CCI-T Condovoice Magazine - Spring 2022

The Fundamentals of Condo Living • Can Condominiums Remain Affordable?

The Impact of Bid Rigging What is Bid-Rigging and How can we Reduce the Risk?

Fire-Rated Lobby Furniture This is a Modern Building. Why is the Lobby Empty?

Dysfunctional Corporations The Trifecta of a Dysfunctional Condo Corporation

Publication of the Toronto and Area Chapter of the Canadian Condominium Institute • SPRING 2022 • www.ccitoronto.org

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THE REVOLUTION IS

HERE! ELECTRIC VEHICLES HAVE BECOME PART OF THE MAINSTREAM

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Condovoice VOLUME 26 • ISSUE # 3 • SPRING 2022

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In Every Issue 3

President’s Message

BY MURRAY JOHNSON

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Message From the Editor

BY BRIAN HORLICK

48 Last Word Can Condos Remain Affordable?

BY PATRICIA ELIA

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In This Issue 7 Decisions From the Courts BY ROHINA HASHIMI & FRANCESCO DEO Who is Responsible for a Condominium Corporation’s Costs?

11 It’s Easy Being Green at Mediation

BY MARC BHALLA “I’m green and it’ll do fine. It’s beautiful, and I think it’s what I want to be”

13 Fire Rated Furniture Requirements in Lobbies

BY MICHELE FARLEY

The Goal? To Save Lives!

15 The EV Revolution is Here

BY JEREMY NIXON Electric Vehicles Have Become Part of the Mainstream

16 EV Charger Installation. Who You Gonna Call?

BY MARK MARMER Things to Look For When Hiring an Electrical Contractor

For Condo Owners 53 The Fundamentals of Condo Living

BY JAMES O’HARA

CCI Members News & Events 47 48 49 50 48 57

18 Is Your Condo Ready for EV Charging Stations?

BY JOEL BERKOVITZ & EVAN HOLT Easy Steps for Preparing to Respond to EVCS Installation Requests

20 Condominium Profile: The Claridges

CCI-T Annual General Meeting CCI Was There New Committee Member Profiles CCI Welcomes New Members Education Committee Events Word Search

31 Going Green: Tech or Retrofits?

YOUR CONDO CONNECTION IN THE TORONTO, PEEL, YORK AND DURHAM REGIONS

37 The Impact of Bid-Rigging

PROVIDING EDUCATION, INFORMATION, AWARENESS AND ACCESS TO EXPERTISE

BY AND FOR OUR MEMBERS.

www.ccitoronto.org

BY JAMES RUSSELL

Aging in (a Great) Place

BY BRAD PILGRIM

What is the Best Approach?

33 A Director’s Dozen

BY GERALD R. (JERRY) GENGE 12 Things Directors Need to Know About Paying for Building Repairs

35 The Galaxy of Minute Taking

BY NOAH MAISLIN Keeping Accurate Minutes is a Key Component of a Well-Functioning Board

BY ROBERT BUCKLER & KATERYNA POLEK What is Bid Rigging and How can we Reduce the Risk?

41 Reserve Fund Study Report Cards

BY SOPHIA SIMEONE & SALLY THOMPSON Beware of Unfamiliar Systems • Importance of Section 98 Agreements

43 The Trifecta of a Dysfunctional Condo Corporation Toronto and Area Chapter

BY ALEXANDER ETKIN The Peril of Failing to Raise Common Area Expense Fees CONDOVOICE SPRING 2022

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PHOTO CONTEST!

A CONTEST THAT IS FUN AND EASY TO ENTER ALL YOU NEED TO DO IS SNAP A SHOT OF YOUR CONDOVOICE HOW TO ENTER: WE’RE FINALLY GETTING BACK TO LEAVING THE COMFORT OF OUR HOMES, SOCIALIZING AND TRAVELLING! LET’S CELEBRATE THIS TIME TOGETHER AND SHOW OFF THE PLACES WE ARE FINALLY ABLE TO VISIT. TAKE A PICTURE OF CONDOVOICE IN AN INTERESTING LOCATION AND E-MAIL YOUR PHOTO TO INFO@CCITORONTO.ORG. [ENTRIES ACCEPTED ON AN ONGOING BASIS] For information on eligibility, please visit ccitoronto.org/condovoice/cv-selfies

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Canadian Condominium Institute/ Institut canadien des condominiums Toronto & Area Chapter 1 Eglinton Ave. Toronto, ON M4P 3A1 Tel: (416) 840-5346 E-mail: info@ccitoronto.org Website: www.ccitoronto.org 2021-2022 Board of Directors PRESIDENT: Murray Johnson, OLCM, CCI (Hon’s), LCCI Co-Chair, Conference Committee Member, Tarion Sub-Committee Crossbridge Condominium Services Ltd. VICE-PRESIDENT: Lyndsey McNally, OLCM, LCCI Member, Legislative, Communications Committees Member, Social Media Sub-Committee Co-Chair, Education Committee CCI-N Liaison CWB Maxium Financial SECRETARY/TREASURER: Brian Antman, CPA, CA Chair, Finance Committee, Member, Conference Committee, Member, Communications Committee Adams & Miles LLP Chartered Professional Accountants Board Members Francesco Deo, BA (Hons), JD Member, Legislative Committee Chair, Volunteer Resource Committee Deo Condominium Lawyers Bob Girard, B.Comm, ACCI Member, CondoSTRENGTH Committee Member, Education Committee Member, Finance Committee Member, Membership Retention Sub-Committee YCC # 50 Brian Horlick, B.Comm., B.C.L., LL.B., ACCI, FCCI Chair, Communications Committee, Member, Conference Committee Horlick Levitt Di Lella LLP Warren Kleiner, BA., LL.B. Chair, Legislative Committee Co-Chair, Ontario Caucus Member, Marketing Committee Member, Awards Sub-Committee Shibley Righton LLP Farzad Lahouti, MBA Member, Marketing Committee Member, CondoSTRENGTH Committee Chair, Awards Sub-Committee YRCC 798 Eric Lakien, MBA, PhD. Member, CondoSTRENGTH Committee Member, Marketing Committee Co-Chair, Education Committee YRCC # 798 Connie Pappas Boccitto, CCSP Chair, CondoSTRENGTH Committee Member, Social Media Sub-Committee Royal LePage Terrequity Realty, Brokerage corp Valuations Sophia Simeone, B.Eng, EIT Member, Education Committee Chair, Social Media Sub-Committee Synergy Partners Lisa Kay, BA Econ Member, Communications Committee KayCondoGC Inc. Stephen Ilkiw Chair, Marketing Committee CondoHive / Bedford Hill Consulting OPERATIONS MANAGER - Seamus Gearin

President’s Message

Energy and Water Reporting and Benchmarking Recently, I became aware of several condominium corporations that obtained their ENERGY STAR® certification.

This certification is a recognition of energy efficiency being among the top 25% of similar buildings. All things being equal, a building with an ENERGY STAR® certification should have lower energy costs and increased asset value while contributing fewer greenhouse gas emissions and boasting greater rental/ occupancy rates.

I asked how these buildings became aware that they could potentially obtain the certification and the answer was music to my ears. As a result of submitting annual energy consumption reports for water, heat and hydro to the province under the legislated provincial Energy and Water Reporting and Benchmarking (EWRB) mandate, the building consumption data was readily available. It was also easily comparable to other similar buildings.

When provincial benchmarking was first considered, CCI Toronto and Area chapter had significant input into the decision to include condominiums.

Hearing municipalities from around the world speak of the benefits that they received as part of the benchmarking, it became clear that our members had to be part of this initiative. Condominiums were not originally included, and CCI-T partnered with others to advocate for the industry to be a part of it.

Our thought was that a condominium should be able to compare their energy use

to similar buildings, prompting targeted projects to increase energy efficiency that would increase curb appeal and foster a decreased cost of living for owners.

Other municipalities report that real estate agents are using the energy efficiency reporting to highlight why one building may be better than others.

There is no reason to believe that the Toronto area would be any different as energy data availability increases. While more buildings become energy efficient and achieve the ENERGY STAR® certification, condominiums that don’t will start to fall behind.

Looking back to March 2015 and the start of meetings with the province, it’s nice to report to our members that all the work put into the project way back then has finally started to yield benefits for those following the provincial mandate to report energy data. All things being equal, more and more of this community that now can promote their ENERGY STAR® certifications as true reflections of the positive impact they are having on the environment while reducing operating expenses.

Murray Johnson, CCI (Hon’s), OLCM, LC CCI-Toronto and Area Chapter President CONDOVOICE SPRING 2022

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Condovoice Condovoice is published four times per year – Spring, Summer, Fall and Winter, by Redstone Agency on behalf of the Canadian Condominium Institute Toronto & Area Chapter.

EDITOR: Brian Horlick ADVERTISING: Calandra Muller ART DIRECTION & DESIGN:

Atlanta Visual Communications Inc. All advertising enquiries should be directed to Calandra Muller at (416) 840-5346 ext. 5 or advertising@ccitoronto.org If you are interested in writing articles for Condovoice magazine, please contact Calandra Muller at (416) 8405346 ext. 5 or calandra@ccitoronto. org. 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.

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705 – 1 Eglinton Ave. Toronto, ON M4P 3A1

Editor’s Message

An Ounce of Prevention is Worth a Pound of Cure Condos Need to Properly Investigate Workplace Harassment Complaints to Prevent Harm to their Employees With so many condominium residents now working from home, and with the increased frustration brought on by COVID-19 and the many restrictions that it has brought with it (such as the closing of amenities, masking, social distancing, etc.), there appears to be, at least anecdotally, a significant increase in the harassment of condominium managers, employees, on-site staff and even directors.

The term “employer” is defined broadly under the OHSA to include an entity that “employs one or more workers or contracts for the services of one or more workers.”

Unfortunately, I have noticed a tendency of some condominium corporations to take this issue less seriously than they should. The sentiment of those condominiums that downplay the issue is that the condominium workplace will excuse behaviour that would otherwise be inexcusable in other workplaces (e.g. office buildings or retail establishments) because, as they say, residents call the condominium “home” and residents are to be granted a degree of leeway in how they behave in their home.

As a result, an employer under the OHSA includes a condominium corporation that contracts with third-party service providers, such as a security or maintenance services company, with the staff employed by the third-party service provider being regarded as workers of the condominium corporation. This is irrespective of the fact that the security guards or maintenance services workers are not party to an employment agreement with the condominium corporation.

Condominiums who adopt this view, as above, towards their workplace environment risk running afoul of the “workplace harassment” provisions in Ontario’s Occupational Health and Safety Act (“OHSA”).

The term “workplace harassment” is defined under the OHSA as “engaging in a course of vexatious comment or conduct against a worker in a workplace that is known or ought reasonably to be known to be unwelcome.”

The OHSA uses the term “worker” (and not “employee”) to mean “a person who performs work or supplies services for monetary compensation.”

In addition, the OHSA requires employers to have both a policy and a program to address workplace harassment.

Moreover, employers are required to investigate allegations of harassment. To that end, Ontario’s Ministry of Labour, Training and Skills Development has established best practices for the investigation that must be undertaken when a complaint of workplace harassment arises. Notably, the prevailing guidance is that investigations must: – Continued on page 9 CONDOVOICE SPRING 2022

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Rohina Hashimi Student-at-Law Deo Condominium Lawyers

Francesco Deo Lawyer Deo Condominium Lawyers

Case Law Update

Decisions From the Courts

TSCC 2519 v. Emerald PG Holdings et al., 2021 ONSC 7222 In TSCC 2519 v Emerald PG Holdings et al., Toronto Standard Condominium Corporation No. 2519 (“TSCC 2519”) brought a motion for a compliance order and a restraining order against a corporate unit owner, Emerald PG Holdings (“Emerald”), the individual owners of Emerald, Mr. Eroltu and Mr. Campione, and an independent contractor of Emerald’s corporate tenant, Mr. Thomson (collectively, the “respondents”).

TSCC 2519’s documentary evidence and witness testimony demonstrated a pattern of harassing and aggressive conduct in the form of email communications, telephone calls, and physical interactions between the respondents and members of the board of directors, unit owners, and the property manager within a four-year period.

Within several of these interactions, Mr. Eroltu and Mr. Thomson would threaten to sue TSCC 2519 board members or unit owners personally if they failed to comply with the demands of the respondents.

Specifically, Mr. Eroltu and Mr. Thomson would threaten legal action against certain

board members if they ran for election to the board. Threats of legal action were made against unit owners who voted or otherwise supported certain candidates of the board. After repeated incidents of aggressive conduct from Mr. Eroltu and Mr. Thomson, TSCC 2519’s property manager felt it was necessary to be accompanied by a security guard to her vehicle.

In looking at section 117 of the Act (i.e. “no person shall permit a condition to exist or carry on an activity in a unit or in the common elements if the condition or the activity is likely to damage the property or cause injury to an individual”), the Court once again noted that the term “injury” includes psychological harm that is beyond a trifling nature. The burden of proof rests on the moving party to prove, on a balance of probabilities, that the conduct of the respondent was likely to give rise to psychological harm that is of more than a trifling nature. In this case, the Court found that Mr. Eroltu and Mr. Thomson engaged in conduct that was intimidating, bullying, and abusive. The Court accepted the evidence of the unit owners and board members who claimed that they felt threatened, intimidated, and mistreated by the conduct of Mr. Eroltu and Mr. Thomson, noting that the conduct reasonably gave rise to an apprehension of fear.

