CCI-T Condovoice Fall 2016

V condovoice

Remembering Tendering

Don’t Shoot the Minute Taker!

Understanding ITCs

Competition Bureau Investigation

The Role of a Condo Board /51

Responsible Dog Ownership in Condos /65

It Can Work for Your Corporation /7

Input Tax Credits Explained /25

Preventing Water Damage/29

Tales From the Front Lines /55

What it Means to You/61

and MORE...

Publication of the Toronto and Area Chapter of the Canadian Condominium Institute • Fall 2016 • www.ccitoronto.org

Rules Were Meant to be...

Toronto and Area Chapter

Toronto andChapter Area Chapter Toronto Area Toronto and and Area Chapter

V C condovoice

Your Condo Connection in the Toronto, Peel, York and Durham Regions Providing education, information, awareness and access to expertise by and for our members. www.ccitoronto.org Volume 22, Issue Number 1, Fall 2016

In This Issue

2015

H. Penman Smith Award of Excellence

In Every Issue

7 Remembering Tendering

BY WARREN RAGOONANAN

If You Do, You Can Make It Work Well For Your Condominium Corporation

PAGE 7

11 Rules Were Meant to be... Updated

BY MARC BHALLA

A Mediator’s Perspective on Updating Condominium Rules

15 CONDO PROFILE: The Neptune

BY JAMES RUSSELL

A New Hydro Booster Water Pump System and an LED Retro-Fit Will Pay for Themselves in Less Than Two Years

19 Decisions From the Courts

H. PENMAN SMITH AWARD OF EXCELLENCE WINNER FOR BEST MAGAZINE ALSO IN: 2001, 2003, 2006, 2009, 2011, 2013

BY BRIAN HORLICK AND TIMOTHY DUGGAN

The Impact on Your Condominium Corporation

25 Understanding the “Ins and Outs” of ITCs

BY RAINER VIETZE

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President’s Message

by Mario Deo

4

Message From the Editor

by Marc Bhalla

73 Alphabet Soup The Chartered Mediator Designation 76 The Last Word Court Appointed Administrators

by Armand Conant For Condo Owners 63 Condo Etiquette 65 Responsible Dog Ownership 69 Your Condo Gym Offers Something for Everyone

Input Tax Credits are Governed by Some Basic Rules That Ensure The HST Meets The Objectives of a Value-Added Tax

29 Preventing Water Damage in Townhouses

BY IRFAN ALLI

One of the Easiest Ways is to Educate Owners and Residents on How to Prevent It

51 The Role of a Condominium Board

BY ALLAN BISHOP

Understanding the Governance and Management Roles of the Board

BY SCARLETT GUY

Meetings Gone Bad From the Minute Taker’s Perspective

59 The Standardized Proxy Form

BY JASON RIVAIT AND JOY MATHEWS

There Are Changes to the Distribution, Use and Collection of Proxies

61 Competition Bureau Investigation

BY SHAWN PULVER

What Does This Investigation Mean for Condo Corporations?

62 HOT OFF THE PRESSES: A Huge Win for the Condo Community!

BY ARMAND CONANT, DEBORAH HOWDEN AND JOHN DE VELLIS

Landmark Decision Allows Condo Corporation to Unilaterally Amend Oppressive Shared Facilities Agreement

PAGE 69

CCI Members News and Events 33 37 38 39 40 43 45 47 49

CCI-T Committee Updates CCI-T Welcomes New Members Upcoming Events Word Search Puzzle Thowback Thursday CCI-T Was There CondoSTRENGTH Event Editor’s Pick Condo Connection TV CONDOVOICE FALL 2016

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COVER IPHOTOGRAPHY BY RON JOCSAK

55 Don’t Shoot the Minute Taker!

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President’s Message Toronto and Area Chapter

Canadian Condominium Institute/ Institut canadien des condominiums Toronto & Area Chapter 2800 14th Avenue, Suite 210, Markham, ON L3R 0E4 Tel: (416) 491-6216 Fax: (416) 491-1670 E-mail: info@ccitoronto.org Website: www.ccitoronto.org 2015-2016 Board of Directors PRESIDENT:

Mario Deo, BA, LL.B. (Member, Government Relations Committee Chair, Conference Committee) Fine & Deo Barristers and Solicitors 1st VICE-PRESIDENT:

Sally Thompson, M.Sc., P.Eng. (Member, Education Committee, Member, Conference Committee) Synergy Partners 2nd VICE-PRESIDENT:

Vic Persaud, BA (Chair, Membership Committee, Member, Marketing Committee, CCI N Liaison) Suncorp Valuations Ltd. SECRETARY/TREASURER:

Bob Girard, B.Comm, FCCI (Member, Special Projects Committee, Chair, Finance Committee, Member, Education Committee) YCC #50 PAST PRESIDENT:

Brian Horlick, B.Comm., B.C.L., LL.B., ACCI, FCCI (Member, Special Projects Committee, Member, Communications Committee, Member, Conference Committee) Horlick Levitt Di Lella LLP Board Members Brian Antman, CPA, CA (Member, Membership Committee, Member, Finance Committee, Chair, Sponsorship Committee) Adams & Miles LLP Chartered Accountants Marc Bhalla, BA, C.Med, (Chair, Communications Committee, Chair, CondoSTRENGTH Committee, Member, Marketing Committee) Condo Mediators Armand Conant, B.Eng., LL.B., D.E.S.S. (Chair, Legislative Committee, Co-Chair, Government Relations Committee) Shibley Righton LLP Tania Haluk, RCM (Chair, Ontario Caucus, Chair, Education Committee, Member, Marketing Committee) FirstService Residential Henry Jansen, P.Eng. (Member, Sponsorship Committee) Criterium Jansen Engineers Murray Johnson, RCM (Member, Conference Committee, Chair, Volunteer Resources Committee) Brookfield Condominium Services Ltd. Sue Langlois (Member, Communications Committee, Chair, Marketing Committee) Digi-Notice Ernie Nyitrai (Member, CondoSTRENGTH Committee Member, Volunteer Resources Committee Chair, Special Projects Committee) YRCC 636 OPERATIONS MANAGER - Lynn Morrovat ADMINISTRATOR - Josee Lefebvre

Passing the Baton The last two years have flown by – it seems like just yesterday that I took the reins from then outgoing, CCI-T President, Brian Horlick. Yet, much has been accomplished in the last two years and I have been proud to have led the organization during that time of change and growth.

Greek philosopher, Heraclitus, was correct when he wrote, “The only thing that is constant is change” and this certainly applies to the work of CCI. CCI-T is a vibrant and ever-growing organization with its roots firmly planted in serving the changing needs of our members. As times and technology change, CCI has adapted to those changes – none more noticeable than in the last few years as we have moved into the realm of social media to reach our members. We are online and we are connected! In addition to communicating regularly on all major social media platforms, we also host regular Twitter Chat sessions, produce podcasts and educational videos and even our traditional in-class courses now offer a post-class discussion forum on LinkedIn. Condominium legislation in Ontario is also changing. It has been a long journey, but Bill 106 which consists of two different statutes: 1) the Protecting Condominium Owners Act, 2015 (“PCOA”), which significantly amends much of the existing Condominium Act, 1998 (the “Act”); and 2) the Condominium Management Services Act, 2015 (“CMSA”), which deals with the licencing and regulation of condominium property managers in Ontario received Royal Assent on December 3rd, 2015. The Bill has not yet been proclaimed, pending the completion

of the Regulations, but it is hoped that it will be completed and the Bill will become law sometime in 2017. CCI-T will continue to follow the passage of the Bill and will provide regular updates of any changes to our members as things progress.

Change is also on the horizon with respect to leadership of the CCI Toronto Chapter.

This will be my last President’s Message as Sally Thompson prepares to take on the Presidency Change is also on the horizon with respect to leadership of the CCI Toronto Chapter. This will be my last President’s Message as Sally Thompson prepares to take on the Presidency after our Annual General Meeting in October. I thank the CCI Board for their tireless work and support and I leave the Presidency (but not the board) knowing that the Chapter is in good hands and is well positioned to continue to meet the changing times ahead.

Mario Deo, BA, LL.B. CONDOVOICE FALL 2016

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From the Editor

condovoice condovoice is published four times per year – Spring, Summer, Fall and Winter,

by Association Concepts on behalf of the Canadian Condominium Institute Toronto & Area Chapter.

EDITOR: Marc Bhalla ADVERTISING: Jackie Willmore ART DIRECTION & DESIGN:

Atlanta Visual Communications Inc. All advertising enquiries should be directed to Jackie Willmore at (416) 491-6216 Ext 114 or jackie@associationconcepts.ca If you are interested in writing articles for condovoice magazine, please contact Jackie Willmore at (416) 491-6216 ext 114 or at jackie@associationconcepts. ca. Article topics must be on issues of interest to Condominium Directors and must be informative rather than commercial in nature.

The authors, the Canadian Condominium Institute and its representatives will not be held liable in any respect whatsoever for any statement or advice contained herein. Articles should not be relied upon as a professional opinion or as an authoritative or comprehensive answer in any case. Professional advice should be obtained after discussing all particulars applicable in the specific circumstances in order to obtain an opinion or report capable of absolving condominium directors from liability [under s. 37 (3) (b) of the Condominium Act, 1998]. Authors’ views expressed in any article are not necessarily those of the Canadian Condominium Institute. All contributors are deemed to have consented to publication of any information provided by them, including business or personal contact information.

Consider supporting the advertisers and service providers referred to in this magazine, recognizing that they have been supporters of CCI Toronto.

Advertisements are paid advertising and do not imply endorsement of or any liability whatsoever on the part of CCI with respect to any product, service or statement.

Publications Mail Agreement #40047055 Return undeliverable Canadian addresses to Circulation Dept.

2800 14th Avenue, Suite # 210 Markham, ON L3R 0E4 4

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Phantom Power In my younger days, a dear friend shared with me a scenario that his father often spoke of as he was growing up to illustrate a life lesson. The story went as follows…

As you walk down the street, you come across two men having an argument. One is angrily yelling at the other, who remains silent. Tell me, who has the power?

The lesson of the story was that the man who remained silent had the power as only he knew what both men were thinking and as he held the greatest opportunity to influence what happened next.

The problem in applying this message to the condominium context is that silence can sometimes be considered approval.

Consider a director unsure of a decision their Board is coming to. Failing to speak up at a Board meeting would be indicative not of having power but going along as a consenting member of the team (particularly as directors are encouraged to “be team players” outside of Board meetings).

So, if silence isn’t power in the world of condominiums, what is? Who holds the power in the condominium context?

Is it the President of the Board as the perceived leader of the community (or the free world as some might think) or every unit owner to whom he or she is accountable? Is it the owner who spends hours going door to door soliciting proxies or each individual who determines what they would like to do with their vote?

If you think about it long enough, you will likely conclude that these considerations are akin to an optical illusion – the kind that can reveal more than one image

depending on how you look at it. After all, the concept of power, in and of itself, is as much about perception as it is reality.

Without trying to get too philosophical, noted psychiatrist and feminist Jean Baker Miller shared a view of power not as being dominant but rather as having the capacity to produce a change. Instead of power being something that you have and others don’t, it is about having capacity to exert a positive influence on others and enhance or empower them.

The view is not of power being in limited supply, where you want to accumulate as much of it as you can to the detriment of others but rather about true power being something that can be exerted to expand and improve what is available to others. Stated another way, by Kanye West, “You got the power to let power go flow”.

I feel that Miller’s view of power is a good fit for condominium communities. You are not powerful because you were elected to the Board and someone else was not. Your power is the positive impact that you have on your community. Your legacy is how well you benefit your fellow residents and unit owners regardless of the role that you play in your condominium… it can be as simple as asking a good question at the AGM.

Marc Bhalla, BA, C.Med,

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Legal Issues

By Warren Ragoonanan, Hons. B.Comm, LL.B., Gardiner Miller Arnold LLP

Remembering Tendering!

If You Do, You Can Make it Work Well for Your Condominium Corporation

Tendering, or procurement as it is also called, is a practice where a buyer invites multiple sellers to submit offers to supply a good or service. The idea is to have each seller compete with one another to submit the best offer (or bid). The buyer then chooses which offer suits its needs. It is very common for governments, public agencies and large businesses to tender.

And the law of tendering has evolved accordingly. In the condominium world, we often see condominium corporations sending large construction projects to tender.

Tendering law consists of two contracts – Contract A and Contract B – which work together to ensure that the all participants in a tendering process are accountable.

Contract A is an agreement between the buyer and each contractor (as a seller) submitting a bid. The terms of Contract A are in the Instruction to Bidder found in the Request for Proposal (sometimes called an “RFP”) or Invitation to Bid prepared by the buyer. The buyer promises to set up the bidding process and consider bids. In exchange, each contractor agrees to accept the tendering process terms and to submit a bid that conforms to the requirements in the Instructions to Bidders.

Contract B is the actual contract between the buyer and the contractor selected at the end of the bidding process. For example, for a lobby renovation, Contract B would be the construction contract (be it CCDC-2 or in some other form). Contract B would contain the work specifications

- the price, the payment terms, the work timeline and all other items normally found in a service contract.

The whole tendering process is intended to be very competitive. Every so often, a losing bidder will scrutinize the Instructions to Bid and sue both the buyer and winning contractor over a perceived breach. As a result, courts have developed principles concerning the interpretation and implementation of Contract A. For example: 1. Contract A does not arise in every case.

It all depends on whether the tendering instructions show that the parties intended to create a binding contractual relationship. Indeed, a buyer can actively prevent Contract A from arising with certain well-placed language in the initial tendering package.

2. When Contract A does form, its terms are encapsulated in the tendering inCONDOVOICE FALL 2016

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ILLUSTRATION BY JASON SCHNIDER

A good indication that the law on a particular area is working well is when a system works so smoothly, you forget that the law is even there. A good example of this is the law of tendering. Using basic contract law principles, the Supreme Court of Canada has created an effective system for tendering. And, this law is worth remembering because if you do, you can make it work well for your condominium corporation.

structions prepared by the buyer. The terms are binding on both the buyer and contractor. Typical terms will address issues like withdrawing or amending a bid, deposit requirements and when the contractor is deemed to have forfeited that deposit to the buyer.

It is also common to see a “privilege clause”, which provides that the lowest bid will not necessarily be accepted.

3. Courts may imply terms into Contract A, but they tread carefully. Judges are not in the business of rewriting contracts. For a court to imply a term, it has to be so obvious that without it the entire tendering process simply could not work. In legalese, the implied term must give “business efficacy” to Contract A. In the past, Courts have been willing to imply the following terms into Contract A: • The buyer shall only accept a bid that complies with the tender instructions.

• The buyer is under a duty to treat all bidders equally. The buyer must be fair

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and consistent in assessing the bids with due regard for the terms in the tendering instructions. There is case law suggesting that this duty specifically prevents a buyer from “bid shopping” or using a lowest bid to pressure another bidder to reduce their price after the bid submission deadline.

The law of tendering is designed to use contractual liability to hold both buyers and contractors accountable to one another. It puts an onus on the buyer to set up a fair and equal tendering process, and it requires the buyer to follow its own rules. It also puts an onus on the contractors to review the tendering instructions and submit compliant bids. If done right, the result is a cost-effective, first class contractor chosen through a process that is both efficient and impartial.

Despite the fact that a lot of the action in tendering revolves around contract law, the law of tort plays a role as well. Tort law prevents buyers from misrepresenting the project to the bidders. This obviously applies where a buyer intentionally

feeds false information (i.e. lies) to the contractor about the project. Where the contractor relies on those lies, wins the bid and then suffers damages, it may have a claim against the buyer for fraudulent misrepresentation. This is pretty serious and can include punitive damages. But it also applies where the buyer is reckless about the kind of information it gives to the contractor. For example, the buyer may find itself liable in tort if it leaves key information out of the tender documents, or allows those documents to go out without checking to make sure they are accurate. Where the contractor relies on this wrong information and suffers damages, it may have a claim against the buyer for negligent misrepresentation.

These tort doctrines make it the buyer’s responsibility to make sure that the initial tendering documents are complete and correct.

