www.ccitoronto.org
VOL. 13, NO. 3 • SPRING 2009
P U B L I C AT I O N O F T H E C A N A D I A N C O N D O M I N I U M I N S T I T U T E - T O R O N T O & A R E A C H A P T E R P U B L I C AT I O N D E L’ I N S T I T U T C A N A D I E N D E S C O N D O M I N I U M S - C H A P I T R E D E T O R O N T O E T R É G I O N
Be the Best Board!
Plus: ■ ■ ■ ■ ■
Good Relationships Build Better Values Condominium and Municipal Taxation Pursuing Our Vision - Condo of the Year Choosing a Property Management Company Barbecues and Balconies: Reducing the Risk
C-45 Update ■ Recent Changes to Toronto Munipal Code ■ Human Rights Complaints ■ Condominium Accounting & Audit Guidelines ■ Toronto Waste Management Updates … and more PM #40047055 ■
Contents Canadian Condominium Institute / Institut canadien des condominiums Toronto & Area Chapter 2175 Sheppard Ave. E., Suite 310, Toronto, ON M2J 1W8 Tel.: (416) 491-6216 Fax: (416) 491-1670 E-mail: ccitoronto@taylorenterprises.com Website: www.ccitoronto.org
2008/2009 Board of Directors PRESIDENT Armand Conant, B.Eng., LL.B., D.E.S.S. (Co-Chair, Legislative Committee, Member, Conference Committee) Heenan Blaikie LLP
VICE-PRESIDENTS Mario Deo, LL.B. (Chair, Public Relations Committee Member, Conference Committee) Fine & Deo LLP Bill Thompson, BA, RCM, ACCI (Vice -Chair Membership Committee and Vice-Chair Education Committee) Malvern Condominium Property Management
SECRETARY/TREASURER Bob Girard, B.Comm, RCM, ACCI (Chair: Special Projects Committee, CAI Liaison) AA Property Management & Associates
PAST PRESIDENT John Warren, C.A. (Member, Education Committee Member, Legislative Committee) Adams & Miles LLP
Features
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Good Relationships Build Better Values
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Condominiums and Municipal Taxation
EX OFFICIO DIRECTOR Jasmine Martirossian, B.A., M.A., PhD.
ADMINISTRATOR - Lynn Morrovat ADMINISTRATIVE ASSISTANT - Josee Lefebvre
by Ernie Nityrai
Be the Best Board! by Peter Greco
Choosing a Property Management Company by Vicki Vancas
Hung Out To Dry: New Regulation on the Installation and Use Clotheslines in Ontario by Brian Horlick
37 39 41
BOARD MEMBERS Gordon Chong, DDS (Member, Legislative Committee) MTCC # 0620 Gina Cody, P.Eng., M.Eng., Ph.D., ACCI, FCCI (Chair, Education Committee, CCI-National Liaison) Construction Control Inc. Brian Horlick, B.Comm., B.C.L., LL.B., ACCI (Chair, Legislative Committee, Member, Conference Committee) Horlick Levitt Barristers & Solicitors Lisa Kay (Member, Public Relations Committee, Conference Committee, Website Committee) Maxium Condo Finance Group Julian McNabb (Member, Public Relations Committee and Membership Committee) TSCC #1850 Vic Persaud, BA (Chair, Membership Committee, Chair Website Committee) Suncorp Valuations Ltd. Sally Thompson, P.Eng. (Member, Education Committee Member, Legislative Committee) Halsall Associates Ltd.
by Michael E. Le Page
C-45 Update by Jeff Jeffcoatt
Barbecues and Balconies: Reducing the Risk by John Moher
The Human Rights Complaints Trifecta: Family Status, Pets & Disability! by Rhonda Shirreff and Kevin Inwood
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Recent Changes to Toronto Municipal Code by Diana Carr, Sally Thompson and Cathy Lee
Certainty Prevails Over Fairness when Applying Limitations Law by Christopher Jaglowitz
Condominium Accounting and Audit Guidelines by John Warren
Toronto Waste Management Updates by Doug King
CCI News 4 5 27 59 62 63
President’s Message From the Editor Condo of the Year Members Corner Upcoming Events New Members Spring 2009
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President’s Message s many successful organizations often do, CCI Toronto recently held a Strategic Planning Session during which we examined our roots, reflected on past efforts and set future goals. It was an interesting exercise and I would like to thank the dedicated and talented group of individuals who currently sit on the Toronto Chapter Board for their input and participation. Just as importantly, I would like to also thank our predecessors who served on the Chapter Board over the past twenty years, for without their wisdom and efforts, the Chapter would not be the success it is today.
A
Our collective look at the Mission Statement of CCI served to confirm that our mandate always has been and still does focus primarily on the areas of education and government relations – ultimately leading to the betterment of the industry as a whole. In short, we see our role as primarily improving or enhancing the collective interests of unit owners, condominium corporations, boards of directors, professionals, suppliers and trades.
We also looked at the specific mandates and functions of each of the various Committees and tried to set both short and long term goals for each Committee. Some of the goals set forth during those discussions are to continue to expand and improve the courses offered to members, and also to look at different ways of presenting the courses through advanced forms of technology. We also see a need to continue to spread the word about the benefits of CCI to both new and existing condominiums and to this end, our membership Committee will continue efforts in this direction through several different avenues.
And speaking of membership…. I am thrilled to announce that CCI reached a milestone just as we were set to go to print with this issue of the CondoVoice. CCI Toronto Chapter now has a membership of 1000 members. (Of course, the vast majority of our members are condominium corporations so the actual number of members represented through the 1000 memberships is well over 110,000 units). Congratulations to all current and past members of our Membership Committee who helped us reach this incredible milestone!
Our members are what make the Institute what it is – we value your support and look forward to your comments and suggestions. If you have not yet completed our online member survey, please take the time to do so today by visiting the ‘Members Only’ page at www.ccitoronto.org.
Cheers!
Armand Conant, B. Eng, LL.B. D.E.S.S. (Sorbonne) President, CCI Toronto and Area Chapter
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From the Editor “TheCondoVoice” is published 4 times per year – Spring, Summer, Fall and Winter, by the Canadian Condominium Institute - Toronto & Area Chapter.
EDITOR: Mario Deo MAGAZINE DIRECTORS: Lisa Kay and Julian McNabb ADVERTISING: Marie McNamee COPY EDITOR: Ruth Max COMPOSITION: E-Graphics All advertising enquiries should be directed to Marie McNamee at (905) 852-2802 or marie@mcnamee.ca
If you are interested in writing articles for TheCondoVoice magazine, please contact Marie McNamee at (905) 852-2802 or at marie@mcnamee.ca. Article topics must be on issues of interest to Condominium Directors and must be informative rather than commercial in nature.
The author, 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.
Advertisements are paid advertising and do not imply endorsement of or any liability whatsoever on the part of CCI with respect to any product, service or statement. Publications Mail Agreement #40047055 Return undeliverable Canadian addresses to Circulation Dept. 2175 Sheppard Ave. E., Suite 310, Toronto, ON M2J 1W8
Condominium Classification is not an Option – It’s a Necessity The editorial in our last issue underlined the unacceptable situation of a condominium suffering a slow death by a thousand blows, which goes unnoticed from year-to-year, until it is too late . This problem, which is becoming far more predominant, is unacceptable. It encourages the creation of slum-like communities at worst, and serious injustice to owners at best. All unit owners have a right to expect that their condominium will be maintained at the same standard as it was built. Why is a notice to owners required when a board spends a miniscule 1% to 9.9% of the budget, yet there are no protections in place for owners when a building catastrophically declines in value over time through bad governance? A New Concept
A new concept is in the works, which will involve developing a classification system for condominiums.
Classification systems and standards for properties are not new. There are classification standards for commercial properties, which have proven to be effective for determining value for many years. There are also classification standards for hotels, ranging from one star to five stars, depending on a list of criteria developed by convention and consumer expectations. For condominiums, the classification system will be based on three categories or criteria: 1. The physical state of the common elements; 2. The financial health of the condominium corporation; and, 3. The quality of the building and the common elements.
Each of the criteria will be developed using an independent industry standard. Auditors will judge and determine the financial criteria and engineers or architects will judge and determine the physical state and quality of buildings. Developers Need to Kick-start the Classification Standard!
When a condominium is being developed, a developer also creates an image or a vision of a certain type or class of condominium living, which is marketed to potential purchasers. The developers need to translate that image or vision into a standard that is made part of a condominium’s documents so that the standard for the development remains constant over time. Once the criteria are established, translating a developer’s vision into a standard is simple - perhaps just as simple as choosing a meal from a Chinese menu. It is in a developer’s interest to create a standard. Why? Well: 1.
A developer may ensure that any unsold units will remain marketable, since the board of directors will have a positive obligation to maintain the building at the standard established by the developer;
Continued …
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From the Editor Continued from page 4 2.
3.
The classification standard and its enforcement will ensure that the building does not decline in any of the three categories or criteria (financial health, physical maintenance, and physical quality). This is of the utmost importance for a developer’s branding and reputation over the long term.
Condominium classification can be used as a marketing tool, particularly for the larger developers. Purchasers are becoming increasingly more informed of which condominiums to invest in, and the condominium market itself has created certain expectations for purchasers. I have never met a single purchaser of a new condominium that does not want the standard of that property to be strictly maintained.
The first developers to embrace this concept will be the leaders in the field and indeed on the market. Why Will Condominiums Want to Have a Classification Standard?
Most condominiums will want to have the classification, because it will create an expectation among all owners and potential buyers in the resale market that a board of directors will not let the condominium’s standard decline. This is extremely important to most (if not all) owners and potential buyers, regardless of whether they are buying a condominium as a place to reside over the long term, or as an investment property. In fact, owners will likely drive existing condominiums to establish and maintain a classification standard, since buyers and realtors will ultimately demand it. Accountability and Enforcement
Accountability and enforcement are essential in order to make a classification standard system work. Everyone in the industry knows that one of the 6
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most frustrating and difficult things about condominium governance is holding boards of directors accountable for good governance practices and proper financial and physical building maintenance.
We are all tired of hearing that there is no one “policing” condominiums and boards of directors. While it is important to develop a classification system, it is equally important to ensure that enforcing that system is clear, easy and effective, without the need to resort to litigation.
In order achieve an effective and efficient process for accountability and enforcement: 1.
2.
It will be imperative that developers establish the classification standard and impose a duty on the board of directors to maintain that standard in a condominium’s declaration;
The declaration must impose a duty on directors to produce, at each annual general meeting, an independent report prepared by an engineer and a chartered accountant assessing the physical and financial health of the building, and confirming whether the classification standard for the building has increased, declined or remained the same. If the report indicates that the stan-
dard has declined, then the board of directors will have a period of time (perhaps six to twelve months) to correct the financial or physical conditions of the building and obtain a further report confirming that the classification standard for the building has been attained.
If the board of directors does not obtain a further report, or if the board obtains a report indicating that the classification standard has not been attained, then an administrator will be appointed to step into the shoes of the board of directors to manage the condominium.
It is really a shame that the industry has to take care of this on its own when some simple legislation will do the trick – I hope someone in government will take notice.
Anyone that is interested in providing their comments or suggestions on the idea of establishing a classification standard for condominiums, please send your comments in writing to the Editor at ccitoronto@taylorenterprises .com. All communications will be acknowledged.
Mario Deo, LL.B.
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Good Relationships Build Better Values T
BY MICHAEL E. LE PAGE, RCM
The following article was originally a speech at the 2008 ACMO/CCI Conference in a session entitled “Building Better Values by Acting Wisely”. he value of a community can be measured in many ways and the actions (or inactions) of the Board of Directors can greatly influence the value of the corporation. Fiscal responsibility is paramount to good directorship and this responsibility extends exponentially beyond the budget, even beyond the reserve fund and is reflected in the values of each and every residence in your community. To be clear, the decisions of the Board can often impact values and it is important that the impact is positive. In order for the Board to make decisions in good faith and to act “reasonably and prudently” as required under the Act and to protect themselves from liability should things go wrong, the Board needs to develop good relationships with various professionals and they need to communicate key decisions with the residents. So how do we do this? How do we achieve this objective? Believe it or not the most important
ingredient is communication – open, forthright, informative communication. Boards of Directors are challenged by establishing priorities at every turn. They are assisted by a team of professionals and a Reserve Fund Study that charts a course for major items providing a thirty year forecast.
Back to communication. Communication is key. If the grounds of your corporation are less than the established standard (let’s say the frost has caused the tennis court to be unlevel and surrounding fence to be askew) this will negatively impact values. However, the impact is lessoned or even eliminated if this repair was scheduled for the following year and you were to advise everyone that next year you are replacing the membrane on the garage roof slab and upon completion the tennis court will not only be repaired, it will be replaced entirely, including the fence.
That communication and those of a similar nature need to come early, it needs to be repeated loudly and regular-
ly and it needs to go beyond your community to the local realtors and general neighbourhood. It is not a secret. Share it, make it known.
As mentioned earlier, the Board has a team of experts available to them—the Accountant, the Lawyer, the Engineer —as well as an army of trades that service the site and the Property Manager – all standing at the ready. It is important to call upon these professionals on an ongoing basis and as situations may dictate.
In many respects the depth of knowledge and expertise of the Property Manager or more so the depth of resources of the management firm can often determine when consultants are called upon. But be forewarned, there are Property Managers with big ambitions and a can-do attitude without the experience or expertise necessary. Although these Property Managers are willing to step up to the plate, and even though they are exposed to the industry and have much more insight than the Spring 2009
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average director, there are definitely times when you should reach beyond their particular expertise and turn to the industry specialist.
It is important when aligning yourself with any industry professional, the choice of professional is based upon the level of expertise they, or their firms bring to the table. Now to be clear I am not advocating biggest is best by any means. Nor am I saying that price necessarily determines quality although in fairness in a competitive marketplace there should be some parity in pricing.
The professional must have an allegiance to the condominium corporation as a whole and not to any one individual through an extended relationship, connection or any degree of nepotism. The relationship must be free of any potential conflicts of interest and this includes the professional’s relationship with your manager.
The Auditor/Accountant
Your auditor is usually appointed each year by the owners at the AGM and continuity in this area is in accounting terms, an asset. Your auditor has an established role in auditing the accounting records of the corporation and reporting to the owners, but you can expand this role. Your auditor can bring additional value when included in Reserve Fund study review, when included in investment planning and laddering the investments so that funds are available without penalty for anticipated expenditures. Your auditor brings a level of financial planning and management expertise, call upon on it, take advantage of it or again in auditing terms, capitalize.