The Court also held that the respondents violated TSCC 2519’s declaration by unreasonably interfering with the use or enjoyment of the units and common elements by threatening legal action against board members. Importantly, the use and enjoyment of the units and common ele-

ments includes the right to participate in the governance of TSCC 2519 without fear of reprisal.

Further, the Court found that the verbal abuse, physical intimidation, accusations of wrongdoing, and other conduct by Mr. Eroltu and Mr. Thomson constituted workplace harassment within the meaning of the Occupational Safety and Health Act. Among other orders, the Court granted a compliance order against Emerald, Mr. Eroltu and Mr. Thomson requiring them to comply with the Act and TSCC 2519’s governing documents as well as an interlocutory order restraining Emerald, Mr. Eroltu and Mr. Thomson, from soliciting proxies of unit owners for owner’s meetings. Costs of the motion were payable by Emerald on a full indemnity basis and recoverable as a common expense.

York Condominium Corporation No. 188 v. Chaudhry, M. et al, 2021 ONSC 7027 In York Condominium Corporation No. 188 v Chaudhry M. et al, the Ontario Superior Court of Justice was asked to determine whether the conduct of an adult occupant violated section 117 of the Act and whether the occupant’s parents (the unit owners) failed to take reasonable steps to prevent their son’s misconduct.

A court order had previously been made against the respondents that, among other things, prohibited the adult son from engaging in certain forms of harassing conduct against the staff and directors of York Condominium Corporation No. 188 CONDOVOICE SPRING 2022

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ILLUSTRATION BY JASON SCHNEIDER

Harassment and aggression in condominium corporations has been the subject of some recent decisions from the Ontario Superior Court of Justice. The Court has outlined and further clarified the remedies available to condominium corporations when dealing with hostile and aggressive conduct by residents towards board members, property management, or other residents in contravention of section 117 of the Condominium Act, 1998 (the “Act”).

(“YCC 188”). Notwithstanding the order, the son and, by extension, the parents, continued to engage in similar conduct that was prohibited by the court order.

For example, the son delivered letters to unit owners, members of the board of directors, and the property manager that targeted the Ahmadiyya Muslim community at YCC 188, with allegations that the Ahmadiyya community manipulates and controls the board of YCC 188. This conduct led to several reports received by YCC 188 from unit owners, the property manager, and board members expressing concerns for their safety.

The Court found that the son’s course of communications was likely to cause injury to individuals, particularly, individuals within YCC 188 who are members of the Ahmadiyya Muslim community. The Court ordered, among other orders, that the son was prohibited from occupying any unit within YCC 188 and was prohibited from engaging in any harassing or abusive conduct, either directly or indirectly, towards any representative of YCC 188.

However, the Court noted that this case is an extreme case which requires the enforcement of serious measures to ensure compliance with section 117 of the Act. In analyzing whether costs may be awarded as against the parent unit owners, the Court held that the parents failed to take reasonable steps to prevent their son’s mis-

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conduct, which is contrary to subsection 119(2) of the Act. The parents had also engaged in harassing conduct towards YCC 188 staff by signing several letters, in their own names, that were addressed to the board of directors. One of the letters that was allegedly delivered by the parents, but signed by the son on their behalf, was shown as copied to the Prime Minister of Canada, the Premier of Ontario, various media outlets, and the “Supreme Head of Ahmadiyya Muslim Community of World”. The court awarded the legal costs incurred by YCC 188 leading up to the motion and the costs of the motion against the parents pursuant to the indemnification provision of YCC 188’s declaration.

York Region Condominium Corporation No. 794 v. Watson, 2021 ONSC 6574 In York Region Condominium Corporation No. 794 v Watson, the Court held that the provisions of the Act place a positive obligation on condominium corporations to take steps to prevent a dangerous condition before an incident occurs.

In this case, two of the respondents, who were occupants in YRCC 794, engaged in threatening, harassing and illegal behaviour towards YRCC 794 staff and residents.

Their conduct included the communication (both verbally and through emails) of obscenities, racial slurs, and death threats.

As a result of the occupants’ threatening behaviour, and in response to complaints by residents who expressed fear for their

safety, YRCC 794 found it necessary to arrange for additional security in the building. YRCC 794 eventually brought an application to the court for an order requiring the occupants to, among other things, vacate the unit and refrain from attending at the property.

In conducting its analysis on whether the respondents breached section 117 of the Act, the Court noted that YRCC 794 is entitled to bring an application directly to the court as subsection 134(2), which requires the exhaustion of the mediation and arbitration routes, does not apply in the case of breaches of the Act itself. The Court also found that the occupants’ behaviour, which included threats of bodily harm and death threats, not only violates section 117 of the Act, but is also criminally harassing.

The Court ordered that the respondents comply with the Act and YRCC 794’s governing documents as well as immediately cease and desist from, among other things, engaging in threatening and harassing conduct or communicating with YRCC 794 staff and residents whatsoever, subject to emergency circumstances. The Court also ordered the occupants to vacate the unit and permanently prohibited the occupants from attending at YRCC 794. Finally, costs were awarded as against the respondents on a full indemnity basis and recoverable as a common expense for the unit. C V

Editor’s Message 1. Be undertaken promptly: Within 90 days or less unless there are sufficient reasons why more time is needed.

2. Be objective: The person in charge of the investigation should not be involved in the incident and should not be subordinate to or otherwise be under the control of the alleged harasser.

3. Maintain confidentiality: Information about the incident or complaint should not be disclosed unless necessary to protect workers or carry out the investigation.

4. Be thorough: Make sufficient efforts to interview the employee who alleges harassment, the alleged harasser(s) and any witnesses. The interview should include specific questions about the incident or complaint, and the individual conducting the interview should take detailed

– Continued from page 4 notes and thoroughly review any documents relied upon by the alleged harasser and the employee alleging harassment.

The consequences of failing to comply with the OHSA should not be downplayed. In this regard, if a condominium corporation is convicted of contravening a provision of the OHSA, the maximum penalty that may be imposed is $1,500,000.

Furthermore, in a prosecution of an offence under the OHSA, any act or neglect of a manager, agent, representative, officer, or director of the accused condo corporation is deemed to be an act or neglect of the accused condo corporation itself. As a result, this means that if an agent of the corporation (such as a director or property manager) is harassing a worker within the condo, for example, liability flows to the condo corporation.

Given this serious situation, I recom-

mend that all condominium corporations that employ or contract for the services of “workers” should consider establishing workplace harassment policies. Such policies should be drafted with the assistance of legal counsel and should set out standards and measures for identifying and addressing complaints of harassment.

While I hope that your condominium will never face this type of problem, you should, at the very least, take proactive preparatory measures to ensure that if harassment arises, you are ready to investigate the complaint and implement a solution. C V

Brian Horlick B. Comm, BCL, L.L.B., ACCI, FCCI

CONGRATULATIONS! CONGRATULATIONS! Horlick Levitt Di Lella LLP congratulates and welcomes Timothy Duggan and Bradley Chaplick to the firm’s partnership Tim joined HLD in 2009 as an articling student and then became a standout associate lawyer practising condominium law and civil litigation. Bradley began his career in condominium law at the same time as Tim at a boutique condominium law firm. In 2018, Bradley joined HLD as a senior associate lawyer and now continues as a partner in the condominium law practice group. As great contributors to our team and the condominium community, we are proud to have them as partners.

THANK YOU TIM AND BRAD FOR YOUR HARD WORK AND DEDICATION.

EXPERTS IN CONDOMINIUM LAW 100 SHEPPARD AVE. EAST SUITE 204, TORONTO, ON M2N 6N5 WWW.HLDLAWYERS.COM TEL 416.512.7440 TRUST • EXPERIENCE • INTEGRITY CONDOVOICE SPRING 2022

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Marc Bhalla LL.M. (DR), C.Med, C.Arb, CCI (Hon’s)

The Environment

It’s Easy Being Green at Mediation “I’m green and it’ll do fine It’s beautiful, and I think it’s what I want to be” – Kermit the Frog

In my experience, lengthy preparation materials can be helpful… so long as they are focused and organized! A mediator can better understand the context not only of the conflict but the relationships of those involved in it. How long key players in a condo conf lict have known one another and the nature of their exchanges help mediators consider how to set up the process in a way that best offers a chance of succeeding with mediation (and help mediators under-

stand what participants consider success to be).

While there is something to be said for the benefits of hundreds of pages of focused and organized mediation materials, there is a downside when such are printed. Look no further than The Lorax to appreciate the price paid by the trees.

In fact, when mediation is viewed with a green lens, there are a number of opportunities to make the process more environmentally friendly. Some are as simple as getting with the times, leaving the fax machine behind, and embracing electronic documents over hardcopies.

Others require a little more effort but are ultimately easy to incorporate into the dispute resolution process, particularly as many condominium communities are already embracing them.

On February 28, 2020, English mediator, John Sturrock, considered greener mediation in a post for the Kluwer Me-

diation Blog. Sturrock suggested that mediation can be better for the planet than “carbon intensive” litigation and launched The World Mediators Alliance on Climate Change. Mediators around the world were invited to take a pledge to be more environmentally attuned in their work. 540 mediators have signed The Mediators Green Pledge. Presented in 15 different languages, the pledge asks the profession to…

1. Mediate online. Mediators who have signed the pledge have committed to encouraging online mediation, where feasible, over in-person gatherings.

This has been a trend in recent years - one that many involved in condo mediation have found more comfortable. The idea is not to require that every mediation take place online but instead to consider if online mediation is appropriate for each dispute. As it is more convenient, particularly when there are many participants - as is often the case in the context of a condominium conflict - this is something CONDOVOICE SPRING 2022

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ILLUSTRATION BY SANDRA DIONI SI

When parties involved in a condominium dispute attempt mediation, a common part of the preparation process includes each of them creating written materials that offer background as to their perspective on the matter and desired outcomes. Often called “Mediation Briefs”, a long running joke in mediation circles is that they are usually anything but brief. On some occasions, page limits come into play but, even then, attachments of email strings, letters, logs, and so on, quickly result in hundreds of pages per party.

that should be considered especially today given the pandemic.

2. Communicate electronically. Mediators who have signed the pledge have committed to embracing electronic communication methods over more environmentally taxing communication approaches. Appreciating that even electronic communications are carbon emitting, they also agree to try to avoid unnecessary or overly lengthy communications. Embracing this involves staying focused and efficient, traits that help make the mediation process more effective. While many involved in condominium conflict could improve on the word count of their communications, electronic communication has long been embraced by the condominium community.

Providing highest standards in property management.

Our professional team is committed to exceptional services for our clients.

Growing your investments, maintaning a postive rapport with Owners and the Board of directors is our mission.

3. Travel with the environment in mind. Mediators who have signed the pledge have committed to avoid flying for mediation, when possible.

This travel consideration extends to selecting the most environmentally friendly venue when mediation takes place in-person and trying to minimize the total amount of travel required for all participating in the process. The concept is not to exclude important mediation participants but to add an environmental consideration to mediation planning. It comes down to assessing what is necessary and appropriate in the circumstance and can include finding space on-site at a condominium for an in-person mediation.

4. Practice with the environment in mind. This includes avoiding singleuse plastics, not wasting energy and being mindful of the carbon footprint of the mediator’s practice. Mediators who have signed the pledge have committed to being mindful of the environmental impact of their work and to take steps to offset and reduce it.

Many condominiums have also been doing this, particularly as we are experiencing the effects of climate change close to home – such as with the flooding that occurred in British Columbia last year.

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5. Spread the word. Mediators who have signed the pledge have committed to help make others aware of greener mediation options, in hope of making more environmentally friendly mediations the norm. Hence, this article (even if you are reading it in print).

While, to some, this may seem like a tree-hugging endeavour, it is the responsible thing to do. Environmental consideration can be given in a manner that does not materially impact the mediation process or what can be accomplished through it.

In no way is including environmental consideration in mediation designed to take the focus of the process away from the people addressing a condominium dispute or from catering the process to best accommodate those experiencing conflict. It is about appreciating the impact of one’s actions by keeping the environment in mind. Nothing in the pledge prevents mediators from conducting mediation in-person, working with hard copy materials or travelling as needed for clients. It simply asks for consideration of what is necessary and if there are ways that the process can comfortably come together which minimize negative environmental impact. This type of consideration is one everyone is being asked to embrace in this day and age.

For the condominium community at large, such consideration is not new.

Condominium living offers the prospect of more environmentally friendly living than traditional housing models.

The first Earth Hour event was held in March 2007. Since many condominium communities have participated by turning off their lights for an hour to demonstrate their support for climate action and have taken action beyond demonstration to do their part for the cause. This is not to say that we should mediate in the dark.

It simply asks for consideration of the impact of how we do things beyond ourselves. As a goal of mediation is often to consider what conflicting parties have in common, why can that not include jointly caring about the environment? You do not have to be Greta Thunberg to make a difference. C V

Michele Farley President & Senior Code Consultant FCS Fire Consulting Services Ltd.

