CondoVoice - Summer 2008 by LS Graphics

www.ccitoronto.org

VOL. 12, NO. 4 • SUMMER 2008

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

Condominium Inspection Findings Plus: ■

A Successful Energy Savings Program

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Crimes in Condos

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Hiring Practices and Human Rights Don’t Get Too Personal

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Making Up Rather than Breaking Up Dispute Resolution Techniques and Processes

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Windancer - Wind Turbine Reinvented

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Seeking to Grow Enthusiasm for Balcony Gardening

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Enforcing Your Lien in a Recession

… and more

PM #40047005

Contents Canadian Condominium Institute / Institut canadien des condominiums Toronto & Area Chapter 2175 Sheppard Ave. E., Suite 310 Toronto, Ontario M2J 1W8 Tel.: (416) 491-6216 Fax: (416) 491-1670 E-mail: ccitoronto@taylorenterprises.com Website: www.ccitoronto.org

2007/2008 Board of Directors

Features

Condominium Inspection Findings

Making Up Rather than Breaking Up - Dispute Resolution Techniques and Processes

by Don Gratton

by David F. Alexander

PRESIDENT John Warren, C.A. (Co-chair, Conference Committee, CAI Liaison) Adams & Miles LLP

VICE-PRESIDENTS Armand Conant, B.Eng., LL.B., D.E.S.S. (Chair, Legislative Committee) Heenan Blaikie LLP Mario Deo, LL.B. (Chair, Public Relations Committee Member, Conference Committee) Fine & Deo LLP SECRETARY/TREASURER Bob Girard, B.Comm, RCM, ACCI (Chair: Special Projects Committee) AA Property Management & Associates

PAST PRESIDENT Janice Pynn, RCM, ACCI, FCCI (CCI National Liaison, CAI Liaison) Simerra Property Management Inc.

25 31 37 43 46 49

BOARD MEMBERS Gina Cody, P.Eng., M.Eng., Ph.D., ACCI, FCCI (Chair, Education Committee, CAI Liaison) Construction Control Inc. Brian Horlick, B.Comm., B.C.L., LL.B., ACCI (Vice-Chair, Public Relations Committee) Horlick Levitt Barristers & Solicitors Lisa Kay (Member, Public Relations Committee, Conference Committee, Website Committee) Maxium Condo Finance Group Julian McNabb (Vice-Chair, Membership Committee) TSCC #1850 Vic Persaud, BA (Chair, Website Committee Member, Membership Committee) Suncorp Valuations Ltd. Bill Thompson, BA, RCM, ACCI (Chair, Membership Committee, Vice-Chair Education Committee) Malvern Condominium Property Management

EX OFFICIO DIRECTOR Jasmine Martirossian, B.A., M.A., PhD.

ADMINISTRATOR - Lynn Morrovat ADMINISTRATIVE ASSISTANT - Josee Lefebvre

Crimes in Condos by Park Thompson

Hiring Practices and Human Rights: Don’t Get Too Personal by Rhonda Shirreff

A Successful Energy Savings Program at Two Aberfoyle by Jim Book

Windancer - Wind Turbine Reinvented by Michael Joseph

Seeking to Grow Enthusiasm for Balcony Gardening by Justine Cooke

Enforcing Your Lien in a Recession by Lou Natale

CCI News 5 6 7 52

President’s Message

55 57 59 60 61 62 64

New Members

From the Editor Letter to the Editor ACMO-CCI Government Relations Committee In Memoriam CCI Needs You – CCI Liaison Position CCI Website Updates CCI National Events Mark Your Calendars Condo Word Find

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Presidentâ&#x20AC;&#x2122;s Message long, harsh winter has finally come to an end, flowers are being planted, the grass is growing and the sun shines, albeit not every day quite yet. Summer is here or at least very close and I hope you get the opportunity to spend time outdoors enjoying all that Ontario has to offer.

CCI-Toronto continues to be very active. On the legislative front we continue to represent condominiums in such areas as garbage in Toronto, environmental initiatives in multi-unit buildings, Condominium Act revision and energy retrofit initiatives, to name just a few. Membership is strong and growing and we thank you for your confidence in CCI. A strong, growing membership provides us greater ability to advocate on your behalf and as we grow in numbers and in our ability to communicate with governments, we have better opportunities to put forward our arguments for change on matters important to condominiums, some of which are mentioned above.