The Lawyers
The Condominium Act is intricate. It is important that we all understand and respect that. It is evolving to become more and more sophisticated and demanding a level of expertise and familiarity. A good condominium lawyer is not only up to speed with the Act but is also aware of the many established 10
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precedents and court interpretations. This expertise can come at a premium.
Recognize that a solicitor who does not specialize in this area may cost less and have a lower hourly rate. However they will need to spend additional time in getting up to speed and you are somewhat vulnerable to their advice. As well, if you ask a lawyer for their two cents worth, in some cases it arrives with a $400 price tag. Now I have to be careful because I hear lawyers can be litigious, and although a lawyer may offer his or her best advice, if he or she is not a condominium specialist that advice may not be the “right advice” – and you as the client may venture a long way down the wrong road before that is apparent.
So yes, initially you saved money on the hourly rate but you may have lost in almost all other respects. You need a lawyer who is well acquainted with the Act, and you need to call upon that lawyer to clarify any ambiguity in your documents and provide an opinion – an opinion that can guide you with consistency and confidence. Corporations registered prior to May 4, 2001 should have their documents reviewed and updated as needed to ensure compliance with the Act. A good condominium lawyer, or law firm, is one that has an area of expertise in Condominiums, and has a predisposition to keep you out of court battles and not draw you into one when it is avoidable. Your dollars are always better spent on resolution rather than conflict. However, with that said you must at all times be protective of your corporation’s interests.
The Engineers When selecting an Engineer it is beneficial to look at the depth of the organization, their familiarity and experience with your construction design and the inherent challenges that will evolve as a result. Chances are the first encounter with
your engineering firm will be in their appointment to complete your performance audit or reserve fund study. Quite frankly this is not a time when price should be the main determining factor. These two tasks are far too important and have far too long lasting an impact to eliminate a firm simply because they were expensive or select another because they were less expensive. Engineers will tell you a properly completed Reserve Fund Study is not profitable for their company but rather it is an introductory opportunity for them to show the Board the depth of their expertise and they remain hopeful to be called upon to address any and all future engineering needs.
The Property Manager and Board need to do their homework here and make sure you are comparing apples to apples. The scope of the work being offered, the depth of the organization, their experience and appreciation of you as a client all need to be carefully weighed in making this selection.
This relationship is ongoing. Every three years your Reserve Fund Study must be updated and as your corporation ages you will inevitably call upon the engineers to supervise and oversee numerous projects. Although there is no requirement to use the same firm for all tasks, as stated previously, the
longevity of these associations can prove to be very beneficial.
The engineer becomes intimately familiar with the development and this association can outlast that of Board Members and even management. Align yourself accordingly.
An engineer should be called upon without hesitation when addressing physical projects and remedial repairs of any magnitude. It is important that your money is spent wisely, that the repair is optimized and that the life of the repair is not compromised. The engineer is a key player in a team that works for you and their efforts usually have a very long lasting impact.
The Trades Trade selection is very important and what should drive trade selection are all of the same factors mentioned previously – expertise, ability and value in service rendered for fees charged. Your trades also have a much more intimate relationship with your condominium and what we want them to be first and foremost is conscientious.
The trades go to the edge of the property and beyond, into the corners and crevices on a frequent basis, and we want them to report and be forthcoming
in all respects. Your trades are an army of supporters that not only provide a service but in so doing protect your building’s value and in many ways polish the apple. Their efforts have the largest visual impact of all. Your landscape contractor and cleaners have huge impacts with respect to the desirability of your community.
After their selection (which hopefully was routed through a proper tender process with detailed RFP’s) if you are satisfied with the services rendered, it is not necessary to re-tender every year. Rather, if the requested increase was negotiated at appointment, is in-line with CPI or adjusted fairly to reflect a change in scope, tendering these service contracts on a three year basis is not only a good way of ensuring that you are paying market rates (note that was market rates and not necessarily the lowest rates) it also is a way in which the trade can commit the resources and investment necessary to achieve the desired objective over a longer period.
In being on a Board of Directors you are assembling a team – a team that’s primary goal is to protect the value of your community. And we all know that when building a team one secret to success is to surround yourself with the best “players” possible that fit with your corporation. The fit factor is that
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intangible tangible that is always very much a factor. Although there is a salary cap otherwise known as budget restraints, overall we want to be solid and avoid being weak in any one area.
This particular team is coached by a property manager, however the GM is the Board of Directors. Both the Coach and GM understand and appreciate what each player brings to their team and they want to try to maximize on those benefits, all the while remaining cognizant of the financial limitations.
Longevity is a key ingredient to the success of the team. The seasoned veterans can bring more to the table than the rookies, they have the benefit of first hand experience but the rookies bring new insight and are oftentimes more open-minded so a balanced mix is important and beneficial.
This team parallel is easy to comprehend, but the team is not limited to the
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Board, Management, the Accountant, Lawyer, Engineer and trades – it is actually much larger. You will recall in my early remarks we spoke of communication. Positive community centered communication is necessary to solicit the support of the residents and have them shoulder some of this responsibility as well. Community pride and all the benefits that brings is contagious. The Board of Directors and Management must share the vision of building the best team they can to protect and preserve the value of the community.
As you are aware, the reputation of a community or anything or anyone often precedes your personal interaction with it. Therefore, if your development is to have but one reputation above that it is well maintained or the monthly fees are reasonable, the one reputation you should want it to have above all others (and that encompasses everything that ever really needs to be said) is “That
community is well run”.
Select the players on your team wisely and this reputation will evolve over time as a matter of course.
Once it arrives, the market shrinks, the competition is either eliminated or reduced, and your community becomes the destination of choice. It is then probable that the demand for available units will outweigh the supply.
The decision to purchase at your community will appeal to the emotions of the purchaser in that they know this is a safe place to put their money and they vote with their purchasing dollars for your community. The cycle actually continues almost in perpetuity as you attract buyers that become residents who appreciate this reputation and who wish to cherish and protect it. ■
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Condominiums and Municipal Taxation BY ERNIE NITYRAI YRCC 636
ondominiums, even though they have been around for quite some time in Ontario, have only modestly grown in the past and mostly only in urban areas. However, all that started to change in the late 1980’s when growth in condominium development began to expand. This growth increase almost seemed to double each year. In fact, in many urban areas, especially in the Greater Toronto Area, they have almost come to supplant single-family residences as the preferred form of residential accommodation. MacLeans magazine, in its December 31, 2007 issue, featuring real estate in Canada, postulated that half the people in urban Canada will be living in condos by 2025.
C
This growth has led many urban municipalities to allocate an ever-increasingly larger proportion of residential building permits to condominium development. Since condominium developments, specifically high-rise condominiums, utilize less land area, they have also become an excellent planning tool for the municipality, enabling them 14
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to accommodate more people in a smaller land area.
Although this growth in condominium developments has increased almost exponentially in recent times, one aspect of condominium life has not changed, namely assessment on condos for the purpose of property taxes. EACH CONDOMINIUM UNIT IS STILL ASSESSED AS A SINGLEFAMILY RESIDENTIAL UNIT FOR THE PURPOSES OF THE MUNICIPAL TAX BILL
This is the case because the Assessment Act of Ontario (the legislation which specifically covers the way properties are assessed in Ontario for municipal and school taxation purposes) does not identify condominiums as a specific category of assessment. Thus a condominium-specific tax rate cannot be created by the local municipality, since the municipality can only do those things granted to it by provincial legislation. Since the Assessment Act of Ontario does not permit a distinct category of assessment for condominiums, the municipality does not have the authority to create a specific tax rate for condominiums, even if they wished to do so. Thus the Assessment Act of Ontario must be amended to permit a category for assessment on condominiums therefore permitting the municipality if they chose to do so, to create a condominium-specific tax rate.
However, we must be aware that although the municipality would have the ability to establish a condominiumspecific tax rate with this amendment, they would probably not be mandated to do so by this change.
Our condominium Board of Directors recognized this deficiency in legislation some time ago. They felt, that if this change is ever to occur, it will not happen on its own. The Ontario-wide condominium community must ask for it, in fact must lobby for it. Our Condo Board of Directors felt so
strongly about this issue, that they felt something had to be done and were ready to take action. They also felt that their action had to be shared with other condominium Boards of Directors in Ontario. We undertook the following four-part plan:
1) We submitted a letter to our local municipality (the Town of Markham) asking Council to pass a motion requesting the Province of Ontario to amend the Assessment Act of Ontario to create a specific category of assessment for condominiums. Once this motion was passed, we asked them to send their motion to the Association of Municipalities of Ontario (the municipal lobby group) requesting them in turn to support this motion and so notify the Government of Ontario of this legislative requirement.
2) We sent a letter to our local MPP requesting him to support our action to amend the Assessment Act of Ontario and to so petition the Minister of Finance (whose Ministry is responsible for the Act.) to make this amendment.
3) We met with the principals of our property management company, and asked them to place this issue before the Boards of Directors for each condominium that they manage.
4) We sent copies of all the correspondence we had taken to the Toronto Chapter of the Canadian Condominium Institute and asked them to use their offices to lobby the Government of Ontario accordingly.
Although our condo corporation initiated this action, we feel that success can only be achieved if the many other condo corporations in Ontario undertook to do something similar, if not the same thing that we did. Only with our collective many voices, representing this sizeable voter bloc in Ontario, can we hope to be
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successful in our endeavors.
What has happened since we began this initiative in February 2008?
1) We met with our MPP, Michael Chan, and presented him with a letter requesting his support for our action. He wrote a letter to Dwight Duncan, Minister of Finance, on our behalf and asked the Minister to respond to our petition. Recently,
we received a letter from the Minister, the Hon. Dwight Duncan, acknowledging receipt of our letter. Although he did not unilaterally accept our petition, he did not outright reject it either.
2) The Town of Markham, after receiving our letter, referred it to their adhoc Condominium Working Group, made up of Councilors and municipal staff to discuss this issue and oth-
ers around the explosive growth of condominiums in Markham. We requested recognition and appointment to this committee. On June 24, 2008, the Council of the Town of Markham appointed a representative from our condo corporation to this committee. We are now at the table.
3) The Canadian Condominium Institute – Toronto Chapter in conjunction with the Association of Condominium Managers of Ontario (ACMO) has retained the services of a Government Relations firm to champion these and other issues before the Government of Ontario.
4) Our property management company has agreed to submit this suggestion through their effort to the boards of directors of other corporations that they manage.
Success in this endeavour cannot be accomplished overnight. Nor did we expect that it would. However, we are in this effort for the long haul. At this moment, we believe that we are only one of a very few condominium corporations to undertake this initiative. But to be successful, we believe that all condo corporations in Ontario need to undertake an effort similar to ours.
Finally, remember that condo living is now a way of life for an ever-increasing number of people in Ontario. We have now become a very sizable voting bloc among the electorate of Ontario and because of this we should start using this influence. Therefore;
The Board of Directors of our condominium urges all the other condominium Board of Directors in Ontario to lobby their municipal council and MPP for this change. Together we can be successful. Ernest (Ernie) Nyitrai Member, Board of Directors, YRCC 636 25 Austin Drive, Markham, ON L3R 8H4 (905) 477-1511 enyitr618@rogers.com â–
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Be the Best Board! BY PETER GRECO, BA, CPM, RCM
To be the “best Board”, the Board should work as a team. Although Board members will hold titles while on the Board (ie. President, Vice President, etc.), I view these as titles to satisfy by-laws and corporate record.
There is no ‘I’ in “Team”: Board members should not let titles go to their heads, after all the pay is not great. The decisions made at Board meetings should be supported by all Board members, even if you were opposed to a motion that passed. The Board must be seen by the owners as a team working in unison, not working divided. Business addressed at a Board meeting should stay with the minutes of the meeting. Board members should not comment after a meeting to owners that they did not agree to a decision or that it was “so and so” on the Board that wanted to proceed against a unit owner for a rule violation. Too many times I have seen where decisions have been made at a Board meeting and before the property manager can take action on the decision made, the word is already out at the
building of what is going to happen. This only creates a lot of “hearsay” and misinterpretation of information.
It can also make the manager’s job more difficult because they now have to put out fires that have been created. I have experienced where a Board made a decision to terminate a superintendent and before I could do my job regarding the decision, the superintendent called me to say that she heard she was being fired. This accomplished nothing but a lot of bad blood and a terrible transition. Remember the majority rules at a meeting. If you do not attend a meeting, you are still bound by the decisions made. Therefore you should attend as many meetings as possible. Absence and ignorance does not excuse one from liability.
Board members work as a team for the good of all owners, not to satisfy personal agendas.
An organized Board will have efficient and quick meetings rather than long
meetings that accomplish nothing other than frustration, side conversations and no decisions. It is my opinion that there are few occasions where a Board meeting should extend beyond two hours. If meetings are held regularly, (monthly, bi-monthly, etc.) and the Board receives the necessary information to review before the next meeting, then meetings should be completed in a reasonable time frame. Consider the nature and magnitude of the topic being discussed and the decision to be made. For example I have seen Boards spend thirty minutes discussing if they should put a bird feeder out on the common grounds and how much to spend on the feeder. That same Board then turns around and makes a quick motion to approve a $400,000.00 contract to do some parking garage restoration work. Some tips on being organized are:
• Agendas should be followed at a meeting. Spring 2009
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• The chairman (President or often times the property manager) should control the meeting, and allow each member an opportunity to speak. Should a member bring up a matter that is not part of the topic being discussed, the chairman should ask that it be left for other business. You want the meeting to flow.
• Avoid conversations of gossip. This can be difficult as you are dealing with people’s homes; however, you are running a business. Your manager’s goal is to operate the corporation in the most effective and efficient manner for the benefit of all owners. Your manager does not need to hear or be involved with gossip (he said/ she said...). All requests, complaints, concerns should be placed in writing to the Board and addressed at the Board meeting. The writer of the letter should then receive a written response from the manager on behalf of the Board.
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• You may want to develop a month to month action plan with your manager. There are things that occur throughout the year that are common every year and are automatically attended to by your manager. An Action Plan will list the items and therefore the Board can know the work is being done and there is no need for five Board members to call the manager. (eg. tendering of a landscape/snow removal contract, work orders issued for annual work, start up of lawn sprinklers etc.)