Safety First

Condo Lobbies and Fire Rated Furniture Requirements When you enter a Condo Building the first area that greets you is the lobby. For residents, this is the area that welcomes them home. For visitors, this is their first impression of the building, and where people make their first assumptions about the building. “Wow, this is a high- end building”. “Ooo, this is a very modern building”.

“Hmm, why is this lobby empty?”

What are the challenges?

Well, as we mentioned, the lobby is the area that welcomes you to the building. Owners want warm, comfortable furniture to welcome them home, welcome their guests, and be the first impression of their building to visitors. Often times the types of furniture they are hoping for, big cushy leather chairs, are not made of fire rated materials.

The Lobby Furniture conundrum started in early 2018 and is a topic we still get questions about from our clients regularly. But why is lobby furniture such an issue? Like many requirements of the Fire Code, this gained increased attention after a tragic fire in 2016, that claimed 4 lives, in which furniture in the means of egress was made of extremely flammable materials and significantly hindered Fire Fighters abilities. Following the investigation of this fire, furniture in common areas of buildings such as hallways and lobbies, began to receive increased scrutiny from the Fire Department. The goal?

To save lives!

Does this mean you cannot have furniture in your Condo’s Lobby?

No, it does not! What it does mean, is that furniture in any common area of a Condo building must be made of approved, Fire Rated materials. Fire Rated materials can withstand a higher degree of heat, and if they do catch fire, they do not produce the thick, black smoke that non-fire rated materials can cause that is extremely hard to see through, can cause smoke inhalation, and is often toxic.

What are the Fire Code Requirements your furniture has to comply with?

Section 2.4.1.1.(2) of Division B of the

Ontario Fire Code, states “Combustible materials shall not be accumulated in any part of an elevator shaft, ventilation shaft, means of egress, service room or service space, unless the location, room or space is designed for those materials.” This is one section we often see noted on Inspection Orders or Notice of Violations in regard to lobby furniture. Section 2.3.2.1. (1) of Division B of the Ontario Fire Code states “Drapes, curtains, netting, and other similar or decorative materials, including textiles and films used in buildings, shall meet the requirements of CAN/ULCS109, “Flame Tests of Flame-Resistant Fabrics and Films”, when these materials are used in any… (b) lobby or exit…” Furniture that meets the CAN/ULC-S109 standard will usually have labelling stating it meets the requirement. You can also ask for a certificate or document from the manufacturer or your designer that states it meets the standard.

There is good news!

In 2018 as this standard began to be more CONDOVOICE SPRING 2022

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ILLUSTRATION BY MAURICE VELLEKOOP

“Wow, this is a high- end building”.

“Ooo, this is a very modern building”.

“Hmm, why is this lobby empty?”

vigorously enforced, there was a lot of confusion and not a lot of direction, as far as what was safe and what was not. Since then, we have come a long way. We have helped clients to obtain the requisite documents to prove that the furniture in their lobby does meet the Ontario Fire Code Requirements for fire rated materials and have their notice of violation resolved.

We have helped other clients implement alternative solutions, such as installing sprinkler systems in the affected areas to satisfy the safety requirements of the Fire Code.

So what should you do?

If you are a new Condo, as you are sourcing furniture for your common areas, make sure that the furniture is fire rated and meets the Ontario Fire Code Requirements. Keep the documentation in a safe location that everyone is aware of, we recommend in your Fire Safety Plan Book, so they are available to the Fire Department in case of an Inspection. If you are an existing Condo, check to make sure that your furniture does meet the Fire Code Requirements. Ensure you have the

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If you have received a Notice of Violation pertaining to Lobby Furniture, treat it like an emergency!

You have to evaluate what your options are, swiftly, because the fire department will be back in a couple of weeks to see what you’ve done documentation to confirm this and have it available in case of a Fire Department Inspection. If you’re an existing condo and your furniture does not meet the fire code requirements, look into your options. It is best to consult a professional for guidance to ensure that the option you choose

complies with the Fire Code. The options you choose will likely be cost depended and may include replacing the furniture with Fire Code compliant furniture, adding sprinklers to the common areas with furniture, or other options depending on your building’s specific situation. There are often alternative solutions that satisfy the Fire Code and meet your building lobby design dreams.

If you have received a Notice of Violation pertaining to Lobby Furniture, treat it like an emergency! You have to evaluate what your options are, swiftly, because the fire department will be back in a couple of weeks to see what you’ve done. If you have not resolved the violation or cannot show that you are making a significant effort to resolve the violation, it will likely result in costly fines.

You are not expected to be fire code experts or know what furniture does and does not comply with the fire code. Consult your experts! We are here to help. And remember, compliance with the fire code will saves time, money and lives! C V

Jeremy Nixon P.Eng., BSS Managing Engineer, Brown & Beattie Ltd.

Cover Story

The EV Revolution is Here Electric Vehicles are no Longer a Niche – Rather They Have Become Part of the Mainstream

Present day problems are many, one of which includes “greening” our world.

While there are innumerable factors driving this change that are well documented elsewhere, the focus of this piece is on the evolution of the Electric Vehicle (EV). A revolution perhaps.

More specifically, we explore the impact on Condominiums in light of increasing conversations surrounding EVs as they strive to adapt to this evolution, and to the ever-changing needs and wants of their communities.

The Drive for Change Regardless of varied positions on what is driving the shift towards electric vehicles, they are here to stay. Governments around the world are increasingly incentivizing them. Consumers are demanding them. Automakers old and new are continually developing and improving upon battery technology, with some planning to discontinue manufacturing internal combustion models in the not too distant future. Infrastructures are adapting to the changing service needs. Electric vehicles are no longer a niche rather having become part of the mainstream.

Condominium Community Challenges In Condominiums, the challenges are numerous but typically stem from how to best adapt their existing infrastructures in a fair, equitable, and cost-effective manner to the changing needs and wants of their communities. Increasingly, installa-

tion of electric vehicle charging stations (EVCs) is a hot topic. There is no one approach. One-size definitely does not fit all.

In some communities, a small group or even individual owners are seeking permission to install EVCs for their personal use, while at others the approach is to provide availability to all (whether or not there is current demand). The latter approach is somewhat of a “future proofing”, and proactive one. While the former is more reactive, catering to individuals on an as-needed basis. There are of course innumerable iterations between these extremes. In all cases, early questions arise surrounding existing electrical capacity and whether it is sufficient to service EVCs. If not sufficient, what needs to be done to make it so.

Solutions are as varied as the Condominium Corporations themselves. In CONDOVOICE SPRING 2022

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ILLUSTRATION BY MARTÍN ELFMAN

Humankind continually seeks improvement, never satisfied with the status quo.

Often, improvement is borne out of need to solve problems of the day. While at other times, as an expression of natural interests and creativity. Regardless of the motivating factors, our species has a constant need to evolve.

The EV Revolution conventional “townhome” communities, individual unit owners can typically arrange EVC installations themselves within their unit boundaries, connected to their in-unit, sole servicing, electrical systems that do not have consequence on the community at large. While most Corporations may still have requirement for unit owner EVC installations to adhere to some sort of community standard, including advising, and receiving permission from, Boards of Directors (BODs); in our experience, such authorizations are typically formalities.

In multi-unit residential building (MURB) communities, the parameters can look significantly different as there is typically some sort of “shared” service that declarations commonly define as “service provided to more than one unit”. In these scenarios, BODs and their Property Managers, will typically be required to consider the overall direction of their communities. Unfortunately, this

can often take a frustratingly, albeit necessarily, lengthy process (at least from the perspective of unit owners who want it now).

The Conventional Approach The conventional approach in MURBs is to determine the available capacity of the common electrical system to service EVCs. This typically involves having a suitably qualified professional evaluate the existing electrical system for available, excess electrical capacity. In turn, a related report will often advise that the building can support a certain number of EVCs. While some communities may find that they have sufficient capacity to support a reasonably high percentage of EVCs relative to the number of units, far too often this number is not as large as everyone might like. In nearly all cases, buildings would not have available capacity to provide service to all units, should that eventually become a requirement.

Mark Marmer Founder of Signature Electric

When you Need EV Chargers Installed, Who you Gonna Call?

Things to Look for When Hiring an Electrical Contractor

BODs are then faced with deciding whether unit owners can install individually owned EVCs on a ‘first come, first serve’ basis, which invariably raises questions of fairness, equity, and cost effectiveness. Furthermore, early EVC installations typically require at least some minimal “upgrade” of infrastructure that later EVC installations can “piggy-back” off of, meaning that earlier installations bear higher costs than later ones. Again, more questions of cost fairness and equity to these earlier unit owners in particular, but also regarding who owns the infrastructure between the common electrical systems and unit owner EVCs. Another approach involves “common element owned” EVCs, that are fully installed, expensed, and owned by the Condominium Corporations, with use available ‘first come, first serve’ (such as you might encounter in public parking lots) although without specific right of ownership to any individual unit. It is relatively simple nowadays for payment for electricity (and service ‘rental’) to be on-demand by credit card, smartphone, or other suitable method. While less individually convenient perhaps, as courtesy the 1998 Condominium Act went into effect. The revisions establish the processes for getting Electric Vehicle Charging Stations (EVCS) installed in condominium buildings. Beyond the guidelines, there are still other factors to consider, including new distribution equipment, charger types, billing software, and load management.

For charger installations in condos, the ideal solution must be both cost-effective, energy-efficient, and future-proofed. Dynamic load management allows for the greatest number of cars to charge simultaneously within the building’s electrical capacity and with the lowest cost of infrastructure.

The Current Situation Today, almost every car manufacturer has an EV on offer. In fact, there are over 5 million EVs on the road and EV sales in Canada are doubling annually.

That is a great thing for drivers, manufacturers, and the environment. EVs are cheaper to drive and maintain, offer better performance and are significant assets in the fight against climate change.

In 2021, the Canadian Government set a mandatory zero-emission target for all new light-duty car and passenger truck sales by 2035. Meaning that electric vehicles may soon be the only new vehicle option on the market.

For condo owners, managers, and boards, the question becomes not if they will need to install EV chargers but how?

This process is a lot to understand and put in place. With EV infrastructure projects often ranging between $20,000 to $100,000+, this is something you’ll want to do right the first time.

The Who, Where, How, and Watt On May 1, 2018, the latest revisions to

An experienced electrical contractor can guide you through the entire process and

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would suggest that vehicles be removed from EVCs once charged, this configuration is perceived as more equitable given they are theoretically available to all. In time however, as the number of EVs in a community increase, EVC demand may ultimately exceed availability.

Increasing overall electrical capacity would be a further potential solution. The expense and logistics of adding capacity in this fashion would require coordination with related electrical utilities, building authorities, and others having jurisdiction. If even possible, it is likely to be a less desirable approach. It is nonetheless an option that could be pursued.

The “Smart” Approach Changing building needs have led to ingenuity. Companies have developed technologies to work within existing building electrical capacities while being able to provide service to a progressively larger group of EV owners. Increasingly, “smart” chargers are coming onto market. In general, these systems work by sharing available capacity amongst all EVs connected to the system at a given time. The chargers automatically adjust to provide more or less individual offer a complete solution ensuring the least amount of work for the corporation, board, or manager. Choosing the right electrical contractor will lead to having a successful, future-ready installation.

Here are a few things to consider when choosing a contractor for your EV charging project.

The ideal contractor should: • Be an experienced electrical contractor. After all, EV chargers require an electrical installation.

• Be able to provide references for similar installations in your area. Whenever possible, we recommend visiting a few of the referenced sites to see them for yourself.

• Be able to provide education. Managers, boards, and committees will have lots of questions. Many of these may relate to the installation, and others might be about EV ownership in general. It’s best to have a contractor who has a total depth of knowledge in all aspects of EV driving and operation. Ask the contractor if they own or

charging capacity, commonly as a proportion of total system capacity.

For completeness of discussion, some systems can also be configured in a priority capacity. One such priority scenario would be a new EV connecting to a system initially having available to them a larger than proportionate share of charging capacity; the idea being to get some quick range restoration while others that have been connected for longer would in theory already have a larger portion of their range restored. For the purpose of the remainder of this paper, our “smart” discussion remains based on proportional sharing.

Imagine an electrical system that has capability to provide “full” charging capacity to 20 EVs at once. Now imagine that 40 “smart” chargers are connected to that system. In simple terms, that means that if 20 EVs or less are connected at once, they will each charge to their full capacity, i.e. their fastest rate. As soon as the 21st EV connects, the smart chargers will automatically distribute charging capacity proportionally amongst the 21 EVs by dialing down each one slightly, in this instance to about 95% on each EV. 30 drive an EV, and if so, for how long.

• Have independent engineering services to determine your site’s size, shape, and load capacity. This analysis will determine how many vehicles your site can accommodate and the most economical manner to bring EV service to each vehicle. This type of research and knowledge comes with experience.

• Have access to the latest hardware and software on the market to suit your needs. These should be completely agnostic and not tied to a single product, hardware, or software.

• Use only open source parts and services that will not bind you to any vendor. Doing so avoids long-term contracts or proprietary equipment.