The law of tendering provides helpful insight to condominium boards who want to tender their projects. A condominium board should consult their lawyer early on and have them work with the engi-

neers, interior designers, property managers and other people involved to design a fair and efficient tendering process. For a small project, like a minor plumbing job or a snow-plough contract, it is likely sufficient to simply call on a trusted contractor with whom the condominium corporation has enjoyed a long relationship.

For bigger jobs, such as a multi-million dollar lobby or garage renovation, it makes sense for the Board to provide detailed instructions to bidders in the form of Contract A and undergo a proper tendering process that results in a sophisticated final Contract B. Boards should also remember to involve their lawyers early, preferably before they hire the project’s consultant (i.e. the engineer, architect, interior designer, etc.). As a condominium corporation moves through the tendering process, it becomes increasingly tied in a Gordian knot of legal rules. The further it goes, the less flexibility it has. By the time it selects the winning bid, its flexibility is virtually non-existent. At that point, Contract A’s duty of fairness prevents

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Audio Podcasts Now Available!

Podcast: Contract Tendering In Part I of this podcast interview Warren Ragoonanan and Shawn Pulver discuss recent investigations by Canada’s Competition Bureau surrounding condominiums. Watch for Part II as they discuss best practices for contract tendering. the Board from adding or changing the terms of Contract B (such as by adding supplementary conditions); and there is very little a lawyer can do. That is why it is better to call counsel sooner rather than later.

When deciding to tender a contract, condo Boards should remember that the law of tendering is operating in the back-

ground. It is a good system – so good that it is easy to forget that the law is there.

That is why it is really important to understand these tendering principles. Not only does understanding make it easy to remember, it also gives Board the ability to make the system work for the corporation. This can result in better quality work at less cost, and that is something that everyone will remember. C V

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Conflict Management

By Marc Bhalla, Hons. B.A., C.Med CONDOMEDIATORS.ca

Rules Were Meant to be‌ UPDATED! A Mediator’s Perspective on the Importance of Updating Condominium Rules

Rules, on the other hand, do not require a majority of all owners to be approved. In fact, rule changes can actually be easier to achieve for communities experiencing owner apathy, as a vote on proposed new rules is only needed if requisitioned.

Section 58 of the Condominium Act, 1998 addresses condominium rules. The only real parameters are that they should be reasonable and consistent with the by-laws and declaration of the community. The subject matter of rules should be intended to

promote safety, security and the welfare of the owners and property/assets of the corporation, as well as prevent unreasonable interference with the use and enjoyment of the common elements, units and assets of the corporation.

Given the relatively straightforward process for developing rules and the fairly broad parameters that the Act grants condominiums surrounding their content, I believe that condominium Boards should, even if just on a cursory basis, review their rules at least every 3-5 years to ensure that they reflect the personality of the community and that they are being adhered to. As a mediator, I make this recommendation for several reasons, all which centre upon the experiences I have had as my clients have looked at rules applicable to their communities in the course of addressing conflict.

Rules that are clear, current, relevant and regularly abided by or enforced tend both to have the most meaning to conflicting parties and to offer the most guidance.

On the other hand, condominium rules that are irrelevant, generally ignored or which have failed to keep up with the evolving culture of a community can be viewed as existing only to be broken. Often, rules of this nature are not taken seriously and serve to escalate conflict rather than help manage it.

In the course of considering a review of your condominium community’s Rules, it may be helpful to learn about some of the more interesting incidents surrounding condominium rules that I have come across when mediating and to reflect upon what could have allowed for a better set of circumstances for all involved.

Unintended Consequences: While rules generally tend to be drafted with the best of intentions, typographical errors or literal interpretations can sometimes give rise to unintended results. Seeing-eye dogs being required to be carried while upon the common elements and shirts and shoes having to be worn while swimming are amongst CONDOVOICE FALL 2016

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ILLUSTRATION BY MAURICE VELLEKOOP

Condominium by-laws can be hard to pass.

Often, this is the case not because of conflicting views but rather the result of unit owner apathy. Some owners simply choose not to bother to attend meetings or otherwise participate in community decision making. While there are several theories as to why, the fact remains that without a majority from amongst the unit owner collective voting in favour of a new by-law, by-laws cannot be changed.

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the likely unintended yet literal interpretations of condominium rules that I have encountered. As a result, I encourage condominium Boards to view rules as worksin-progress that can be fine-tuned over time to work as intended rather than set in stone when they yield unintended results or otherwise give rise to circumstances which do not best serve the community.

Get With the Times: If nothing else, the evolution of technology warrants updating rules. I recently came across a set of condominium rules that bans cassette players in a recreational facility. I am not certain that my teenager knows what a CD is, let alone a cassette tape! While I have certainly mediated my fair share of noise disputes in the condominium context, none have yet involved someone carrying a boom box over their shoulder while upon the common elements, stopping every now and then to flip the tape from Side A to Side B. Consider technological advancements and ensure that your condominium’s Rules address them appropriately. For example, the emergence of smart phones is increasingly encouraging bans on snapping photos in changerooms.

Keep it Simple: Rules present a great opportunity to set out community restrictions in a way that is easy to understand.

As a proactive means to manage future conflict, keep the language simple and straightforward so everyone knows what the rules are saying. Terms like “water

Condominium rules that are irrelevant, generally ignored or which have failed to keep up with the evolving culture of a community can be viewed as existing only to be broken closet” do not always clearly spell out what is being referred to and confusion over what rules mean tends only to frustrate matters.

Keep it Enforceable: While rules should speak to the culture of the condominium community, serving as a way to educate new residents and establish an understanding of what is acceptable behaviour, they have limited value if they cannot be enforced. For example, a rule preventing a resident from hitching onto a neighbour’s Wi-Fi service may seem justified in the context of promoting good neighbourly relations; however, what can a Board or property manager do to prevent someone desperate for a connection from linking to one that is available?

Embrace Independence: Should a 10 year old condominium still have a rule that permits its developer to make use of its Party Room? While there may well remain certain rights of the developer within your condominium’s Declaration or Bylaws, little suggests that a community’s Rules are outdated as those that speak to turnover stages in a mature condominium.

If even only for perception of currency for members of the community, there is often little reason to keep reference to developer access in rules once a developer’s responsibilities to a condominium have concluded.

In thinking about the Rules of your community, keep in mind that it can be a mistake to think that only the rule directly applicable to a situation is relevant. Many within a condominium community will view rules in their entirety and judge for themselves whether they feel there is any merit to them. A severability clause may legally suggest otherwise, yet perceptions play a large role in the management of conflict. A condominium community’s rules will carry more weight if they are generally well viewed.

Ensuring that your condominium community’s Rules are current, relevant, known throughout the community and are clearly stated can go a long way in managing conflict, saving everyone involved a great deal of stress, time and money in the long-run. C V

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Condo Profile

By James M. Russell Newsletters et Cetera

The Romans revered the deity Neptune as the god of freshwater, and although the residents of the Neptune condominium truly love their building, none kneel before it on the sidewalk. Still, when it comes to handling fresh water, the Neptune’s new hydro booster pumping system deserves a round of applause at the very least.

The Neptune, comprised of 861 units, is centrally located at 209 and 215 Fort York Blvd in the heart of Toronto’s waterfront, mere cannon-fire distance from Old Fort York on the north and, on the south, close enough to feel the spray off Lake Ontario on a windy day. An idyllic setting for sure, yet, good governance trumps location, so no sooner had the paint dried, the grass laid, the workers departed, and the lumbering moving vans arrived to begin unloading the first resident’s possessions, than Neptune’s Board began studying their ‘energy usage’, a budget line item that bedevils every condominium board.

PHOTOGRAPHY BY RON JOCSAK

A New Hydro Booster Pumping System and a Common Area LED Lighting Upgrade at the Neptune Will Pay for Themselves in Less Than Two Years

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After commissioning an audit, the Neptune’s five-member Board identified several opportunities for energy savings. And perched on the summit of that list was the auditor’s recommended replacement of their woefully inefficient, energy-hogging, domestic cold-water booster pump system.

would need to lower buckets to the ground then pull – hand over hand - the heavy vessels back up. And while ‘twice daily water bucket grunting and lifting’ is likely a good cardiovascular exercise, it is not an amenity any condominium wants to include in their sales brochure.

The Scoop on the Pumps The City of Toronto’s main water feed typically enters the Neptune at 73 pounds per square inch gauge (psi), sufficient to reach the eighth floor, but without a water pressure reading north of the magic two hundred psig mark, residents living on floors nine to thirty-eight of the Neptune

What The Neptune did want was an energy efficient system that would reduce their hydro dependence so, after doing their homework, “The Board ordered the booster pump system and had it promptly installed,” says Board President Dan Kennedy.

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The sparkling new, hydro booster pump-

ing system set the corporation back a hefty $66,000, but the budgetary pain was partially offset by Ontario Power Authority’s ‘Save on Energy’ rebate of $18,000.

Dan calculates that the corporation will recoup their investment in as little as two years. “In fact, we noticed a significant drop in our hydro bill the first month after the system was installed,” says First Services District Manager Mark Bartoloni. Although the Neptune’s Board did not know it at the time, the installation was fortuitous as mere months later, the Ontario Energy Board approved Toronto Hydro’s application for a five-year 1.7% per month rate increase.

Contributing to the efficiency of the three, 15 hp pumps at the heart of the pumping system is its CU 352 controller, an ‘intelligent cascade control system’ that only activates the pumps required to meet the demand. So instead of their three older pumps running constantly, as was the case with the previous system, the new pumping system calls on only one of the three pumps during times of diminished demand, and on all three during peak periods - typically in the mornings and evenings when residents are showering, cooking, and washing.

Given the considerable forethought and planning the Board and management put into the project, it is not surprising that the transition to the new system was flawless and only required a part-day shutdown of the building’s water system.

The Neptune’s sister building – Neptune II – also has a booster pump upgrade in its future but because Neptune II is only sixteen storeys (versus Neptune I’s thirty-eight), the capital cost-to-energy saving ratio is significantly lower. So low that the auditor’s report projected it would take nearly five years beyond the project’s completion

before the corporation began realizing a return on its investment.

Let There be Light!

Fluorescent tubes produce a narrow, and often unsettling, spectrum of light while halogen bulbs require transformers that use electricity even when the light is off, so it was not surprising that the villainous pair were next on the Board’s energy conservation ‘hit list’.

It was early this year that the Board decided to proceed with the common area lighting upgrade, including the Neptune’s lobby, garage, elevators, stairwells, recreation facilities, and exterior areas. After pruning the long list of companies that responded to the Board’s tender, a Toronto-based LED company was chosen to complete the work. In response to concerns voiced by some residents, and several Board members, the Board asked the LED company to install a representative sample in several small areas around the building and parking garage to confirm that the new LED technology wouldn’t result in decreased lumens or an unacceptable colour cast. The lights passed the

test and the $189,000 LED retrofit was completed early this year. Factoring in the $31,086.45 rebate they received from the Ontario Power Authority, the Board predicts an impressive twelve to fifteenmonth payback. Especially impressive since their new LED units last, on average, 50 times longer than incandescents, 25 times longer than halogens, and 10 times longer than CFLs .

The 3,246 bulb lighting project consisted of: • Retrofitting the hallway’s twin lamp 18w CFL PL base wall sconces with 15w LED panels and drivers • Retrofitting the lobby’s 50w metal halide Par 20 and Par 30 potlights with RENO LED Par 20 and Par 30 Sylvanias.

• Re-lamping the stairwell twin lamp 32w 4ft fluorescent fixtures with RENO LED 15w T8 Sylvanias.

• Re-lamping the parking garage fixtures and replacing the twin lamp 32w 4ft fluorescents with a RENO LED 15w T8 Sylvanias.

• And on the exterior, retrofitting the 70w metal halide lamps with RENO LED 17w A19 Sylvanias.

JCO & Associates have specialized in the refurbishment of condominium common elements for over 24 years, offering cost effective, creative solutions that enhance the look and marketability of your condominium. We pride ourselves in providing the highest quality of service and workmanship.

Please visit our web site at www.jcoandassociates.com to view our current and past projects or contact us at 416-724-4237.

JCO is a member in good standing with ACMO (Association of Condominium Managers of Ontario), CCI (Canadian Condominium Institute), IDC (Interior Design of Canada) and TCA (Toronto Construction Association). All our work is guaranteed and can be certified by a Performance Bond issued by Zurich Insurance for performance, material and labour.

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Left to Right: Mike Spence and Kenny Erlich, LED installers; and Mark Bartoloni, District Manager

To maintain, and in some cases, improve, the shade of lighting, the LED company used 40 Kelvin bulbs in all areas except the exterior, where they installed 50 Kelvin lamps.

Energised Well Into the Future What’s next for the Neptune? Well, with Toronto Hydro’s business rates starting at 8.7 cents per kWh during off-peak times and climbing to a staggering 18 cents per kWh, Mark says, “We’re actively looking into how we can better exploit time-of-use savings.”

“And solar on our roof,” adds Dan, who 18

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thinks that solar panels, seen frequently atop industrial buildings throughout the GTA but rarely on multi-residential properties, will become more and more attractive to condominium boards as their advantages become widely reported and apparent. And Dan is correct. The Canadian Apartment Magazine reported in an April 2014 article that solar panels, “make a personal and direct contribution to clean sustainable energy for the community and the world by using solar panels, with less reliance on controversial nuclear power and undesirable fossil fuel power.” Additionally, solar panels require little, and sometimes, no maintenance, last upward

of forty years, and, in addition to their intended use, act as a kind of quasi-second roof that can lengthen the lifespan of a multi-residential property’s expensiveto-replace original crown.

Emperor Flavius Arcadius Augustus allowed Romans to sacrifice bulls in honour of only three of their many, immortal gods.

Neptune was one of those three. With their proactive energy conservation initiatives the Board, management, and the residents of the Neptune are sacrificing nothing, and instead, gaining something more precious than immortality – a lower utility bill and Mother Nature’s gratitude. C V

Case Law Update Brian Horlick, B.Comm., B.C.L., LL.B., ACCI, FCCI Horlick, Levitt, Di Lella LLP Timothy Duggan, BA, LL.B., Horlick, Levitt, Di Lella LLP

Decisions From the Courts The Impact on Your Condominium Corporation

Toronto Standard Condominium Corp.

No. 1816 v. Greco (Ontario Superior Court of Justice, June 15, 2016) The condominium corporation brought this application seeking an order that Ms. Greco, a unit owner, and her daughter had breached the Condominium Act, 1998 and the corporation’s declaration and rules.

The complained-about behavior included allowing the dogs belonging to Ms. Greco and her daughter to run free and soil the common elements; vandalism and damage to the common elements; aggressive behaviour toward the corporation’s staff and other unit residents by Ms. Greco’s daughter and her friends; and, most significantly, persistent loud screaming, shouting and fighting in the unit that disturbed other unit residents’ comfort and quiet enjoyment of their respective units.

The corporation made efforts to address the conduct of the Grecos by, among other things, having its property manager send two letters and its lawyers send a further three letters. However, far from ceasing the complained-about behaviour, the conduct of Ms. Greco and her daughter seemed to escalate with each letter that was sent. Among other things, after letters started being sent to the unit, Ms.

Greco’s daughter made threatening remarks toward the other unit residents who had complained about the noise and other issues caused by the Grecos.

As a result of the conduct of Ms. Greco and her daughter, the corporation sought, among other things, an order that Ms. Greco and her daughter permanently vacate the unit, and an order that the unit be listed and sold. Despite the seriousness of the order that the corporation sought, Ms. Greco did not file any materials in response to the corporation’s application, nor did she (or anyone on her behalf) attend the hearing of the application.

At the hearing of the application, the court reviewed the extensive record of complaints about the Grecos’ behaviour, including more than three dozen separate noise complaints. The court considered the fact that the Grecos’ behaviour had not ceased despite two letters from the corporation’s property manager and three more letters from the corporation’s lawyers. Although the court recognized that ordering Ms. Greco to list and sell her unit, and ordering her and her daughter to permanently vacate the property, were drastic remedies, the court was satisfied

that those orders were warranted in the circumstances. As such, the court ordered that Ms. Greco and her daughter permanently vacate the property within 30 days, and that the unit be listed and sold within 90 days. The court also awarded substantial indemnity costs of $28,000.00 to the corporation.