• Board members should receive their copies of the last meeting minutes and monthly financial statements prior to the next Board meeting for their review. At the meeting when asked for motions on the last minutes or the financials, Board members should have done their homework and reviewed the material. Do not sit in the meeting and review the materials. This is a waste of everyone’s time. Your manager assumes you
have done your homework and if there are no questions he/she is looking to move on with the meeting.
• Do not keep your copies of minutes, financial statements etc. in an envelope from month to month and when at the meeting you are scrambling looking for your records to refer to. Keep these items in a binder with labeled dividers so you can flip to the area needed and have past documentation at your finger tips.
Now that you are running as a finetuned machine, you want to let your owners know what is going on and that you are doing the best job possible for their benefit. There are different ways a Board can communicate to the owners:
1. Newsletters are a good tool to keep the owners aware of what is going on or coming up. These can be prepared monthly, quarterly etc. Every property is different and the Board can decide if they want a newsletter
“A newsletter is probably one of the most effective forms of communication to the owners and it lets them know you are on the job.” and the frequency for distribution. The Board will then have to decide who will prepare the newsletter and what is to be covered. From my experience, a newsletter is somewhat personal to the Board and the Board should prepare the newsletter. It is suggested the manager reviews the draft before distribution to ensure accuracy of information.
The reason I suggest the Board or Board member prepares the newsletter is again from experience. I have had Boards ask me to prepare a newsletter and distribute it to the owners. (Just take care of it they say) and once it is sent out and they see the end product, they question why didn’t I include a certain item or why did I write about a certain topic. In other words, sometimes as managers we can’t win for trying. Therefore I think the Board should prepare the newsletter and the manager can review it. If the Board would like, the manager can have a column for a manager’s report. A newsletter is probably one of the most effective forms of communication to the owners and it lets them know you are on the job. However, make sure it is accurate, it is the truth and apply the KISS principle (keep it simple stupid).
2. If a Board chooses not to have a newsletter, another suggestion is a President’s Report summarizing Board meeting decisions/issues. This can either be distributed to the owners or posted in a common place where residents can view it. Although any owner is entitled to view the Board meeting minutes, it is not suggested the minutes be posted as the minutes may include
delicate topics such as issues with an owner that not necessarily everyone needs to be aware of. If an owner wants to view the minutes as per the Act, they can request so from the Board and/or manager.
3. The Corporation is required to hold an annual meeting of the owners. Boards may wish to hold an owners’ general information meeting during the year. The frequency is up to the Board. This meeting does not have to be a legal meeting. It can simply be a meeting for the Board to update owners on recent decisions/activities and to hear any concerns from the owners. No legal decisions can occur at these meetings. From past experiences, we generally see that annual meetings and general information meetings are poorly attended so written communications is a preferable manner of reaching all owners.
In a nutshell, an effective Board is one that runs their corporation as a business, works as a team with their manager, allows their manager to do their job, and communicates to the owners. Egos and personal agendas have no place in the Board room. Think of the good of the whole as opposed to the good of one. Peter has been managing condominiums for twenty one years and is the President of Cannon Greco Management Limited, located in St. Catharines, ON. Cannon Greco manages condominiums throughout the Niagara Peninsula, Mississauga and Waterloo areas.
Peter is a past Board member with the Golden Horseshoe Chapter of the Canadian Condominium Institute and has written various articles in condominium magazines and spoken at seminars. He is an active member with the Rotary Club of Niagara Falls Sunrise. ■ Spring 2009
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Choosing a Property Management Company BY VICKI VANCAS SIMERRA PROPERTY MANAGEMENT INC.
s the Agent for the condominium corporation, the Property Management Company plays a vital role in the overall success of the property and spirit of a condominium community. The community consists of the Board, owners, residents, guests, visitors, future residents, on-site personnel, off-site personnel, contractors and suppliers of services. These stakeholders must know a lot about their community and how to live in or service it. All the stakeholders must buy into the community, and understand the importance of it being well directed, well managed and well run. The residents must always keep in mind that the Board makes the final decision in who the management company is, what levels of services are required, how it manages and supervises the management, and how it defines and pays for those management services.
A
When selecting a management company that will match the needs and expectations of the community, the Board or Selection Committee can make the right decision by learning to ask the right questions. In general, a management company’s services are retained to: • Preserve assets,
• Maintain value, • Establish continuity, • Provide professional assistance in management matters, • Provide financial reports, financial guidance, collection of cea and chargeback fees, • Provide site inspections, • Assist in declaration, bylaw and rule enforcement, • Provide consultation to help ensure the corporation abides by government legislation, acts and bylaws, • Provide quotes and recommendations for services, products, • Supervise employees, contractors and service providers, • Be the conduit with lawyers, auditors and engineers, • May be the chair and/or the advisor to the chair for board meetings, annual general meetings and special meetings,
• Communicate with the Board, unit owners, off site owners, residents, • Provide a safe community.
Management companies provide a number of services either in-house or sub-contracted. The Board must be very specific to what it needs to ensure that management companies all bid on the same services
What to look for in a Property Management Company & Their Site Property Manager The management company and the site property manager must have a basic understanding of the condominium act, corporate law, labour laws, government acts, bylaws and regulations, management fundamentals, accounting, budget processes, taxation, insurance, Spring 2009
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communication and human behaviour to do their work effectively. They need to understand the corporation’s declaration, bylaws and rules, and all unusual situations and circumstances. Depending on the age of the corporation, they need to understand new home warranty programs, builder warranty programs, performance audits, retrofits, reserve fund funding and studies. It takes time to find, train and retain property managers with sufficient knowledge and skills. It takes a budget that allows the corporation to pay property management fees that allow for salaries and benefits to commensurate with these qualifications.
The quality of services provided by a management company may be verified through contacting current clients, former clients, and professional associations. Looking at how a management company is involved in their professional associations and industry can help the Board determine if they are making the right fit for their community.
The Selection Committee The Board must determine who will be on the Selection Committee. In most cases, it is the Board members that will make up the Committee however, in other instances a Committee chosen from residents in the community will be selected. If that route is chosen, then the President should chair the Committee. Ideally, all members of the Committee will have prior business experience to assist with the decision and ensure that those members have the entire community in mind.
The Board may also choose to hire a Consultant to assist them with the process. If going to a Consultant, Board members must first ensure they have done their due diligence in understanding the corporation first, and that the Board has the funding for this process. If there have been legal or financial concerns, they may need to consult with their legal counsel and auditor. 22
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The Selection Process & Steps to Follow
The Board must be strategic and pragmatic in its selection process. The Board must do their homework, due diligence and create a process to follow. The task can be overwhelming. The Board must put together specifications, inspect their entire property, determine what services and levels of services they want to provide to their community, interview management companies and their clients. The Board’s to do list includes:
• Create a selection committee, • Review their documents – declaration, bylaws, rules, budget, reserve fund study, current management agreement, employee services and agreements, contracted services and agreements, • Setup levels of services and need lists to provide to management, • Prepare specific details about the community that need to be addressed or attended to • Prepare specifications and expectations for management, • Setup a comparison detailed and summary analysis form, • Identify at least three local management companies, • Prepare, mail or email their proposal to the selected management companies, • Schedule an on-site meeting and review of the site, • Interview the management companies and visit their offices, • Interview the management companies’ current and past clients, • Analyze management proposals, interviews and client referrals, make a recommendation, • Plan the details for the transition, • Make a final decision, • Meet with the chosen company one more time to finalize any concerns, and contract details, • Send a letter to the company chosen, • Send a letter/email to the companies not chosen, thanking them for their proposal, time and informing them why they were not chosen, • Meet with any in-house staff and pro-
vide assurance of employment, • Inform the residents and off site owners of the change, the timing, transition process, • Work with the previous and new management company to ensure a seamless transition.
Specifications Due diligence is important in the specifications process. What the Board needs to tell prospective management companies is vital to ensure that the quote addresses their needs and leaves no surprises. Can that management company meet the necessary services and provide the service levels required by the corporation? The more the Board invests in their time and analysis upfront, the more likely they are to get a professional management company and their team to manage effectively and efficiently.
Factors to review are: • The facts of your corporation and community, • Board’s involvement or non-involvement at meetings, decisions, processes, • Maintenance issues and repairs, outstanding issues, • Determining the levels of service, • Level of experience of management and manager, • Full or part time manager, administration, accounting services, • On or off site manager, on site and off site administration and support, • Unit owner’s involvement in attending annual general meetings, special meetings, • Management’s involvement in annual general meetings, special meetings, board meetings, • Resident concerns and issues, • Governance, accounting programs and processes, • Ensure an adequate budget is provided.
The Facts The management company needs to know about your corporation and community, so they in turn can make the right decision to ensure that they do want to manage your community. The Board must be upfront with the
prospective management companies and be prepared that those companies are also going to be asking why the Board wants to change the management company. Facts to provide them with: • Corporation name and number, • Date of registration • Number of board of directors, list of committees, • How often does the board meet, • Will management be attending any or all committee meetings, • Year end, • Number of units, type of units, • Reciprocal and shared facility agreements, special easements, • Yearly operational budget, • Deficits, surpluses, • Reserve fund, • On-site management: days and hours, • Off-site management: hours, • Performance audit status, • Retrofit status, • Insurance concerns, • Utility concerns, sub metering, • In-house employees, • Professionals involved i.e. lawyers, auditor, engineers • Contracted services, • Non contracted services, • Hot topics and key issues including resident infractions, • Outstanding resolutions, bylaws, agreements, • Long range issues, • Short term goals, • Demographics, community involvement and spirit, and the vision of the community.
The Board should provide additional information to the prospective management companies to ensure that they understand the specific needs and prioritized urgent matters that need to be attended to, including any outstanding legal and financial issues. When you get to the short list, the Board should provide the management companies with a copy of the declaration, bylaws and rules and a status certificate. To ensure a long-term relationship, both sides must be upfront with each other.
Proposal, Analysis & the Final Decision Aside from the proposal, the Board should ask the prospective management
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companies for a copy of their management agreement, an outline of the fee structures (especially for out of contract expenses i.e. what is included and not included in the management fees); additional administrative or accounting charges, samples of their management tools and communication provided to the Board and the residents (i.e. board report, site inspection report, annual planning guide, emergency procedures manual, welcome packages, letters, resident forms, newsletters, notices and communication letters).
The Board also needs to understand the technological tools and processes that the management company uses to assist the manager to manage your community (i.e. computers, software, cell phones, blackberries, pagers, head office administration and accounting team). If there are issues with the assigned property manager, what is the next level of service that the management company provides i.e. area/district manager, executive. The Board needs to know how management deals with day-to-day tasks, special issues, emergencies, and the resources that back the assigned manager i.e. on call services, backup if the manager is not available at the time or on vacation.
During this process, ask the management company what they initially see as the “red flags”, and how they plan and deal with the transition process. Ask what the education policy is of the management company. Do they offer in-house training, allow managers to take courses and attend industry events?
Do not expect to interview the assigned site manager during this process. It is the management company’s responsibility to provide the corporation with a suitable manager and supervise that manager.
Never determine the management company by price alone. Ensure that the management company is capable of doing the work required and has the knowledge and resources to solve complex problems. Look for a management 24
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company that provides the community with solid management leadership.
The Selection Committee must then make their recommendation at a Board meeting or a special meeting to discuss the reasons behind the decision. If only the Board was involved in the process, ensure that a special meeting is setup to discuss the reasons behind the decisions. It is important that the committee and Board have an opportunity to discuss their selection opinions candidly, which may be difficult to do at a regular Board meeting. They need to set aside time for a special meeting to review the process and prepare a resolution stating the selection and document in the minutes.
Once the Board has decided which management company to hire, it should meet again with the new company’s team to review the proposal and specifications. This is the time to clear up any concerns or issues, not after the contract has been signed. Then it is up to the Board to sign the management agreement, work on the transition process and inform their residents of the change to a new management company.
End Result By following the processes outlined within this article any Board can display due diligence and offer their residents a well directed, well managed and well-run community where all the stakeholders are proud to say that they live in. Vicki Vancas, R.C.M. is the New Development Area Manager for Simerra Property Management Inc. where she works on setting up new condominium communities in the interim occupancy to turnover period. Vicki is the President of the condominium she lives in and has been a Board Director for several condominium corporations over ten years dealing with Board, resident and community issues. Direct Line: 416-847-2561 Email: vvancas@simerra.com ■
Considerations to Keep in Mind Before You Replace Your Management Company BY VICKI VANCAS, RCM If the Board is considering replacing the management company, they should first make their current management company aware of their concerns, and provide them with an opportunity to respond. Because continuity is important to the condominium operations, the Board needs to think twice before replacing their management company. Perhaps they just need to replace the assigned property manager, and work with the senior team at the management company to ensure that their needs are met. Or, are the current inhouse personnel, contractors or service providers providing the best fit for the needs and expectations of the community? Perhaps more cleaning or concierge hours are required to ease board concerns about the way the property is being managed?
The Board must ensure that they have a realistic budget allocated to allow for sufficient management time. Situations such as a new corporation getting through the first few years of setup, developer or performance audit issues; older corporation going through retrofits, major maintenance and repairs; or ongoing dealings with a difficult Board member and/or residents can all require additional dedicated time of the manager and must be budgeted for. Are all of the Board members setting the standards and abiding by the rules? Do all the Board members understand their duties, the management process and how the two work together, plus the importance of regular Board meetings and the timeliness of their decisions? The Board needs to get at the root of the problem, and understand what the issues are and what changes may or may not have to occur, before you can go to the next steps.
If, after reviewing all of the above considerations, the Board still concurs that replacing the management company is in the best interests of the corporation, then timing becomes an important factor. If a change is going to occur, when should it happen, at the year-end, just prior to the budget process or before the annual general meeting? Allow for a 60 to 120 day selection process and refer to all the considerations outlined in the article “Choosing A Property Management Company� on page 21 . Keep in mind that the standard clause to cancel a management agreement is 60 days.
The Board must read the existing agreement and understand all the termination clauses, i.e. 60 days notice, automatic renewal. If the Board decides to buy out their current management agreement, i.e. cancel the agreement immediately and pay out the balance of the current management agreement contract, the Board needs to ensure that the funds are available to do this, and that this short-term transition process is carefully thought
out and planned for. Keep those timeframes in mind, as the overall process may take about four to six months.