No one wants to be stuck with outdated specialized equipment.

• Make things clear by providing you with a detailed roadmap outlining all related costs. A thorough plan ensures you understand what you are purchasing.

• Be able to assist you in writing an EV policy for your community. This

vehicles would be at about 67%. While a full 40 vehicles connected at once would each receive 50% charging capacity proportionally in this example.

This smart approach works equally well going the other way. As vehicles become charged, the electrical capacity they were using is given back to the system and each charger automatically dials up slightly based on the returned capacity, until once again there are 20 vehicles or less requiring charging at which time those remaining could again charge at their full rate.

In practical terms, this approach harnesses the idea that full and fastest charging is not needed at all times (or even most of the time), or necessarily all at once by all vehicles. Therefore, why would we need full, individual, on-demand charging at all times when such system would not be in use for the majority of its existence?

Thinking further about when the majority of vehicles are not in use - such as for long, overnight periods - leads to further question as to what reason could possibly be needed for full capacity, fast, ondemand charging at all? When we start contextualizing ordinary, day-to-day use, policy will outline the EV charger installation process and the draft policy may be easier and less costly than starting from scratch.

• Assist you to manage new charger requests from owners and residents with minimal input from management.

In conclusion Installing EV chargers is not a simple project. With multiple factors, safety protocols, and future thinking initiatives in play, this is a project you’ll want experienced professionals to do.

Before you start your project, remember that no two installations are the same.

Make sure you have the right electrical contractor on your side—one who is transparent, knowledgeable, and experienced.

Your contractor should be able to support you through the entire installation process, ensuring that the project is completed in a legal, safe, and cost-efficient manner. C V CONDOVOICE SPRING 2022

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The EV Revolution and challenging conventional thinking, many more options come to light.

ing overall remains within the existing electrical system capacity.

Smart chargers combine with any conventional approach, simply extending the service to a greater number of units. The possible configurations are virtually endless, and customizable to the needs of any community. This smart approach would also be suited to townhomes, should there not exist sufficient electrical panel capacity in a conventional approach.

This methodology does not mean making direct connections between parking stalls and individual unit electrical panels. Rather, connections would be made to nearby garage common electrical rooms, with communication devices installed at individual EVCs and the unit electrical panels receiving the service to determine available electrical capacity at a given time. Individual owners are still using “their” electricity, just making use of the “common areas” infrastructure to deliver it to their charging station.

The Even “Smarter” Approach Taking the “smart” approach a step further – by using smart chargers that communicate with individual suite electrical panels, available charging capacity at a given time is limited to the remaining capacity of the in-suite panels regardless of total system availability. In this way, unit owners are in full control of their EVC capacity without exceeding their equitable share of electricity, while the build-

would of course still be some leadership required from BODs, as well as related logistics, including potentially some nominal, new infrastructure installations.

Overall cost, and philosophical considerations not discussed here also need to be taken into account.

Technologies are emerging to take this kind of approach, and in doing so, almost every building is already “future proofed” in this way and available to everyone.

In addition to obvious expert technical guidance that should be sought, some sort of EV policy should certainly be developed for every community, with corresponding legal advice, and by-laws passed as needed. In some older, bulk metered communities, there are additional administrative and equity challenges to be resolved (requiring further legal guidance, as it can easily be seen as unfair when an individual is able to use common element electricity to charge their private EV).

Overall community desires should be considered, along with a long-term vision.

There may be marketing considerations in relation to salability and/or rental of individual units, as well as any number of other community specific factors. C V

Other Considerations Regardless of the approach taken, there

Whatever the current course of any community, the EV revolution is closer than you think.

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KAYCONDO GC

Joel Berkovitz Partner Shibley Righton LLP

Evan Holt Associate Shibley Righton LLP

Is Your Condominium Ready for Electric Vehicle Charging Stations?

The best time to plant a tree was 20 years ago.

The second-best time is now. – Chinese Proverb The growth in the electric vehicle market is happening as we speak. If your condominium has not already received a request from an owner to install an electric vehicle charging station (EVCS), it likely will soon.

There are a number of simple steps your condominium should be taking to ensure it is ready when EVCS requests begin to arrive: 1. Understand that your condominium cannot refuse an EVCS installation request except in very narrow circumstances – If an owner approaches the Board with a reasonable installation request, the Board will likely have to grant it. The only option that a Board has, in most cases, is to ask that the installation meet certain requirements.

2. Be prepared to act quickly when an EVCS installation request is submitted - The Condominium Act gives condominiums 60 days to respond to the request – if the condominium fails to respond, (either accepting the owner’s installation plan, proposing an alternative installation plan, or rejecting the installation plan) the request is deemed to be accepted. Once the request is accepted there are further time limits for entering into an agreement with the owner, which must be registered on title to the owner’s unit.

It is not unusual for an owner’s installation plan to lack sufficient detail to be properly considered by the Board.

In these cases, the Board’s response

can require the unit owner to provide additional detail so that the Board can fully consider the implications of the owner’s installation plan, and the 60day period for the Board to respond will begin to run only once that information has been received.

3. Have a load study commissioned by an electrical consultant and determine how the electrical infrastructure of the Corporation can be most efficiently managed – Upon learning of a condominium’s load capacity, many Boards have elected to install a dedicated electricity panel for EVCSs to connect to, and require that any EVCS to be installed be networked and capable of power management. This type of EVCS electrical infrastructure can limit the available electrical load and distribute it amongst all connected EVCSs. In many cases this can double the number of EVCSs which can be accommodated and helps to ensure that the condominium’s load capacity is not exceeded. Many Boards are now completing load studies and taking steps to install EVCS electrical infrastructure in advance of receiving an owner’s request for installation of an EVCS. 4. Build in time for owner consultation and notice – While section 97 of the Condominium Act (which governs additions, alterations or improvements to the common elements) does not apply to EVCS electrical infrastructure installations by a

condominium, there are still notice requirements which, in most cases, require a Board to give owners 60 days’ notice before the EVCS electrical infrastructure can be installed.

And of course, as a matter of good governance, Boards should be consulting and informing owners before undertaking major expenditures.

5. Pass an EVCS policy – While this is not a requirement, having a policy that provides owners with a plain language explanation of the process for applying to install an EVCS and, perhaps more importantly, any special requirements that apply to your specific condominium will help to streamline the installation process.. Boards should consider, for example: a. Whether it will mandate specific technical requirements for EVCSs (e.g. maximum 32 amps, networked level 2 chargers); b. Whether it will require owners to use a contractor approved by the Board; c. How the power consumption of EVCSs will be measured – usually this is either by a check-meter, or a software-based billing system; and d. Whether owners installing an EVCS will be asked to pay their proportionate share of any necessary common infrastructure.

6. Draft a template installation agreement – As noted above, the condominium and owner are required to come to an agreement with respect to the installation of an EVCS within a specific time period. If the condominium has a policy that sets out specific requirements as to how an installation is to proceed, it may be possible, with the help of legal counsel, to create a template agreement that can be easily updated to reflect an owner’s specific installation plans.

This can assist the Board in coming to an agreement with the owner in the prescribed period.

By taking these steps, Boards can be assured that they will be prepared to properly respond when EVCS installation requests start to come in. C V CONDOVOICE SPRING 2022

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James Russell Newsletters et Cetera

Claridg The

Aging in [ A GREAT ] Place AGING IN PLACE: Definition: a person making a conscious decision to stay in the inhabitation of their choice for as long as they can

PHOTOGRAPHY BY JEFF KIRK

Back in the early 2000s, the developers of the Claridges envisioned it as an ‘Aging in Place’ condominium, a concept that was gaining prominence as the world took note of the growing proportion of senior citizens.

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“When it originally opened it was (the demographic of residents) certainly what I would call ‘senior seniors’ and when I moved in eleven years ago it was still pretty much that. I think 70% were over 80,” says Pamela Smith, a member of the board of directors (the “Board”) for the past five years and President since January. It was because of the building’s worldly-wise demographic that the contractor connected the Claridges, via a passageway, to their next-door neighbour, Amica Bayview Village, one of a chain of retirement residences owned by the Ontario Teachers Pension Plan. “The intention was that you could move into Amica when you needed more care. It hasn’t happened an awful lot. I count about fifteen of our residents

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THE CLARIDGES - TSCC 8141

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who have actually moved into Amica,” says Gordon Proudler, one of the directors of the Claridges’ Board. The Claridges’ mature lifestyle designation continues to this day. “Over the years there have been a few families [with children] living in the building but right now I think there is only one child,” says Pamela who adds, “and there have been a few occasions when they (owners) have rented to university students.”

Located at 12 Rean Dr. in the Bayview Village community, the Claridges (TSCC # 1841), is nestled on the southwest corner of Rean and Thomas Clark Way, mere steps from the TTC and Bayview Village shopping centre. Mr. Clark was the farmer who once owned the huge swath of North York, from Bayview to Leslie, on which the Claridges sits.

Zohir Handy, a resident of the Claridges for seven years and one of the Board’s directors for the past five says of his decision to move to the building, “It was largely the location and the fact that it is walking distance to the mall and the grocery store… and I think it was halfway between my sister’s place and my son’s place.” Zohir was instrumental in founding the Bayview-Sheppard Neighbourhood Alliance (BSNA), a not-for-profit group that represents nine of the area’s condominiums. The BSNA focuses on rezoning applications, bylaw and density enforcement and infrastructure matters, all with the aim of not only maintaining but improving the quality of life for residents and the Bayview Village neighbourhood.

“I’ve been in the building since day one, I think I was the third resident to move in. There were no carpets in the hallways,” says Gordon who goes on to mention that it was two years from the

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The Claridges’ mature lifestyle designation continues to this day. “Over the years there have been a few families (with children) living in the building but right now I think there is only one child,” says Pamela Above Left to Right: Zohir Handy, Ed Cartwright, Gordon Proudler, Pamela Smith, Marion Wallace

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Residents of the Claridges not only enjoy exclusive use of their in-house lounge, library, outdoor garden, and patio but, through an agreement with Amica, residents may use their neighbor’s indoor pool, theatre and fitness studio.

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time he put his name on the ‘wish list’ to purchase a unit to the building’s completion. During that wait he created a website for other buyers and populated the site with photos and construction news.

“I guess I’ve been a Claridges’ man for fifteen years,” Gordon says with a smile.

The Claridges’ nine floor mid-rise contains one-hundred and twelve units consisting of one- and two-bedroom suites with dens and a single three-bedroom unit. “The smaller units weren’t selling originally ….and so the building was altered to incorporate large suites which has caused us some problems I might add. You can’t just move a wall without creating some plumbing, electrical and various other woes,” says Gordon.

Residents of the Claridges not only enjoy exclusive use of their in-house lounge, library, outdoor garden, and patio but, through an agreement with Amica, residents may us their neighbor’s indoor pool, theatre and fitness studio.

For a condominium where folks come

to slowly ‘age in place’ there’s nothing leisurely about the residents at the Claridges, their active Social Committee organises well attended afternoon teas, movie nights, bridge nights, rummy cube, mahjong, sing-a-longs, puzzles, scrabble night and an annual New Year’s Eve get together. “Prior to Covid, we have had barbeques in the summertime, bus tours, and speaker’s events on pain management, foot care, green bin recycling, and estate planning,” says Marion Wallace, who is on her second term on the Board and serves as the Social Committee’s liaison. The Claridges’ weekly ‘Meets and Greets’, says Marion, “Are very, very well attended,” then adds with a hint of sadness, “It’s one of the things that the residents miss the most – that interaction” (since Covid). Their devoted ’Stitch and Chat’ group of residents have knit and subsequently donated, over the past year, close to four hundred hats to charities such as the Rotary Club, Eva’s Place, Women’s Habitat of Etobicoke, and Out of the Cold. Residents often donate wool to the group.

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The Claridges’ five-member Board is made up of Pamela Smith, President; Ed Cartwright, Secretary; and directors Zohir Handy, Gordon Proudler and Marion Wallace. “Our board has always been really committed to working together, to getting things done. We may disagree on what needs to be done today or how it needs to be done but there’s no question of the commitment of this Board,” says Pamela who adds, “There’s been a few heated discussions, but we’re pretty good that once a decision is made, whether or not it is unanimous, and most of our decisions are pretty unanimous, then that’s it.”

Officially, the Board meets monthly, but ‘single purpose meetings’, to discuss an individual issue, occur frequently, although they typically last less than an hour.

In addition to The Clarion, the Claridges’ impressive, ten-page, monthly newsletter, the Board and management communicate with residents via the building’s six, cork notice boards and on occasion, employ door-to-door notices. “We’re now looking into a board portal or building website.

We have also talked about LED boards.

We’re really trying to step up the communication,” says Pamela.

The Board is justifiably proud of their commitment to continuous learning as every member has not only completed the Condominium Authority of Ontario’s (CAO) twenty-one module Director Training Program, but the group also participates in frequent webinars to ensure they are up to date on issues relating to the condominium world. One of the latest webinars dealt with electric car vehicles. “It’s something a) you have to look at and b) what’s the most efficient and cost-effective way of moving forward,” says Pamela.

