Chris Hunsley
Northern News Services

Inuvik (May 30/05) - An $84 charge to replace three light bulbs and other questionable fees led to a housing board appeal being thrown out after it was deemed the organization overcharged its client.

On May 2, the Supreme Court of the NWT upheld a November 2004 decision by the territorial rental officer to reduce a $1,322.59 repair bill issued to a tenant of the Inuvik Housing Authority to a more reasonable $500.

So how much does it cost to change a light bulb? That may sound like a joke, but in one case the Inuvik Housing Authority charged a tenant $84 to change three light bulbs. It was one of many charges questioned by the territories' rental officer. - Chris Woodall/NNSL photo illustration

The damages were noticed when the tenant moved to a new housing unit in 2004.

"We felt it was important to appeal because we have a lot of units and if the rental officer is going to make these arbitrary decisions, it's going to cost us a lot of money. I'm already out $800," said Vicky Boudreau, executive manager for the Inuvik Housing Authority, who warns the decision will affect all landlords.

"Now we have to figure out how to get the extra cash. That money has already been spent so it has to come from the maintenance budget."

Boudreau suggested that repairs for other tenants may not be timely or rents may increase.

The authority, which has 250 units in Inuvik, spent $4,526.60 on the appeal.

"This is not the first time this has ever happened," said Hal Logsdon, rental officer. Logsdon based his decision on his feeling that much of the work required was charged at rates for skilled labourers but could have been performed by unskilled workers.

"Surely the landlord could have located persons to clean appliances, replace light bulbs, and rehang light shades at a more reasonable cost," he wrote in his decision.

When it came to the $84 light bulbs, $69 of that was for labour.

Logsdon said the case "went right to the heart of the rental authority and their power in regards to cost."

Repair contracts are tendered and "we take the lowest price from the people that meet the criteria," said Boudreau.

Contractors have to be from the North, have $2 million in liability insurance and pay workers compensation premiums.

"You can't hire every Tom, Dick and Harry who walks in off the street and says they're a cleaner or carpenter," she said.

The $1,329.59 bill presented to the tenant was below the organization's internal estimate of $1,360 to complete the repairs.

Below internal estimate

"I don't feel they (contractor) were gouging us, the costs came in below our internal estimate," said Boudreau, who explained she would have to pay her own employees a comparable amount to perform the repairs.

"I don't really care how much they charge to change a light bulb, I care about the bottom line and the bottom line was below our internal estimate," she said. "I don't go through and nit pick each cost."

Boudreau does not intend to appeal further. The $500 bill to the tenant, who has since relocated from the territory, was never paid and she does not expect it will be.

A recent letter from a contractor warned her that labour charges would increase from $30 an hour to $75.

"Obviously we're upset," said Boudreau. "Our costs have more than doubled and yet the rental officer has said he can reduce that cost and he can uphold that decision."