If there are shared facilities, then the Board needs to work with the other condominiums within their community. Decisions to be considered are, will all corporations be changing at the same time, or be changing at a different time, or not be changing, who will be managing the shared facilities, and if there is more than one management company involved within the entire community what processes will be put into place and how will they be monitored to ensure co-operation and overall effective management. Long range planning is vital, as any and all mistakes can be very costly and disruptive to the community. There are financial, timing and behavioural costs during the turnover process. The Board must notify the company that they are terminating, and if possible set up a meeting with them to provide them with feedback as to why they made the change, or if a meeting is not going to happen, send a letter of cancellation to ensure that the company knows that they will not be retained to manage after a certain date and they are expected to co-operate with the new management company. Whatever happened, feedback is an excellent learning tool for all parties involved.
The Board needs to be provided with feedback after the transition occurs to ensure that all documentation was turned over to the corporation and the new management company. The management company will need to be provided with a 30 to 90 day smooth transition period to get to know the community and deal with the issues at hand. If there are a number of outstanding issues or hot issues that need to be attended to urgently, the Board now needs to determine if they require additional funding to get the work done. This could be that the management company is paid extra for a 30 to 90 day period to allow for additional service hours for speedy resolutions and specific maintenance or services be provided to ensure compliance and enforcement regarding acts, bylaws and rules or ask them to provide an assistant to the assigned property manager to help out during this timeframe.
Other things the Board might consider would be to do a special cleanup and get a cleaning crew in for a few days to do a very detailed cleanup of the building and site, a landscaping crew to come in for a day to cleanup and plant some flowers and shrubs; or hire or replace specific onsite personnel or contractors and get them trained and up to speed quickly. Some extra dollars invested now in the transition process may save a lot of time and money later on. It can also reflect well on your community. â–
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Do you think your condominium has what it takes to be named as the
CCI Toronto Chapter
Condo of the Year?
CCI is pleased to announce the condo of the year award, open to all CCI Toronto & Area Chapter corporate members. The contest will open July 1st, 2008 and will run until June
30th, 2009. Quarterly finalists will be selected by the CCI-Toronto Membership Committee
and the winner of each quarter will be featured an upcoming quarterly issue of the CCI CondoVoice magazine. The Grand Prize winner will be selected from amongst the four quarterly finalists by the Public Relations Committee and will be announced in the fall of
2009. The grand prize winner will be announced at the 2009 Annual General Meeting and will receive a street entry sign for their corporation – a prize worth up to $5,000.
Judging Criteria for this award will include any or all of the following: • Good Governance
• Forward 'Thinkingness'
• Social Fabric of the Community
• Consistency
• Energy Initiatives
• Environmental Concerns
• Effective Use of Committees
• Any other unique approach or program
• Communications Interested applicants should forward their submission, including photos and an article outlining why they feel their corporation is worthy of this award to:
CCI Toronto and Area Chapter, 2175 Sheppard Ave. East, Suite #306, Toronto, ON M2J 1W8 or email to ccitoronto@taylorenterprises.com
For further information, please visit the CCI Toronto website at www.ccitoronto.org
CONDO OF THE YEAR Condo of the Year Award - Third Quarter Finalist MTCC 1398 - Two Aberfoyle Crescent
PURSUING OUR VISION AT TWO ABERFOYLE
CCI Toronto is thrilled to announce that MTCC #1398 has been announced as the third quarter finalist of the newly launched Condo of the Year Award. The following article was written by the Board of Directors and Property Management of Two Aberfoyle as part of the corporation’s submission for entry to the contest. Our congratulations are extended to MTCC 1398! Further details on this contest may be found on page 26 or on the CCI-T website at www.ccitoronto.org. The closing deadline for the next quarter submissions is May 1st, 2009. The annual grand prize winner will be selected from amongst the four quarter finalists in the early fall of 2009.
efining a Vision has helped our Board of Directors and Property Management take a more proactive approach to the management of our building for the future, versus the reactive approach of dealing with problems as they arise, while recognizing that the latter more often need to be dealt with more urgently. In reviewing our Vision, we are usually able to recognize things to pursue and then plan an approach. We hope the following account of our progress will be of interest to others who might want to define and pursue a vision of their own, while still dealing with problems as they arise.
D
Our Vision was developed in 2007 at meetings of the Board and the Property Manager, facilitated by the District Manager of our property management company. It was presented at the 2007 Annual General Meeting of MTCC 1398, Two Aberfoyle, and was received with much enthusiasm and support from the owners and residents
Our Condo
Our 12-storey building, first occupied in 2001, has 116 suites on 12 floors, with two levels of underground parking. Mechanical rooms and air conditioning equipment are on the roof. Amenities include a party room, a billiard room, an exercise room Spring 2009
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and an indoor lap pool. We are located at Two Aberfoyle Crescent, across the street from an office tower, a fiveminute walk from Islington Station of the Bloor-Danforth Subway Line.
Our Vision 1. Sustained property value 2. Optimal use of resources 3. Strategic relationships with our community 4. Environmentally-progressive building 5. Safe and secure building 6. Enhanced quality of life and good relationships among residents 7. Leadership development
Our Accomplishments 1. Sustained Property Values
Our vision is to maintain sustained property values based upon a structurally-sound building and high-end appearances, internally and externally, by means of modest fee increases.
The appearance of the south or back door of our building, on busy Aberfoyle Crescent, has been improved by installing a canopy over the door on which the name “Two Aberfoyle” appears. This is our preferred branding of our building (over the Developer’s original “Town and Country-Phase Two”) and also appears on the main entrance from Lomond Drive.
We have pursued a multi-year enhancement program to improve the landscaping around our building, undertaken on our own and together with our sister condominium corporation (“Town and Country-Phase 1”) by means of the Shared Facilities Committee.
We have undertaken major projects to maintain/upgrade the building, including relining the pool ($30,000), overcoming pinhole leak problems in the domestic hot water recirculation system ($150,000), and implementing an Energy Savings Program ($165,000). The latter two initiatives are discussed in detail below. 28
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Energy savings and reduced plumbing expenses have made it possible to have zero Maintenance Fee increase for 2008-2009, while maintaining a surplus in the range of one to two months’ spending.
A Condo Fact Sheet, available to owners, indicates that our fees are low in comparison to two other condos in the neighbourhood. 2. Optimal Use of Resources
We want to be forward-thinking, progressive, innovative, and have a “smart” building.
We have put into operation a pool cleaning robot to save on expense and have streamlined parcel and courier deliveries. Developing a Vision in the first place was with the intent of being forwardthinking and progressive. We are having successful energy saving and waste disposal programs as described below. 3. Strategic relationships with our community
Our objective is to maintain quality of life, security and the aesthetic environment.
A new owner has recently taken over the office complex across Aberfoyle Crescent south of our building and has already made some improvements to their property. We approached them regarding their landscaping plans and have been assured there will be improvements to the existing status.
We have documented our concerns regarding present and future traffic patterns on Aberfoyle Crescent, and shared the document with the City of Toronto traffic planning, the property management of the office complex and our sister condominium corporation.
We are participating in the local BloorKingsway Condominium Association
which meets quarterly to discuss problems, solutions and a range of budget information. We shared information on the progress of our projects and our early successes at several meetings of the group.
We have also held a meeting jointly with our sister building regarding the redevelopment of Bloor-Islington and the Islington TTC Station.
We have regular interaction with our City Councillor’s office on matters of community interest such as local traffic concerns, parking, noise by-law enforcement and plans for the TTC station and local intersection changes. Our City Councillor addressed our recent Annual General Meeting and fielded questions about such matters.
We participate annually in the community spring clean-up of the ravine in Tom Reilly Park adjacent to our building. 4. Environmentally-progressive Building
We want to ensure that we have an environmentally-progressive building with respect to energy savings, waste disposal and recycling to save money and as “the right thing to do.” Energy Savings
Our Energy Savings Program started in 2005 with the formation of the Energy Saving Committee. Proposals were obtained from energy management firms and we have carried out the following projects over a four year period: retrofitting T8 Fluorescent Lights and Electronic Ballasts in the parking garage, installing CO Sensors to control the exhaust fans in the parking garage, installing a Variable Frequency Drive to reduce flow of makeup air to the corridors, installing three High Efficiency Boilers to act as Lead Boilers in our three boiler systems, and installing some small lighting retrofits. These projects were undertaken over four years at a cost of $165,000, financed from the surplus in the first
year, and from resulting savings in the second and third years. We have achieved savings of 35% in gas, 16% in electricity, payback of the total investment early in 2008, the third year, and savings of $68,000 in excess of costs in the remainder of 2008.
Three problems remained unresolved. We had complaints of some crossovers of hot water into the cold water lines, resulting in wasted water and gas, in addition to the inconvenience. It was determined that the condensing feature on the high efficiency hot water boiler increased the crossovers problem and it was therefore turned off. We were not successful in finding the source(s) of the crossovers. A second problem pertained to some complaints of waiting times of several minutes rather than a few seconds to get hot water, also an inconvenience and a waste of water and gas. A third problem, as mentioned above, was an increasing number of pinhole leaks in the domestic hot water recirculation system, which were
expensive to repair and often unsightly during repairs.
In 2007, the work of the Energy Savings Committee was integrated into the
mandate of a new Major Maintenance Committee (MMC) which was charged with researching and advising the Board on major issues having to do with building systems and integrity, beginning
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with how to overcome these three remaining problems (i.e., pinhole leaks, “crossovers” and wait time for hot water). The MMC met with representatives of our plumbing company, our mechanical maintenance contractor, an epoxy pipe lining contractor and a vicepresident of our property management company who had experience with similar problems in other buildings. It was determined that pinholes were the result of erosion of the walls of the pipe, associated with the thickness of the pipe walls, and the velocity of the water. It was noted that the recirculation pump appeared to be oversized and that there were no balancing valves on the risers. To reduce costs while seeking a more permanent solution, we stopped replacing the sections of pipe with the leaks and temporarily clamped over them. The outcome was a specification, drafted by the V.P. of our property management company, which was adopted and
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implemented. On the first five floors where pipe sizes of the risers were smaller, Grade M pipe was replaced with Grade L which has a thicker wall. All ½” pipes were replaced by ¾” providing a thicker wall and a reduced water velocity. A lower capacity pump was installed to provide a lower average flow. Balancing valves were installed on all risers to provide equal flow on each. There was also one piping change specifically to address the crossover problem.
What came to be known as our “Pinhole Leaks and Plumbing Repairs” or PLPR Project was carried out in early 2008 at a cost of $150,000. One crossover point was found and corrected. All three challenges relating to our plumbing system were overcome. There have been no more pinhole leaks, no further crossovers of hot water into the cold water system and no complaints of long waits for hot water. We have been able to turn on the condensing feature of our new high efficiency boiler (for further
energy savings) with no instances of crossover. Without the extended waits for hot water, we are anticipating reduced water consumption.
Our energy savings initiatives have improved the financial condition of the corporation. The combination of energy savings and reduced plumbing expenses resulted in an increased surplus for 2007/08 and made possible the zero percent increase in Maintenance Fees for 2008/09. In addition, the surplus will be useful in offsetting some of the increase in Reserve Fund Contributions expected for 2009/10, resulting from a new study. Waste Disposal and Recycling
We promote recycling through newsletter articles and with posters in the Recycling Room and in the Garbage Chute Rooms on each floor. We are achieving 50 percent waste diversion for fibres and containers through our Blue Box program in comparison to the
city average of 17 percent in multiresidential buildings like ours. Wine, liquor and beer bottles are collected separately and returned by a volunteer with proceeds donated to charity.
Batteries, toner cartridges and cell phones are also collected separately for proper disposal. 5. Safe and secure building
We want to employ strategies to enhance the security of residents and the building.
Volunteers periodically publish a multipage newsletter to convey news about the Corporation, with focus on Green Initiatives and reminders of the Corporation’s rules.
Our Social Committee hosts a monthly movie night and morning coffee hours for residents in addition to special events like the summer barbeque and the Christmas season party.
Our Bridge Club provides a weekly evening bridge game and social occasions.
Twice a week, Aquafit classes provide exercise and the opportunity for social interaction. To eliminate odours, eye and skin problems associated with a traditional chlorination system and to provide a more pleasant feel, we recently converted the treatment of the
We have held town hall meetings about fire and security procedures and assisted residents in the operation of in-suite security systems. Our Safety and Security Committee has made recommendations for additional security procedures, locks and cameras.
To facilitate visitor access to the parking garage, while retaining security, we have installed communication equipment at the top of the ramp to the garage so that visitors can more easily check in with the concierge, whose office is in the lobby of our sister building. 6. Enhanced quality of life and good relationships among residents
We want to make the building userfriendly and provide occasions for interaction among residents.
Our Shared Facilities Committee coordinates matters of concern to our sister Condominium Corporation and ourselves, such as security systems, shared driveways and gardens, and social events.
We maintain open communications with owners/residents through town hall meetings with both internal and external speakers providing information presentations, usually including Power Point slides. In addition to fire safety and personal and property security as noted above, a town hall meeting has been held regarding planning changes for West Toronto including changes to local TTC stations and major intersections. Spring 2009
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pool water to a Salt System, which has been well received.
Automatic door openers were installed on the doors from the parking garage to the elevator rooms and have been greatly appreciated by residents carrying things or returning from shopping. New high-definition flat screen television sets were recently installed in our Party and Exercise Rooms. 7. Leadership development
We want to develop leadership within the corporation and demonstrate leadership in the external community as well.
For this reason, we shared our successful Energy Savings Program in an article published in the summer 2008 edition of CondoVoice, and also in the winter 2008 edition of Condominium Manager, published by the Association of Condominium Managers of Ontario. We continue to attend condo conferences and seminars, especially those dealing with building maintenance, energy saving and environmental issues. Committee work is also seen as leadership development, and committees are viewed as a recruiting ground with the possibility of future Board participation.