Author’s note: it is rare for a court to make an order that a unit be listed and sold. Such an order is typically only made either in circumstances a) where the owner has engaged in serious violent behaviour, such that there is a risk of serious harm to other unit residents if the owner is permitted to remain in the building, or b) where, as here, the owner engages in persistently antisocial behaviour that shows a complete disregard for other unit residents and fails to correct that behaviour despite repeated efforts by the corporation. It may be that the court regarded Ms. Greco’s failure to respond to the application as a further indication that her and her daughter’s behaviour would not change if they were permitted to remain in the building; to this end, it is worth considering whether the outcome of this case would have been different had the Grecos responded to the corporation’s application or to any of the corporation’s efforts to address their behaviour.

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N.K.P. Painting Inc. v. Boyko (Divisional Court, May 4, 2016) This was an appeal by a painting contractor. The respondent condominium corporation had retained a general contractor in connection with a common element corridor refurbishment. The general contractor then entered into an agreement with the appellant, as a subcontractor, for the appellant to provide painting services as part of the corridor refurbishment.

The total cost of the corridor refurbishment was $285,760.00 plus applicable taxes. The corporation paid this amount, less the 10% holdback required by the Construction Lien Act, to the general contractor. For its part, the appellant rendered invoices totalling $28,928.00 to the general contractor for its painting work, but these invoices were not paid.

Eventually, the general contractor declared bankruptcy without having paid the appellant for its painting work. The appellant then sought to recover these monies from the corporation (which was still holding $23,893.74 in respect of the statutory holdback) in the Small Claims Court on the basis of unjust enrichment.

At trial, the Small Claims Court dismissed the appellant’s claim on the basis that the appellant’s contract was with the general contractor, and the appellant would not reasonably have expected to be paid by the corporation. The appellant then appealed to the Divisional Court.

On appeal, the Divisional Court held that the Small Claims Court had erred in dismissing the appellant’s claim. In making this determination, the Divisional Court set out the four factors for a claim for unjust enrichment, and held that the appellant had satisfied all four factors:

• Lack of juristic reason for the benefit and corresponding deprivation: the court held that there was no contractual or other basis for the corporation to have benefitted and the appellant to have suffered • Reasonable expectations of the parties: the court held that the appellant had a reasonable expectation that it would be paid for the work that it did, and that the corporation would have had a reasonable expectation to pay the full agreed-upon price for the corridor refurbishment work

Given that the appellant had satisfied the test for unjust enrichment, the Divisional Court held that the appellant was entitled to judgment. Although the appellant’s claim was for the jurisdictional maximum of the Small Claims Court (being $25,000.00, or somewhat less than the value of the unpaid invoices), the court held that the corporation’s liability was limited to the amount by which it had been enriched (being the statutory holdback funds of $23,893.74 that it was holding).

Author’s note: it is interesting to note that, in this case, the appellant could have

• Defendant has been enriched: the court held that the corporation had been enriched by obtaining 100% of the corridor refurbishment work for 90% of the cost of same • Plaintiff has suffered corresponding deprivation: the enrichment to the corporation corresponded to the work done by the appellant in providing the painting services for the corridor refurbishment CONDOVOICE FALL 2016

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registered a construction lien on title to the corporation’s lands and pursued recovery in that manner. The decision is silent on the reasons that the appellant did not register the construction lien, but the Divisional Court did make a point of stating that the failure to register a construction lien did not prevent the appellant from pursuing its Small Claims Court claim for payment.

Beyond that, it is interesting to consider what the result would have been if the corporation had not held back monies pursuant to the Construction Lien Act. If all monies payable under the contract with the general contractor had been paid to the general contractor, the corporation would not have been enriched by receiving 100% of the corridor refurbishment for 90% of the cost. Based on the court’s analysis in this case, this could have led to the appellant’s claim for unjust enrichment being dismissed (due to the corporation not having been enriched).

Carleton Condominium Corp. No. 396 v. Burdet (Court of Appeal for Ontario, May 25, 2016) The unit owner, Mr. Burdet, owned (or controlled entities that owned) 23 of the 33 units in the corporation. Mr. Burdet and the corporation (which was under court-appointed administration for much of the relevant period) had been in litigation that had, in one form or another, been going on since 1999. In this latest edition, the corporation had obtained judgment against Mr. Burdet and the entities that he controlled for nearly $500,000.00 for unpaid common expenses for the Burdet units, plus nearly $800,000.00 for costs.

Mr. Burdet appealed this judgment to the Court of Appeal for Ontario.

On appeal, Mr. Burdet raised a variety of arguments. Among other things, Mr. Burdet argued that the court had erred in granting judgment for unpaid common expenses. According to Mr. Burdet, the only way for the corporation to recover common expenses was by way of the lien procedure set out in the Condominium Act, 1998. Mr. Burdet argued that the corporation’s failure to register a lien in a timely manner disentitled it to recover these monies, and that the corporation was not entitled to sue for these monies.

The court disagreed. In reviewing this matter, the court noted that, while the Act set out the obligation to pay common ex-

Author’s note: this decision further confirms what has long been the author’s view, namely that a condominium corporation that is out of time to register a lien in respect of unpaid common expenses may commence a claim for those common expenses. While this claim would typically be in the Small Claims Court (which has a monetary jurisdiction of up to $25,000.00), in certain extreme cases such as this one it may be necessary to proceed in the Superior Court of Justice. penses (on the part of a unit owner) and the right to register a lien for unpaid common expenses (on the part of the corporation), section 136 of the Act was clear in stating that nothing contained in the Act restricted the corporation from the other remedies that would generally be available to it. The court held that it would be unreasonable to interpret the Act as requiring unit owners to pay common expenses, but extinguishing the rights of the corporation to collect unpaid common expenses if a lien was not registered in a timely manner. As a result, the court dismissed Mr. Burdet’s appeal.

It should be noted that, by losing the right to a lien for the common expense arrears, the corporation would also lose its right to priority in respect of the arrears, and would rank behind other encumbrancers (e.g., the mortgagee of the unit) if the unit was to be sold and the arrears paid from the proceeds of sale. In this regard, it is worth wondering whether the corporation in this case will be able to recover monies from the sale of the Burdet units (assuming that same are sold), or whether there are other encumbrancers who have priority and whose claims would exhaust the equity in the units. C V

A Trusted Partner - Today and Tomorrow

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Miller Thomson’s Condominium Group

Warren Kleiner

Audrey M. Loeb aloeb@millerthomson.com 416.595.8196

wkleiner@millerthomson.com 416.595.8515

Patrick Greco

Megan Mackey

pgreco@millerthomson.com 416.595.2982

mmackey@millerthomson.com 416.595.8623

Complete condominium legal services in one firm.

Contact us to learn more about our great team of lawyers and the Miller Thomson difference.

@mtcondolaw

Miller Thomson LLP

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millerthomson.com VANCOUVER

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MONTRÉAL

1/14/2016 10:26:17 AM

Dear CCI Members, There has been much in the news recently with respect to the launch of a new e-commerce program whereby purchasers can order alcohol online and have it delivered in clearly marked LCBO packaging via Canada Post.

Recognizing that many condominiums accept deliveries on behalf of residents, a reminder is put forth that the Ontario’s Liquor Licence Act makes it an offense to knowingly supply liquor to a person under the age of 19, to supply liquor to a person who appears to be under the age of 19, or to a person who is or appears to be intoxicated. Accordingly, CCI encourages all condominium corporations who accept parcels on behalf of residents to review their policies regarding such deliveries. Any parcels from the LCBO which are not signed for onsite, will be redirected to a Canada Post outlet where the purchaser will need to pick them up, showing appropriate identification.

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CRA Issues

By Rainer Vietze, CPA, CA, MTax

Understanding the “Ins and Outs” of ITCs Input Tax Credits are governed by some basic rules that ensure the HST meets the objectives of a value-added tax

Our Story So Far …

Previously we learned that all supplies of goods or services made in Canada are categorized as (a) taxable supplies (full rate), (b) zero-rated taxable supplies or (c) exempt supplies. We also learned that even when an item is a taxable supply, HST/GST would only be charged where the vendor is a Registrant for HST/GST purposes. The table on the right shows how HST would apply to each category

depending on the status of the vendor.

ITC – That’s Something New There is one more element needed, and it’s a rather important one, given its purpose is to eliminate the multiple layers of taxation would have on the price an end consumer pays. This element is known as

an “Input Tax Credit”, which is generally shortened to “ITC” as illustrated in the table on the top of the next page.

A quick example will help demonstrate how ITCs fit into the HST system. The following spreadsheet shows the path

Taxable/ Exempt exempt Taxable supply (full rate) Zero-rated taxable supply supply

Example Certain financial goods or Most goods and services services; services consumed in Canada Basic food; most exports residential housing Status of Non-Registrant Registrant Non-Registrant Registrant vendor vendor vendor vendor vendor Non-Registrant ILLUSTRATION BY JASON SCHNIDER

When we last left ABC Condominium Corporation back in the Winter 2015 edition, they were in the process of becoming a Registrant for HST purposes. Since then, they have received their HST program account number, which consists of the same nine-digit Business Number (BN) that forms part of the corporate income tax program account number followed by the suffix RT0001, which identifies this as the first HST/GST program account in respect of the BN shown. Their first corporate tax program account would be denoted by the suffix RC0001.

5% federal GST 0% federal GST and provincial and provincial portion portion combined is combined is Is supply HST; Ontario HST; Ontario taxable?

HST N/A combined is 13% HST N/A combined is 0% HST exemption

Are ITCs claimable?

No ITCs, must be Registrant

ITCs on

expenses related No ITCs, must to business be Registrant

ITCs on expenses No ITCs related to on exempt business supplies

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From:

To:

Original cost New cost

Sub-total

HST

Total

Product

Mfr 1 Mfr 2 Mfr 3 Mfr 4

Mfr 2 Mfr 3 Mfr 4 Customer

- 113.00 240.69 384.98

100.00 213.00 340.69 484.98

13.00 27.69 44.29 63.05

113.00 240.69 384.98 548.03

Widget SuperWidget MegaWidget GigaWidget

from Widget to Giga Widget, and the associated progression of costs from manufacturer to more manufacturers to the final customer. The example ignores profit margins and only passes along accumulated costs.

If there had only been one manufacturer with laid out costs of $400.00, the end consumer would have paid $452.00 inclusive of the HST. Contrast this with the above example where there are four manufacturers along the way and the same $400.00 costs the end consumer $548.03. The extra cost of $96.03 reflects the impact of HST being charged on HST each time there was an onward sale to the next level.

The solution to deal with the extra tax is to reimburse each manufacturer for any HST that was incurred on inputs that were used in a commercial activity. Looking again at the example above, Manufacturer 1 didn’t incur any HST on its input, but they will need to remit the $13.00 they collected from Manufacturer 2. Manufacturer 2 will be able to get a reimbursement of the $13.00 they paid.

As a result, their sales price to Manufacturer 3 will decrease to $200.00 and they will then only need to collect and remit $26.00 in HST from Manufacturer 3. And so on.

ITCs are governed by some basic rules that ensure the HST meets the objectives of a value-added tax. Generally speaking, ITCs can only be claimed by a Registrant in respect of a business being carried on for the purpose of supplying taxable goods and services (both full-rate and zero-rated). ITCs cannot, therefore, be claimed in respect of an exempt supply, although in some cases, there are rebates available to certain Registrants. ITCs cannot be claimed by Non-Registrants.

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100.00 100.00 100.00 100.00

That being said, are ITCs something ABC Condominium Corporation should be concerned about? In short, yes. ABC finds itself in a unique situation where the annual maintenance fees being paid by a limited number of commercial unit holders is greater than $50,000. As a result, ABC was required to register for HST purposes and commences charging HST on the billings to the commercial units.

The annual maintenance fees paid by residential unit owners are exempt sup-

Until now, condominium corporations that were also HST Registrants have been rare, but this will likely change as the amount of taxable supplies increases plies. ABC should be entitled to at least a partial refund for ITCs since at least some of the underlying expenses are being incurred in carrying out a commercial activity.

ITCs – Combined Taxable and Exempt Supplies The vast majority of Registrants are fortunate in that their supplies of goods and services are either exclusively taxable supplies or exclusively exempt supplies.

As a result, they will either have a full claim for ITCs (for taxable supplies) or no claim for ITCs (for exempt supplies).

However, it is possible to be in the business of making both taxable and exempt supplies, and where this is the case, a por-

tion of the HST paid by the Registrant would be part of an ITC claim.

The distinction between taxable supplies and exempt supplies, and the concept of ITCs are, of course, irrelevant for many condominium corporations since they are not Registrants at present. Those issues only gain relevancy when the condominium corporation registers for HST purposes. Moreover, once registered, it is a foregone conclusion that the corporation will need to track its taxable and exempt supplies and apportion the HST incurred on expenditures between those two supply streams.

Basis for Apportionment Apportionment is necessary to ensure that only the HST on those expenditures used in making taxable supplies (for instance, commercial unit maintenance fees) is including in the ITC claim made to the CRA. Given that this apportionment directly determines how much HST is refunded to the condominium corporation, the Act provides relatively little guidance on how to apportion incurred HST between taxable and exempt supplies. Regardless of the method used, once a method is determined, every effort should be made to apply it in a consistent manner from one reporting period to the next. In that regard, the chosen method should be fairly easy to follow to avoid judgement calls.

In the situation where revenues are limited to residential and commercial maintenance fees, for instance, the easiest method would be to apportion the HST based on the relative percentage that each fee is of the whole. Since each unit owner has an undivided interest in the condominium equal to their ownership percentage, they would have a similar

interest in the operating expenses and reserve fund expenditures for the year.

Where exempt supplies include other activities, it should be possible to identify and separately deal with any expenses specifically incurred to make those exempt supplies. They can then be excluded from the expenses to which the general apportionment method is applied.

Issues With Apportionment As noted above, apportionment of the HST incurred on the corporation’s expenditures based on the ratio of taxable to exempt supplies would seem reasonable where a condominium is concerned.

Generally speaking, this would mean that the current year ITC would be taken into account in the next year (which is also generally when it comes into cash flow).

The reimbursed HST does raise an interesting question in terms of whether the full amount of the refund should be allocated to the benefit of the commercial units, or whether all unit holders should share in the refund proportionate to their interest in the common elements.

While one could argue that only the commercial unit owners should benefit given it was the treatment of their fees as tax-

able supplies that created the opportunity to claim a refund, one must also consider the legal basis of ownership in a condominium corporation. Quite simply, every unit owner has an undivided interest in the common elements and fixed assets equal to their proportionate share as defined in the corporation’s Declaration.

Lastly, readers are cautioned that tax legislation, including any regulations or other pronouncements made thereunder, is constantly changing Summary Until now, condominium corporations that were also HST Registrants have been rare, but this will likely change as the amount of taxable supplies increases (especially when special assessments are made) while the registration threshold remains constant. Once registered, the condominium corporation will need to apportion any HST it incurs between

taxable supplies and exempt supplies made by it for purposes of an ITC claim.

While apportionment should be easy in theory, a number of issues may make things more difficult in practice.

A new Registrant should take the time to fully understand the nature of their supplies and the related expenditures so that they can adopt an apportionment method that can be implemented and maintained fairly easily and that will be consistently applied during the period and throughout all periods.

The method provided in this article would generally meet those objectives, but before adopting any method, it should be modified to take into account facts and circumstances specific to the particular condominium corporation. Furthermore, the information contained in this article is of a general nature and should not be relied on. Condominium corporations should seek professional advice when dealing with the matters discussed herein. Lastly, readers are cautioned that tax legislation, including any regulations or other pronouncements made thereunder, is constantly changing. The information contained in this article is current as of the publishing date, but no effort will be made to update it for subsequent changes to the underlying legislation. C V

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Townhouse Condos

by Irfan Alli, RCM, Malvern Condominium Property Management

Preventing Water Damage in Townhouses One of the easiest ways is to educate owners and residents on how to prevent it One of the easiest ways to minimize water damage in townhouses is to educate owners and residents on how to prevent it so they are more mindful of what is going on in their units. As well as be better able to advise Management when they see water intrusion from the outside. It has worked for me over the years in the various stacked and un-stacked townhouses I have taken over and turned around. It can work for you as well.