Our education programs continue to expand. Condo 101, a Saturday half-day seminar that takes a first look at basic issues of concern to Directors and other interested parties is very successful and has been presented this year in both Toronto and Mississauga. Condo 201, expanding on Condo 101, is to be launched soon. We will also be presenting our Basic and Advanced Directors courses on the weekend as well as on weekday evenings so as to accommodate those with schedules that preclude their attendance during the week. Look for these sessions on our website and participate if you can, they offer a lot of excellent information and we know from feedback that what you learn will assist you and your fellow Directors as you strive to make the best decisions for your community.

Planning for the annual fall conference put on by CCI-Toronto with its partners the Association of Condominium Managers of Ontario and Rogers Cable is well underway; the program is set and I can promise you outstanding seminars with great and entertaining speakers. The conference is of great value, both in educational content and in the ability to talk with the best in the condominium world, whether professionals such as lawyers, managers, engineers and accountants or the great condominium suppliers who exhibit at the trade show. Watch for the flyers and make sure you attend. For this summer though, take some time with your family and spend it in the outdoors. I wish you all the best.

John Warren President, CCI Toronto & 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: Brian Horlick & Lisa Kay 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.

Guarantee of First Year Deficit by Declarants

As we all know, a declarant is responsible for the first year budgetary deficit of a condominium corporation, and as with most issues and problems in condominium communities, the system works quite well. However, there are problems that must be addressed and corrected.

It is common knowledge that the pressure on a declarant is tremendous to have the lowest possible budget, because the higher the budget, the higher the common expenses per month for each unit, and the lower the potential sale price. If one does the math, the increased cumulative sale prices derived from a lower budget, equals a total dollar amount which is far greater than the declarant’s eventual responsibility for the first year budgetary deficit. In the industry, this is a common and well known fact.

It is also a common and well known fact that the developers that are interested in maintaining the goodwill of the marketplace, generally do not take advantage of the arithmetic because they are more interested in better reputations. However, where goodwill is not a consideration, arithmetic will be the consideration. The system would be much more equitable if there were an increased responsibility on the part of the declarant to fund the deficit. This could take many forms. The point is, it should be done. For example, the declarant may be responsible for the first two or three years deficit, adjusting for inflation. We know something is wrong when almost everyone in the industry acknowledges the economic reality that low balling budgets by a developer pays dividends.

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

The second problem surrounding the responsibility for the first year deficit by the declarant is that it simply takes too much time for some declarants to pay the required funds, even when they are delivered the required audited statement. There is not enough incentive for some developers to pay over the amount . This incentive needs to be built into the system in some effective way. In some situations, the sum that is properly claimed, is critical to the corporation and the matter is not dealt with for a number of years! This is simply an unsatisfactory state of affairs.

Publications Mail Agreement #40047005 Return undeliverable Canadian addresses to Circulation Dept. 2175 Sheppard Ave. E., Suite 310, Toronto, ON M2J 1W8

Mario Deo, LL.B.

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.

ondominium communities work reasonably well considering the balancing act between fiscal and community issues. However, in the pursuit of perfection, there is always a way to improve, and as a condominium industry, we need to make these ways known. In the next few issues, some changes will be highlighted and discussed that are urgently required for the better functioning of condominium communities. In this issue the right of each new condominium corporation to have its first year budget deficit paid by the declarant will be discussed.

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CCI Toronto welcomes responses and comments from members. Please forward your comments to the attention of the Editor at ccitoronto@taylorenterprises.com

Letter to the Editor Dear Sirs and Madams, I write in response to the article “Condominium Insurance: Prudent Seniors Dictate” in the spring 2008 issue of TheCondoVoice. The article was very well written and complete, but I would like to clarify one common misconception.

The article states that “Standard inclusions include Acts of God, Riot, War, Earthquakes and Floods (in certain high risk zones).” Contrary to popular belief, acts of God are not specifically excluded!

Certain types of damage that are commonly considered acts of God are certainly excluded, such as earthquakes and floods, as noted above. However, other acts of God are certainly insured.

For example, here in the prairies we can have tornadoes (and they are certainly not impossible in the Toronto area, as evidenced by the Barrie tornado a few years ago). Tornadoes are considered to be a form of windstorm and are insured by any comprehensive or all risks policy.

