF)
Section 96   Expenditures from Contingency Reserve Fund
Section 97 Expenditures from Operating Fund
Section 98 Unapproved Expenditures
Section 103 Budget Requirements
Section 119 Nature of Bylaws  
Section 120 Standard Bylaws  
Section 121 Unenforceable Bylaws  
Section 125 Rules  
Section 129 Enforcement Options  
Section 130 Fines  
Section 135  Complaint- Right to Answer and Notice of Decision  
Section 149 Property Insurance Required for Strata Corporation  
Section 150 Liability Insurance Required for Strata Corporation  
Section 151 Errors and Omissions Insurance  
Section 155 Named Insureds  

All the sections of the Strata Property Act pertain to all strata corporations. Each strata corporation has their own bylaws, rules, budget and financial statement.

It’s a good idea to get a three ring binder and copies of the bylaws, the rules, the most recent approved budget, and the most recent financial statements. The financial statements usually include the income and balance sheets, detailed financial statements include the income and balance sheets, as well as the accounts receivable, accounts payable, general ledger and bank reconciliation.

After looking through all of the above, remember as a council member you are acting on behalf of all of the owners’ best interests, in a very open and democratic way.
The Strata Corporation is a valuable asset to every single owner; protecting maintaining and enhancing the asset is the bottom line goal for every Council member!

 
As a volunteer working cooperatively with so council members and contributing to the betterment of your strata corporation community can be very rewarding.

We welcome any feedback you may have regarding this article.  What else would you like to know?  Please let us know if you have any questions or how can we improve the information we are providing?

We will continue to post new blogs on a regular basis.

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STRATA COUNCIL MEMBERS - BASICS TO KNOW

May 7th, 2009 | Rick Dickson | Property Management, Uncategorized

What you need to know if you are or want to be a Strata Council member?

The following information is provided taking into account, your Strata Corporation is managed by an Ascent strata agent.

Strata Agent Licensed Under RESA

Your strata agent is licensed under the Real Estate Services Act (RESA) of British Columbia and is required to know the details of the Strata Property Act to effectively manage and administer a Strata Corporation as directed by an elected strata Council.  So leave the details to your strata agent.

So unless you want to study the whole Strata Property Act, here are the basics.  Certain duties are imposed on the Strata Council under the Strata Property Act and common-law.

First and foremost council members are to act honestly and in good faith and avoid conflicts.

Section 31 of the Strata Property Act establishes the duties of a Strata Council member.

Council member’s standard of care

31  In exercising the powers and performing the duties of the strata corporation, each council member must
(a)  act honestly and in good faith with a view to the best interests of the strata corporation, and
(b)  exercise the care, diligence and skill of a reasonably prudent person in comparable circumstances.

Now that we have defined how a strata council member must act, let’s touch on:

What is a Strata Corporation?

A Strata Corporation is a legal entity with all the powers of a natural person, who has full capacity.

This means that it can sue others, be sued by others, enter into contracts with others and hire employees.

The owners of the strata lots are the members of the Strata Corporation.

For example, if a Strata Corporation is responsible for paying a court ordered judgment, the owners of the Strata Corporation are personally liable to pay their portion of the judgment, which is in proportion to their unit entitlement.  The Strata Corporation does not have limited liability like a company.

What does the Strata Corporation do?

The Strata Corporation is responsible for the managing, administering and maintaining of the common property and assets of the strata development for the benefit of all its owners.

The specific obligations of the Strata Corporation are usually performed by the Strata Council, or agents or employees, which it hires.

The Strata Council is delegated by the Owners, the authority of the Strata Corporation for the implementation of maintenance and repairs of the assets and facilities, enforcement of bylaws, financial operations, record keeping, court actions and arbitrations, forms for real estate transactions, service contracts, insurance and emergencies, convening of Council meetings and general meetings, and overall general operations of the Strata Corporation has sent out by the Strata Property Act (SPA).  See Blog 2 – The Basics of SPA.

Who makes decisions on behalf of the Strata Corporation?

Decisions of the Strata Corporation are made either by the eligible voters of the Strata Corporation at a general meeting or the Strata Council at a Strata Council meeting.

A Strata Corporation is a governed community and can be referred to as fourth level government after federal, provincial and municipal.  A Strata Corporation is run by democratic principles, such as:

In a residential Strata Corporation, normally, each strata lot unit gets one vote.

At every annual general meeting, the owners will elect the Strata Council to manage the Strata Corporation.

Voting takes place as follows: at a general meeting owners can direct the Strata Council by a simple majority vote resolution, 50% plus one.

A three quarter vote is required for special expenditures such as raising funds and changing bylaws.

At Strata Council meetings each member has one vote; a majority vote is required for the passage of any matter within the strata council’s authority.

Sections of the Strata Property Act entitle owners to bring matters to a general meeting by first obtaining 25% or more of the owners to agree in writing as a petition to the Strata Council.

Strata Council members should be aware of the following notice requirements:

Please note the source of the requirements is included. “Section” refers to a section of the Strata Property Act, “standard bylaws” refer to the standard bylaws of the Strata Property Act, unless otherwise amended by the Strata Corporation by a ¾ vote of the owners at a general meeting, each strata Corporation should refer to their own bylaws.

Council meetings at least one week standard bylaws 14
General meetings section

plus first & last day don’t count

 at least 20 days 45, section 61(3)
Minutes distribution within two weeks standard bylaw 19
Hearings within one month of request standard bylaw 15(2)
Hearing decision within one week standard bylaw 15(3)
Records within two weeks of request section 36(3)
General meeting petition within four weeks section 43(3)

See Blog #2 – The Basics of the Strata Property Act (SPA).

The Strata Property Act consists of 319 section, plus definitions, standard bylaws and regulations.  We have narrowed down your reading to 30 sections plus definitions and your bylaws to get you up and more informed than the average council member.

We welcome any feedback you may have regarding this article, e.g. what else would you like to know, any questions, how can we improve the information we are providing?

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