Below is a sample notice Boards can tailor to their condominium corporation to help address water damage. Keep the language simple, as English is not always the first language of all residents.

Toronto Standard Condominium Corporation XXXX Preventing Water Damage On reviewing the records of the corporation, we find that water damage has been fairly common on the complex and last February (XXXX) was one of the worst months for water damages as temperatures went to minus 20 degrees and be-

low. Over the next few days, temperatures are expected to drop and we are asking each homeowner/resident to ensure their unit is properly heated and to watch for frozen pipes and water leaks. The Board and Management would like to minimize such damages because when they happen, costs come directly from your pocket or indirectly from the maintenance fees you pay. Who pays for the repairs depends on what caused the damage. Generally speaking, the homeowner pays for leaks within the unit and the Condominium Corporation pays for leaks coming from outside the unit.

Know Where Your Main Water Valve Is Before we explain the various sources of water leaks and resulting damage in any unit, we would ask you to please find the main water shut off valve for your unit. The valve is _________________, normally a red handle. Parallel to the pipe is on and when the handle is 90 degrees to the pipe the water stops flowing. Please do a practice run. Go find your valve, turn it off, and ensure your taps around the house

are not giving out water. In the event of a water pipe leak/rupture in your unit, you must immediately switch the main water valve to your unit off. This will prevent or minimize damage to ceilings, drywall and hardwood floors.

Unit Heat Turned Off Owners sometimes think that they can save money while on vacation by turning the heat off. During winter months, never shut down your heating system before you go away! Eventually, the inside of your home will become the same temperature as outside and water in pipes will freeze. As water freezes, it expands.

As it expands, it splits/ruptures pipes. Extensive water damage is the end result.

Sometimes the damage is not just in your unit but in your neighbour’s as well.

Space Heaters Not Being Used The same is true for space/baseboard heater. The builder put them there for a reason. For example, many units have space/baseboard heaters along the entrance stairway, with a kitchen sink and dishwasher at the top/side of the stairCONDOVOICE FALL 2016

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If you turn a tap on (that normally works) and no water is coming through, while other taps in the house are working, this is the first sign of trouble. It means the pipes leading to that tap have frozen and can eventually rupture

way. There are pipes in the immediate walls and ceilings. If the area becomes too cold, pipes will rupture and cause water damage. Leave your space heaters on during winter!

Frozen Pipes Not Attended To If you turn a tap on (that normally works) and no water is coming through, while other taps in the house are working, this is the first sign of trouble. It means the pipes leading to that tap have frozen and can eventually rupture. Since all the pipes and taps in the units are the homeowner’s responsibility, you should ensure that area of the house has proper heat. If a problem persists, please have a plumber look at the frozen pipe immediately.

Leaking Washing Machine Recently we were in a rented unit which had a washing machine pump leaking for weeks or months. We know this because it damaged the surrounding hardwood floor in the unit, as well as the ceiling and walls of the unit below. The owner is responsible to repair the washing machine, his hardwood floor, as well as pay the cost to repair the unit below. Routinely watch for signs

of water leak (mould, warped hardwood floor and baseboards, water, etc.) around all appliances (dishwasher, etc.) in your unit. Check inside of cupboards under sinks as well. If you are a tenant and see a leak, please bring it to the attention of your landlord right away, so it gets fixed.

Washroom Leaks In washrooms, the caulking around bathtubs deteriorates with time and can let water travel behind walls and down below.

ComField

Property Management Services

Where Value and Community Count Providing Property Management for: • CONDOMINIUMS • Residential • Retail • Commercial • Industrial

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CONTACT: SUZANNE BOTNICK Business Development Manager

Tel: 416.640.6730 x.119 • Fax: 416.932.9435 2171 Avenue Road, Suite 303, Toronto, Ontario M5M 4B4 suzanneb@cfdi.ca • www.comfield.ca

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Leaking toilet bowl tanks and overflowing toilets also contribute to damage. Routinely inspect your washrooms including inside the cabinet under the sink to ensure there are no water leaks. These are your responsibility to maintain and fix.

Poorly Maintained Air Conditioners When your air-conditioner is running during the summer time, they are not properly insulated if the pipes are dripping condensation/water. Your air-conditioner also has a drain pipe to get rid of condensation/water. This pipe should be checked to ensure it is not blocked and is properly centered in the drain. Water dripping around the drain can damage floors and ceilings below.

Satellite Dishes Poorly installed or removed satellite dishes can also cause water leaks. A satellite dish is held by bolts that penetrate the wall of the townhouse. Such bolts need to be caulked on installation to prevent water leakage into the unit. On removal of a dish the holes have to be sealed to prevent leakage. Repairs to damages caused by poorly installed or removed satellite dishes are charged back to you.

Please be reminded that satellite dishes can only be installed after receiving written Board approval.

Leaks From Outside Your Unit Outside leaks can come from balconies, compromised caulking, leaking flash metal joints, poorly installed or removed satellite dishes, window issues, balcony door problems, leaking roofs, etc. It is the Corporation’s responsibility to stop water from the outside coming into your unit. If you notice a problem, please bring it to the attention of the Property Manager/Board so it gets addressed.

Leaking Taps and Toilet Tanks While we are discussing water damage, we should also touch upon water wastage. Leaking taps and toilet tanks create wastage and unnecessary expense. By a leaking toilet tank, we mean the flapper inside the tank is not sealing properly after a flush, resulting in water continuously running inside the bowl. You can visually check for a tank leak, by dropping a piece of toilet paper in the bowl and watch for movement. If the water is moving around, you have a leak. This results in increases

Poorly installed or removed satellite dishes can also cause water leaks. Such bolts need to be caulked on installation to prevent water leakage into the unit. On removal of a dish the holes have to be sealed to prevent leakage. to maintenance fees. Please help keep costs down by repairing leaking taps and leaking toilet tanks.

In The Event of an Emergency You can call XXXXXX at XXX-XXX-XXXX and follow the instructions provided. Even after hours, experienced managers are available from 5:00 P.M. to 9:00 A.M. to assist you with emergencies; water damage, fire (after you call 911), etc.

Chargebacks Our first priority is always to minimize damage. So, if we dispatch a plumber or another contractor to help you in an emergency you will be charged back the service call cost once we receive the invoice.

You will also be responsible for the cost to repair damages in your unit or any other unit(s) you may have damaged.

Do You Carry Condominium Insurance?

One question Condominium Managers are regularly asked is whether a unit owner needs condominium insurance.

The answer is YES! The Condominium Corporation has insurance for the building, common elements, and some features within the unit itself. But not everything is covered by the Condominium Corporation. You are responsible to insure your personal property and belongings as well as any improvements you made within the unit. You will also be responsible for the Condominium insurance deductible if you caused the damage. The minimum deductible starts at $2,500.00. If you have a good insurance policy, it may pay some or all of your deductible costs.

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Ensure the insurance broker you use is familiar with condominiums and their insurance requirements.

Boards and Managers also need to review their approach and thinking on water leaks.

Should you have any questions, please contact Management at XXX-XXXXXXX EXT XXX or by email at XXXXXX@ XXXXXXX

The common approach when a water leak happens is to just fix that leak then wait for the next one. Often there is a pattern, and a more comprehensive approach is best as it minimizes day to day complaints and saves money in the long run.

Yours truly, XXXX Property Management Signature: Date:

On taking on a complex which was about twelve years old, a regular complaint I

found myself receiving pertained to water leaks from balconies into garages.

The balconies were right on top of the garages and covered by a product called duradeck. Instead of just dealing with one balcony at a time, we brought in the original manufacturer/installer and had all balconies inspected. With some caulking, a few patched membranes and new duradeck laid on a handful of balconies the complaints went away.

As for how we think of water leaks, we may need to think “outside the box” for leaks that keep coming back. I give you two examples each from Condominiums over ten years old.

In the example of one condominium, for years water was leaking through a brick wall into the basement. Previous Management had progressively caulked doors and windows, caulked weeping tiles and repaired the roof over the years. Yet, the leak continued. The one item they ignored was the window on the third floor. By pouring water into the tracks of the window (simulating what happens during a rainfall) it seeped within the cavities of the bricks all the way to the basement. The solution was to change the window as the frame and drain was compromised.

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www.certifiedbuildingsystems.ca

Another example was a roof supposedly leaking into two units. Thousands of dollars were invested, yet the leak was still there when I arrived at the condominium.

A different perspective and closer inspection revealed the end cap of the eaves (which was tightly wedged/stopped at the brick wall separating the two units) was missing and it had been like that for over ten years. Simply shortening and capping the end of the eaves stopped the leak.

So there you have it. A threefold strategy to minimize water damage in Condominiums: (a) Educate homeowners and residents. (b) Find out what is causing frequent leaks.

Inspect and fix all units. (c) Think “outside the box” for leaks that keep coming back.

When management, boards and homeowners all work together, solutions can be found and money can be saved. C V

member

NEWS

FALL 2016 • Committee Updates • Upcoming Events • Welcome New Members

CCI-T COMMITTEE UPDATES course of each live chat. Our social media accounts circulate materials to help you prepare to take in our Twitter chats in the weeks leading up to them.

Communications Committee CHAIR:

Marc Bhalla

MEMBERS:

Brian Horlick Andrea Lusk Megan Molloy Shawn Pulver

Sue Langlois Joy Mathews Jason Rivait

COMMITTEE HIGHLIGHTS:

Mark October 20th as the date for our next noon hour Twitter Chat on the topic of Security in Condos.

Join guest tweeters Sue Langlois, Mo Killu and Josh Milgrom in the online discussion!

FULL REPORT:

The Communications Committee was pleased to recently release a schedule of upcoming Condo Chats taking us through the spring of 2017. These popular and interactive live lunch hour online Twitter exchanges provide great opportunities to learn from experts, ask questions and otherwise take in topical information. They do tend to take place at a frantic pace, so we encourage all participating not to feel as though they need to catch every tweet posted during the hour but rather to focus only on what captures their attention at the time. We organize and circulate the content of our Twitter chats after they take place to allow everyone to view all of the information shared at their own pace afterwards. Our next Condo Chat is taking place on Thursday, October 20th at noon on the topic of Security in Condos with guest tweeters Sue Langlois, Mo Killu and Josh Milgrom. We encourage you to send questions to us in advance to ensure that they are put to the panel and welcome real time interaction with our experts during the

CondoSTRENGTH Program CHAIR:

Marc Bhalla

MEMBERS:

Patricia Elia Josh Milgrom Bill Thompson

Mo Killu Ernie Nyitrai

COMMITTEE HIGHLIGHTS:

If you are a condominium corporation member of CCI-T and have not yet joined our CondoSTRENGTH program, do so today at: www.CondoSTRENGTH. ca. The next director networking event is taking place in Markham on Thursday, September 29th and will focus on “Engaging Your Condo: Encouraging Participation and Building Community”.

FULL REPORT:

If you are associated with a condominium member of CCI Toronto and have not already done so, we encourage you to visit www.CondoSTRENGTH. ca and register to take advantage of the membership benefits available through our For Directors,

By Directors program. In addition to gaining exclusive access to a continually growing collection of online resources, directors enrolled in the program are also welcome to register to attend local director networking events where they can meet and interact with fellow condominium CONDOVOICE FALL 2016

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NEWS directors. The heart of the CondoSTRENGTH program surrounds director camaraderie and providing condominium directors with the chance to interact, relate and remember that they are not alone! The next director networking event is taking place in Markham on Thursday, September 29th and will focus on “Engaging Your Condo: Encouraging Participation and Building Community”. All enrolled in the program were notified by e-mail when registration opened and we encourage all interested to register quickly to avoid disappointment as we do have capacity limitations at these popular events.

Special Projects Committee CHAIRS:

Ernie Nyitrai

MEMBERS:

Bob Girard

COMMITTEE HIGHLIGHTS:

Three new dinner/seminars are being planned for 2016-2017 on such topics as Understanding Your Condo Fees, Insurance Claims and Changing Demographics in Condos.

Details are available on page 38!

Membership Committee CHAIR:

Vic Persaud

MEMBERS:

Chris Antipas Brian Antman

Brenda Hooper-Rowland

Doug King

COMMITTEE HIGHLIGHTS:

The membership committee will be expanding the target audience of our membership presentations from Property Management companies to also now include accounting and law offices. If you would like CCI-T to come make a presentation contact us today at: info@ccitoronto.org.

FULL REPORT:

The membership committee is pleased to report that a large majority of members have already renewed for the 2016-2017 membership year. If you have not yet renewed your membership please contact our membership department today at: 416-491-6216 Ext 112. Without renewing for the coming year – this will be the last issue of ‘condovoice’ that you will receive! The committee is busy preparing for a new round of membership benefit presentations which will now be available to accounting/audit as well as legal firms serving the industry. Presentations to management companies will also still be available. Contact us today for details!

Brian Horlick

FULL REPORT:

The Special Projects committee reports that a successful dinner and seminar on the topic of Air BnBs in condos took place on Wednesday June 22nd with close to 100 people in attendance. The committee subsequently met over the summer to plan for three new dinner/seminars to take place in 2016-2017. Topics will include: Understanding Condo Fees – Fall 2016, Insurance Claims – Winter 2017 and Changing Demographics – Spring/ Summer 2017. Details on the fall session can be found on page 38.

Conference Committee CHAIRS:

Mario Deo and Rob Weinberg

MEMBERS:

Laurie Adams Murray Johnson Robert Thackeray

Brian Horlick

Catherine Murdock Sally Thompson

COMMITTEE HIGHLIGHTS:

Registrations for the 2016 conference are now being accepted online or by fax/mail.

Visit www.condoconference.ca for registration details. Special discounted one or two rates are available for condo directors!

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NEWS

FULL REPORT:

Mark your calendars now for Friday November 11th and Saturday November 12th to make sure that you are a part of the nation’s largest condominium conference – taking place at the Toronto Congress Centre.

Registration is now open to attend as a conference delegate. This year’s show will feature educational sessions on such topics as Insurance, Case Law Updates, Human Rights and Accessibility, Director Pitfalls, Technology in Condos, The Police, CRA, Surveillance and Privacy, Resident Demographics and the everpopular Director Toolkit session. Special one or two day discounted rates are available for condo directors.

Opportunities also abound for those companies serving the condominium industry. Visit the conference website at www.condoconference.ca for details on how your company can be an exhibitor or sponsor of the show. Don’t miss out – register today!

Education Committee CHAIR:

Tania Haluk

MEMBERS:

Pam Boyce Bob Girard Nancy Longuiera Richard Pearlstein Sally Thompson

COMMITTEE HIGHLIGHTS:

The four night Level 200 course will now be ‘unbundled’ and attendees can opt to attend as many or as few of the four nights as they would like.

FULL REPORT:

The education committee continues to meet regularly to oversee the four levels of courses offered by CCI-Toronto. Fine tuning of the course material is ongoing and updates to the Level 300 course offered in the spring were well received. Starting in the fall of 2016 the four night Level 200 course will now be ‘unbundled’ and attendees can opt to attend as many or as few of the four nights as they would like.

See course details on page 38. The committee also thanks host Murray Johnson for another fabulous series of educational videos. These videos will be released weekly throughout the fall, under the See the video summary and topics on page 49.

CCI-T Welcomes New Members Condominium Corporations Members DSCC # 0023 GSCC # 0046 MTCC # 0973 MTCC # 1166 PSCC # 0712 PSCC # 0843 SCC # 0002 TSCC # 1444 TSCC # 1713 TSCC # 1848 TSCC # 2062 TSCC # 2077 TSCC # 2129 TSCC # 2334 TSCC # 2500 TSCC # 2505 TSCC # 2506 TSCC # 2508 VCC # 0013 YCC # 0070 YCC # 0418 YCC # 0453 YRCC # 0798 Individual Members M. Alchuk D. Plester S. Toole

Business Partners AAA RoofMasters Ltd. Ryan Davey

Professional Members Richard J.Bernardi Fuller Spicer & Associates Canadian Design & Construction Carl Fletcher Inc, (CDC) Genedco Reena Mehrotra Property Management Ltd. Condor Security

Inc. Athiya Sherief Benjamin Tabesh Goldview Property Joint Seal Management Ltd. Waterproofing

Inc. Ronald Smith Boris Gopka Smith Forensics Inc. JTB Management Group Inc. John Taylor John Battistella Multiplex Strategies Inc. Brokerage Pristine Air Duct Cleaning Vanessa Inc. Roger Huang Van Dette Larlyn Property Management Ltd. The GeoFocus

Group Adam Altobelli Zgemi Inc. Yusuf Yenilmez

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NEWS

Upcoming Events Mark Your Calendars!