Floods and earthquakes are specifically excluded because they require specific expertise to insure. For example, the lower mainland and Vancouver Island regions of British Columbia have obvious and clear exposure to earthquake losses. The Ottawa River Valley is another such region. A serious quake could cause extremely widespread damage in such regions.

one of the most tornado-prone areas of Canada (with seven direct hits in the past 120 years), the only tornado that caused extreme damage was the June 30, 1912 event (which remains Canada’s deadliest tornado). Even in that storm, large areas of Regina were unaffected. This would not be the case should a large earthquake strike coastal British Columbia. I enjoyed this issue of the magazine. Well done. Jim MacKenzie, MBA, DAA, FCIP (Hons)

Regina, Saskatchewan

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Conversely, tornadoes cause very regionalized damage. While Regina is

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Condominium Inspection Findings BY DON GRATTON, P.ENG. J.J. MOLNAR REALTY ADVISORS INC.

onsultants get called to inspect the common elements of condominiums or large buildings for various reasons such as: for a reserve fund study report, or for an application to convert a rental complex into owned residential units. In five years of inspecting, I have found the following most common 14 observations which may help you evaluate your own properties.

Finances

For older buildings, the first things to look at are the history of repairs as expressed in annual financial audits or reports, and the plans for major repairs. This examination can tell the inspector where the owners prefer to spend their repair budget. Possibly they emphasize cosmetics, which shows up as above average spending on painting and grounds. Or they do a lot of caulking and crack repairs, showing their care for the buildings longevity. Window replacement after short cycles may indicate a concern for heating costs. The pattern of roof repair may show that they take a conservative â&#x20AC;&#x153;replaceallâ&#x20AC;? approach. All such clues help the

inspector formulate life estimates for the components he/she is inspecting.

The utility costs of large buildings on a cost per unit area of a building envelope, can be compared to benchmarked values for similar size buildings to assess the need for an energy audit.

Townhouse Basements

My finding with townhouse basements is that they are invariably of poured concrete at least 8 inches thick, with very few through-wall cracks. The old-

est townhouses I have seen date back 45 years, which is before the beginning of registered condominiums in Ontario. One of these older developments had wall leaks in 20% of its units.

When evaluating basement wall leaks, one must see whether the leak is (a) through the wall itself, (b) at wall/floor joint, or (c) from the wall above. In the latter case, building envelope leaks that appear to be due to a leaky basement actually have water running down from inside the wall above. There is supposed to be flashing on top of the Summer 2008

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foundation wall that will direct water running down the inside of the brick to the outside of the foundation. An excessive amount of water within the wall due to poor caulking will lead to more rapid deterioration of this flashing, and of steel lintels over basement windows. Good caulking lasts from 10 to 20 years, possibly longer where not exposed to the weather.

Basement damp-proofing traditionally comprises a bituminous (tar) coating below grade, but some new systems use â&#x20AC;&#x153;plasticâ&#x20AC;? materials, or dimpled membrane. Leakage problems may be of all three types listed above, but in older buildings, one must assess whether the weeping tiles have failed. In some jurisdictions, the tiles empty inside the basement to sump pumps that discharge to surface drainage. Sump pump reliability is an ongoing problem that should be assumed by the condominium corporation. It may be that only end units have sump pumps that serve half of

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their townhouse block.

A common complaint is hairline cracks stretching across basement floors, but if these stay dry and are not over 1/8 inch wide, they are of cosmetic concern only.

The standard basement window well is made of corrugated steel and has a stone bottom drained to the weeping tile. Over time, the tile may become blocked. Window wells give little trouble so long as they are kept clean, but owners should know that there is a minimum window well and window opening size to allow for sleeping in basements. Code requires 3.8 sq ft of opening, and 22 inches clearance from the well.

Garage and Porch Floors Concrete porches and garage floors are made of air entrained concrete to resist freeze-cracking. Those with major

cracks have either uneven settling of the supporting gravel or foundation, or were over-loaded. What is more common in older homes is surface loss on the garage floor apron. Rough surfaces should be repaired so salt does not enter and destroy the concrete. Cracks should also be sealed. Application of concrete sealers also helps, especially around railing supports on porches. Railings are required above a drop of 2 feet or more.

With drafty garage door complaints, the owner may be told that Code does not require weather-stripping the outside doors of unheated garages, but any door into a basement must seal tightly.