Above Left to Right: Critina Tudor, Conrado Guerrero

Not covered in any of their training courses however is how to resolve the administrative and financial challenges presented by their ‘orphan’ street. The Claridges’ main entrance faces Thomas Clark Way, a street built fifteen years ago during construction but never ‘assumed’ by the City and only officially named two years ago. “We (the Claridges and its neighbours) have to share the cost of keeping Thomas Clark Way repaired CONDOVOICE SPRING 2022

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Jason Rivait Partner | Toronto jrivait@millerthomson.com 416.596.2112

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and ploughed out in the winter,” Pamela explains.

As with any fifteen-year-old building, maintenance is a constant budget line item. “We just finished waterproofing all of our balconies and doing any repairs that were needed….a three-year project. We are about to embark on a project regarding waterproofing in the garage.

That will be a real challenge,” says Pamela. And then there are the unexpected expenses. “Occasionally the City comes along and tells us that we have to do something whether we want to or not,” says Gordon, “Two things I can think of: one is, after the Superior Propane explosion (July 2021 in Barrie) the City inspected some of the oil loading facilities (used by their emergency generator) and decided that they needed upgrading.

That was a very expensive undertaking – double lines instead of a single line – double walled tanks and this type of thing.

The other one I can think of is the back check valve – another expensive installation but mandated by the City to prevent

contamination of our water supply.”

Within the next year, the Board plans extensive refurbishments to the Claridges’ interior which will include new carpeting and wall covers. “Enhancements and modernisation of our entry and security system,” is also on their to-do list says Ed. Since the Claridges was completed in 2007, the Board has experienced the typical turnover of managers and management companies but compounding the Board’s interview process has been the Claridges’ inability to provide their property managers with an office as neither the architect nor the builder incorporated a dedicated workspace into the Claridges design, an oversight the Board will correct during the upcoming renovations. “Our designer of choice has spent a lot of time and has done a design (that creates an office) that we are quite pleased with. Of course, the challenge moving ahead is that (building) the office cannot be carried by the reserve fund,” says Pamela who is hopeful the Board

can keep the office’s construction cost under the 10% threshold.

To help minimise the amount of waste sent to landfill, the designers of the Claridges incorporated tri-sorters on every floor. Additionally, the Board and management provide residents with reusable bags to transport their recycling downstairs to the building’s recycling room.

The Board has also appointed a resident who acts as their 3R Ambassador, a City of Toronto program that engages volunteers in apartments, condominiums, and co-ops to help promote the vitally important 3Rs (Reduce, Reuse and Recycle).

In William Shakespeare’s the Tempest, Act 2, Gonzalo, the honest and trusted advisor to King Alonso, proclaims, “I would with such perfection govern, sir, to excel the golden age.” Mr. Shakespeare could well have been speaking about the good governance practiced by the Claridges’ Board and the commitment they have made to ensuring their ‘golden’ resident’s comfort while ‘aging in place’. C V

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Brad Pilgrim CEO, Parity

Net Zero 2050

Going Green: Tech or Retrofits?

What is the Best Approach to the Greening of our Residential Properties?

Change Is In the Air Change is in the air – literally. Whether it’s driven by new environmental mandates, the energy costs and financial impact of condo residents living and working from home almost full-time, or a personal concern for the carbon footprint of our multi-residential buildings, now is the time to explore new and innovative solutions that will pave the most direct path towards achieving Canada’s goal of net-zero carbon emissions by 2050.

Indeed, there are many ways to approach the greening of our residential properties and portfolios, but what works best? And what are the pros and cons? Let’s begin by comparing two of the major potential options for moving forward, both from a cost and impact point of view.

Testing the Limits of Retrofits Property management teams often think of equipment upgrades as the first line of defense against rising energy costs and for moving more quickly towards net-zero emissions. And while there are certainly moments when outdated equipment needs to be replaced–such as outdated lighting– some major retrofit projects can often be expensive, wasteful, and disruptive.

As a best practice, evaluating the need to replace aging equipment should be an integral part of a comprehensive assessment of your building’s energy performance. In this way, assessing building equipment

becomes part of a process which, in turn, supports a well-informed strategy that meets the immediate and long-term energy efficiency goals of your property.

“Replacing equipment is not a magic bullet,” states Mike Mulqueen, SVP of Sales and Business Development at Parity.

“Some retrofit opportunities are obvious and should be pursued to capture initial energy savings but there is a risk of wasting the opportunity if proper attention is not paid to ensuring the savings persist with proper operation of the equipment.

Gaps in performance are inevitable, but without a close eye on even state-of-the-

art equipment, you’re going to waste time and money and end up dissatisfied with your capital investments,” he cautions.

“At the end of the day, optimizing energy efficiency and reducing harmful emissions is more of a nuanced conversation than ‘Do we or don’t we take on significant retrofits and equipment upgrades’,” explains Mulqueen, “If property owners or building managers have not enlisted the expertise of a qualified engineering team or adopted a way to track and process the enormous amount of data a building produces–essentially the real story your property is telling you–then there’s no CONDOVOICE SPRING 2022

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accurate or logical way to develop a strategic approach to reducing energy waste and eliminating CO2 emissions from your building.”

Leveraging Tech and Unlimited Data Compared to capital-intensive retrofits, smart technology offers us a different way forward, both from a cost and operational efficiency point of view. And while it’s not necessarily an either/or proposition, understanding the energy performance data related to your building or portfolio of buildings will accom-

plish two things: 1. Help with the initial fine-tuning and ongoing constant commissioning of equipment to minimize energy waste, CO2 emissions, and operational costs, and; 2. Provide additional critical insights into a building’s heating, cooling and ventilation (HVAC) system–and how that system can be automated to achieve efficiencies, while simultaneously increasing the building’s energy performance and decreasing its carbon footprint–often with little to no

upfront cost to the building.

“We’re not the first to recognize the transformative impact that smart technology has on energy consumption,” says Mulqueen, “but, the multi-unit residential sector stands to make significant environmental and financial gains by adopting technology that can both learn the energy use patterns of a building, and adjust the individual equipment performance of a building’s HVAC system in real time.”

The greatest impact, Mulqueen emphasizes, happens when data is gathered and interpreted correctly, to provide clear direction to a property management team and their Board of Directors for exactly where and how to reduce CO2 emissions short-term and long-term, system wide without compromising resident comfort or impeding operational efficiency.

Change Is Good The undeniably noticeable change is how the introduction of advanced, cloudbased HVAC control technology has revolutionized the optimization and maintenance of HVAC equipment, resulting in improved opportunities for environmental stewardship – without increased capital investment costs. In fact, according to the 2017 ACEEE Report, Smart Buildings: Using Smart Technology to Save Energy in Existing Buildings, “a smart building with integrated systems can realize 30–50 per cent savings in existing buildings that are otherwise inefficient.”

“Building system data, effective energy management technology, and engaged, smart partners are a powerful combination for building owners and operators,” says Mulqueen. “The best news is that smart technology can be easily installed alongside existing building systems, and can be paid for by the very same energy savings the technology delivers.”

The fact is, real and ideal change will come when technology and building systems work together, in tandem, hand in hand. In this way, building systems and equipment can be consistently maximized to ensure optimal performance and greener outcomes right now and for our sustainable future. C V

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Gerald R. (Jerry) Genge C.Arb., Q.Med, P.Eng., ODACC Adjudicator

The Construction Act

A Director’s Dozen 12 Things Directors Need to Know About Paying for Building Repair In 2018, there were major changes to the old Ontario Construction Lien Act (now the Construction Act) that significantly affect how and when owners pay for building repairs. These changes were incorporated over time and are now all in effect. More specifically for this article, the changes give rights to adjudicate for non-payment.

Here are 12 things that you should know about paying for building repairs.

1

Building repairs that are not normal “maintenance”, like servicing equipment or landscaping, are included in the provisions of the Act. Most importantly, nobody can contract out of the payment provisions in the new Act.

2

The prompt payment provisions in the new Act are triggered by a “proper invoice”. To qualify as a proper invoice, it can have previously mandated enclosures, like WSIB verification and certain declarations, but it can not require certification by a third party – such as your engineer.

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Once you get a “proper invoice” you have 28 days to pay undisputed amounts. Disputed amounts can be withheld but proper notice of disputed amounts must be given within 14 days of receiving the proper invoice specifying which amounts are in dispute and why. Undisputed amounts must still be paid by 28 days. The general contractors are required to pay subcontractors by 7 days afterward and they the sub-subcontractors within another 7 days. The objective is to move the funds from the payor to the hands of the people that did the work.

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The “proper invoice” goes to the owner – not the payment certifier/engineer. If there is a payment certifier/engineer, the owner may pass it along to the engineer

to review/certify; but any delays in certification, do not suspend the payment clock. In this regard, it makes sense for the contractor to submit a draft invoice to the payment certifier/engineer for review, adjustment, and agreement before the contractor submits a “proper invoice” to the owner/payor. Just to be clear, payment is required in 28 days. That is not when the treasurer returns from vacation, not when the management company chooses to do cheque runs, and not when the Board schedules its next meeting.

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These provisions have been in place for all contracts after October 2020. However, the transition from the old payment regime to the new one may not necessarily be triggered even if the contract was signed after October 1, 2020. If, for example, you put out a call for bids in March 2020 but did not sign a Contract until afCONDOVOICE SPRING 2022

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ter October 1, 2020, it may be that the old Construction Lien Act applies along with its lien provisions and without payment adjudication requirements. By now, most of this type of exclusion has passed.

Once the adjudicator’s determination is an order of the court, Ontario’s Rules of Civil Procedure apply. Specifically, payment or recovery of money can be enforced by: • Writ of Seizure and Sale, • Garnishment, • Writ of Sequestration, and/or • Writ of Possession

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If owners don’t comply with the payment provisions of the new Act, a contractor can require payment adjudication. Adjudicators (read “inquisitors”) can be chosen by agreement of the disputants, but only from persons that have been qualified by the nominating authority, i.e., only persons approved by the Ontario Dispute Adjudication for Construction Contracts (ODACC) can hear payment disputes under the new Construction Act provisions. There are about 65 of us now. The contractor can also lien the property as always.

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Adjudication fees are usually fixed and range from $800 to $3,000 for claims up to $99,999. If the claim is more than that or is more complex, hourly rates apply. Different adjudicators have different hourly rates. Adjudicators make determinations on the supplied evidence. They can decide payment amounts, interest, and even who pays the adjudication costs if the adjudicator decides the payment denial or the payment claim was frivolous, vexatious, or an abuse of process.

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The adjudicator’s determination is a “binding interim determination”. In other words, either the contractor or the payor can appeal an adjudicator’s determination with “leave” of the court - meaning that you had better have a good reason to appeal the decision other than that you don’t agree with the finding.

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As explicitly stated in the new Act, any provision in a contract that attempts to change the requirements of the Act is void and unenforceable pel oral testimony, and make reasonable assumptions to make a determination on payment. Why do they have this degree of latitude? It’s pretty sensible. An adjudicator has about a month from the date of appointment to collect evidence, establish an agreed adjudication process, weigh the merits of the claim and denial, perform necessary adjustments if warranted, and write a determination.

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In addition, to comply with the lien provisions of the Act, the 10 percent statutory lien holdback funds must be held in a trust account and be traceable with detailed records on all money in and out of the trust account. The contractor can ask for those records. It can not be an account shared by operating expenses or other payments.

In the past two years, I have had several revealing conversations with major management firms and repair contractors. To maintain the status quo and please owner– clients, some Management firms are looking for ways to create a “work-around” for the payment requirements. Legally, they can not. As explicitly stated in the new Act, any provision in a contract that attempts to change the requirements of the Act is void and unenforceable. Owners will just have to adjust processes to deal with the payment and trust fund requirements of the new Act.

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Contractors, on the other hand, are concerned that if they complain about slow payment from a client that is accustomed to paying in 75 to 120 days, for example, they will lose the business of that client, become “blackballed” by managers or engineers as troublesome, and as a result, their revenue stream will suffer. That fear is founded on possibly illegal actions of the payor or their agent. I would anticipate that there would be serious ramifications by a court against any payor or agent that is found to cause a contractor to suffer business losses when the contractor was only attempting to get paid.

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These payment changes will make the process of payment and claims for payments far more interesting as this unfolds.

Most certainly, many will have to up their game and start paying attention to the law around building repairs. C V

Several issues may complicate how the payment provisions are interpreted by an Adjudicator. For example, evidence may support any unapproved Change Orders, Change Directives, and Site Instructions.

Those may affect payable amounts. The impact of deficient work and disputes about deficiencies; how and if the signed contract complies with the Construction Act; and whether the invoicing conforms to any pre-arranged payment schedule will also affect payment amounts.

If payment is ordered but not paid, a contractor can take an ODACC-certified determination to the court for enforcement.

Noah Maislin CEO, Minutes Solutions Inc

Advice for the Board

A Minute Taker’s Guide to the Galaxy of Minute Taking Keeping Accurate Minutes is a Key Component of a Well-Functioning Condo Board The pandemic has not only refocused people’s priorities, but also made them pay more attention to the places they own and/or live. This movement has made many owners more engaged, more critical of what their condo board does and how problems are solved, and generally more interested in exactly what goes on at those condo board meetings.