Level 102 Course Novotel North York Hotel 3 Park Home Avenue Thursday, October 13, 2016 12:00 to 4:00 p.m. (Lunch included) Cost: $180 for Members, $280 for Non-Members – plus HST

Level 101 Course Courtyard Toronto Downtown Marriott Hotel – 475 Yonge Street, just north of College Saturday, September 17, 2016 9:00 a.m. to 12:00 p.m.

Cost: $135 for members, $235 for non-members – plus HST CCI Toronto Annual General Meeting The Old Mill – 21 Old Mill Road Wednesday, October 5, 2016 7:00 to 8:00 p.m. – to be followed by a Member’s Wine & Cheese Reception No Charge for Members to Attend but Pre-Registration is Required Networking Dinner/Seminar “Condo Fees – Are You Paying Too Much?”

Courtyard Toronto Downtown Marriott Hotel – 475 Yonge Street, just north of College Tuesday September 27th, 2016 6:30 to 9:30 p.m.

Cost: $75 for Members, $125 for Non-Members – plus HST 38

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Fall Twitter Chat – Security in Condos Thursday October 20th, 2016 12:00 to 1:00 p.m.

No Sign-Up Required – Just log into Your Twitter Account Level 200 Course Novotel North York Hotel 3 Park Home Avenue Tuesday November 15th, 22nd, 29th and December 6th, 2016 7:00 to 10:00 p.m. each evening Cost: Each One-Night Session - $95 for Members, $125 for Non-Members – plus HST Register for all four (4) Nights and Save! $295 for Members, $395 for Non-Members – plus HST Annual ACMO/CCI-T Condominium Conference Toronto Congress Centre 650 Dixon Road – NORTH Building Friday November 11th and Saturday November 12th, 2016 Visit www.condoconference.ca for pricing, registration and event details!

For further course information or to register online for courses visit: www.ccitoronto.org/Education

CCI Word Search Puzzle ABUNDANT

FALL

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HAZE

THANKSGIVING

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HOWLING

TURKEY

CORNUCOPIA

LEAF

TURNING

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WILTING

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EARTHY

ORANGE

YELLOW

Y N I A R L A N O S A E S W G G C C C I I N D R U O G I P I A I O H O N O C E K P E A I I R T U I R C R T S L I R I L S S W M B I B M H T C C I S A D L N R P I I E B P U P O H A E H I U U E W U E A R R R E I K N Y U R N Y A R Q N O C L M B C T R I N M D A N Y K Z N S I H O O I I C S N C A W C A E T S S O G R I P O W O I F M Y C S O K N E I L G C I E I C I V K A O C C I R R A T O F W I K N A Y N E L E H B O U P S B O I I U A V I G T D R A L T R T S O A H R L I R L I I I S Y G T E U E E N T C E T G R A I N I N U I R S N A E I D S U I R S T U F F I N G S O N N I Z I O I N M N E E W O L L A H P W R A I Y T I G C I E D I S E R I F I O N O L C K F A E L T S E V R A H A Z E O L C F C O L O U R F U L E G N A R O I K L F A L L E N G N I N R U T W O L L E Y A B E N A C N U T S C H I L L Y T S O R F CONDOVOICE FALL 2016

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NEWS

THROWBACK

y a d s r u h T

July 14, 2016 – Susan Langlois On this day, we honour Board member Sue Langlois, a long-time supporter of our chapter who currently volunteers her time on two of our committees!

June 30, 2016 – Brian Antman We were pleased to kick off our 2016 Throwback Thursday campaign by extending our sincere thanks to Brian Antman, CPA extraordinaire and member of CCI-T’s Board since 2013!

Sue has also been a Guest Tweeter in our CondoChat, contributed articles to condovoice magazine and participated in CV+ podcasts. Thank you for all of your contributions, Sue!

July 21, 2016 – Ernie Nyitrai On this ThrowbackThursday we celebrated the efforts of Ernie Nyitrai, a member of our Board of Directors since 2012, volunteer member on three of our committees and past contributor to our condovoice magazine.

We thank you for your constant support, Ernie!

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Brian’s volunteer efforts and penchant for great hair are something to be celebrated.

Thank you, Brian!

July 7, 2016 – Steve Christodoulou Although we hardly recognize this week’s ThrowbackThursday honouree, today we show our appreciation of Steven Christodoulou, R.C.M.!

A long-time supporter of CCI-T, Steve was both a presenter and past chair of the annual CCI-T/ACMO Condo Conference. Thanks for your dedication, Steve!

member

NEWS

July 28, 2016 – Lisa Kay For this week’s ThrowbackThursday, we showed our appreciation for the efforts of Lisa Kay, a long-time CCI-T supporter, volunteer, and member of our Board from 2004-2014! Lisa is also a current member of our Conference Speaker Sub-Committee, a contributor to our condovoice magazine, and makes an appearance in one of our Educational clips! Thank you, Lisa!

August 11th, 2016 – Henry Jansen ThrowbackThursday is back, and on this date we are extending our sincere gratitude to Henry Jansen, P.Eng, ACCI, a long-time CCI-T supporter, volunteer, and current member of our Board of Directors. Be on the lookout for Henry at our booth at Springfest and the PM Expo!

Thank you for all of your efforts, Henry!

August 4th, 2016 – Stephen Karr This week on ThrowbackThursday we took a moment to recognize the contributions of Stephen Karr, founding member of the CCI-T Board in 1989, past President of CCI-T, and a regular speaker at the CCI-T/ACMO Conference and CCI-T courses! Thanks for all of your contributions, Stephen!

August 25th, 2016 – Stephen Chesney We sent out our appreciation on this ThrowbackThursday to Stephen Chesney, outstanding FCPA, FCA, and condo specialist! Stephen is a longtime member and supporter of CCI-T, and a past speaker at the CCI-T/ACMO Conference. Thank you for your support, Stephen!

August 18th, 2016 – Jonathan Fine For today’s ThrowbackThursday we honour the achievements of Jonathan Fine, a founding director, founding member and past president of CCI and long-time member and supporter of CCI-T. Jonathan has also been a frequent conference speaker and instructor of CCI-T courses. We thank you for your dedication, Jonathan!

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We are not affiliated with any developer or trade. Our single focus is our client’s best interest, which we safeguard and protect at all times.

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5753 COOPERS AVE. MISSISSAUGA, ON L4Z 1R9 T 905-507-6726 1-855-507-6726 F 905-507-6722 W MRCM.CA 42

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NEWS

CCI Was There! (at right) The CCI Toronto chapter was well represented at the recent CCI National Leadership Forum in Vancouver where directors Marc Bhalla and Ernie Nyitrai presented the CondoSTRENGTH program to other CCI Chapters. (far right) CCI-T was pleased to attend the CAI Conference in Orlando, Florida on May 4-7, 2016. Pictured here are Brian Horlick and Brian Antman enjoying a brief reading break.

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Condo Corporation Loan instead of Special Assessment Equitable Bank’s affordable financing options for Condo Corporations Funding for: • Major repairs/replacements • Upgrades and retrofits • Refinancing of existing loans • Reserve Fund replenishment

Prompt, reliable, professional service from our experienced team Visit us at Booth #1026 at the 20th Annual Condominium Conference and Tradeshow Paul Pittana, Account Manager 416-515-2398 ● ppittana@eqbank.ca

equitablebank.ca

EQB_CCI_CondoCorpAd_Fall2016.indd 1

2016-07-15 12:13 PM

As a member of a condominium board, you strive to keep your building in optimal condition through regular maintenance and improvements. However, when it comes to reserve fund studies and major retrofits, you need to look beyond the regular trusted trades, and hire a design professional to help you with your building envelope decisions. Selecting your design professional can be a daunting task.

When it comes to ensuring the job is done right, you should consider using a design professional with a BSSO Designation, a Building Science Specialist of Ontario.

Ensuring Confidence in your Design Professional: The BSSO Designation BSSO holders have proven expertise in the field of building science, are bound to the Code of Ethics and Standards of Conduct for BSSOs and are required to further their education in the field each year. They have worked hard to earn your trust – something you can rely on with confidence.

For more information on the Building Science Specialist of Ontario designation, or to find a qualified BSSO visit obec.on.ca

OBEC Designation Ad#2-V3.indd 1

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member

NEWS

CondoSTRENGTH Networking Event On June 1st, 2016 the second CondoSTRENGTH networking event was held at a participating condo located in the downtown core of the city. Attendance was again at full capacity and we were happy to see many repeat attendees as well as some ‘first-timers’! The

topic of the evening ‘Making Condo Finances Your BFF” was very well received. Our thanks are extended to host corporation TSCC # 2037 and the featured directors whose success stories sparked discussion throughout the evening: Rainer Vietze, Henry Jablonski and Ron Smith.

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NEWS

Clockwise from left: Through the course of the different discussions, attendees mixed and mingled with as many fellow directors in attendance as possible.

Featured directors were not the only ones with insights to share.

All directors in attendance were encouraged to share their experiences and observations.

Marc Bhalla, Ernie Nyitrai and Mo Killu (in program t-shirts) of the CondoSTRENGTH team with the 3 directors who shared success stories at the event.

Directors in attendance learned about how they can be hands on in reserve fund analysis, and work with professionals to consider options.

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condovoice condovoice

Editor’s Pick

On June 1st, 2016, CCI Toronto was pleased to launch via social media our Editor’s Picks collection of some of our most read articles dating back to 2002.

Response so far has been great! Tune in to CCI-T on Linked In, Facebook, Instagram and/or Twitter (#CVEditorPick) to view upcoming releases. And…. in case you have missed them, visit our Storify

condovoice Editor’s Picks Collection From the Archives

collection of past postings at: https://storify.com/CCIToronto/cveditorpicks Did You Know?

All issues of the condovoice dating back to 2002 are archived and available to view on our website, completely free of charge.

Visit: www.CondoVoiceMagazine.ca

condominium n, By: Tim Dugga BA, LL.B. LLP Horlick Levitt DiLella

owners

Board /Management Relations

Condo Night or

To Attend or Not ?

M to Attend Yo’turReaAG lly Be a Question)

BY MARILYN L

INCOLN

(Hint: It Shouldn

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serving individ uals have only da, which is to please themse one agenlves ing very well they never really knowintention of had any listeni advice, but their ng to anyone else’s willing to listen own. We must all be as well as hear others have what to say. Each indivi should be given an opportunity dual present their to fully conce constantly ignorerns. If owners are d, rejected, misun they will feel derstood and finally frustra ted angry. In some as well as cases they will seek out who are feeling other owners an enjoyable enviro and guess what? the same way ment. One where nnow been plante The seed has ple truly care peod for an owner about VS the board s each other of directors and or management. how to respec know t and comm Living together harmo unicate with compa niously in a shared comm ssion. How unity anyone expec Managers, board is very hard work. t pride and commcan to be built up must constantly members and owners and maintained, itment e have all seen entire comm evaluate their if the the unity is consta skills. Can you listening ments that descri advertisently into an US vs. honestly listen be condoother person THEM scenar divided miniu ’s ideas or issues to the io. There is only one way lifestyle, with ms as a carefree feeling the to without urge to imme no necessary chang create positive and word condominiumresponsibilities. The diatel them off and reject their sugge y cut tionships. Each es in neighbour relaereignty or owner meaning joint sovFor instance, reader, wheth in some cases stions? a property manag er you ship, actual together for ment compa manageer, board memb are a common benefi ly means nies or board owner, must er or members see is to be joint begin with himse t. If there new ideas, suggestions ownership and self. lf or her, inquiries or there will also sharing, complaints as need to be a The challe problems begin nges sense of a caring comm authority or when individ unity, power. By feelingto their constantly form uals ship and a respec or pride of ownerened or challe an attachment threatnged, directo own points t for our fellow to their ers. of view and rs or managers will lose ownwould never consider anyon a welcome and perfect opportunity to Unfortunate e else’s. That’s ly, several of power strugg discuss what when the have either you who les great ideas and could be emaile in some corpor begin. Unfortunately, possible solutio have had person d, written or who I sure that if all ations, there ns. I am are individparties involv al conversation uals who love ed are not experi an are s the equal with, given position of opportunity encing the full Once elected, power. to voice opinio potential of and exchange these type of ns individuals try to domin ideas, the end ate everything. would be mutua result These self l tive discussions. respect through posi-

BY MAURICE ILLUSTRATION

MAURICE VELLEKO

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the question to attend, that is To attend, or not r r in the mind to suffe on your balcony Whether ‘tis noble s of cigarette butts ng garage The slings and arrow a sea of drivers speeding in the parki against to slow down a bit.

Or to take arms them rage encou hopefully And by opposing, CONDOVOICE

SPRING 2015

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Spring 2003

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r is If the Manage tion will not work. and everythere are no checks are necessary for directing, then and principles that keep things fair balances that help scale, a thing to work. other end of the le in developing equitable. On the The first princip then the the is managing, ship between if a Director their successful relation andfulfill to ing underst is ment Manager, by attempt mis, Board and Manage , risk duplication, It may seem obvious ibilities roles. respons your they do ing ON, cause of ssary delays if this is the root

BY BILL THOMPS takes and unnece but quite often rs. Each roles with the Directo breakdown. The BA, ACCI not first check ive a relationship rs know their respect quite simple. Directo party needs to themselves are them. ers manage those roles and fulfill direct, and Manag equathis to e varianc directions. Any r, have you f you are a Manage ed by the ever been frustrat you? treats Board way your been dishave you ever As a Director, get the reaction you appointed with r when you suggest from your Manage Is it Board meeting? something at a ing said? Is it someth something you are not you me, you did? Believe ship anager relation alone. The Board/M it ges. How well can have its’ challen What you you! to up works is really to what directly related get out of it is you put into it! term relalong ful Every success must basic rules, and tionship has some mutual the basis of be formed on These understanding. respect, trust, and every can be found in three principles from term relationship successful long s, partnerbusines ip, marriage, friendsh of g. With this base ships and parentin , the and understanding respect, trust and Board the n relationship betwee a simple one. is really Management basic two additional There are only

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Spring 2005

How to Publish an d

Newsletter

Use a

to Keep Owners Happy!

BY MILTON W.

ZWICKER, B.C

OMM., LL.B

.

W

hat is the secret to tion. A good happy and newsletter can satisfied important vehicl be may be the only ers? Satisfied condominium owne for communicat an owners are the contact they An important ion. owners are, want. All well-planned result of reason for having newsletter is howev and focuse a to d energies receiving inform er, interested in directed toward policies, chang inform owners about that end. Angry es in the condo actively partici ation as opposed to ers, rumours, ownto get feedba pating in activit disputes with ck from them. rules and meetings. This and quarrelling directors ies and A ter newsl that will come as etdoes this fulfills prise for the from poor comm owners often evolve no sura crucial role small percen internal comm in tage of ownunications — ers who are evidence sugge unication. Anecdotal the organizers, only part of what but that’s sts happy and writers and speakers, owners live publishers of do. Newsletters a good newsletter can in condos wheresatisfied the information owners work hard help networking clamor for. in a condo. Owne to keep owner boards withinformed. A s well ities the Board rs find out what activvital factor in the success is involved in of many condo Information its members and what s is the skill Equals Contr are up to. with which their Boards ol communicat Newsletters Information e with owners. Effective can promote is of belonging.

Boards have, a sense Owners’ anxiet a powerful force.