Underground Garages (U/Gs) Most apartment buildings and some townhouses have large shared garages in their basements and/or under their paved and/or landscaped areas. These are invariably reinforced concrete struc-

tures with low point sumps, vehicle access ramps, and fire escape stairs to the outside. If they have more than 1 level, the floors/ceilings between the levels are “suspended slabs”. Typical problems with the U/Gs are:

• Poor lighting due to inadequate fixtures and/or non-white interior painting • Freezing leading to fire sprinkler unavailability (Garages need fire protection.) • Inadequate ventilation – can cause high humidity, which causes rusting of cars • Leakage of groundwater into the garage from a wall or wall/floor joint • Leakage of plumbing into the garage • Leaking of the garage “roof” under landscaped or paved areas (common) • Cracks in structural elements (beams, slabs) that allow water entry and rebar corrosion • Raveled floor – surface deterioration (failure or absence of protective coating) • Spalled soffits or ceilings, with risk of concrete pieces falling on vehicles • Broken catch basins, drain covers, or sub-floor drain lines • Pitted column bases • Through-floor cracks, and/or deteriorated/failed expansion joints • Door problems, and/or inadequate safety and security measures

Wall cracks are usually repaired by epoxy injection, but if this does not work, then outside excavation is required to do a proper repair. Wall and soffit leaks can be temporarily dealt with by installing channels to route the in-leakage to a drain but this does not stop the slow concrete degradation caused by such leaks. Spalling problems are solved with adhesive cements. Control joints are sawed in the floors to control random cracking.

The largest expenditures for U/Gs tend to be replacement of “roof” waterproofing membrane since this also involves excavation, removal, and later replacement of whatever is overhead, be it

landscaping, pavement, or curbs and sidewalks.

A less common but expensive repair is for through-floor cracks, where a section of floor would be completely removed except for the re-bar steel straddling the opening. Then, fresh concrete is installed after anti-rust coating of the steel.

All vehicle ramps leading to/from garages are reinforced concrete, most being suspended slabs, but sometimes slab-on-grade. If the ramp is outside the garage or in an unheated part, they have ramp heating either: (a) embed-

ded cables or pipes, or (b) overhead infra-red (IR) lamps. The latter are gaining wide acceptance because of better appearance, maintainability, and reliability, and possibly better energy efficiency if properly controlled. The life span of IR heaters is yet to be proven, but the old ramp-embedded type can fail within 10 – 20 years. An apartment tower in Durham region built an IR-heated steel shed over its ramp that was previously outside the garage.

Retaining walls for ramps may or may not be part of the garage or building wall structure. They always seem to be well built. The inspector looks for

inward tilt, and for drain holes from wall to ramp, with signs that these holes release water accumulated behind the wall.

Structure and Balconies

The superstructure of buildings less than 35 years old, as most condominiums are except for conversions, rarely give any trouble. But the inspector may not see earlier problems when major firms have been called in to do a professional repair, leaving little residual evidence.

We have all heard of balcony problems

where these have concrete floors. Some also have concrete guards. Severe problems are found often on older cantilevered balconies, especially on their slab edges (vertical front surface between ceiling below and floor above). Re-bar corrosion of the Gardiner expressway type is the main culprit, but surface spalling of rather thin layers of concrete can also be troublesome. Vertical brick walls if used to divide balconies, and brick if used as part of the balcony guards, will break down and need repair, typically after 25 – 30 years. Summer 2008

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Problems with railings (guards) may take the form of failed fasteners due to deterioration of the supporting concrete or rusting of the embedded part of the fastener, or the railings themselves may deteriorate. Railing problems have safety implications. The height and spacing of guards is another obvious issue for older buildings. Corrugated asbestos sheeting was used as guards on pre-1970 buildings. Asbestos is very durable, but a bit costly to dispose of.

• pre-finished metal siding (aluminum or sheet metal) • vinyl or wood siding, or mansard siding that is usually asphalt shingles

Brick walls perform well, sometimes requiring replacement of bottom courses, or tuck pointing of stepwise cracking. Stone veneer is usually pre-cast stone but the author saw one project

achieved reduced heating bills as a result.

Brick chimneys eventually need tuck pointing or replacement of spalled bricks, and close examination of the chimney caps for cracks. Inspection by mirror from the chimney clean-out allows the inspector to see that the flue, if straight, is unobstructed.

Cantilever and post-supported wood balconies are seen in some new lowrise housing. These may have design “flaws” that result in early repairs.