Comments on the Vision Process Before we embarked on the “Vision Thing”, we considered the Board to be proactive, as evidenced by successful Energy Savings, Waste Disposal, and Landscaping Improvement Programs, which started years before and continue now. However we are now more focused on the long range with respect to improving the building for the future and communicating internally and externally, while still attending to current problems and issues. ■
• • • • • • • • • • •
Condominium cleaning specialists WHMIS Trained Cleaners Underground garage cleanup Quality control communication log sheet Floors – wax and polishing Uniformed cleaners on premises Fully trained, bonded and insured Commercial and industrial cleaning service Carpet cleaning Exterior highrise window cleaning Building corridor renovations
Head Office (905)
832-6614
Toll-free (877)
253-3648
49 Elm Street, Suite 201, Toronto, Ontario
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www.whiterosejanitorial.com
Hung Out To Dry: How a New Regulation by the Ontario Government Allows Some Condominium Owners to Install and Use Clotheslines BY BRIAN HORLICK HORLICK LEVITT BARRISTERS & SOLICITORS
n April 17, 2008, the Government of Ontario, under the Energy Conservation Leadership Act, 2006, created a new regulation dealing with the issue of clotheslines and clothestrees. Under this regulation, some condominium unit owners can now hang clotheslines or place clothestrees on their exclusive use common elements in spite of any restrictions found in the declarations, rules, or by-laws of their condominium corporation banning these items.
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The Energy Conservation Leadership Act, 2006
The Energy Conservation Leadership Act empowers the Ontario government to remove barriers to the conservation of energy, including those found in municipal and condominium by-laws, covenants, encumbrances on property as well as agreements. These barriers can be removed through the designation of goods, services and technologies set out in the regulations to the Act. One such barrier which the government has identified is the existence of restrictions preventing people from using clotheslines or clothestrees, in essence,
forcing them to use dryers instead. For that reason, the government enacted Ontario Regulation 97/08, with the goal of reducing dryer use by allowing some Ontario residents who were subject to these restrictions to use clotheslines and clothestrees instead.
Clothes dryers are among the most energy-consuming appliances in Ontario’s homes today. One standard clothes dryer can consume up to 900 kilowatt hours of electricity per year, which can lead to as much as one tonne of greenhouse gas emissions in that time. At this rate, five dryers, used regularly, would cause about the same amount of greenhouse gas emissions as would a standard vehicle in a year’s time. By using clotheslines to natural-
ly dry clothing, homeowners can not only save the environment but can also reduce their electrical bills by about $90 per year. Ontario’s Chief Energy Conservation Officer Peter Love stated, “By removing the ban on clotheslines, the government will enable all Ontarians to take an easy and sensible measure to conserve energy. I commend the Ministry of Energy for moving forward on a change to our standards that will help create the culture of conservation Ontario needs”.
Ontario Regulation 97/08
The government of Ontario is permitted to enact this regulation based on s. 3(2) of the Energy Conservation Leadership Act, which states: Spring 2009
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Effect of designation
(2) A person is permitted to use designated goods, services and technologies in such circumstances as may be prescribed, despite any restriction imposed at law that would otherwise prevent or restrict their use, including a restriction established by a municipal by-law, a condominium by-law, an encumbrance on real property or an agreement.
Clotheslines and clothestrees have been designated under this new regulation as “goods and technologies� used for the conservation of energy. Under the regulation any clotheslines, clothestrees, or goods and technologies that have the same purpose as a clothesline or clothestree and have no other purpose are allowed to be used for drying clothes, regardless of any municipal bylaws or other covenants to the contrary. Any equipment that is necessary for the
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proper installation and operation of a clothesline or clothestree is included in this allowance as well.
Section 2(1) of the regulation states that the designated goods or technologies and any necessary equipment must be installed on property upon which is situated a house or building that is used solely for residential occupancy and which is the person’s place of residence. This means that the regulation is not intended to allow the installation of clotheslines or the placement of clothestrees on commercial or industrial property. The regulation also stipulates that any designated goods or technologies and any necessary equipment that is installed on the property must be done in a manner that ensures that there are no impediments to safety, including access to or egress from the property. The designated goods or technologies, along with any necessary equipment,
can only be installed on certain areas of the property. Those areas are either adjacent to the side or rear wall of the house or building. As well, a person must be able to use the apparatus by i) either standing directly on the ground, ii) standing on a deck or other fixed platform accessed directly from the ground floor of the house or building, if the deck or fixed platform is no higher than the floor level of the ground floor, or iii) standing on a step-stool or similar device placed either directly on the ground or on a deck or other fixed platform accessed directly from the ground floor of the house or building, if the deck or fixed platform is no higher than the floor level of the ground floor. Finally, the designated goods or technologies, along with any necessary
equipment, must be installed in an area where the person has an exclusive right of use by virtue of their residency.
Implications for Condominium Owners
First, it should be pointed out that the regulation makes inoperative prohibitions on clothesline or clothestree installation for ground floor units only. As such, unit owners who are situated on the second floor or higher cannot use clotheslines or clothestrees due to safety concerns surrounding their use at elevation. This regulation primarily affects those condominium owners whose units are at ground level.
clothestree. However, the ground floor owner may wish to use an apparatus that does not require installation, such a portable drying rack. In that case, if there are no safety issues regarding its use, there would appear to be nothing preventing the owner from using it without board approval, since no modification of the common elements would be required for its use.
Brian Horlick, Horlick Levitt, has been successfully engaged in the practice of law for 25 years. He is a senior partner with the law firm of Horlick Levitt and is an expert in the area of condominium law. He is a director of the Canadian Condominium Institute, Chair of the CCI Legal & Governmental Affairs Committee, Chair of the ACMO Associates Executive Communications Committee and is a regular lecturer on condominium law to property managers seeking to obtain their RCM designation. â–
The Condominium Act provides that the corporation has a duty to control, manage, and administer the common elements and assets of the corporation. It also provides for board of director approval whenever an owner wishes to make an addition or alteration to any common element, whether exclusive use or otherwise. Although the Energy Conservation Leadership Act states that it overrides any restriction imposed at law, including those established by a condominium by-law or an agreement, it also states that it does not apply with respect to a restriction imposed by an Act.
Accordingly, the ability of a condominium owner to install a clothesline or clothestree may be subject to whether or not the ground level area (for example, a patio, backyard or side yard) that abuts an owner’s unit is an exclusive use common element or is part of the owner’s unit itself. In some condominiums, the ground level area falls within the definition as being part of the condominium unit and is not therefore a common element. If this is the case then a clothesline or clothestree may be installed or used in the side or back yard as long as it does not impair the safety of the other residents. On the other hand, if the ground level area of the condominium is an exclusive use common element, then the unit owner may need to get permission from the board before installing a clothesline or
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C-45 Update Disregard for Health & Safety can be Criminal
BY JEFF JEFFCOATT CONSTRUCTION CONTROL INC. ondominium Boards and Property Managers are responsible for the health and safety of the residents and those working on site. This has always meant some exposure to liability for safety, but now even more due diligence is required because if there is an accident that could have been prevented by proper training, there is now a criminal component to any actions taken by the authorities. Introduced as Bill C45, the Criminal Code was amended to include a criminal act of negligence with respect to workplace accidents. This means that as well as any fines from the Ministry of Labour, there could be additional fines (and jail time in extreme cases) levied through the criminal code in cases of serious injury or death, on supervisors, managers, and the Board of Directors individually.
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Also remember that section 117 of the Condominium Act, 1998 (Ontario) stipulates “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 activity is likely to damage the property or cause injury to an individual.”
WHMIS and Fall Arrest It is very important to make sure all of your staff is trained to do their specific jobs, including WHMIS and Fall Arrest Training. The Workplace Hazardous Materials Information System (WHMIS) applies to all workers on site, and the Fall Arrest Training applies to anyone who might use a ladder - or be in a situation where they can fall more that two metres. The use of a ladder may seem trivial and common sense. Not so - there was a recent case involving a large store where a substantial fine was levied when an employee fell off a ladder, and the company could not prove that they had instructed the employee on the safe way to use a ladder.
It is a good idea to develop some written “Safety Procedures” for any work that may expose staff to hazardous situations or materials, and to ensure that they understand and acknowledge these procedures. This should include the use of snow blowers, tractors, power tools, ladders, lifting, and any other workplace activity that could expose a worker to injury. Every staff member should
be made aware of the existence of these Safety Procedures, and that they are not allowed to participate in any designated work without acknowledging training for that specific activity. Not only must you provide adequate training for all jobs that may put someone in harms way, but you must also keep a record of all such training – signed by each employee.
Window Washers and Elevators
The Condominium Corporation is held responsible for workplace accidents on site, and must be diligent to ensure that all risks are removed or mitigated. There are two common areas of concern that affect highrise buildings where the prudent Property Manager should be extra vigilant – Elevators and Window Washing.
For elevating devices, TSSA regulations clearly state that the onus on accident prevention is the responsibility of the building owner (Condominium Corporation, Board of Directors, Property Manager), so it may be prudent to check the elevator logbook Spring 2009
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The problem may arise where the Condominium Corporation has contracts with more than one contractor, and they are working on site at the same time, and in the same area. In this case the Condominium Corporation may be deemed to be the “Constructor” within the meaning of the Act and take on the Health & Safety responsibility for all of the workers on site. A different way of handling this would be to contract with a General Contractor (GC) who sub-contracts the work to the various skilled trades, so that the GC is considered to be the “constructor”. Check with your lawyers regarding this “Constructor” terminology to make sure that the Condominium Corporation is not exposed to any extra liability.
occasionally to ensure that the required monthly checks are being done and recorded. If you enter the elevator machinery room make sure you are aware of all the machinery that is in there and stay clear at all times – which brings up another upcoming problem area for building owners – that of machinery guarding for elevator equipment. “Guidelines for the Guarding of Elevator Machinery” are presently under review by a committee that includes representatives of TSSA and MOL. Once finalized this will be the subject of another article as estimated costs run from $6,000 to $20,000 per elevator machine!
For window cleaning the Condominium Corporation is responsible for the roof anchors being checked annually (prior to the first use each year) and keeping a logbook of these reports. Management should also check occasionally that the window washers are following prescribed guidelines from the roof anchor drawing details. One of the most common problems is that window washers drape their lines over the top of balcony railings instead of under or through them. Railings are designed for a certain force but are not designed to take the force generated by a fall arrest condition (3600 lbs.) so ropes that pass over the railings can be dangerous – as well as potentially damaging to the railing surfaces. The Ministry of Labour inspectors can and will enter your workplace at any time, so be prepared and make sure all
of your staff is properly trained – and that you have the documentation to prove it!!
Workplace Constructor Now what about contractors on site that may be performing construction work, renovations, or maintenance work on equipment in the common element areas?
If there is only one contracted job underway then your contract document should include the fact that this contractor is responsible for all Health and Safety matters related to the job and their employees and anyone else that they may sub-contract with.
DONNA SWANSON ACCI, FRI
Real Estate Brokerage
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Jeff Jeffcoatt, P.Eng, BDS, RCM is a Registered Condominium Manager and Professional Engineer and is the Condominium Specialist for Construction Control Inc. where he heads up the Mechanical & Electrical Department and the Health & Safety Programs. More recently accredited through the Ministry of Municipal Affairs and Housing for the Building Code Identification Number (BCIN) program as a building designer for Large Buildings, Building Services, Small Buildings, and Houses. Well known for his teaching for ACMO at Humber College and via the web through Mohawk College, Jeff wrote/compiled the manual for the ACMO Physical Building Management course, and is presently CoChair of the ACMO Professional Development Committee. ■
For your Real Estate Needs call: 416-515-2121
• Real Estate Broker of Record - s peci al i zi ng i n Co ndo mi ni um Sal es since 1982 • Current condominium Owner, Pas t Pres i dent and Di recto r • ACCI - An Associate of the Canadian Condominium Institute • Pas t Di recto r of Toronto Chapter of CCI • FRI - Fellow of the Real Estate Institute of Canada and current Di recto r of Toronto Chapter of REIC
Email: donnaswanson@sympatico.ca
Barbecues and Balconies: Reducing the Risk BY JOHN MOHER, B.A, LL.B. FINE & DEO
any condominium corporations restrict the use of barbecues on balconies because of the increased risk of fire and the potential for nuisance from smoke and odours entering nearby units. There are also condominium corporations which do not restrict barbecues on balconies. Boards of directors in these cases may have decided that the benefits of allowing barbecues outweigh associated drawbacks. Many boards of directors may not have even considered the issue of prohibiting barbecues on balconies.
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This article will analyze the law as it affects the use of barbecues on balconies and will suggest some possible courses of action which can reduce or eliminate the risks associated with barbecue use on condominium balconies.
It may come as a surprise to many that the Ontario Fire Code does not regulate or prohibit the use of barbecues on balconies. According to Section 2.6.3.4. (1):
“Open-air burning shall not be permitted unless approved, or unless such burning consists of a small, confined fire, supervised at all times, and used to cook food on a grill or a barbecue”
Even absent a prohibition against barbecues in a condominium corporation’s declaration, by-laws and rules, or a clause in any applicable lease, municipal by-laws may prohibit the use of barbecues on balconies. The City of Kitchener and the City of Guelph are two examples of municipalities which have banned the use of barbecues on balconies, notwithstanding the above provision of the Ontario Fire Code.
The City of Toronto has not passed a by-law banning the use of barbecues on balconies. As such, condominium corporations in Toronto should consider whether it is in their particular condominium community’s best interest to permit barbecues on balconies. It is a decision which must balance the risk of
fire, the possibility of increased insurance premiums and smoke entering nearby units with the benefits of barbecuing on balconies.
If your condominium corporation chooses to allow barbecues on balconies it is important to review your insurance policy to ensure that fire damage caused by barbecue use on balconies is covered. Even if no specific exclusion exists in the insurance policy, it is important to ensure that the condominium corporation is adhering to any applicable municipal by-laws. The corporation should also review its declaration, by-laws and rules to ensure that no prohibition exists against barbecues on balconies.
It is also important for the condominium corporation to be cognizant of the laws regulating the transportation of propane through high-rise buildings. According to the Propane Storage and Handling Code, which is included in O. Reg. 211/01 by reference, when Spring 2009
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propane tanks are transported through high-rise buildings, each cylinder’s valve outlet must be plugged with the valve protecting cap in place. When a propane cylinder is to be transported by elevator it must be transported by an unoccupied freight or service elevator. Where these elevators are not available the propane cylinder should be transported by passenger elevator provided that no passengers are permitted on the elevator other than the person who is bringing the cylinder to their unit. In the absence of a rule banning barbecue use on balconies, condominium corporations should consider passing a rule requiring residents to transport propane in accordance with the Propane Storage and Handling Code.