At some point, most condo boards will have their meeting minutes come into question – meaning that they will get picked apart and analyzed. To save everyone time and effort, the more accurate and clear your minutes are, the faster this process will be.

You may feel like this is a difficult task; however, it is important to remember that board minutes are not intended to be a verbatim account of each meeting. Board minutes are intended to contain enough information to allow owners to understand the how and the when of decisions being made,

any financial basis used for those decisions, and to help owners understand what is going on in their corporation overall. In providing this information, you will help maintain a healthy relationship among the board, management, and the condo’s owners/residents. This goes even further to reinforce that your board is proactive.

Now that you know why minutes are so important (I could go on, they are kind of my jam), let’s dive into some handy tips: What details to include Beyond the basic elements that all minutes should include – time and date, place, attendance, quorum, etc. – ensure that you CONDOVOICE SPRING 2022

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This is why keeping accurate minutes is becoming a key component of a well-functioning condo board. Did I hear a *gulp*?

Well, do not fret. I will help guide you through how to ensure you are keeping accurate and quality minutes, while also providing you with some great tips that you can use along the way.

focus on recording the relevant topics as set out in the meeting’s agenda. There is no need to include casual conversations, and always avoid any hearsay and accusations. Overall, use your discretion.

Record accurate attendance Having an accurate count of attendees who were present at each meeting and for voting on motions is very important.

The best method to ensure your attendance record is accurate is to prepare a list of all the owners and expected attendees (including guests and representatives) in advance of the meeting. This allows you to easily check off anyone in attendance and ensures that they are identified with the correct name and/or unit number.

Be impartial The easiest way to ensure your minutes are impartial is to always approach them from a third-person perspective, even if you are part of the board. Refrain from using pronouns such as I, we, us, or you.

Be clear It is important that the minutes allow any current or future board member to

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easily refer to a prior meeting, understand what may have been discussed, and the decisions that were made based on those discussions. Having clear and concise minutes is also crucial for compliance.

Consistency is key Consistency is very important not only in the method of minute taking for each meeting (e.g., using consistent titles, acronyms, etc.), but also in the format of the document (e.g., layout, font, spacing, etc.). Having a set template allows for ease of reference and saves time while minute taking, as you can easily identify the sections and information that needs to be completed.

Take care editing Always allow for ample time to edit the record to ensure that the minutes are succinct, clear, and easy to read. This includes confirming the content is relevant, the grammar is correct, and the sentences are well-formed. If you utilize an external company for this service, inquire about their editing methods and ensure that all parties agree on what methods to use.

When restricted records should be used Most often, the board will have a policies that set out when to use restricted record minutes; however, per the Ontario Condo Act section 55(4), discussions that include actual or contemplated litigation, specific units, staff, and other private items, should be in the restricted records section of the minutes. These minutes can be requested by owners, and the board would need to provide them, however any information in these minutes that does not pertain to that specific owner will need to be redacted. (and an explanation of why there is a redaction).

Store and back up your minutes Above all, the number one important tip is to make sure your minutes are properly stored. Whether they are stored electronically or in hard copy, they should always be easy to locate, and be backed up, as you never know when you may need them.

I hope that all the tips that were covered here can help guide you and your board through to a more pain-free minute taking experience! C V

Robert Buckler B.A., M.Ed., R.C.M., OLCM Condominium Consultant Beredan Management & Consulting Inc. Broker, Century 21 Heritage Group Ltd.

Kateryna Polek Kateryna Polek, B.Com., RCM, OLCM, CPM Senior Condominium Manager Nadlan-Harris Property Management Inc.

Fair Competition

The Impact of Bid-Rigging Introduction In 2012, the Competition Bureau began a probe into a potential bid-rigging cartel by four companies specializing in condominium common element refurbishment projects. On January 17, 2022 CPL Interiors Ltd., pled guilty to criminal charges of violating the Competition Act. As part of its guilty plea, CPL agreed to pay a fine of just under $800,000 (for full details, please view reference #2, below) and agreed to pay $550,000 into a class action settlement fund. While court proceedings are still ongoing against the three remaining accused companies, the fine paid by CPL Interiors Ltd. pales in comparison to the $19 million worth of contracts which were subject to bid-rigging and which were completed between 2009 and 2014. In light of this malfeasance, including the fact that some or all of these companies continue to carry on business under different names, the condominium management industry and the Condominium Management Regulatory Authority of Ontario have not publicized the investigation, subsequent charges, and what it means to condominium buildings and their Boards.

What is Bid-Rigging?

In order to fully appreciate the impact of this case, we must first define what bidrigging is and how it works. Bid-rigging is a scheme in which companies manipulate the tender process to contrive a de-

sired outcome. It is defined as the submission of a bid or tender that is arrived at by agreement between 2 or more tenderers where the agreement is not made known to the person calling for the bids or tenders. Victims in these types of situations are consumers, who are forced to pay over-inflated prices. In this instance, it was condominium homeowners who suffered the consequences.

Bid-rigging can take many forms, and is often very difficult to detect. The Competition Bureau identifies four types of rigging schemes: cover bidding, bid suppression, bid rotation, and market division (for full details, please view reference #3, below). With growing sophistication of malfeasance across all industries, Boards are expected to do more to protect their CONDOVOICE SPRING 2022

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What is Bid Rigging and How to Reduce the Risk

communities against collusive and predatory firms.

Board Responsibility?

The scope of condominium governance has increased exponentially with the implementation of the Condominium Authority of Ontario (CAO). Condominium directors now have to take training through the CAO; this course provides high-level education covering foundational knowledge, which is a starting point to what directors need to know. As bid-rigging is relatively rare, this topic is not covered by the CAO course.

Nonetheless, there has been a marked increase in homeowner expectations from elected Boards in terms of due diligence and accountability. Boards should be aware of potential bid-rigging, especially when planning high-value reserve fund projects.

Strategies In order to prevent corporations from being victimized by collusive and predatory firms, condominium Boards, along with their management provider, can consider several strategies and apply them to the projects they are undergoing.

Recommended strategies will depend largely on the scope and cost of the project. With higher stakes, Boards may consider implementing some or all of the

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Beyond sourcing a list of verified firms, it is important to review references as well. Condominium managers may look to other managers who worked with selected vendors for testimonials. techniques discussed below.

Utilizing Professionals Reserve fund projects are outlined in the reserve fund study, typically by an engineer. The Condominium Act in subsection 37(3) specifically exempts Directors from liability if they rely in good faith upon professionals. It is recommended for Directors to engage professionals, such as engineers, when embarking on complex or high-cost reserve fund projects so that prospective contracts are properly planned, tendered, managed, and completed. This practice will assist in reducing the risk of bid-rigging.

Vendor Vetting Programs Hired consultants and management firms normally maintain a roster of vetted companies, which demonstrate a degree of quality in the work they provide.

Condominium Boards may refer to multiple sources for vetted vendors, such as incumbent engineers, consultants, management firms, and industry associations. Having said this, choosing from a list of vendors from various sources may prove to be prudent.

Beyond sourcing a list of verified firms, it is important to review references as well. Condominium managers may look to other managers who worked with selected vendors for testimonials. Boards may choose to conduct their own vendor reference-checks by reaching out to other condominium Boards.

Whether references are manager-tomanager or board-to-board, some suggested questions are: • Was suspicious behaviour observed during the bidding process?

• Who were the competitive bidders?

• Were the bidders provided by one source?

• Did all bidders attend the site prior to providing a bid?

Additionally, for high cost and scope projects, Boards should consider inter-

viewing prospective vendors directly.

Sealed Bid Process The Competition Bureau makes several suggestions on how to prevent bid-rigging. One of those recommendations, is the implementation of a tender process.

Condominium Boards can mitigate the risk of bid-rigging by engaging in a “sealed bid” process. Whether facilitated by a professional or performed internally, it can include the following steps: 1. Defining the scope of work - it is important to identify the scope of work to the best of the ability of the individual facilitating the procurement process.

2. Price Breakdown – breaking price by category (including design fees) will help in comparing the bids.

3. Invitation to bid on the project - prospective and vetted vendors are invited to bid on the project, with sufficient time to prepare and submit their bids.

4. Meeting with the bidders via a procurement representative - any meetings regarding the bid must be facilitated via a procurement representative.

Private meetings amongst bidders will taint the tender process and may increase the risk of bid-rigging.

5. Collection of sealed bids by a designated deadline - vendors are required to submit their bids, confidentially, at a specified location. Procurement representatives must ensure sealed bids are not tampered with and be alert of bidders who seem to hold knowledge of competitor bids.

6. Opening of the sealed bids by a quorum of the Board of Directors - following the collection of the sealed bids, the Board is required to open them, at the same time. Bids must then be evaluated

against each other and potential red flags identified, such as a significant price difference between the winning bidder and competing bids.

Confidentiality Expensive projects are lucrative to contractors, and because of this, suppliers typically prefer one large project over smaller ones. To ensure that the bidding process is focused on the condo corporation receiving the best value and terms, all bids must remain confidential, with details only known by the Board, management, and hired consultant(s). If bid information is “leaked,” then this compromises the bidding process, contradicts the Board’s obligations to serve the best interest of their community and may breach confidentiality that is included in the Code of Ethics that Directors agreed to follow.

Condominium Management Support As noted above, management can play an important role in reserve fund projects.

General Licensees can make expenditures out of the reserve fund. However, this discretion is typically limited to emergencies only. For other situations, managers recommend that Boards engage the services of engineers and/or consultants for reserve fund projects (discussed above). Though not taking the lead on these large projects, managers can make a positive contribution to enhance the effectiveness of the professionals and in doing so, can also reduce the risk of bid-rigging.

For example, managers committed to the best interests of their corporations will give input into specifications, attend site and project meetings, ask questions to

clarify details (e.g., materials, warranties, logistics, etc.), as well as other potential impacts to the property and community.

Most importantly, by being involved, experienced managers will provide insight into suggested suppliers and can leverage their firm’s collective experience to ensure that proven vendors are selected to bid.

With managers involved, hasty decisions will hopefully be avoided, as a rushed process may also result in missed warning signs of bid-rigging.

Conclusion While the bid-rigging case has shaken the industry, it is rare. The recent charges and conviction by the Competition Bureau offers condominium boards the opportunity to pause and reflect. This article suggests several strategies to take appropriate steps to mitigate the risk of bid-rigging.

The goal is for the Board and management to work together with hired professionals to complete successful projects that are on time, on budget and at the highest quality.

Beyond the strategies outlined, Boards can pursue continuing education, provided by the Canadian Condominium Institute and the CAO to keep themselves informed and out of harm’s way with respect to bid-rigging.

References 1. Competition Bureau Canada - March 29, 2021 News Release: https://bit. ly/3uacT0c.

2. Competition Bureau Canada - January 17, 2022 News Release: https://bit. ly/3KZMiJ2.

3. Competition Bureau Canada - Preventing Bid-Rigging: Tips for Tendering Authorities: https://bit.ly/3KZnrW3.

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Sophia Simeone Synergy Partners Consulting Ltd.

Sally Thompson Synergy Partners Consulting Ltd.

Reserve Fund Study Report Cards NAME

GRADE

Beware of Unfamiliar Systems A–EXCELLENT

B–COMMON MISTAKE

Site Description The site consists of an eight-storey condo with a two-level underground parking garage, constructed in about 2015.

The building contains a ground-source geothermal system that provides the heating and cooling for the heat pump units throughout the building. The system includes extensive underground piping that was likely installed before the building was constructed above the system. There are also solar panels installed over the majority of the roof.

Reserve Fund Assumptions The reserve fund study did not include budgets for the eventual replacement of the solar panels or below-grade portions of the geothermal system.

The Reality Although the geothermal system is likely to have a long service life, the eventual replacement must be considered by the reserve fund study. The study should consider challenges presented by the fact that the building was constructed above the system, meaning that any new pipes that need to be drilled in will be very challenging to install, because the drill rig will be limited to something that can fit inside a single-storey garage.

The solar panels also seemed to have been overlooked.

Lessons Learned for Reserve Fund Planners As buildings evolve to become environmentally friendly, we will come across systems that are new and unfamiliar and these may not be in your standard reserve fund template. Despite not having much information or cost data, the reserve fund study must consider replacement of these systems. For atypical items, a reserve fund planner will need to take extra steps to sufficiently capture these systems in the study. For example, you

C–COULD DO BETTER

D

D–DEFICIENT QUALITY

may need to call specialty contractors to understand required maintenance, as well as replacement costs and service lives.

Takeaways for Board of Directors and Property Managers Managers will also need to do extra homework to learn about the maintenance procedures for these less familiar systems. It is not uncommon to see buildings with solar panels installed that are not operational or not properly connected, because they fall outside the purview of the traditional HVAC contractors.