Outside Concrete Step Assemblies Some townhouses have outside steps leading to a landing at the front door. These concrete assemblies with their iron railings often prove troublesome after ten or so years. They have solid reinforced concrete steps with concrete block foundations and sidewalls, and the steps may or may not have a highsilica skin for appearance and for protection of the substrate. But such skins are subject to breakage by movers, and by zealous residents with ice picks.

Step assemblies’ number one problem tends to be rusted post embedments breaking off the corners of the steps that support them. Another common problem is broken noses of the steps due to careless moving of heavy appliances in or out of the residence.

Walls, Windows and Doors The cladding installed on condominium walls are mainly:

• brick veneer (standard bricks are 2.25 x 3.5 x 8.5 inches in size) • stone veneer, sometimes cut decorative stone • pre-cast concrete panels, sills, and masonry or steel lintels • EIFS (stucco faced, membrane and insulation backed) 12

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where it was too porous and was breaking down anywhere near grade due to freeze-thaw cycling.

The placement of weep-holes in masonry walls is critical to relieve water to the outside, even if it is just condensation. Sometimes rain enters walls around window/door openings, or at joints between or below wall sections, particularly during events that can be classed as the “storm of the year”. The inspector looks for good caulking and flashing at wall joints. On end walls of older high rises, the wall leakage increases with time. The author has seen three high rise condos that overclad their leaky walls with siding, and

With regard to siding on townhouses, mostly vinyl is going on the upper floors of newer ones and conversions and renovations. The author does not happen to like vinyl, and wonders how it will perform over the long haul. Aluminum siding lasts indefinitely but eventually looks like it needs re-finishing. The weakness of vinyl and metal siding is fastener failure. Wood siding generally lasts at least 30 years, and longer if it is kept stained.

Windows and doors are obviously part of the building envelope, as is caulking and weather-proofing. Windows of higher floors have a safety issue that is solved by restricting their opening size

or installing steel guards on the outside.

Some townhouse owners must look after their own doors and windows, but otherwise the windows are the costliest item in most 30-year expenditure projections for townhouse condominiums. A main cause of replacing modern windows is unsightly dirt or moisture build-up between the panes. Average replacement cost is over $30 per sq ft, but is lower for tall buildings having window panels that can be replaced from the inside as long as the frame has not deteriorated. Where there is a need to replace framing due to leakage that cannot be repaired by caulking or flashing, or due to high heat losses through the frames, costs per window are higher. Cheap aluminum framed window assemblies lose more heat than wood-vinyl ones in spite of having the same thermally sealed 2pane inserts. The heat passes through the frame. Doors and sliding windows must be checked for twisted or warped frames that prevents them being sealed against the wind.

their own colours.

Penetrations of the walls and soffits by vents and pipes is a common source of outside air getting inside where the penetrations are not kept sealed, either by caulking, or in the case of large openings, by mortar. The pipes or vents must be secured so they don’t “work” and break the seal with the wall.

Flat Roofs

Some people do not like flat roofs but the author likes them, maybe just because they are easy to inspect. From an environmental point of view, they can result in less material being used than shingles, and on average, they have the potential to last a lot longer. Normal life spans of flat roofs range 15

A recent trend in window cladding has already caused water penetration and costly interior damage in two non-GTA developments recently visited. The problem is that the neat metal or vinyl cladding around the window makes it impossible to see or repair the caulking between the window frame and wall. While the cladding edges are straight, the brick or siding that abuts it is not. Therefore, rain gets behind the cladding and enters the wall where the caulking has failed.

Painting wood and metal parts of the common elements is a discretionary item, except that paint (or stain where suitable) preserves the substrate if properly applied. Most condominiums are very conscious of painting, but a problem develops in older townhouse projects where the painting and caulking get “out of step” on a unit by unit basis, i.e. units needing work get done sooner than those remaining in good condition. As far as colours being consistent from one unit to the next, most developments do not allow owners to choose Summer 2008

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to 50 years, depending on various factors, including maintenance of the roof, particularly with respect to repairs when leaks are reported. Some clients cannot tolerate a roof leak, in which case a roof expert should be brought in when the roof is 75% through its life expectancy to test the roof by cutting out small sections for analysis.