By including their goals, keeping in constaas one of ies often result tion, such as informauncertainty stories about with the owner from nt touch about condo important events in owner s and respon living, the inability to ding to their s’ needs and expec obtain inform turn some big lives, a newsletter can tations. ation about board condos into decisions and Stories about a family. the general feeling they have no unit owners Communicate, contro help develo them l over p a pride in to the place they Communicate, call home.

Thus, Communicate a pride in thems their corporation and burden — your you carry a heavy elves as its unit owners. eyes, is the Board newsletter, for many We often think What Makes strive to make . Therefore, you must buildings instea of condominiums as a Good it a publication d of people Newsletter? will want to maintaining . Thus, owners read. a successful condo relationships How can you For some owner between people is about accomplish this Publishers and relationships s, — and the only contac a newsletter may be are based on editors who want feat? communicarate newsletter board and other t they have with the know they must a firstusing fresh graphi owners. For build it some, this and interesting cs, good photography and helpful inform ation.

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Brian Antman CPA, CA and Blair Spinney CPA, CA, and the Partners of Adams & Miles LLP Chartered Professional Accountants are pleased to announce that effective August 2, 2016 Peter K. Harris CPA, CA, ACCI, FCCI, Partner of Harris & Chong LLP Chartered Professional Accountants and his condominium staff will be joining Adams & Miles LLP Chartered Professional Accountants.

Adams & Miles LLP and Harris & Chong LLP are leading condominium specialists providing audit, financial advisory and tax services to all types and sizes of condominiums in Ontario. Brian and Blair serve on the Toronto and Area and Huronia Boards of the Canadian Condominium Institute (CCI) and Peter is a Director of CCI – National. Brian is also on Committees of the Association of Condominium Managers of Ontario. Both firms have chaired the Chartered Professional Accountants of Ontario Committee that publishes the Accounting, Auditing and Tax Guidelines for Ontario Condominium Corporations and both are active in the process presently underway to update the Ontario Condominium Act. Joining our practices together will allow adoption of technologies and efficiencies to enhance timeliness and quality of audit services provided to our condominium clients. The practice will operate as Adams & Miles LLP and will become the largest condominium audit firm in Canada, serving approximately 700 condominium clients.

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NEWS

Tune in ...

Season Three of Condo Connection TV, with your host:

Murray Johnson!

to CCI Condo Connection TV. Season 3 has now been released!

Join us at www.yourcondoconnection.tv or on You Tube with host Murray Johnson to view this season’s ten new videos:

1. Top 5 Responsible Neighbour Tips with guest, Tania Haluk 2. Air Flow- Weather Stripping, Odours, Cooking with guest, Sally Thompson 3. Suite Seasons - Seasonal Change Over with guest, Paul Belanger 4. Balconies - BBQ’s, Cigarette Butts with guest, Mo Killu 5. Feeling Violated - Right To Enter with guest, Denise Lash

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6. Condo Security - Awareness of Surroundings with guest, Quintin Johnstone 7. Fire Safety in Condos with guest, Michele Farley 8. What Can I Change/What do I Own/Illegal Renos with guest, Ashley Winberg 9. Leasing My Unit /Airbnbs with guest, Joy Mathews 10. Pets - Owner and Non Owner Rights with guest, Stan Morris

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Best Practices

By Allan Bishop, PCC # 199

The Role of a Condominium Board Governance vs. Management Ontario has experienced rapid growth in the number of condominium residences in recent years and much has been written about the issues and challenges facing condominiums. They have been described as the fourth level of government and politics certainly plays a role when there are two or more home owners sharing common facilities. However, a condominium is also a corporation with responsibilities to its shareholders (i.e. its owners) and it also has the attributes of a club, as many condominiums provide shared facilities and organize activities on behalf of its residents.

The reality is that a condominium likely has all of these attributes.

Whether for-profit or not-for-profit, the Board of Directors (the Board) assumes the critical role of directing the affairs of an organization on behalf of its shareholders, members or owners. While the extent of this responsibility varies according to the nature and objectives of an organization, the fundamental essence of the role is consistent across all types. This is true for condominium Boards.

The authority and responsibility of a Board is normally set out in the statute that re-

Ensure owners are complying with the Condominium Act, Declaration, Bylaws and Rules • Maintain and repair the common elements • Maintain an adequate reserve fund • Ensure the reserve fund study is done within one year of registration and then updated every three years • Develop a annual budget that will provide the goods and services necessary to maintain the quality of life within the community • Ensure all common element assessments are collected • Ensure all expenditures are authorized and have been recorded • Ensure all monies are accounted for, all records have been maintained and that they are reviewed on a regular (monthly) basis • Obtain the appropriate level of insurance, including Directors liability insurance; and • Ensure the Annual General Meeting is held within six months after the fiscal year-end • Ensure owners are complying with the Condominium Act, Declaration, Bylaws and Rules • Maintain and repair the common elements • Maintain an adequate reserve fund • Ensure the reserve fund study is done within one year of registration and then updated every three years • Develop a annual budget that will provide the goods and services necessary to maintain the quality of life within the community • Ensure all common element assessments are collected • Ensure all expenditures are authorized and have been recorded • Ensure all monies are accounted for, all records have been maintained and that they are reviewed on a regular (monthly) basis • Obtain the appropriate level of insurance, including Directors liability insurance; and • Ensure the Annual General Meeting is held within six months after the fiscal year-end

lates to the nature of each organization. For condominiums here in Ontario, under the authority of section 27 (1) of the Condominium Act, 1998 (the Act), “a board of directors shall manage the affairs of the [condominium] corporation”. The key word in this section is “manage”. What does this really mean?

The Condominium Board Before we explore the meaning of “manage”, it is important to understand the makeup of a condominium Board.

The Act states that a Board must have at least three members, or a higher number as required in the corporation’s by-laws, and each member must be over seventeen years of age, may not be an undischarged bankrupt and must be mentally competent. Any further qualification requirements (i.e. the director must be a unit owner in the condominium) would be set out in the by-laws of each condominium corporation.

As a practical matter, Board members are normally owners in the condominium who have volunteered their time and effort.

They may have had prior experience with other boards or this may be a new role. The

motivation to seek a position on the Board may range from a simple desire to serve the community in which they live over to a burning personal agenda.

Role of the Board The primary role of a condominium Board is to represent the collective and individual interests of owners and residents to achieve organizational objectives, including overseeing the management of condominium affairs. This is governance, not management.

This definition could apply to most organizations, including condominiums, but its meaning needs to be explained in the condominium context.

Representing the collective… interests This statement may imply that the role of the Board is to represent the majority views of owners. In many decisions this may be the case. For example, the Board may decide to make major repairs and replacements to the entrance foyer which has the support of a significant majority of owners.

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stance the roof, which is a major asset in Condominium A that has just incurred a major repair and waterproofing. Annual contributions to the reserve fund are being increased for the future repair of this roof, say thirty years from now. Current owners may challenge the need to pay now for a repair that is many years ahead. But it is in the collective interests of current and future owners that contributions for this repair be made as the asset is being used, not when the roof is repaired in the future.

Finally, representing the collective interests essentially means that Board members must leave personal biases and agendas at the Board Room door.

This is challenging as board members may feel, because they were elected, that they therefore have the right to push personal views and agendas. However, their responsibility is to represent and make decisions on behalf of the entire community setting aside what they may want personally.

Representing‌ individual interests A condominium Board also has an obligation to represent individual interests of owners even when they may conflict with majority views. Many successful legal actions by unit owners against condominium corporations relate to the failure of boards to properly protect individual interests.

Two examples: A unit owner resides above a party room that is regularly used at night. Some of these events are very noisy. The majority benefits from use of the party room but this conflicts with the unit owner’s right to quiet enjoyment of his or her unit, particularly in the evening. The Board could support the majority secure in the view that they represent most of the residents. However, the Board has an obligation to find a balanced solution that accommodates the individual interest of the unit owner likely requiring some restrictions on how the party room is used.

Another example relates to the use of common elements. A condominium corporation may have a by-law that restricts the use of the Games Room by children under the age of fourteen to 2pm to 4pm daily. School age children of a unit owner are therefore limited to weekends in their access to this room and this restriction may be strongly supported by a significant majority of other unit owners. Here again the Board must find a more reasonable balance to accommodate the children of the unit owner, who contributes financially to the upkeep of the room, in the face of opposition by the majority.

Achieving organizational objectives Organizations should have a framework to assist with the decision making process.

This may range from a set of specific operational objectives to much broader organizational goals. While this may seem unnecessary for condominiums, setting organizational objectives can assist the Board as it grapples with difficult issues and decisions.

For example, a key objective might be to maintain a clean air and odour free environment throughout the common elements. This will help the Board to engage the condominium community in this objective as the Board faces decisions for investments to improve make-up-air systems or perhaps to present a resolution to owners

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to make their building smoke free. It would also help management as odour creating issues arise with a unit owner.

Organizational objectives are unique to each condominium and they can be specific or aspirational in nature.

Governance versus management Taken literally, the word ‘manage’ implies that the entire Board, as a group, is responsible for the day-to-day administration of all of the affairs of a condominium corporation. This means, again if this requirement of the Act is literally interpreted, a quorum of the Board should be continuously available as decisions from the routine to the most important are required. No Board member of any organization signs up for this duty, particularly volunteers. Not to mention the practical challenges this would provide as business can only be conducted at duly constituted Board meetings.

To suggest that this is impractical and unnecessary is an understatement. It is also dangerous as there is then no further effective oversight and control of the “doers” of management (i.e. the Board). It is also unlikely that a property management firm would agree to work under this structure.

So, not unlike for-profit and other not-forprofit organizations, condominium management is delegated. This could mean

certain Board members assuming management duties and, as is the case for most mid-sized and larger condominiums, an independent property manager or firm is engaged to take on many or most of these functions. The role of the Board then moves from management to governance where it should be… So, what is governance?

Governance is the formation of strategic, operational and financial goals for a condominium corporation. It is also oversight of management, who is responsible for achieving these goals and for administration of the day-to-day affairs of the condominium within the requirements of the Act and in accordance with appropriate operational and control standards.

Governance is above the management process - setting policies and strategy, approving major projects and related expenditures and otherwise ensuring that the interests of owners are being addressed by management. Instead of performing, the Board is overseeing and evaluating the performance of management.

Closing the gap A key governance role of the Board is to assess the management needs of the condominium. This requires an evaluation of the gap between what the Board believes is required as compared to the services provided by the property management firm. This gap could include ongoing li-

aison with the property manager, event organization, owner communications, financial management and interim financial reporting to owners. Assignment of these responsibilities may be to executive members of the Board, such as the President, Vice-President and Treasurer. The important aspect of this delegation is that these officers are acting in a management and not in a Board governance capacity.

Part of the gap may be closed by seeking help from external experts for a variety of special needs including legal, engineering and financial services. These services go beyond the requirements of the Act for annual financial statement audits and triannual reserve fund projections and likely relate to highly technical issues.

Understanding the role of a Board by directors is essential to its success. This understanding is also critical to the success and contribution of those who provide management services.

The role of a condominium director is challenging, time consuming and not without reputational and financial risk. But the role can also be very rewarding as it provides an opportunity to uniquely contribute to the community and the enhancement of the property in which he or she lives. It also provides the rewards and the opportunity to work with similarly dedicated individuals. C V

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Best Practices

By Scarlett Guy, Minute Takers Inc.

Please Louise – Don’t Shoot the Minute-Taker!

In my view, the move toward mandatory education of condominium directors is badly needed. All too often, a minute-taker faces the unhappy challenge of trying to figure out what needs to go into the minutes, while working ‘blind’ without sufficient documentation, lack of background information, poor or non-existent meeting structure, and volatile interpersonal dynamics and conflicts among meeting attendees. Here are a few typical scenarios that we minute-takers face on a regular basis, and some pointers on how you can ensure that this does not happen at your meeting: 1. The Ego Trip We’ve all seen it … one (or sometimes two) people who believe that they are the smartest and/or most qualified and aggressively impose their opinions on the group. As time goes on, the others in the group often ‘give up’ and allow this person’s influence to direct the decisions being made on behalf of the Corporation. What’s worse, this person often directly interacts with Manage-

ment, while the rest of the group typically learns after the fact about what transpired. Ask yourself: Does this scenario fit the ‘best practice’ model whereby all directors have an equal voice, with decisions made collectively at a duly constituted meeting?

2. Personal Agendas This is typically the person who vociferously expresses their dissatisfaction with the Board at AGMs and/or owner meetings and garners support from other like-minded individuals to get elected as a director. Once elected, they badger their fellow Board members to pursue a course of action to satisfy their personal agenda.

Once their agenda items have been executed, they lose interest and quietly withdraw. People, when choosing someone to represent you on the Board of Directors, be careful that they are not simply pushing for specific agendas. The ‘best practice’ model requires a director to take a realistic approach in balancing the needs of all unit owners and the best interests of the entire organization.

3. Personality Clashes This uncomfortable scenario is where we minute-takers become educated in ‘Human Behaviour 301’. While certain individuals may have a sincere desire to make decisions in the best interest of the Corporation, they tend to lack the skill of team-based collaboration. Often in these situations, the Board becomes divided and, ultimately, dysfunctional to the point where necessary decisions are stalled and the business of the Corporation is adversely impacted.

The hapless minute-taker is frequently caught in the middle, and is often asked to outline the positions of each Board member as they battle out their differences in the boardroom. Unfortunately, situations of this type happen regularly in condominium environments, with costly and often disastrous consequences. Remember – the minutes are intended to document the collective decisions that are made on behalf of the Corporation, and to note the action to be taken by Management. Details about bad behaviour amongst meeting attendees, accusations, allegations, name-calling, etc. should never be included.

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ILLUSTRATION BY CLAYTON HANMER

Meetings Gone Bad – from the Minute-taker’s perspective

We’ve all seen it … people who believe that they are the smartest and/or most qualified and aggressively impose their opinions on the group 4. Micro-managing and Unrealistic Expectations of Management Many condominium directors do not properly understand their role in overseeing and governing the business of the Corporation, which should take the form of making financial decisions and giving high-level direction to Management. A common scenario is where a Board oversteps its role and fails to allow Management the necessary discretion to handle the day-to-day affairs of the Corporation. Meetings drag on as courses of action that would normally fall within the purview of Management are discussed in excruciating detail, with numerous alternative options examined, while the manager silently questions whether the Board has confidence in his/her ability to do their job. Alternatively, the Board piles on task after task without regard for the hours of service as set out in the Corporation’s contractual agreement with the management company, or worse, expects the management team to provide free expertise that should be sought from

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professional experts such as engineers, lawyers, etc.

5. Poor Preparation Here is where we minute-takers see a sharp distinction between a corporate (commercial) organization and a condominium environment. For a typical corporate meeting, the agenda, reports, and background information are provided a few days before the meeting. Each attendee reviews the meeting material in advance so they are fully informed and able to participate in the necessary decision-making. The agenda clearly sets out the business to be discussed, and any proposed motions are written out so that attendees can consider them ahead of time. Their meetings are efficient, productive, and kept to a strict timeline. If a decision cannot be made within the allotted time, a person is identified and tasked with the responsibility to obtain the necessary additional information in order to conclude the matter at the next meeting.

Unfortunately, there are very few condo-

minium boards that follow a businesslike approach. Often, one or all directors have not reviewed the meeting material in advance. So, rather than focusing on the decisions to be made, the meeting is bogged down with explanations … for example, questions regarding financial statements that could have been explained in advance via a quick email and/ or a rehash of every single item on the management report … a long and tedious process that unnecessarily extends the meeting time and leaves everyone ‘brain dead’ half-way through the meeting. Ask yourself: Is this a good way to conduct the business of your condominium?

6. Lack of Education or Understanding Another common difficulty at condominium Board meetings is the fact that many of the members do not have the basic knowledge that is expected of a director. Further, there is often a lack of formal decorum or basic understanding of how a board should operate. At meetings, people talk over each other, interrupt one another, segue onto other topics, discuss a topic in its entirety when asked for additions to the agenda (rather than simply state the topic and wait to address it at the appropriate time), request status updates during the review of the previous minutes (which should properly be raised under ‘Business Arising’) … the list goes on. The minute-taker jumps all over the place to make sense of the chaos

in an effort to properly document the issues and outcomes in an orderly fashion. In my view, ‘best practices’ require adherence to a structured protocol, and individuals who wish to serve on a condominium board should take the initiative to educate themselves in basics such as, at the very least, a rudimentary knowledge of the Condominium Act; a good understanding of their particular condominium’s by-laws, rules/regulations and policies; familiarity with the conceptual and practical aspects of reserve fund studies; and acquaint themselves with other terminology and practices specific to condominiums.