The Technical Standards and Safety Authority (the “TSSA”) issued a media release on March 19, 2008 which suggests the following: if barbecues are permitted on balconies in high-rise buildings, the balcony should be open, cylinders should be kept outdoors, the barbecue should be free of combustible materials and the cylinder relief valve should be at least one metre horizontally from any building opening below it and three metres from a building air intake. An engineer should be consulted to assess whether barbecues on a condominium corporation’s balconies would comply with the above recommendations.
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An option for condominium corporations which decide to ban barbecues on balconies is to provide an outdoor common element barbecue area. This would greatly reduce the risk of fire and eliminate barbecue smoke and odours from entering units. The viability of this remedy will vary depending on the particular condominium community and, as such, it is advisable for boards of directors to discuss the idea with residents to see if it could represent a satisfactory compromise.
A condominium corporation can also minimize the risk associated with barbecue use on balconies by prohibiting the use of propane-fueled barbecues and only allowing the use of electric barbecues. This would significantly reduce the risk of a fire by eliminating the presence of propane.
Condominium corporations should consider passing a rule mandating the annual upkeep of barbecues. The condominium corporation could require a certificate from a fuels-related technician certified by the TSSA to be filed with the condominium corporation. Most safety issues with barbecues and propane tanks arise in the spring when they are first used after the winter season. The rule could provide that the certificate must be filed on a periodic basis determined by the board, failing
which the barbecue would be removed from the balcony at the resident’s expense.
If an outright ban on barbecue use on balconies is not desirable to the condominium community, there are ways to minimize associated risks. A corporation can pass a rule to regulate the method of transporting propane if such barbecues are permitted, or eliminate the use of propane-fueled barbecues altogether. The condominium corporation could pass a rule mandating the periodic filing of a document certifying that the barbecue and propane cylinder are in good working order. In addition condominium corporations can pass a rule requiring compliance with the TSSA’s recommendations outlined above. John Moher, B.A, LL.B. joined Fine & Deo in 2008 and practices in all areas of condominium law, real estate and corporate law. John completed his LL.B. at Osgoode Hall Law School. Prior to attending law school, he completed an undergraduate degree in political science, graduating with distinction from the University of Western Ontario. John is a member of the Canadian Condominium Institute and the Canadian/Ontario Bar Association. ■
The Human Rights Complaints Trifecta: Family Status, Pets & Disability!
BY RHONDA SHIRREFF AND KEVIN INWOOD HEENAN BLAIKIE LLP ost condo boards and property managers know that the Ontario Human Rights Code protects owners, guests, visitors, renters or other tenants from discriminatory treatment on the basis of several grounds: race, colour, ethnic origin, place of origin, citizenship, sex, sexual orientation, age, marital and family status and disability. Few realize, however, that human rights legislation is quasi-constitutional in nature. This means that, in terms of importance, it sits below the Charter of Rights and Freedoms but above all other legislation. In other words, the Human Rights Code trumps the Condominium Act.
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Condo boards may run afoul of the Code by creating by-laws or rules that, directly or indirectly, discriminate against or provide unequal treatment to one or more members of a protected group. Human rights legislation is not concerned with intention. Even if a rule or by-law has been in good faith, it can still be contrary to the Code. Rules and by-laws concerning families, disability and pets can prove particularly problematic.
FAMILY STATUS
It is settled law that “adult-only” con-
dos are contrary to the Code. But family status can also happen in more subtle ways. For example, think about occupancy standards by-laws regulating the occupancy of units. The rule may take many forms—perhaps it limits the number of people who may reside in a 2-bedroom sublet unit to 4 occupants. This by-law could discriminate against a family of 5 who, living on a tight budget, plan to have all 3 children share a bedroom.
Think also about a visitors policy. A policy limiting the number of overnight visitors could potentially discriminate against a parent who has weekend custody of the children.
Rules prohibiting excessive noise after, for example, 11:00 pm, could also be problematic. Parents with newborns or a colicky baby cannot always control the timing of a crying spell. Any action by the condo board to sanction this tenant or owner for a noise violation might constitute discrimination on the basis of family status.
DISABILITY
Condo boards and property managers must ensure that disabled individuals are accommodated up to the point of
undue hardship. What does this mean for condo facilities? It means that barriers to accessibility must be removed and environments structured so that, insofar as reasonably possible, disabled individuals have the same right of access as any other person. Magnetized security card readers must be located so that they are accessible and operable by individuals with restricted mobility; for example, those in wheelchairs or scooters. A heavy door that may be difficult to open for someone with arthritis or multiple sclerosis may need to be equipped with a hydraulic hinge or electronic opener. Condo boards also need to be careful about the strict enforcement of rules that adversely affect an owner or resident with a disability. For instance, rules that regulate the type of flooring that may be installed in a unit could discriminate against someone requiring a cane, walker or wheelchair.
As stated above, accommodation must be provided to the point of undue hardship. In assessing whether the undue hardship standard has been reached, only three factors may be considered: cost, outside sources of funding; and health and safety requirements. Spring 2009
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PETS
Declarations and rules concerning pets may also cause a condo to run afoul of the Code. For example, a blanket prohibition on pets is likely contrary to the Code, as it would have the effect of preventing a disabled person reliant on a service dog from residing in the building.
The waters get murkier where the reliance on the pet is not directly tied to a resident’s disability or some other prohibited ground. Consider the case of a wheelchair-bound WWII veteran who kept a 15-pound poodle for companionship and emotional support. His claim that his condo’s “no pets” rule violated the Code was not successful because he could not produce sufficient evidence to satisfy the Human Rights Tribunal that his pet actually helped his mental state or assisted him in any way with his confinement to a wheelchair.
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Consequently, when a condo resident with a pet that doesn’t fit within the provisions in the Declaration or rules attempts to rely on the Code, the board must make an assessment based on the unique facts and circumstances of that resident’s case and his or her reliance of the pet to assist with a particular disability.
TAKE A PROACTIVE APPROACH TO HUMAN RIGHTS
In light of the special significance of human rights legislation, it is important for condo boards and property managers to review rules, by-laws, policies and procedures to ensure that they comply with the Code. All board members and property managers should be cognizant of the extent of their statutory obligations to accommodate individuals falling within a protected group to the point of undue hardship.
It is also important to implement an effective system to investigate complaints internally. This means having someone on hand who is properly trained to investigate complaints and interview the complainant and any witnesses.
If a complaint is filed with the Human Rights Tribunal, due diligence can be an effective defence. One of the best ways you can show due diligence is to demonstrate that, once informed of a potential breach of the Code, the condo corporation reacted promptly, investigated thoroughly and took appropriate remedial action. Rhonda Shirreff and Kevin Inwood are lawyers in the Condominium Law Group of Heenan Blaikie LLP, which is chaired by Denise Lash and Armand Conant, and practice in the areas of Human Rights, Labour and Employment law ■
Recent Changes to Toronto Municipal Code BY DIANA CARR, P.ENG, SALLY THOMPSON, P.ENG, AND CATHY LEE, P.ENG HALSALL ASSOCIATES LIMITED
uilding Codes change over time. Changes to the Building Code do not have to be reflected in an existing building as the Code only applies at the time of construction. However, a governing body such as TSSA or a Municipality can mandate changes that also apply to existing buildings. Recent changes to the Toronto Municipal Code will impact many condominiums in the Province.
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Municipal Codes apply to all buildings of all occupancies within the municipality, and include extensive By-Laws. The By-Laws may be more or less stringent than the relevant Ontario Building Code requirements for new buildings. There is no “grandfathering” of existing buildings – all buildings new and old must comply.
The City of Toronto Municipal Code was revised in September 2008 to include some new items that impact residential condominiums. Major changes made include the requirement to install backflow preventers on the domestic water supply piping, in Chapter 851 Water Supply, and stringent requirements for guards (such as required anywhere there is a sufficiently large difference in elevation as
to create a hazard of falling) in By-Law 629 Property Standards. 851-Schedule 5 Backflow Prevention Devices:
These devices are already required on the fire supply piping, heating/cooling distribution piping, and at irrigation supply piping. They must now be installed, if missing, on the main water supply piping. Their purpose, as one might guess from their name, is to prevent contamination of the Municipal water supply from the building. The cost of these devices can vary: about $2,500 for a townhouse, and can range from $10,000-$20,000 for a highrise, depending on the requirements of the specific site. A permit is required.
There is a phased program for enforce-
ment, but Apartment buildings must comply by June 30, 2009. The Property Standards By-Law does not differentiate between rental “apartments” and “condominiums.” Toronto Municipal Code By-Law 415 - Development of Land defines “apartment buildings” as follows: “Any residential dwelling unit within a residential building, or the residential portion of a mixed use building, where such unit is accessed through a common entrance or entrances from the street level and an interior corridor, and the building contains three or more units with such access.”
On the basis of this definition, until further clarification is provided, it appears that backflow preventers must be added to all condominium buildings.
Fig.1: Backflow preventer, courtesy of Watts Industries (Canada) Inc.
629-19 Stairs, Guards and Handrails:
Once only a few paragraphs long, this Section of the ByLaw now occupies 14 pages of the amended By-Law. It prescribes specific minimum safety requirements depending on building size and occupancy. In general, guards are required in publically-accessible areas, Spring 2009
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including exit facilities, where there is a difference in elevation greater than 600mm, or where an adjacent surface within 1.2m of the walking surface has a slope greater than 1 in 2. Examples include steps, ramps, balconies, landings, raised walkways, and retaining walls. Loading docks, floor pits in garages, or other areas accessed solely by maintenance personnel are excluded from having to comply with this ByLaw (these areas typically have their own Occupational Health and Safety guidelines).
On a broad scale, guards and handrails in residential properties must comply with the following: (i)
Guards must be at least 1,070mm high, with some exceptions within dwelling units and within small buildings.
900mm of the walking surface, with prescriptive limits on the dimensions and locations of any protrusions.
(iv) Glass in guards must be wired, laminated or tempered.
(v) Guards must be able to resist specific loads listed in the By-Law.
(vi) Where the bottom of non-operable windows within apartments is within 1m of the floor, either a guard must be present, or the window must be capable of withstanding guard loads.
(vii) Operable windows within 1.5m of the floor must also be protected by a guard or a combination of opening restrictor (limiting the opening to 100mm) and a “heavyduty” screen.
(viii) Handrails within exit stairs must be continuous, terminate in a way that will not obstruct travel, meet certain ergonomic design requirements, and withstand specified loads. Handrails are required on one side only of stairs or ramps that are less than 1.1m wide, and are required on both sides of stairs or ramps that are greater than 1.1m wide.
(ii) Clear openings must not exceed 100mm in residential occupancies (“unless it can be shown that the location and size of openings do not represent a hazard”, in which case openings must be greater than 200mm).
(iii) There must be no protrusions that could be used as toeholds within 140mm and
Fig. 2: Balcony guards have to be replaced because the curb and bottom rail form a climbable element.
Though these requirements are more specific than in the previous version of the By-Law, ambiguity still exists in some areas and further clarification is needed from the City. The biggest issue is what is meant by ‘specified’ loads. Why does the “Specified Loads for Guards” table referenced in the By-Law then proceed to reference “Minimum Design Loads”? In the engineering world, the words ‘specified load’ and ‘design load’ are not interchangeable – each has a precise connotation as relates to struc-
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tural design: a “specified” load is increased by a safety factor to produce a “design” load. The Ontario Building Code clearly defines these terms; the Toronto Municipal Code does not. It may not, to a lay person, seem like there would be a big difference, but with a design load equal to 150% of the specified load, this could mean the difference between acceptable or deficient guards.
The By-Law amendment is only a few months old, and we have not yet seen the full impact the amendments will have on existing buildings. Until clarifications are made by the appropriate officials about what is intended by “specified loads” and to what extent certain criteria will be enforced, interpretation is left to the consultants reviewing the particular issue. At the end of the day, common sense should prevail and public safety should be paramount.
Diana joined Halsall in 2000 after three years in construction and consulting, and became a shareholder in 2007. As a Project Manager, Diana has experience in both building restoration (including roofs, walls, parking garages, balconies and windows) and facility audits, including Reserve Fund Studies and performance audits. She is actively involved in the condominium community and has been invited to speak at various building-related events, including Springfest 2008 and 2009. Cathy Lee is a licensed Professional Engineer in Ontario. She has a Master of Applied Science Degree from the University of Toronto, and a Bachelor of Science in Engineering from Queen’s University.
Cathy joined Halsall in 1998 and became a shareholder in 2002. As a Project Manager, Cathy works on both building restoration and facility audit projects. Her restoration projects include the evaluation and repair of parking garages, balconies, roofs, windows, walls, and other building components. Her facility audit experience
includes reserve fund and capital planning, construction audits, and building condition evaluations for due diligence and refinance. Sally Thompson started her career with Halsall in 1990 and became a shareholder in 1995. She has a Masters Degree in Structural Engineering from Queen’s University and is a licensed Professional Engineer in Ontario, Alberta and British Columbia. Sally is currently the Practice Leader for Halsall’s Building Audit service, but also fulfills a Project Principal role and has participated in the preparation of Reserve Fund Studies and/or Performance Audits for several hundred corporations. Sally is often invited to speak at Condominium Conferences as she brings compelling, clear and common sense answers to difficult questions. Sally is currently a member of the Board of Directors of the Canadian Condominium Institutes Toronto Chapter. ■
The other municipalities have similar Codes and By-Laws. It is up to property managers and condominium boards to inform themselves about the issues that pertain to their properties, and to work through these issues with their consultants. Each city’s Municipal Code can generally be found on their website. In the GTA, they can be found at: h t t p : / / w w w. t o r o n t o . c a / l e g d o c s / municode/1184_toc.pdf
http://www.city.brampton.on.ca/bylaws /listing.tml
http://www.mississauga.ca/portal/ cityhall/bylaws http://www.oakville.ca/bylaws.htm
http://www.city.vaughan.on.ca/vaughan /forms_docs/bylaws.cfm
http://www.markham.ca/Markham/ Departments/Bylaw/Overview.htm
http://www.newmarket.ca/userfiles/ HTML/nts_1_3117_1.html
Diana Carr is a licensed Professional Engineer in Ontario. She earned a Bachelor of Applied Science and Engineering from the University of Toronto. Spring 2009
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CLOTHES DRYER FIRE PREVENTION
“Serving the Condominium Community Since 1996” PROVIDING: • CLOTHES DRYER AND DRYER DUCT WORK CLEANING as prescribed by the Fire Marshal and all Appliance Manufacturers • In suite and common area exhaust and ventilation ductwork cleaning • Fan coil preventative maintenance service • Washing machine flood prevention • Secondary dryer lint box conversions “Providing the most organized, cost effective service programs available”
Visit our website at www.dryerfighters.net to learn why clothes dryer fire prevention is required.