Visit Us On Social Media Facebook - @CCIToronto Youtube - CCI Your Condo Connection LinkedIn - Canadian Condominium Institute Toronto Chapter Instagram - CCIToronto twitter - @ccitoronto itunes - CCI Toronto CV+

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Alexander Etkin Horlick Levitt Di Lella LLP

Maintaining Reserve Funds

The Trifecta of a Dysfunctional Condominium Corporation

Condominium corporations [with collective input and support from (1) the board, (2) management, and (3) owners] that do not raise their common expense fees annually do so at the peril of their fiscal and operational wellbeing On January 24, 2022, the CBC published an article about the troubled state of York Condominium Corporation No. 82, which operates a 321-unit residential property in the Jane and Finch neighbourhood.

YCC 82’s board of directors recently approved a special assessment totaling $11,235,000, or approximately $35,000 per unit, to cover the cost of numerous repairs, including serious and potentially dangerous structural and building envelope deficiencies. The repairs are estimated to total $14,285,000.

While the CBC article presents a heart-

breaking picture of YCC 82 and the financial hardship of the special assessment on its owners, especially seniors who are living on a fixed income, I believe a review of the past and ongoing litigation involving YCC 82 would supplement the CBC’s report and give readers a better understanding of what has transpired (and continues to transpire) at this troubled condominium.

PART ONE The Background of YCC 82’s Predicament YCC 82’s poor state of repair today is the result of a troubling history of mismanagement and neglect going back several decades, all set out in the recent decision Jasper Developments v. York Condominium No. 82, 2022 ONSC 768 (“Jasper Developments”).

All in all, it is important to recognize that YCC 82 did not get to where it is overnight.

By way of context, the Applicant in this case, Jasper Developments, is a non-resident investor in multiple units in YCC 82 that sought a court order compelling the corporation to call and hold a requisitioned meeting of owners to vote on the removal and replacement of its Board of Directors. The reason for the requisition was ostensibly to bring in a new Board to cancel or modify the above-noted special assessment.

This article discusses: 1) the background of YCC 82’s current financial troubles; 2) YCC 82’s options under the Condominium Act, 1998 (the “Act”) and; 3) best practices for the corporate governance of condominium corporations.

Per Jasper Developments, YCC 82 was inCONDOVOICE SPRING 2022

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The Importance of Adhering to the Reserve Fund Study and Financial Management Duties

solvent and came under court-appointed administration in 2004. The Administrator borrowed $4 million for numerous repairs and, at the end of the administration in 2007, a new board was elected and borrowed an additional $4 million.

YCC 82’s troubles did not end with the election of a new board. Since that time, it was sued by the City of Toronto for outstanding fire, water, sewer, and garbage collection charges. The lawsuit settled in 2017, with YCC 82 borrowing $1,125,000 to fund the settlement.

As set out in Jasper Developments, the additional debt that YCC 82 took on to fund its settlement with the City of Toronto, on top of its pre-existing debt, has resulted in YCC 82 currently paying roughly $960,000 per year in interest alone.

Additionally, years of neglect have left YCC 82’s building in what recent court filings have described as a “deplorable” state.

According to a Condition Assessment undertaken recently by YCC 82’s engineers, there are defects in the suspended parking garage that “must be repaired immediately to maintain the structural integrity of the structural framing components”, and until such time as repairs are made, “temporary shoring is to be installed immediately.

YCC 82’s engineers note that, with respect to the building’s exterior balconies and railings, “exposed steel reinforcement” is visible and “all loose concrete should be immediately removed and repaired for health and safety concerns.”

The state of the building’s balconies is so dire that YCC 82’s engineers recommend that residents not use any balconies with cracks greater than 100 mm until proper remedial efforts are undertaken.

As of Spring 2021, YCC 82 had only $1.75 in its reserve fund and $5,164.62 in its operating fund. Its financial position is such that it cannot take on any further debt. As a result, YCC 82’s property manager recommended a special assessment of $16,050,000 (or $50,000 per unit).

Ultimately, the board concluded that it must pass the current special assessment of approximately $35,000 per unit (or 44

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$11,235,000 in total, which is still short of the estimated cost of repairs by approximately $3 million).

All told, YCC 82’s predicament appears to be the result of various interrelated factors including: (1) long-term neglect by the corporation of its repair and maintenance obligations; (2) an unwillingness by the board to increase the common expense fees in line with the operational needs of the corporation; (3) a likely unwillingness by the owners to accept the necessity of replenishing the operating fund by either raising common expense fees, taking out a loan or levying a special assessment (or some combination thereof); and (4) payment of the corporation’s operational deficits with funds likely transferred from the reserve fund.

PART TWO YCC 82’s options under the Act A condominium corporation facing a predicament like that of YCC 82 ultimately has four potential options: (1) special assessment; (2) borrow funds; (3) termination on consent; or (4) termination on sale.

The special assessment Readers are no doubt aware that there are times when a condominium corporation may be required to conduct an unexpected major repair or replacement of its common elements or assets.

If there are insufficient funds in the corporation’s reserve fund to carry out these major projects, the condo may levy a special assessment on the owners, which amount is in addition to the regular monthly common expense fees paid by owners.

If the owners opposed to the special assessment have sufficient numbers and support, they may requisition a meeting of owners to vote to remove the board of directors and reverse the special assessment.

The loan Condominiums that have passed a borrowing by-law may take out a loan to replenish the operating and/or reserve fund.

The amount needed to service this debt is in addition to the regular monthly common expense fees paid by owners.

Termination on consent Under the Act, a vote of at least 80% of the owners along with the written consent of at least 80% of those persons who have a registered encumbrance against the property (i.e. a mortgage) is required to terminate the government of the corporation’s property and assets by the Act. Termination on sale of the property Under the Act, a vote of at least 80% of the owners along with the written consent of at least 80% of those persons who have a registered encumbrance against the property is required to sell a condominium corporation’s property. Where a corporation’s property is sold (i.e. to a developer), the property is no longer governed by the Act. YCC 82 elected to levy a special assessment rather than sell the property to a developer There was insufficient support among the owners of YCC 82 for a sale of its property and YCC 82’s evidence in Jasper Developments was that it has no further ability to borrow. As a result, the board felt its only recourse was to pass a special assessment, notwithstanding the potential hardship of this levy on the owners. This is all the more troubling as the CBC article notes that some residents have been forced to take out high-interest loans from private lenders to cover the amount levied.

PART THREE Best Practices for the Governance of Condominium Corporations Condominium boards that do not raise their common expense fees annually (unless such corporations are in a surplus position), neglect the corporation’s yearly maintenance and repair obligations, and contemplate breaching the Condominium Act by transferring money from the reserve fund for the payment of operational deficits do so at the peril of the building and its owners.

I believe that there are two interrelated reasons underlying this type of approach to condominium governance.

First, as was the case with YCC 82’s owners, many owners do not appreciate, and in fact underestimate or are unwilling to accept, the true operational costs of living

in and properly maintaining their homes.

Unfortunately, recognition may come at a point where the costs to remediate years of neglect are higher than they would have been had the condo undertaken its repair and maintenance duties at regular intervals throughout the years.

Second, some board members may be of the view that it is politically expedient to keep the corporation’s common expenses low so as to remain in good standing among the owners and retain membership on the board. The concern among board members in certain communities is that if they vote to increase maintenance fees or borrow money to pay for necessary repair and maintenance projects, then the owners will vote them out of office.

Unfortunately, such short-term thinking can have long-term adverse consequences, both for the integrity of the condominium’s property and for the financial wellbeing of the unit owners. Notably, where a condominium’s reserve fund is not being funded as per the reserve fund study (resulting in an under contribu-

tion of funds), the result is that essential repair and maintenance projects may invariably be postponed to the point where a special assessment or a loan may be all but inevitable.

Prolonged neglect over the years can result in deficiencies in a building’s structural envelope and lead to serious, and even disastrous, consequences. A notorious example of such neglect was apparent in the catastrophic collapse of the Champlain Towers in Surfside, Florida in 2021. Reports that surfaced around the time of the collapse indicated that structural defects in the building required timely and substantial repairs valued at around $9 million in 2018. Rather than levy an assessment or take out a loan, the board (likely with significant input from the owners) decided to defer repairs, which ultimately led to disastrous results.

This situation underscores the importance for condominiums in ensuring that a reserve fund study is done every three years and appropriately followed in accordance with the Act. The engineers conducting

the study will estimate the cost of major forecasted repairs and replacements of the condominium’s property and assets and, on that basis, determine what amount is needed in the reserve fund to fund such repairs/replacements.

Conclusion A condo’s maintenance fees should increase over time so as to be in line with inflation and increased operational expenses. If a condo is properly managed and the board has saved money for exigencies and unforeseen major expenses, then it can avoid the type of predicament faced by YCC 82.

Condo boards that effectively maintain the reserve fund in accordance with a proper reserve fund study can mitigate against the risk of major structural damage to the condo building. Had the board of YCC 82 (with the support of owners) been more disciplined in adhering to its reserve fund study and financial management duties, amongst others, it could have addressed needed repairs earlier and potentially avoided the current unworkable state of affairs. C V

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member

NEWS New Committee Member Profiles

Christina AjithBrandford Christina Ajith-Brandford, CPA CA has over 15 years of experience in audit and financial services. She is a partner at Adams & Miles LLP, and has been with the firm since 2005. She joined the firm’s condominium group in 2018 and currently leads the group, which is one of the largest condo audit practices in Ontario, serving over 600 condo corporations.

Christina has built her practice around providing specialized assurance and advisory services to condominium corporations and property management companies. With her extensive experience in both public accounting and private industry, she acts as a trusted advisor to Directors and management companies, offering expert advice in accounting, financial best practices, internal controls and governance.

Christina participates in nu-

merous condominium industry groups, including a newlyfounded information-sharing group of specialist leaders from public accounting firms, who discuss best practices as condominium auditors. She is excited to further develop and share her knowledge and be able to positively impact the condominium industry by being a member on the CCI-T Education Committee.

Salim Dharssi Salim Dharssi is the CEO and Founder of managemate, which is a Toronto-based company that provides easy to use cloudbased collaboration software for condominiums.

Salim is an entrepreneur at heart who designs and builds innovative solutions to difficult problems. He discovered the world of condominium management and operations when he joined the board of his condominium in 2015. He was intrigued by the challenges boards and their managers face in their day-to-day:

finding building history, understanding reports, evaluating vendors, and planning and tracking projects and other activity. In 2020, Salim left his full-time legal practice so that he could immerse himself into the industry, with the goal of solving these challenges.

CCI and its members play a vital role in helping condominium boards manage and oversee their buildings. By volunteering with CCI-Toronto’s Education Committee, Salim hopes to help the committee continue to plan and conduct continuing education and training events for its members. He brings with him experience volunteering on two executive committees of the Ontario Bar Association and the Intellectual Property Institute of Canada, where he planned and moderated continuing education events for other lawyers.

An Nguyen An Nguyen is a lawyer at Gardiner Miller Arnold LLP, a law firm in Toronto with a dis-

tinctive focus on condominium law. Since starting her career with the firm, An has successfully represented clients in a variety of condominium litigation situations through mediation, arbitration, the Superior Court of Justice of Ontario and the Condominium Authority Tribunal. She also assists condominium corporations with corporate and governance matters.

In her spare time, An writes for her firm’s law blog and newsletter and CCI’s Condovoice and presents at webinars. She understands that the condominium industry is everchanging and developing, especially in recent years with the amended Condominium Act and new Tribunal. Staying on top of the industry’s latest changes and news and sharing that knowledge with the condominium community is important. That’s why An volunteered her efforts on CCI-Toronto’s Social Media Sub-Committee to continue outreach, better communications with the public, help spread knowledge, and connect our unique condominium industry.

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NEWS

Stephen seeks opportunities to educate others about the condominium insurance market within the community, board level, and at industry events throughout the year. Specifically, he has represented BFL at CCI events and will be participating on the Education Committee with CCI – Toronto.

Stephen Skolny Stephen is an insurance broker with BFL CANADA specializing in providing risk and insurance services to condominiums across Ontario. He collaborates with many condominium corporations by reviewing their coverage and sourcing alternative insurance quotes. As an insurance broker with BFL, Stephen works closely with insurance companies to leverage BFL’s Condo Protect Insurance Product to obtain enhanced coverage at a competitive price.

With a specialization in condominiums, Stephen has a solid understanding of the market place here in Ontario, including challenges such as rate and deductible increases.

To support understanding of these hot topics that condo corporations and boards are facing today, Stephen makes himself available for board meeting (both face to face and virtually) and AGM’s. The reason for this is to share his knowledge, discuss the product and explain the impact to those involved.

The insurance market is constantly changing and having the most accurate information to make informed decisions is a key reason Stephen has decided to partner with CCI Toronto.

Presently, John manages a client with operations in multi residential family complex in the sunbelt states (Arizona, Georgia, North Carolina and Florida). He also assists other clients on special review, accounting

Condominium Corporation Members: YRSCC # 1455 YCC # 0444

Applewood Painting Ltd. Bill Stratigopoulos

John has been in public accounting since 2014 with working experiences in both US and Canada with his focus in real estate and not-forprofit. In his earlier career, he worked as a condominium auditor dealing with condominium corporations such as townhouses, low to high density residential, commercial and mixed-used buildings. He can offer advice on best practices such as financial planning and analysis, budgeting, contracts and operational matters.