What Should Your Minutes Include?

In many of the above scenarios, the Board often expects the minute-taker to recap every item that appears in the management report, to detail all of the discussion points, to document the rationale for each decision, to name each Board member who makes specific comments and to outline individual Board member opinions, etc.

Ask yourself: Do you really want your minutes to convey the perception that the Board is dysfunctional? Or that partisan

While many of us may pride ourselves on being a ‘team player’, the reality is that many directors are not as teamoriented as they should be politics is the order of the day? Or that the Corporation’s decisions are being influenced by a single individual? Or that the Board apparently has no confidence in property management? Please Louise … remember that your minutes, if they fail to stick to the purpose that they are intended for, will convey information that could ultimately have a detrimental effect on your condominium.

A good set of professional minutes should concisely document the issues and the outcomes of the discussions. Details should include only what is relevant to provide appropriate context, or to briefly note any action to be taken by Management or other designated person. It

should always be kept in mind that minutes are the legal record of the business that the Board has conducted on behalf of the Corporation. They are relied upon by auditors, tax authorities and the courts and represent the actions of the Board.

They should never become political in nature or present the various positions/ agendas of the individual members. In short, minutes are not a blow-by-blow ‘he said, she said’ account of everything said at the meeting.

Tips to Take Your Meeting Down a Good Path To summarize the lessons we can learn from the above ‘meeting-gone-bad’ scenarios, here are some ‘best practice’

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measures that condominium directors can take to ensure a productive meeting (which should also have the effect of generating proper minutes): • Remember that no individual director or officer may act in his/her sole capacity but must work harmoniously with all Board members in making good decisions on behalf of the Corporation.

Yours is only one voice. Encourage and respect each director’s contribution and opinion on each matter. If

you’re convinced that your way of doing things is the best solution, explain your rationale to the group and then ultimately, graciously accept the majority consensus or vote.

• Your job as a director is to appreciate the ‘big picture’ and to ensure that decisions are targeted toward the financial health of the Corporation and the best interests of the general condominium population. Seeking election to pursue personal agendas or

vendettas against property management or other Board members runs counter to a director’s oversight role.

• While many of us may pride ourselves on being a ‘team player’, the reality is that many directors are not as teamoriented as they should be. Anyone who serves on a Board should ideally have the ability to manage different personality types in a way that fosters individual expression with the ultimate goal of building consensus.

• Be clear on your role as a director and take care not to become overly involved in the day-to-day affairs of your condominium. Give your manager the opportunity to do his/her job. If your Board has collectively lost confidence in the management team, your job as a Board is to seek and hire another manager!

• Your manager should ensure that all Board members are supplied with the relevant meeting materials, several days in advance of each meeting. This includes the meeting agenda, financial statements, management report, and copies of quotes, correspondence, other reports and pertinent information. It is crucial for each director to take the time to review these materials before the meeting so that decisions can be made in an informed manner. By the way, the minute-taker should also be provided with an opportunity to review meeting materials in advance, as an informed minute-taker is your best minute-taker!

• Finally, take the initiative to educate yourself. Take courses to understand basic condominium terminology and concepts. Learn about your role as a director. Familiarize yourself with your condominium’s Declaration, ByLaws, and Rules. Understand how a Board meeting should be structured so that directors will stay on task and focus their discussions on the decisions that need to be made, in a collaborative manner.

Hopefully, these insights from a minutetaker’s perspective will help to ensure that your condominium Board meetings are productive and efficient! C V

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The Condo Brothers From Different Mothers

By Jason Rivait, BA (Hons), MA, LL.B. Lash Condo Law and Joy Mathews, BPHE (Kin), MA, JD, Rutherford & Mathews

The Standardized Proxy Form – A Welcome Change There are changes on the horizon with respect to the distribution, use and collection of proxies

Standardized Proxies For starters, there will be a standardized proxy form that must be used for owners meetings. What this proxy form looks like has yet to be determined as we are waiting on the regulations, but for many this comes as a welcome change. Gone are the

days of owners or proxy holders attending meetings with homemade proxies that are handwritten, illegible, or lacking necessary information. In turn, the chairperson’s job presumably becomes slightly less onerous as he/she will not be in the unen-

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Audio Podcasts Now Available!

Condo Brothers Podcast – Proxies Condo Brothers Joy Mathews and Jason Rivait have teamed up again - this time to discuss the matter of Proxy Do’s and Proxy Don’ts. Learn what is allowed, what is not and what changes to proxies may be coming with new Condo Legislation.

Listen to the extended audio interview at www.condopodcasts.ca

viable position of determining the validity of fifty homemade proxies. Instead of confusion, the standardized proxy form will add clarity. If the standardized proxy form is not used, then the proxy form will be invalidated.

No More Managers???

There is an interesting addition in the Managers Act with respect to the solicitation of proxies. Specifically, managers are prohibited from soliciting proxies for owners meetings in the event the subject matter relates to: i. the manager; ii. the removal or election of directors; or, iii. any other reason that is set out in the regulations (which have yet to be drafted).

This provision is quite broad as, for many condominiums, owners elect directors each and every year. On a strict reading, it appears that managers cannot actively solicit proxies for these meetings. This CONDOVOICE FALL 2016

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ILLUSTRATION BYBILL RUSSELL

With the amendments to the Condominium Act, 1998 and the introduction of the Condominium Management Services Act (the “Managers Act”), there are many changes on the horizon with respect to the distribution, use and collection of proxies. Anyone who has ever been involved in a proxy battle with respect to the removal and/or election of directors understands the difficulties that can arise before, during and even after the meeting. Allegations of improprieties typically run wild during these meetings, and the first point of contention is the proxy form. So, how do the proposed new changes impact condo corporations and property managers?

could be somewhat problematic considering voter apathy is high in many condo corporations. Oftentimes, managers must knock on doors, or stop owners in the lobby to ensure that they have enough owners in attendance at the meeting to simply reach quorum. The introduction of this provision puts a stop to this practice.

While the intent of this provision comes from a good place and is to prevent managers from actively soliciting on behalf of a particular director, the unintended impact may be that some condo corporations are unable to reach quorum.

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Iphone/Android Voting Voting for a new director may be as easy as pressing a button – literally! Using your Apple or Android phone to enter your vote for a new director could soon be possible in your condo. The new changes provide that owners may vote by show of hands (in person or by proxy) or by way of recorded vote. What is interesting is that the recorded vote may be done by “telephonic or electronic means�, which is defined to include communications by telephone, fax, email and automated touch-tone phone.

The one catch to this change is that the by-laws of the condo corporation must permit that the vote can be done by telephonic or electronic means.

Final Thoughts The implementation of the standardized proxy form may create some waves, but it appears that the new amendments to the Condo Act are doing their best to keep up with the times. We believe that these proposed changes will be welcome by all, especially those board members and owners who travel throughout the year. C V

Long Arm of the Law

By Shawn Pulver, BA, LL.B., Macdonald Sager Manis LLP

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Competition Bureau Investigation What Does This Alleged Bid-Rigging and Conspiracy Investigation Mean for Condo Corporations?

The Competition Bureau has launched a widespread investigation into alleged bid-rigging and conspiracy in Toronto’s condominium renovation industry. The Ontario Superior Court issued an Order on May 10, 2016 compelling 141 condominium corporations across the GTA to produce records relating to “the budget, tendering, bidding, negotiating and awarding of a contract for renovations to the common areas of the condominium corporation’s building(s).” Some of these contracts date as far back as 2007.

While most of the details of the investigation were sealed by the court, the Competition Bureau has stated that condominium corporations are not the subject of the investigation. Rather, the investigation appears to target contractors hired to oversee and carry out work on common areas such as lobbies, party rooms or parking garages, as well as suppliers who provide the goods used in such renovations. The Competition Bureau has explained that “the decision to seek the Orders was based on the fact that condominium corporations have, or are likely to have, information that is relevant to the investigation.”

Since condominium corporations are not the target of the investigation, this process will likely end up being more of an inconvenience for condominium boards and property managers than anything else.

However, nothing guarantees that the investigations will not expand if the Bureau ultimately discovers that there may have been other unlawful conduct in respect of these or other renovation projects.

At this stage, it is important for condominium corporations to comply with any Orders issued against them by providing all requested information within the 90 day period. Failure to comply may attract prosecution. The information and records obtained by the Order may be used to initiate proceedings. If a proceeding is initiated, the person who swears the affidavit, namely a director of the corporation, may be called as a witness in court.

Best Practices for Boards & Managers Many condominiums hire professional engineering firms to manage their renovation projects and use a formal bidding process to award their contracts. However, in some cases, the procedures used by prop-

erty managers and/or boards of directors to select contractors could be greatly improved. Implementing best practices will help condominiums reduce the potential for unfair trading practices among contractors and suppliers providing goods and services to their corporations, and could ultimately save condominium corporations substantial amounts of money.

To ensure that contracts are awarded in an appropriate manner, condominium boards should enhance or adopt guidelines and procedures for managing the tendering process, and be diligent in ensuring that such guidelines are followed.

In some cases, this may involve sealed bids. Boards should do their own research, ask questions, and ensure that a sufficient number of companies are invited to bid on contracts. Design companies or engineers should be required to disclose any relationships they have with suppliers and contractors, so as to avoid non-arm’s length contracts from being awarded. The forthcoming licensing requirements for property managers should further ensure that best practices are followed in the bidding process. C V CONDOVOICE FALL 2016

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Condominium Law

By Armand Conant, B.Eng. LL.B., D.E.S.S. Deborah Howden, BA, B.Ed., B.C.L., LL.B. and John De Vellis, BA, MA, LL.B. Shibley Righton LLP

HOT OFF THE PRESSES:

A Huge Win for the Condo Community Landmark Decision Allows Condo Corporation to Unilaterally Amend Oppressive Shared Facilities Agreement

In a huge win for the condo community, the Ontario Superior Court on August 26, 2016 upheld a Toronto condominium corporation’s decision to amend a shared facilities agreement under s. 113 of the Condominium Act, 1998.

In TSCC No. 2130 v. York Bremner Developments Limited, the condo corporation applied for an order terminating or amending a shared facilities agreement. Under s.

113 of the Act, the court may make such an order if the application is filed within one year of turn-over and the court is satisfied that the disclosure statement did not clearly and adequately disclose the provisions of the agreement and the agreement produces a result that is oppressive or unconscionably prejudicial to the corporation.

With respect to the question of clear and adequate disclosure, the court found that the adequacy of the disclosure is tied to the oppressive outcome. As is increasingly common in new condo developments, the shared facilities were part of a large, complex development involving other commercial owners, including the developer, which continued to own the commercial compo62

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nents within the complex, and whose agent is also the manager of the shared facilities.

The court found that the disclosure statement failed to adequately disclose important features of the shared facilities agreement that gave the declarant, or its agent, complete control over the management, repairs and budget of the shared facilities, with no input whatsoever by the condo corporation. Significantly, the court found

The court found that the disclosure statement failed to adequately disclose important features of the shared facilities agreement that the disclosure was inadequate despite the fact that the entire agreement was appended to the disclosure statement. “The statute”, said the court, “requires more than just the disclosure of the document.”

The court ultimately found that the shared facilities agreement was oppres-

sive toward the condo corporation’s rights because, among other things, it allowed for a powerful, non-arm’s length shared facilities manager who was heavily biased in favour of the developer and commercial owners. Though the court confirmed it was not illegal to have a one-sided agreement in and of itself, the corporation had a reasonable expectation that the shared facilities manager would treat the corporation fairly under the terms of the agreement. Instead, the shared facilities manager took an unreasonable approach to the agreement and unfairly disregarded the corporation’s legitimate interests.

In the end, the court did not terminate the agreement outright, as doing so would create a void that would not likely be filled.

Rather, the court amended the agreement to insert a provision allowing TSCC 2130 to terminate the shared facilities manager.

The decision is an important victory for the condominium community. It opens the door for other new condominium corporations, which have been saddled with unfair and oppressive shared facilities agreements, to look to the courts for a remedy. C V

condominium

owners

Timely ideas, insight, inspiration and information of particular interest to condominium owners

Condo Etiquette Condo Etiquette is a regular condovoice feature whereby condo residents, owners and directors can share their thoughts on a variety of common (or not so common!) condo etiquette situations. For this issue, we asked readers:

Share Your AGM Experience: What advice would you give to someone who is preparing to attend their very first Annual General Meeting?

Advice for Directors 1) Keep it simple! Have your auditor explain your financial position. Have your barrister or management company chair the meeting. Write an AGM script and give it to people who will speak to the owners. - Steven V. 2) Listen and try to relate to what you hear. - Marc B. 3) Be prepared to expect many different opinions. - Gavin D.

2) Take advantage of your opportunity to ask questions but appreciate that others may wish to as well. Don’t hog the floor! - Gerald D.

3) Come prepared to listen (no cell phones/chatter with neighbours) 4) a) Come prepared a) Don’t be shy – Ask questions b) Be forthright, don’t BS, admit if b) Ensure you understand the you don’t know answers c) If you promise action, follow up. c) If actions are promised, get a clear answer on timing and how Give timing - Sandy D. information will be disseminated 5) You cannot please everyone so don’t - Sandy D. try to or you risk coming off as disin4) Think before you speak - John V. genuous - Anonymous Advice for Owners 1) Expect the worst, hope for the best! Anonymous

5) Don’t be surprised if your neighbours revert to schoolyard behaviour!

- Anonymous C V

While we appreciate your contribution, we regrettably cannot offer any guarantees that your submission will be published in view of volume limitations.

The publication of submissions is at the sole discretion of CCI Toronto’s Communications Committee and your submission of the content provided above is considered to be your full and final release of any ownership rights thereof. Please contact info@ccitoronto.org with any questions or concerns.

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name: profession: location: chapter:

“The ACCI designation allows

“Obtaining my ACCI accreditation

condominium boards and

gives me the opportunity to join

owners to accurately identify

an elite group of committed

those professionals with the

professionals who are genuinely

knowledge and capabilities for

invested in a high standard of

managing their individual

care for the Condominium

issues and concerns.”

industry”

Andrew St. George, RCM, ACCI Property Manager, St. George Property Management Inc. Thornhill, ON CCI Toronto Chapter

For more information on how to obtain your ACCI or on why you should hire an ACCI professional, please visit:

National

your condo connection ...to professionals

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Audio Podcasts Now Available!

name: profession: location: chapter:

www.cci.ca

Sunni Dowds, RCM, ACCI Property Manager, St. George Property Management Inc. Thornhill, ON CCI Toronto Chapter

National

your condo connection ...to professionals

Smoking in Condos Podcast

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www.cci.ca

“ACCI not only certifies

PART II Listen to the continuation of an interview by CCI Director Bob Girard with fellow director Brian Horlick as they further discuss the issue of Smoking in Condominiums. Their conversation is based upon the content of an extremely well attended CCI Seminar on Smoking in Condos which was held on March 31st, 2016. This is a follow up to Part I of the podcast can also be found at: www.condopodcasts.ca

For more information on how to obtain your ACCI or on why you should hire an ACCI professional, please visit:

professionalism throughout the condominium management industry it also gives clients piece of mind their investment is in good hands.” name: profession: location: chapter:

Bruno Hertl, RCM, ACCI Property Manager, St. George Property Management Inc. Toronto, ON CCI Toronto Chapter

National

your condo connection ...to professionals

For more information on how to obtain your ACCI or on why you should hire an ACCI professional, please visit:

www.cci.ca

Pets and Condos

condominium

owners

by Gilleen Witkowski, Walk My Dog Toronto

Just Walkin’ the Dog How to be a “dog person” and responsible condo owner at the same time Anyone who has ever known and loved a dog also knows the benefits of having them in our lives. Many of the complaints about dogs in condo buildings that come about are because dogs are barking or not attended to during the day. But thanks to modern services (and a little common sense), it is possible to own dogs responsibly in condos – usually with a little bit of extra training, dog-walking or cleaning help.