Dennis Monk: (647) 236-5643 Randy Mason: (647) 239-8787 Email: dryerfighters@hotmail.com
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Certainty Prevails Over Fairness when applying limitations law efore 2004, a person in Ontario who suffered a loss typically had six years within which to commence a civil lawsuit to seek compensation or recover damages for the loss. With the enactment of the Limitations Act, 2002 (“the Act”), the old six-year limitation period was reduced to two years for losses (or “claims”) discovered on or after January 1, 2004.
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Under the old limitations law, the courts exercised significant discretion as to when the limitation period began to run and whether it could be extended in order to achieve fairness in appropriate cases, such as where a plaintiff’s lawyer failed to issue the lawsuit on time due to a miscalculation or an oversight. This discretion is known as the doctrine of “special circumstances.” While the enactment of the new Act significantly changed the law of limitations, the courts continued to apply the “special circumstances” doctrine in a number of cases. An important June 2008 ruling of the Ontario Court of Appeal has now put an end to that.
In Joseph v. Paramount Canada’s Wonderland, 2008 ONCA 469, a case where the plaintiff’s lawyer issued the lawsuit almost two months after the expiry of the limitation period because of an oversight, the Court of Appeal
BY CHRISTOPHER JAGLOWITZ, B.A. (HONS)., LL.B., ACCI GARDINER MILLER ARNOLD LLP washed away the old doctrine of special circumstances for most claims arising after January 2004 and confirmed the principle that the two-year limit is a firm two-year limit, subject to any specific exceptions in the Act. The Court found that the aim of the new Act is “to balance the right of claimants to sue with the right of defendants to have some certainty and finality in managing their affairs.”
The result of this decision is that where a plaintiff commences a lawsuit after the expiry of the applicable limitation period, regardless of the reason, the lawsuit will most likely be statutebarred and dismissed. It appears that certainty for defendants has prevailed over fairness for plaintiffs. While some pre-2004 claims are still subject to the old six-year limitation period, most claims discovered
between January 2004 and October 2006 are now (as of October 2008) probably already statute-barred. Parties with claims discovered in 2006 and 2007 are in serious danger of losing their right to sue, as is anyone that does not understand that a lawsuit must be commenced within two years of discovering a claim.
The lesson: Carefully consider whether your condo might have claims that need to be dealt with and move them forward promptly. Incoming condo boards or managers need to get up to speed immediately upon taking office and determine whether any claims need to be acted upon and to do so quickly. The limitations clock is ticking.
Chris Jaglowitz practices condominium litigation at Gardiner Miller Arnold LLP in Toronto and is editor-in-chief of the Ontario Condo Law Blog (www.ontariocondolaw.com). ■
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SUMMA PROPERTY MANAGEMENT INC. PROFESSIONAL PROPERTY MANAGEMENT & CONSULTING
“Your condominium deserves personal attention and service.”
Over 24 years experience! We provide Professional Condominium Property Management with attention to detail. Your property is important to us! Regular on-site visits and inspections, attendance at all meetings. We are available to be personally contacted by Board Members at almost any time – not just ‘business hours’. We provide Superior Service and a commitment to quality property management no matter what size your condominium is! At Summa we take pride in managing your property! 416.913.7990 416.728.2429 (Cell) propman@summapm.com www.summapm.com
When experience and quality counts!
PROVIDING EXCEPTIONAL SERVICE TO THE CONDOMINIUM INDUSTRY FOR OVER 25 Y EARS SPECIALIZING IN COMPLETE PROPERTY MANAGEMENT SERVICES: Residential High-rise & Townhouse Condominiums Industrial & Commercial Condominiums
Hands-On Management Individually Designed and Tailored To Meet And Exceed Your Communities Needs For more information, please contact: Gary Atkin, RCM, ACCI Matthew Atkin, RCM, CMOC, ARM, CPM or Nathan Atkin, B.A., RCM
G.S. Atkin Property Management Specialist Inc. One Shady Lawn Court Mississauga, Ontario L5N 1H2 24-Hour Emergency Line (905)-567-6820 Direct Line: (416)-258-6011 Fax: (905)-567-6930 Website: www.gsa-pm.com Email: info@gsa-pm.com
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Condominium Accounting and Audit Guidelines
BY JOHN WARREN, CA ADAMS & MILLS LLP
Winter 2009 The Ontario Institute of Chartered Accountants has recently updated the booklet “Accounting and Auditing Guidelines for Ontario Condominium Corporations”. While much of this booklet deals with audit considerations, it also clarifies a number of accounting principles of interest to those involved in preparing financial statements for condominiums.
Fund accounting The Condominium Act requires that a condominium maintain at least two funds, a reserve fund and an operating fund. Common practice has been that while only qualifying reserve expenditures may be charged to the reserve fund, the Board may, in its discretion, charge qualifying reserve expenditures to the operating fund. This practice has “muddied the waters”, so to speak, between reserve and operating expenditures without clearly informing owners. The guideline now clarifies that fund accounting requires that all expenditures must be reported in the applicable fund. “In par-
ticular, all expenses for the major repair and replacement of the common elements and assets of the corporation are to be charged to the reserve fund and may not be charged as expenses in the statement of operations. Any allocation of funds to the reserve fund in excess of the budgeted amount is to be shown as a transfer from the operating fund to the reserve fund and not as an additional allocation from current year owner’s assessments.”
adequacy through calculation of future annual reserve allocations that increase by no more than the inflation assumption used in the reserve fund study and the committee concluded that this is the best methodology. The guide suggests footnote disclosure where Form 15 has been issued with future reserve allocations calculated on another basis even where the reserve fund study provider has confirmed that this other basis meets the requirements of the Act.
Adequacy of the reserve fund Inflation adjusted allocations
Investments
The guide now provides direction to auditors as to when the reserve fund is or will be inadequate and provides some clarity as to how the adequacy should be defined. Where the Board, as is allowed by the Act, issues a Form 15 – Notice of future funding of the reserve fund that has a negative balance in a future year, the fund is deemed to be inadequate and the auditor should disclose this in an additional paragraph in the audit report. Adequacy is not defined in the Act, however reserve fund study providers generally try to achieve
Investments are generally purchased to be held to maturity and accordingly should be initially recorded at cost. The Committee concluded that, as reserve cash and investments are not available to pay for operating expenses, it is not appropriate to classify them as current assets.
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interest income on discounted securities by applying the same interest rate each year to the total of the original cost plus interest accrued to the end of the preceding year. The current practice of accruing interest on discounted securities using the straight line method is no longer appropriate.
Long-term payables and receivables that do not bear interest must also be recorded at the discounted amount using the effective interest rate method to calculate the amount of the discount and then recognizing interest income or expense each year until the receivable is collected or the debt is paid.
Accountants. Other real property and common personal property should be set up and amortized as appropriate and a fund should also be set up to record the equity in these capital assets. While guest and superintendent suites should be recorded as capital assets, the committee concluded that the general practice not to amortize these suites is appropriate on the basis that they do not have a limited life, being continually maintained and “residual value”, as defined in the CICA Handbook, will be in excess of cost as the market value of real estate increases over time (the current drop in values notwithstanding).
Capital assets
Debt and capital leases in condominiums
Capital assets should not be recorded on condominium financial statements if they are directly associated with the units as set out in Emerging Issues Commit-tee Bulletin 95 issued by the Canadian Institute of Chartered
Financial statements currently reflect debt and capital leases in a variety of ways; debt is typically recorded on the balance sheet, while the liability for capital leases is typically not. Because the expenditures funded by debt or the
items leased generally may not be capitalized due to the provisions of Emerging Issues Committee Bulleting No. 95, these expenditures are not being The accounted for consistently. Committee concluded that all debt and all capital leases should be recognized as liabilities on the balance sheet and the related expenditures should be capitalized if they meet the criteria of EIC 95 or charged to a reserve or operating fund, if not. Changes to financial statements as a result of adopting policy should be applied retroactively.
Contributions The guideline clarifies that amounts received from owners for common expenses and the reserve fund are not “contributions” as defined in the CICA Handbook. A contribution, as defined therein, is a “non-reciprocal transfer” which would be generally understood to be a gift or donation and this is not the case with owner’s assessments.
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Accordingly, condominium financial statements should not use this term, notwithstanding that it is used in the legislation. The committee concluded that “Owners Assessments” better reflects the nature of these receipts.
Special assessments Occasionally the total of special assessments to be levied over a period of years as contained in the corporation’s reserve fund study is recognized in the first year of the series. The committee concluded that a special assessment that is part of a series is not generally payable before the year to which they relate and should not be recognized until that year.
Commingling owner’s assessments Though uncommon, a few management companies still deposit preauthorized payments received from all condominiums that they manage into one bank account in the name of the management company “In Trust” and then transfer, at a later date, the amounts due to each corporation to a bank account in the condominium’s name. These companies have interpreted Section 115(1) of the Condominium Act to allow this practice and it is promoted as reducing costs as the bank charges that would be charged to each corporation for preauthorized payments are levied only on this account and are typically absorbed
by the management company. This arrangement increases the risk of fraud as corporations have no control over their funds until they are transferred into a bank account in its name and is capable of abuse as interest may be earned by the management company, not the condominium, if funds are not transferred expeditiously to the condominium’s account. The committee concluded that this arrangement is not in accordance with the requirements of Section 115(4) of the Act which requires the person in Section 115(1) who receives money on behalf of the corporation to “in trust” to deposit them into an account of the corporation. The Act does not authorize an intermediary account; this practice is poor internal control and is not an acceptable accounting practice.
Additions, alterations and improvements The guideline provides an example of the differences between additions, alterations and improvements by way of an example for paving which may be useful in evaluating other expenditures. In summary, yearly patching is an operating expense; repaving a significant portion of the paved area qualifies as a reserve fund expense; creation of a new parking area is an addition or alteration and redoing an asphalt paved area with interlocking brick would be an improvement.
Classifying reserve expenses The Committee recommends that reserve expenses be classified using the expense categories in the reserve fund study in order to facilitate reserve fund study updates and to enable owners to compare between the study and actual expenditures more easily than is presently the case.
First year deficit The developer is required by the Condominium Act to reimburse the first year deficit within 30 days of a request for reimbursement. As first year deficits are not paid within this time frame and, indeed, are generally not paid for a year or more and often are not reimbursed in full, the committee concluded that the first year deficit should not be set up as a receivable unless collection is certain, generally evidenced by receipt of cash. John M. Warren, C.A. is a partner with Adams & Miles LLP, Chartered Accountants who provide audit and financial services to over 200 condominiums. He is immediate Past President of the Canadian Condominium Institute – Toronto and Area Chapter and a past member of several committees of the Association of Condominium Managers of Ontario. He writes regularly on financial matters in condominiums and is a frequent speaker at educational programs for managers and directors and at condominium conferences and seminars. ■
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Toronto “Waste Management” Updates BY DOUG KING, METRO GROUP few years ago, over a coffee, who would have thought the subject of trash could have been so complicated? Pitch it in a bin – recycle what you can if you know what is OK and supposed to be included. Today big changes are underway with service fees and the implementation of Organics diversion in Toronto.
A
Toronto Boards, Property Managers and all residents are facing substantial Waste Diversion changes. For the less proactive buildings a major “wake up call” is being faced, now that the bills are arriving!
The notion of Organics Diversion has many scratching their heads; a clever strategy will be needed for this program to work! What are Board, resident, management, maintenance and cleaning staff roles going to be? Change will not happen overnight. Each building will have to develop a unique strategy understanding the delicate “balancing act” required – then quickly move to implement a program. Ignored, your garbage costs will remain higher – embraced, the opposite can become the new reality.
Conduct a Basic Review
If the new Water & Solid Waste Management Utility Bill has arrived you may be in for a quite a shock. In the event you have still not received one it will be for quite a number of months. Check to insure it is correct; is the number of suites being credited accurate?
Has staff been keeping a record of containers “Set Out” for collection? If not do so immediately! If your “Equivalent BIN Size” is Extra Large there is work to be done. You need to reduce the “Total Excess Volume”!
Take a deep breath and then undertake a review! How might resident and staff roles and interaction be redefined? Is a prompt Board meeting in order to discuss various options and views?
Many CCI members who are your peers may be able to help you. Begin by assessing the available building space to drive waste reduction.
The traditional selection of “default garbage” will need to be rethought. Use common sense, survey the building – what do the options look like now? As you consider building space renovations to improve “convenience” and minimize waste, plan for Recycling, Organics & Storage for Large Bulk items all of which are free City services.
Think outside the box and consider a consultation if you are overwhelmed. Many have changed to, or are considering, Private Service. What are the costs & long term implications of severing the relationship with the City? What are the new Organics regulatory realities? Be sure to undertake complete pricing comparisons, include all costs and compliance variables. Be sure you do your due diligence before you sign a contract for outside service! Currently commodity markets are fragile and
fussy; landfill costs are rising. Organics is complex, conversion to private service has uncertain long term end market stability elements. The organics program will offer further waste diversion and your plan should be well thought out. It can be “messy” so be sure residents will embrace it – what are the maintenance and cleaning staff roles going to be? What are your regulatory obligations?
With the evolving City of Toronto Act & Provincial Ministry of the Environment announcements pending, our advice is to consider whatever waste eiversion improvements to you can achieve now. This is prudent regardless of who is providing your bundle of services. The City has clarified its’ position and as the package they have created is comprehensive you are making an “all or nothing” commitment. If you “Opt Out”, then request to “Opt Back In”, there are conditions and potential consequences. Older buildings could have extensive and costly renovation requirements to meet the New and Redevelopment Standards! If you decide to shop private service get complete and guaranteed prices for equivalent services.
Be prudent regarding long term contractual commitments and insure you are assessing the following: • Waste collection with compliant final disposal. Spring 2009
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• Recycling collection – what bin types – where does material go? Request assurances.
and these bulk bins, STOP that now! You are being billed as if all materials were compacted at a 3:1 ratio – this will save big bucks!
• Bulk item collection – (furniture, beds etc.) The City plan is for you to create a storage area for “soft” noncompacted, hand load collections. (Stuff that will not be landfilled.)
• Some type of container will be needed for Organics, maybe smaller ones for inside will help.