John is part of the Volunteer Resources committee to further promote CCI-T’s agenda. In his spare time, he enjoys reading besides working and condominium board commitments.

CCI-T Welcomes New Members Business Partner Members: Addaline Asphalt Maintenance Robin Farley

John Tan

and tax compliance works.

CleanMark Group Inc. Gerry Loukatos

Nohora Estella Davila Cruz

EPS Property Maintenance Ltd. Kujtim Demaj

Professional Members: Synapse Property Management Inc. Jeronim Dyrmishi

Markham Property Services Ltd. Josiah Pratt IRC Building Sciences Group, A Rimkus Company

Individual Members: A. Partridge-Rios K. Goldberg O. Rosales

Education Committee Events: 2022 Reserve Funds Director Fundamental Course Thursday, April 21, 22 12:00pm-1:30pm Speakers: Sally Thompson Stefan Nespoli TBC - Essential Rules or People Management Thursday, May 19, 22 12:00pm-1:30pm

Speakers: TBD TBD Thursday, June 16th, 22 12:00pm – 1:30pm Please visit our website for updated information: https://ccitoronto.org/ education-events/event-inforegistration

CONDOVOICE SPRING 2022 C V 49

member

NEWS

CCI Was There

Case Law and Condos: A year in Review On December 16, 2021, CCI Toronto presented the most awaited webinar of the year – Case Law and Condos: A Year in Review.

The legal panel consisted of An Nguyen (Gardiner Miller Arnold LLP)), Benja-

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min Rutherford (Rutherford & Mathews), Francesco Deo (Deo Condominium Lawyers), and Megan Mackey (Shibley Righton LLP) . The panel discussed important court decisions from 2021.

This webinar provided attendees the op-

portunity to learn from this excellent panel, interact through polling, win great prizes and connect with fellow members.

Missed out on the webinar?

You can watch it on the CCI Toronto’s website: www.ccitoronto.org

member

NEWS

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Get Published!

Want to Add Your Voice to the Conversation?

We’re always looking for new and interesting articles for Condovoice!

Please feel encouraged to send article ideas and submissions to: calandra@ccitoronto.org

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condominium

owners

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

James O’Hara CEO of JGO Solutions Inc.

Part 1 of a 2 Part Series

The Fundamentals of Condo Living This is the First of a Two-Part Series on Condominium Living Where I’ll Answer Some of the Key Questions and Must-Know Points for Owners and Residents of this Style of Living This first article begins with what a condominium is, what a board is, what it is responsible for, the importance of its role, key points, and considerations for owners in choosing the best candidate(s) during elections.

The term “condominium” is based on two words in originating from modern Latin; con (together with) and dominium (right of ownership) and can be paraphrased as “joint dominion” or “co-ownership” with the latter term being the one we are most familiar with, co-ownership.

What this essentially means for us as condominium owners is having the com-

bined ownership of an individual unit plus a shared interest in the common elements. Common elements are generally described as those being outside our own unit and are shared by all in the community. Some examples of which are the infrastructure to support and supply power and water, fire protection and safety mechanisms, corridors, garages, land, gardens, tennis courts, pools, recreation facilities, common areas, etc. These common elements are owned by a condomin-

ium corporation in which we (as condo owners) own an interest in.

What is a condominium board of directors?

The body with the ultimate responsibility for the management of this corporation is the condominium board of directors. They have an incredibly important role to play in the successful management of your condominium corporation and they are elected by you, the owner.

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ILLUSTRATION BY JAMIE BENNET

What exactly is a condominium anyway?

Let’s begin by understanding what the word “condominium” or “condo” really means. It’s often used in our society today to simply describe the type of home we live in and to differentiate from a detached home in a conversation. However, there is more to it than name alone and it does require a different level of understanding, a higher sense of community, awareness of regulations, and potentially more involvement for you as a condominium owner as compared to a detached homeowner. I will attempt to outline some of these all-important points in this article to understand how it can affect you and the place in which you live.

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In addition to being responsible for the management and governance of the corporation, the board of directors are also required to ensure compliance in accordance with The Condominium Act, 1998 which regulates the legal and fiduciary responsibilities of the condominium corporation. There are additional regulatory acts which board members must also be cognizant of and responsible for, including privacy, health & safety, and workplace harassment to name a few.

It is also paramount to recognize these board positions, roles, and responsibilities are custodial in both nature and tenure. Director(s) must be extremely mindful that they are in temporary custody of both the short and long-term needs of the condominium corporation and to ensure decisions are made in the owners’ best interests. In the context of tenure, while a director needs to understand they occupy this entrusted position only for a specific period, their decisions also have significant consequences for the fu-

ture life of the corporation’s assets and ourselves as owners.

This is of major significance and is akin to a relay race, the incoming director(s) takes the baton from the previous director(s) and board. Decisions made by the predecessor(s), including operating budgets and reserve fund studies, are inherited not only by the new directors, but by all of us as owners through the votes we cast for the candidates running as potential directors. Therefore, participation through awareness, volunteering, and voting for the very best director(s) is a major consideration of condominium ownership. The track team analogy is an apt one here since as an owner you want not only to have a team of highly skilled competitors to choose from during qualifying (elections), but to field the very best team (of directors) possible for the event which, in this case, is the responsible management over the lifetime of the building and the corporation’s assets.

Another important point to note here is that the board directors and committee members are unpaid voluntary positions.

Essentially this means free time is selflessly contributed by the directors and committee members who serve in all our best interests and for which they deserve our sincere appreciation and thanks.

What does this mean to an owner?

Given the critical importance and function of the board, it is extremely important for an owner either to be involved as a candidate if possible and/or to participate in the election of board directors by casting your ballot since you are essentially delegating the representation of your own interests to the board to ensure both the corporation’s assets are being managed effectively now and into the future and that your interests are adequately reflected.

What does a condominium board do?

There are several common types of boards such as Advisory Boards, Executive Boards, Policy Boards, each have

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their own characteristics. Our board is what is known as a Governing Board.

This is an important distinction since our board is primarily responsible for the oversight and governance of our condominium corporation. Owners elect a board of directors to oversee the business affairs of the condominium corporation. As an owner, you are a member of the condominium corporation, so board activities affect your condominium experience every day. Therefore, it’s important for you to vote for the directors or become a director yourself. Elections occur during the annual general meeting (AGM).

What are the board’s responsibilities?

There are a variety of key responsibilities of our all-volunteer board including (but not limited to): • Setting policies and procedures.

• Making decisions.

• Strategic planning.

• Legislative governance of the various regulatory acts e.g., Condominium Act, Health & Safety, Privacy Act, etc.

• Budgeting and tracking the condominium’s financial performance.

• Selecting, procuring, and overseeing contracted professional services including property management, landscaping, engineering, etc.

• Ensure all required maintenance and repairs are carried out.

• Hire specialists, like engineers, to update the reserve fund study every three years.

• Enact rules to promote the safety, security, and welfare of all owners.

• Provide regular communication with the other owners.

• And much more.

The important roles of a condominium board of directors A board is an organization which represents both the community and the multimillion-dollar assets and responsibilities of a corporation. It’s important to recognize that a board is a human organization just like any other. This is where a combination of common sense, effective directors, strong leadership, and the application of sound organizational, management, teamwork, communications, are all critical to success.

living (as outlined in my article II to be published in August) and the recognition that a condominium is not a co-op.

This is of major significance and is akin to a relay race, the incoming director(s) takes the baton from the previous director(s) and board The right combination of qualified directors and the application of good practices serve to create and build a strong and highly effective board. Therefore, it is critical to put forward, evaluate and select those candidates who can bring all these essential characteristics to bear.

Failing to do so, and the consequences of a poor decision(s) will be upon everyone and felt for years to come. It is critically important for us to participate in the board elections and to work together.

Decision Making Decisions must be made with short-, mid-, and long-term ramifications and benefits in mind. Decisions made need to be correct for the complex as a whole and the collective ownership. Bear in mind that some decisions may not necessarily be the “popular” decision. This is particularly true when complex decisions need to be made which many are not aware of the details and require wide input and deep consideration. Such are the challenges of a competent and sound board director.

Understanding A board director requires a solid understanding of the concept of condominium

As a board director, understand you’re not in this for yourself, you’re there to represent the community at large and personal profile or bias does not play a part in the role.

Leadership and Teamwork Leadership and teamwork are critical elements of a well-functioning and high-performing board. No matter the task, project, or decision, a board needs to work together with Condominium Management and the extended team of experts to communicate, collaborate, and work effectively to achieve our goals.

The ability to work in, contribute to, and participate as part of a team while cultivating a highly effective team-based environment within the board is an important leadership attribute which a successful director must possess.

Communications Communication is the lifeblood of any condominium board and its community. It’s impossible to overstate the importance of the value of communications. To be effective, directors must possess good communications skills themselves and recognize the important role that communications play on the board and to our entire community as a whole. Directors must be committed to the broad integration of communications at the board level and to execute clear and frequent communications to owners and residents on an ongoing basis.

Upcoming in the next article The next article will delve more into governance and operations, a prime example of which is the oversight of the daily functioning of the condominium. For the effective running of a condominium, the board is responsible for the selection of a property management company to run the day-to-day operations on behalf of the condominium corporation. Oversight of the property management company is accomplished through a combination of communications when a matter requires an action before the next meeting and the monthly meetings at which the board provides governance on short-, medium-, and long-term issues and plans. C V CONDOVOICE SPRING 2022

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Patricia Elia

B. Comm., LL.B., Adler Trained Coach Barrister & Solicitor

The Last Word

Can Condos Remain Affordable?

Concern in Canada is Growing Over Affordability, Availability, Rising Inflation, and Limited Supply of Housing Stock

Condominiums, we know, as they age need to consider capital asset replacement costs and what level of replacement is appropriate given the age of the condominium. We have condominium stock from the late 1960’s in Toronto which may be at the end of its life span or need major repair and replacements done, especially if the same have been neglected, to ensure that the condominium is fit for living. Accordingly, condominiums need to be actively and adequately saving for these replacements in their reserve funds. Is your reserve fund keeping

up with the cost of living in Toronto?

Should you have more options for investments? If so, how do you manage risk and reward?

But the game of chasing the buck does not stop there! Condominium owners and directors need to examine more closely and deeply the monetary fairness of the condominium model within the fabric of society. Do you pay taxes? What for? waste management, access to justice, sewage? Are condominiums over paying or being exploited? Here is what I see: 1) The downloading of infrastructure costs on to condominiums. Items such as water management systems are being put on the shoulders of condominiums as well waste management has been added to the operational costs of condominium. Whereas single family dwellings receive these services.

Where does the balance lie?

2) No access to courts even though we are entitled to access to justice via the

courts. Condominium owners pay for access to justice but courts are denying condominiums access to the court systems they pay for and forcing them to pick up the costs of mediation and arbitration. Why? Is this democratic?

3) Paying for a specialized tribunal. Every condominium has to pay for the Condominium Authority of Ontario.

Who is paying for the infrastructure?

Before the CAT, condominiums relied on the court system, a separate arm from the government and it policies, which is a fundamental component to the democratic structure. Condominiums did not take up or use a disproportionate share of the time of the courts based on the number of tax payers paying into the court system via their taxes. However, condominiums seems to be getting caught in the crossfire of policy.

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ILLUSTRATION CLAYTON HANMER

Affordability and availability of housing stock across Canada are two important issues for all Canadian condominium owners. With inflation on the rise and supply appearing to be limited, it is concerning how average Canadians will continue to afford to live in their own home.

Condominiums in this regard have been afforded the opportunity for economies of scale to be leveraged by sharing in the cost of operating a community on a nonfor-profit basis.

their obligations which is against the consumer protection mechanisms of the Act. The message is confusing, if you do not break the rules, you end up paying the costs of both the Tribunal and your advocates to uphold the laws of the Province and the condominium against unit owners who breach. Is that real consumer protection? Innocent condominium owners are paying twice. A key premise of the Condominium Act is consumer protection and the structure that was developed by experienced and wise stakeholders was the view that bad actors should pay the cost of their bad acting. Is it fair that complying unit owners subsidize the cost of bad actors?

6) No reduction or rebates for taxes for services downloaded to the condominium.

5) The failure to give condominiums a tax break where there are commercial components. Yet commercial owners get tax benefits from operations such as an HST input tax credit and the ability to deduct losses against business income.

7) The erosion of market value through the downloading of costs. What would you pay for a high maintenance car?

If you have lots of money, no worries but what about the average car driver.

I prefer low maintenance bills and a reasonable cost of entry.

So now the question I have is: “Please show me the money and show me where the increased taxes per square foot of a density packed city block are going?” These monies should be spent on meaningful infrastructure such as sewer system upgrades, hospitals, schools, parks and resources for the benefit of communities and to deal with the impact of density. Where does the balance between bureaucracy and tangible outcomes lie?

In my opinion, condominiums will not remain affordable if there is a constant downloading of costs to unit owners, which amounts to just more taxation of condominium owners instead of society as a whole. It is not just about the ability to purchase a home anymore only, it is becoming more about whether or not we can afford the additional burdens place on condo owners to operate their homes.

Let CCI Toronto know if you have any constructive solutions to these problems that lurk beneath the surface- C V

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