Here are some ways we manage the process of picking up and dropping off dogs

in condos, and observations made along the way. As licensed service providers coming in and out of a condominium with one or more dogs, we reinforce basic walk training to keep the dogs focused on us.

The dogs are on-leash at all times, and attached to their walker with carabineers – this prevents any of the pups from unexpectedly taking off running.

We often take dogs on group walks, and we bring them through shared condo spaces on our way to pick up and drop off members of the group. Our City of Toronto licenses and insurance require that each group have a maximum of six dogs. However, you will find that a group of that size is rare, and you are

more likely to encounter groups of three or four.

Dog owners know that dogs have unique personalities. We only walk dogs together that are similar in size and get along well. And we keep our eyes and ears peeled – if anything negative happens, we take a break and leave immediately.

We also ask the unit resident/dog owner to make us aware of a condo’s declaration and rules with respect to pets in units or in common areas. If there are limits on pets, we make adjustments to our schedule so that we respect all condo rules and regulations.

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ILLUSTRATION BY TOMIO NITTO

Dog ownership can also present concerns, even the logistics of moving dogs through condo common areas can get a little hairy.

Dog owners can borrow many tricks of the trade from professional dog walkers to encourage good pet behaviour. Awareness of other pets is key, and it is important to respect their body language. Dogs will show signs of distress if they are not in the mood to be around other dogs or people. Gently pull your dog to the side and reward it (with treats and attention) for paying attention to you instead of that other dog you come across.

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condominium

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people are happier, more interested, and drawn in despite themselves.

of five minutes inside each condo suite, so the maximum time that visitor dogs spend in a condo’s common areas is about ten minutes total (and most of that time is in suite, meeting and preparing the dog to go out or bringing it back home after the walk). We want to maximize the time the dogs get outdoors!

Security is everything. Our clients provide us with a copy of their keys so that we can pick up and drop off their dog when they are not at home. We keep these keys locked in our secure office location when not in use. Condo owners should make sure that doing so complies with the key or fob use provisions in the building’s declaration and rules and speak to their manager if this poses any concerns.

We have observed that having dogs and dog walkers in condos encourages an organic community feel. Normally, when you walk into an elevator everyone is staring at the door or the screen.

When we enter an elevator with a dog (of course, asking everyone within the elevator if they’re comfortable with dogs being close to them before stepping in), the energy changes every time. Usually

Inadvertently, people on site ask questions and make comments. They often tell stories – “I had a Lab when I was growing up, best dog in the world.” Even though it’s only for a short time, when people get to look at or pet the dogs it makes their day. And then when our walkers leave the elevator, it’s common that everyone remaining (neighbours, friends, staff who work in the building, visitors) are now chatting amongst themselves. If a building allows pets, those pets are part of the community. A wellattended and responsibly owned pet can make a positive impression on all those around it. C V

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Caught reading CONDOVOICE under the watchful eye of a dragon in front of Gringotts Bank

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Health and Wellness

by Erin Forsyth, www.fitwork.ca

condominium

owners

We Should Exercise Every Day, So Why Don’t We? Chances are, your condo gym offers something for everyone

Gym memberships, for instance, can be expensive - even the more affordable ones add up quickly, especially if more than one

membership is required for a particular household. Living in a condominium with a gym facility can negate this potentially expensive additional monthly cost and provide many, if not the same, benefits other off site gym facilities offer. You may even find greater benefits as parking, travel time, ease of access and location is ideal. I like to ask my clients if other family members are supportive of their fitness goals, and many times I find my clients that participate in physical activities without the stress of related additional cost tend to gain this support more readily.

Considering that recommended guidelines of physical activity for most healthy individuals is to accumulate approximately 300 minutes of moderate-intensity exercise activity or 150 minutes of vigorousintensity exercise activity per week and at least three days per week is recommended for strength training, we should exercise almost every day. Having access to a gym where no travel is required can also help save the additional daily cost of extra gas

required to get to and from an offsite gym or the additional transit fare, on top of gym membership costs.

Exercise machines and equipment for strength and cardiovascular training tend to be very large, take up an expansive amount of space and this applies even more so with multiple pieces. The average household consumer would not necessarily purchase this equipment for regular in home use or have the amount of space required for the use of multiple machines.

Most condominium gyms will usually offer a number of machines for strength training, a set of free weights, together with cardiovascular and/or endurance training machines such as treadmills, elliptical machines and various stationary bikes catering to all fitness levels. There may even be the additional perks of a swimming pool and sauna. Whether you are a beginner or an avid gym goer, there is most always something for everyone.

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ILLUSTRATION BY JAMIE BENNET

As a certified personal trainer, I am committed to assisting individuals wishing to pursue a healthy lifestyle and achieve specific fitness goals. Often times, individuals may be prevented from achieving a more healthy lifestyle and reaching these goals due to specific challenges which first need to be overcome. These challenges may be due to finances and the extra expense of gym memberships, or may be simply the lack of access to exercise equipment.

Most often however, time constraints due to a busy career, children and other commitments play a substantial part in preventing even the most motivated individual from reaching a particular fitness goal. Living in a condominium that offers a gym facility to exercise in may, in fact, solve almost all of these challenges and allow for optimal daily physical activity while promoting a more positive outlook on making healthier goals a reality.

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ticular machine, often there are diagrams with instructions located on the machine itself. If not, for the sake of avoiding injury, consider contacting a fitness professional in your area for a demonstration. It is always a good idea to become familiar with the various and different kinds of fitness equipment or machines you may have access to and ensure you know how to use them correctly. This will provide you with more confidence to use the tools needed to make the changes you are looking for. Our bodies benefit tremendously from strength and cardiovascular training, making the physical demands of daily life easier and having access to the equipment needed is a very important part of your success.

Most often, I find my clients lack available time to exercise. Long working hours and obligations to family and children leave most people short on time for themselves.

Living in a condominium with a gym facility will avoid someone having to spend extra time travelling back and forth to and from an offsite gym. Many individuals finish work or begin work at the same time and travelling to an off-site gym to get a workout in may prove to be difficult in the middle of rush hour or heavy traffic and the additional frustration may quickly lead to negative thoughts associated with working out. These negative thoughts make it far less likely for the gym to become a relaxing fun and positive aspect to one’s life, whereas a condominium gym offers a much easier way to squeeze in early morning exercise activity, even before work, or much needed exercise activity after work to relieve stress and maintain a healthier body weight‌ especially after sitting for a long period of time during the day. Just knowing you can take a quick elevator ride up or down and if you are feeling particularly ambitious on occasion and decide to take the stairs, the gym facility will be ready and waiting for you.

If you were to also take into consideration the additional workout deterrence of inclement weather, obviously having a condominium gym would avert this issue altogether.

Travelling outdoor and on the roads in heavy rain, snow, ice conditions, even extreme heat to an off-site gym not only takes additional time, it may even impede valuable motivation. With the ease of a gym located so close to your home, you are equipped to

With the ease of a gym located so close to your home, you are equipped to more easily overcome the challenge of time constraints in order to support fitness goals in a more effective and efficient way more easily overcome the challenge of time constraints in order to support fitness goals in a more effective and efficient way.

Interestingly, regular physical activity also nourishes psychological benefits.

The mind proves to be a very powerful tool in the success of attaining exercise goals and maintaining a healthy positive outlook. You may be pleasantly surprised how many of these positive health benefits arise when exercising regular in your condominium gym. A condominium gym can increase feelings of self-worth and does not discriminate by creating a greater sense of community arising from the simple fact that regardless of age, gender, weight, disability, marital status, nationality, race, religion, sexual orientation or socioeconomic status, we all benefit from exercise and all require approximately the same minimal level of exercise in order to reduce the risk of heart disease, stroke, diabetes and other disease associated with a lack of physical activity and weight gain.

A condominium gym may also feel less intimidating to some interested in beginning a fitness program and can help greatly improve self-confidence. By exercising in a gym located where you live, you are also more likely to find and come across like-minded people who share similar interests in fitness, health and exercise.

Keeping in mind that these individuals are also your neighbours, you may even find that incorporating exercise into conversation as a common ground gives opportunity to communicate with new people thus greatly improving and broadening your social network. If you have not had a great day or otherwise do not find yourself as motivated as you would like, knowing you can always take a quick trip to the gym and, most of the time, see the familiar happy faces of your neighbours exercising may provide greater reassurance, encouragement and support in making exercise a regular

part of your life and a positive experience.

Definitely, having access to a condominium gym facility or fitness centre can help overcome many obstacles and challenges in the daily lives of individuals looking to make significant changes for health reasons, maintain a healthier lifestyle and reach a particular fitness goal.

As a certified personal trainer, I would highly recommend this type of living accommodation. It most certainly eliminates almost all excuses to not get moving and enjoying daily physical activity.

Physical activity becomes so important as we age in the prevention of high blood pressure, the regulation of blood sugar, aids in the prevention of bone and muscle loss which may reduce the incidence of joint pain, injury or broken bones. Exercise activity naturally reduces depression, stabilizes mood, reduces anxiety and also improves mental health and self-image.

Exercise is a positive way to cope with the stresses of daily life. Exercise decreases body fat, leading to a healthier body weight, reducing the risk of diabetes and other life threatening diseases.

There is something outstanding about living anywhere that provides an outlet of considerable opportunity for you to live a longer life and meet other like-minded people, all while not having the additional burden of cost or travel, leaving you more time for yourself. To share a few standard tips to keep in mind when exercising in your condominium gym: always have proper supportive footwear, stay hydrated by drinking plenty of water (before, during and after your workout) and, in consideration of other gym goers, always wipe down the machines after you use them, placing equipment back in the correct spot. The gym is waiting for you, what are you waiting for? C V CONDOVOICE FALL 2016

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26/02/13

10:20 AM

Alphabet Soup In an effort to help condo directors navigate their way through finding qualified industry professionals to work with, CCI presents Alphabet Soup, a quarterly column to help directors make meaning of what the letters for various industry designations mean. This article will focus on the C.Med designation available to mediators.

The Chartered Mediator Designation

ADRIC is recognized as Canada’s preeminent ADR professional organization, setting the benchmarks for best ADR practices in Canada, promoting conflict resolution through mediation, arbitration and other forms of ADR and providing leadership, value and support to its members.

In order for a mediator to attain C.Med status, he/she must: • Have successfully completed extensive education through programs approved

by ADRIC. Programs include mediation theory skills training, study or training in the psychology of dispute

resolution, negotiation, public consultation, mutual gains bargaining, communication, management consulting, conflict management or specific substantive areas such as law, psychology, social work, counselling, etc. Specific requirements of what is comprised in this extensive study is left to the discretion of each regional affiliate of ADRIC – in Ontario, this is the ADR Institute of Ontario (ADRIO).

• Have significant practical experience as a paid mediator–acting as a sole mediator or mediation chairperson for compensation. (Volunteer work does not count toward satisfying this requirement.)

• Obtain the recommendation of a regional affiliate of ADRIC that the practitioner is deserving of C.Med status. This includes demonstrating superior competency in mediation through a skills assessment carried out by senior mediation professionals whereby a C.Med applicant must demonstrate having at least 15 specific skills and competencies at a high standard.

• Pledge to comply with ADRIC’s Code of Ethics and Code of Conduct.

• Carry Errors and Omissions Insurance with a coverage limit of at least $1 million aggregate.

• Be a member in good standing of a regional affiliate of ADRIC. To maintain C.Med status, mediators must be active and committed to continuing education, reporting every 3 years that they have accumulated no less than 100 points as guided by ADRIC’s Continuing Education and Engagement Program.

The combination of education and practical experience required to attain C.Med status, together with the scrutiny and approval needed from senior conflict management professionals, results in an integrous designation. Demand it (or consider it) when seeking an experienced and capable mediator. Comfort can also be taken from the ethics obligation, insurance requirements and commitment to continuing education to which C.Meds subscribe.

For more information about the C.Med designation or the ADR Institute of Canada, please visit adric.ca C V CONDOVOICE FALL 2016

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ILLUSTRATION BY JASON SCHNIDER

The Chartered Mediator designation (C.Med) is Canada’s most senior official designation for practising mediators. It recognizes a superior level of competence and is designed to assist those requiring mediation services to find highly experienced and skilled mediators. C.Med status is offered to mediators who satisfy the ADR Institute of Canada’s extensive training and experience requirements. The ADR Institute of Canada (ADRIC) is home to over two thousand Alternative Dispute Resolution practitioners across the country through affiliates in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and the Atlantic Provinces.

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Green Leaf Landscaping 74 Horlick Levitt Di Lella LLP Inside Front Cover ICC Property Management Ltd. Inside Back Cover JCO & Associates 17 Larlyn Property Management Ltd. 72 LEaC Shield Ltd. 74 Malvern Condominium Property Management 6 Maple Ridge Community Management 42 Metro Jet Wash 52 Miller Thomson LLP 24 Monster Plowing Company 36 Morrison Financial Services Limited 21 Morrison Hershfield 50 Nadlan-Harris Property Management Inc. 74 Ontario Building Envelope Council 44 Ontario Playgrounds 30 Percel Inc. 60 Priority Submetering Solutions 68 Rikos Engineering Limited 8 Rutherford and Mathews 39 Shibley Righton LLP 14 Summa Property Management Inc. 57 Suncorp Valuations Ltd. 24 Tator Rose & Leong 74 The Floor Studio 48 Toronto Hydro 42 V-Cal Foundation Crack Repair 72 Whiterose Janitorial Services Ltd. 2 Wilkinson Chutes Canada 72 Wilson, Blanchard Management Inc. 56 WSP 66

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The Last Word

By Armand Conant, B.Eng, LL.B., D.E.S.S. (Sorbonne) Shibley Righton LLP

Court Appointed Administrators: Friend or Foe?

We will see an increase in Administrations in the future

I am not suggesting that we have a widespread problem or epidemic in Ontario.

Quite the opposite, as most corporations are well governed. But I do believe that we will see an increase in Administrations in the future.

Of the approximately 30 condominium corporations that have had court appointed Administrators, most arose from the reasons mentioned above (and more). For 76

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a few corporations, the building was in such a state of disrepair that the municipality was going to condemn it. In other cases, it was a minority of unit owners who obtained the Administration order so that they could wrest control from a developercontrolled board which was not acting in the best interests of all owners.

Some argue the whole Administrator mechanism is wrong as it strips away the democratic right of unit owners to govern themselves. Additionally, Administrators charge a fee for their services, and for financially troubled corporations this can be seen as an unnecessary expense.

Despite this, if the question is whether or not there is a role for Administrators and Inspectors, my answer is an unequivocal yes. While letting owners run their own corporation is desirable from a democratic point of view, unfortunately it does not work for buildings where you have rogue boards who misuse owners’ money, directors with hidden agendas, or when the board has misguided ideas of how to gov-

ern (e.g. short term goals which disregard the long term health of the corporation).

These problems are not always intentional; sometimes they are just innocent mistakes by a well-intentioned board.

So although the thought of a court appointed Administrator may upset some and could send a negative impression of the corporation to the public (though it often gives the exact opposite impression), it is an important tool available to unit owners to save their corporation.

There should always be the ability under the Condo Act for the appointment of an arm’s length person to operate the corporation, correct the mistakes, and get the building back on its feet (or even have an appointment for limited purposes). Therefore, Administrators and Inspectors, in the right circumstance, are definitely our friend and not a foe to the community. It is a role or function that I believe is critical as a last consumer protection for unit owners, and will have an increased role as our industry grows and ages. C V

ILLUSTRATION BY JASON SCHNIDER

Over the years I have been appointed Administrator for four condominium corporations (for one I am still there after 9 years). With corporations getting older (some in excess of 40 years old), the number of corporations increasing dramatically (now almost 9,400), and governance problems arising in certain corporations (e.g. short-term vision, misuse of reserve funds, or warring factions in the building) I have noticed an increase in the number of Administrations. This raises the question whether Administrators are friend or foe to the owners of the buildings they administer.

1151 Denison Street, Unit 15 L3RUnit 3Y415 1151 Denison Street, L3R 3Y4

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