Board Management Plan of Action
• What containers do residents have in the units for easy separation of different material streams? It starts here — “the key element of plan”! — recycling/organics/waste. Space is the challenge, especially in small suites. Innovative reduced size waste bags will reduce costs. (see attached inset picture)
• Comprehensive quality chute system/compactor redesigns with sorters may offer your best long-term option – consider innovative solutions!
• Organics collection offers further waste diversion but it is difficult to ensure a viable long-term collection and processing option is going to be available.
To start the processes get a note book, digital camera and conduct a “walkabout site review”.
Try to step back and observe how the current conditions in your building are helping residents to “do the right thing”? Are they easily able to “conveniently” separate materials? Do they know what to separate? As you review recycling that exists now, think about how Organics will work? What roles are residents, staff & management playing now? How should these roles change? Will you use various bins inside or outside – or both?
What messages, infrastructure and material handling protocols, currently exist? What can be improved? What about communications; repeated so that the message “sinks in”? Be sure to take advantage of the “Free City Materials”. Some unique site specific signage may also be required.
Remember the expression “a picture is worth 1000 words”! Bring that to life with a volunteer craft project to create a “story-board” by using actual visual samples of the various recyclable materials! Styrofoam and plastic bags are now recyclable. This will overcome language issues, create a sense of community and develop a spirit of “team participation” while simplifying the message. Keep these visible; maybe in the laundry room or other high traffic and common areas? 56
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Perhaps a consultant is worth some consideration for this – it may be money very well spent! From the Corporation:
• Keep a record of garbage bins set out for collection? Insure they are filled? Is a Compactor bin “Lid Hold Down Bar” being used to maximize loading? Traditionally the mentality has been “out with the bins” let’s keep it clean. Gone! • Is your equipment (compactor, various bins) functioning properly & “user friendly?” Perhaps a “tune-up” or system upgrade is in order?
• Have you taken advantage of the free City materials – Superintendents Handbook, bin stickers, posters & multi-language flyers? Start by reviewing the handbook as a guide.
• Consider advice from others you know who have succeeded. Attend sessions to hear from experts and understand case studies.
• Are garbage containers still dominating the building landscape with no other options in sight? Ideally “Twinned side-by-side Bins” – waste being smaller yet handy, thus easy to separate. This will drive recycling rates upward.
• The “hand loaded” collection of “reusable” large items will need space too – dumpsters are being phased out. If you are using both compactor bins
For the Owners:
• The City is giving every unit Recycling “Hard” Blue Bin or “Soft” bag. Many now have “soft” shopping bags - consider ordering the Blue Bin, with handle. These might be “unit numbered” and transfer easily with a resident / staff team effort. They nest (inside each other) and stack atop – several high. It’s a “no brainer” for chute based operations and with clever planning can work with “depots” too.
• As your building comes online for Organics collection (during next 18 months) a small kitchen pail will be supplied for every suite. Should we augment our program with small “transfer bins” – like the ones you see in front of houses on collection day?
• Often only a large garbage bin exists now – maybe it is the only thing in the suite. The city is supplying two containers – consider a simple cheap space efficient “Bag Hangar” for the small amount of trash! Now all “three streams” are “Equally Convenient”!
Additional materials will be added in stages with the inclusion of: T.V. & computer monitors; pharmaceuticals; tires and many other materials over time.
This funding model will clearly be the protocol for HSW. Something similar may evolve for recycling, replacing the current 50% - 50% industry taxpayer cost sharing model.
Provincial Updates
This spring a series of announcements on proposed changes are forthcoming. Among them is Extended Producer Responsibility (EPR) - taxes would not pay for handing of materials – industry will. This is aimed at incenting producers to reduce packaging by design, and take responsibility for what they put into the market.
On February 26th at the Ontario Waste Management Association (OWMA) AGM Environment Minister Gerretsen commented on pending changes to the Waste Diversion Act.
Items include Light bulbs/tubes as well as batteries and electronic wastes phase one is underway!
It starts in the suites – if it fails here you have missed the most important step in the entire process! January 60 day “comment period” ended for the most substantial changes to the 3 R’s Recycling regulations since inception in ’94.
Many Hazardous “Special Wastes” (HSW) will be 100% industry funded. Models include “return to retail”; depots and/or private / public collection & processing systems. Consumers pay at the cash register.
This would positively impact Municipal program costs!
The task ahead is challenging – take a comprehensive approach and invest once wisely! Doug King, Metro Group - 416 678 2428 dougking@metrogroupcan.com Peel Region – Update
This year Peel began a transformation to Front Loader bins for recycling as Toronto and others are, to save collection costs. Implementation will be by area and take a while. It has started in Brampton and pockets of Mississauga. The process will be phased in over time. You should be sure you have prepared your building storage space to adjust to this collection system upgrade. ■
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Mark Your Calendars
Members’ Corner
Welcome to the following new CCI Directors GORDON CHONG DDS Gordon Chong is a dentist by profession. After an internship at the Hospital for Sick Children and 13 years in fulltime practice, he became a municipal politician. He was elected to the former Metropolitan Toronto Council and Toronto City Council, serving for 3 terms. In between and after leaving office, Gordon was the Chairman of the former Greater Toronto Services Board, Chairman of GO Transit, Vice-chairman of the TTC; Chairman of the former Metro Toronto Housing Authority and the Founding Chairman [retired] of the Social Housing Services Corporation [SHSC], serving for 5 years.
SHSC is a provincial statutory corporation established to provide bulk purchasing services to housing providers like the Toronto Community Housing Company, which manages Regent Park. SHSC, through a subsidiary [SHSCFI], also invests the providers’ capital reserves through a professional investment manager. Investments in equities are permitted by legislation.
Currently, Gordon is the President of York Mills Place, a 134 unit condo in the Yonge and York Mills area of Toronto, as well as a volunteer Board member of ParticipACTION and the YMCA of Greater Toronto.
SALLY THOMPSON M.Sc. P.Eng Sally is the practice leader for Property Condition Assessment at Halsall Associates Limited. Halsall, a leading Canadian consulting engineering firm, has over 275 employees with offices in Ontario, Alberta, British Columbia, Dubai and the Cayman Islands. Their areas of expertise include building restoration engineering, cladding engineering, building science, green building consulting, structural design and property condition assessments (including Reserve Fund Studies and Performance Audits for Condominiums).
Toronto and Area Chapter
Now for the
13th Annual CCI-T/ACMO Condominium Conference taking place at the
Markham Hilton Suites Hotel and Conference Center on
Friday November 6th and Saturday November 7th, 2009
Sally obtained her Masters Degree in Structural Engineering from Queen’s University in 1991 and is a licensed Professional Engineer in Ontario, Alberta and British Columbia. Sally has been with Halsall and working with Condominium Corporations since 1990. She is also a Director of Halsall’s parent company, Ethos56 and President of a sister company Buildingweb which provides web-based reserve fund planning software. Sally is a member of the Board of Directors of CCI Toronto. Sally, a noted speaker at condominium conferences and courses including the annual ACMO/CCI Conference, has a reputation for presenting clear and common sense answers to today’s challenging questions. ■
Visit the conference website at www.condoconference.ca for further details as they become available.
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Members’ Corner IN MEMORIUM
Bernice Edith White Bernice passed away on Tuesday February 3rd, 2009 after a brief, intense and valiant battle with cancer. She was the beloved wife for 44 years of Ross White and loving mother of Amanda Walker and Michelle Jeans.
Prior to her retirement, Bernice was a former officer and director of the Canadian Condominium Institute. Bernice taught the Effective Meetings course through CCI for several years and was known as an excellent lecturer who could hold an audience’s attention. She will be remembered by hundreds of condominium directors and property managers for teaching them how to properly run every kind of condominium meeting. Bernice was also a well known artist for her North American landscape subjects and was a member of a number of artistic societies Bernice was an exceptionally warm and friendly person who was well-known and well-liked throughout the condominium industry.
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Upcoming Events
Mark Your Calendars Springfest 2009 Date:
Wednesday, April 1st, 2009
Location: Metro Toronto Convention Center North Building 255 Front Street West
For more information visit the show website at: www.pmexpo/Springfest
While at Springfest, be sure to visit the CCI Booth in the Trade Show area and also to attend the following CCI Sponsored seminar, taking place from 10:00 a.m. to 11:00 a.m.
CCI Toronto Seminar - Managing Your Most Important Health and Safety Risks
This session will assist you with the most important risks which can give rise to government orders, work stoppages and OH&S or potential Bill C-45 criminal prosecution. The speakers, a Professional Engineer/OHS Consultant and an OHS lawyer/former OH & S Prosecutor, will address common scenarios and questions including: dealing with multiple contractors at the same construction project; health and safety program fundamentals such as minimum training required and JHSC requirements; what to do if there is a workplace accident; protecting management, boards of directors and others from risk and liability. Presented by Gina Cody and Jeff Jeffcoatt, Construction Control Inc. and Cheryl Edwards, Heenan Blaikie LLP.
NEW!! – Condo 201 Course – Governance and Unit Owner Rights Date:
Time:
Saturday, April 18th, 2009 9:00 a.m. until 12:00 p.m.
Location: Novotel North York Hotel
Cost:
$75 for CCI Members and $125 for Non Members
This ½ day course will teach directors all they need to know about proper Governance issues and how to ensure a well functioning Board. This is a ‘must-attend’ session for any new Director or for any owner considering running for a Board position. For further course information, to download registration forms or to register online, please visit www.ccitoronto.org/Education
CCI Toronto Level 300 Course Dates: Time:
Thursday, May 7th, 14th, 21st and 28th, 2009 7:00 p.m. to 10:00 p.m.
Location: Novotel Hotel North York 3 Park Home Ave. Cost:
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$200 for Members $275 for Non Members
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Designed for the dedicated condominium director, the CCI Advanced course will run for four consecutive Thursday evenings from 7:00 p.m. to 10:00 p.m. beginning May 7th, 2009 through May 28th, 2009. Upon completion of the course, participants should understand all aspects of reserve funds, major repairs and replacement, financial management, common problems and solutions, legal responsibilities… and in the last session, learn about mediation/arbitration and the new enforcement remedies available under the Condominium Act, 1998.
To register for this CCI Toronto event and/or to obtain further information, please visit the website at www.ccitoronto.org/Education
New Members
CCI Toronto Welcomes the Following New Members Corporate Members
DSCC # 0222 HSCC # 0539 MTCC # 0907 MTCC # 0989 MTCC # 1085 MTCC # 1341 PSCC # 0814 PSCC # 0837 TSCC # 1643 TSCC # 1654 TSCC # 1798 TSCC # 1918 TSCC # 1956 TSCC # 1961
YRSCC # 1090 YRSCC # 1127 YRSCC # 1128 YRSCC # 1132
Individual Members
N. Farquharson W. Yarlett N. Elgar D. Starkey S. Mogford S. Allen D. Vallery
Professional Members
Linda Hollyoake Brookfield Residential Services Ltd. Jeff Rodin Nacora International Insurance Brokers
Baher Mikhail Right At Home Realty Inc.
Robert Durkho Trustlink Property Management
Sean Allman Halsall Associates Ltd. Diana Carr Halsall Associates Ltd.
L.A. Construction Liviu Acatrinei
New Trade Members
Anderson Lock & Security Inc. Scott Young
Brock Home Improvement Products Inc. Michael Nolet
Canadian Safety Anchor Inspections Bambi-Lynn
Marathon Cleaning Corporation Tom Vyriotes
MyCondoWebpage.com Gabby Feldman
Simerra Property Management Ltd. Janice Pynn
DRG Painting Group Dan Glugosh
G. Edick & Sons Landscape Contractors Ltd. Carol Edick Galaxy Fire Protection Inc.
Spring Flowers Landscaping Ltd. Tim Cekrezi
Vertical Network Solutions Inc. Robert Quintana
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Total Security Solutions for Condominiums • • • • •
Visitor entry phones Access control Video surveillance Hands-free parking control 24/7 alarm monitoring
Lorne Middleton Manager, Sales & Operations, Central Ontario 5201 Explorer Drive Mississauga, Ontario L4W 4H1
Phone: 905-206-8458 Fax: 905-206-8486 lmiddleton@chubbsecurity.com www.chubbsecutiry.com
www.EarthHourCanada.org
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CLASSIFIED
List of Advertisers A.R. Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 ACMO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Adams & Miles LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 Atrens Counsel Insurance Brokers Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Atrens Management Group Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Ben Engineering Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Brady & Seidner Associates Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Brokers Trust Insurance Group Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Brookfield Residential Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 Brown & Beattie Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Carma Industries Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Certified Clean Air Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 Chubb Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 Condominium Living Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Connoisseur Painting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Construction Control Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68 CPL Condominium Design Interiors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Criterium Jansen Engineers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 Davroc Consulting Engineers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 Donna Swanson Real Estate Brokerage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Dryerfighters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 D-Tech (Nexus) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Enbridge Electric Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Enbridge Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 Enerplan Building Consultants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 Enhanced Management Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 Fine & Deo Barristers & Solicitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Firenza Plumbing & Heating Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 Fogler, Rubinoff LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Four Season Duct Cleaning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 G4S Security Services Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52 Galaxy Fire Protection Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 Gardiner Miller Arnold LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Genivar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Gerald R. Genge Building Consultants Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . .54 GSA Property Mana gement Specialists Inc. . . . . . . . . . . . . . . . . . . . . . . . . . .50 Gulesserian Associates Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 Heenan Blaikie LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Holman Insurance Brokers Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 Horlick Levitt Barristers & Solicitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 ICC Property Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 J. Edick & Sons Landscape Contractors Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . .64 J.J. Molnar Realty Advisors Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 Larlyn Property Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 M & E Consulting Engineers Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Maple Hill Tree Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 Maple Ridge Community Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . .31 Mareka Property Management Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Markham Garage Doors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Martin K.I. Rumack Barrister & Solicitor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Maxium Condo Finance Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 Metro Group of Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57 Miller Thomson LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Morrison Hershfield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 MyCondoWebpage.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Nadlan-Harris Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 Ontario Screen Systems Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 Premier One . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Professional Choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Pro-House Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60 Provident Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Rikos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 Rogers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 Royal Grande Property Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Samuel Property Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 ScotiaMcLeod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 Simerra Property Management Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 SR Wise Management Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 Stratacon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Summa Property Management Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 Suncorp Valuations Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 Vertical Network Solutions Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Training Wheel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Waste Solutions Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Whiterose Janitorial Service Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 Wilson Blanchard Management Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
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Spring 2009