There are a lot of flat roofing systems. Inspections have given the author no personal preference for one roof type over another except to say that the decades-old 4 layer bituminous builtup roofing system (BUR) is still being installed, and is relatively easy to repair. When inspecting a flat roof, one looks for discontinuities such as cracks in sealant around equipment supports and drains, and breaks in the raised roof covering at the parapets and expansion joints. However, leaks are often hidden from the eye. The source on the roof may be several feet from the dripping below. Interviews or records are

needed to find out about leaks. An infra-red survey of a roof during suitable weather conditions can reveal wet areas and missing or failed insulation.

Ponds on flat roofs which periodically dry out are acceptable, but the growth of plant life is not, due to damage from roots. Ballast stone on high, flat inverted roofs can be scoured away at the upwind corners, as well as in areas where maintenance work is done. This results in damaged or visible filter fabric, which exposes the insulation to further damage.

Sloping Shingle Roofs and Drainage Everyone knows about your standard asphalt shingled sloped roof. Reserve fund planners give them a typical life of 20 years, but this can vary 5 years either way depending again on maintenance and also on the shingle type. Other factors affecting a roof’s life include

whether it faces south, and how much ventilation (cooling) occurs in the attic or ceiling space beneath. Shingles may curl a bit, or “fish-mouth”, but this does not necessarily mean that they leak. Many change their roofs rather than repair them, but deterioration of a valley usually determines that the entire roof should be re-done. By year ten of shingle life, bi-annual inspection is needed with re-sealing around roof penetrations such as plumbing stacks.

Detailed records of roof repair/replacement are very important for planning based on expected roof life since the inspector cannot necessarily tell visually whether a roof above a well ventilated attic is 2 or 15 years old except by on-roof inspection of the caulking of the roof appurtenances. Full townhouse inspection includes a sampling of attics to check the insulation. This includes seeing that insulation of ductwork in the attic conforms to code. In one new house, the author

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found insulation missing above the kitchen. Infra-red surveys in winter are useful for identifying insulation deficiencies but cannot be used in other seasons. The “blown insulation” in attics is often poorly leveled, and it usually covers the soffit vents preventing good attic ventilation. Today’s metal eaves troughs and downspouts will last many decades, given annual cleaning. On older roofs, there may be deteriorated wood fascia that can no longer hold the 7 inch eaves trough nails. Adding sheet metal covering of the fascia board does not necessarily stop the deterioration.

Today’s standards allow for long runs of slightly sloped eaves gutters, but in some places, owners want to add downspouts. A common design problem with new townhouses is downspouts pouring over a driveway with slippery ice formation on it.

Falling icicles from roof eaves that experiences temperature cycling from above freezing in the daytime to below at night is a difficult problem to solve. It is partly caused by design, e.g. where a valley of a gable or dormer terminates over the front door. Improper insulation or attic ventilation can add to icing problems. When icing cannot be controlled, a contractor is hired to manually remove the ice overhangs, or electric heat tracing is installed on the eaves.

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Fire Safety Systems

A basic check to look for code violations can be done by your inspector, but only specialists can ensure that all the rules are followed. However, high rise condominiums obtain an annual report from their specialist which can then be reviewed by the inspector who notes non-conformances.

Demising walls, i.e. the walls separating units, are invariably built to meet the fire codes. Older townhouses had concrete block demising walls (also called party walls) that have proved much more soundproof than the double-stud systems in the current building codes. So it is acoustics that is the issue with newer walls. Ceilings in stacked townhouses that permit insulated wood beam floors to separate an upper from a lower unit are often sources of sound transfer. Owners have made complaints about footstep noise in stairwells, about washing machines, and about adjoining elevators or garbage closets.

Common Interior Areas and Recreation Facilities

Carpet and décor may last from 5 to 20 years depending on: • the care taken by residents including their children,

• the quality of the carpet and wall coverings, and • the “quality factor” desired by the board of directors who presumably represent the wishes of the owners.

Sometimes good flooring is taken out just because the residents want updated décor. Ceramic or vinyl composite tile is often installed at the high wear areas of carpeted hallways.

Wallpaper is usually washable, durable, peelable vinyl or it may be absent so that paint is the covering for drywall on the corridors. In high end buildings, decorative wainscotting may be installed. Suite entrance doors are painted steel, embossed steel, or solid stained wood with cheap or costly hardware, and oak sills. Door frames are invariably painted steel. Ceilings are usually drywall except for the one or two floors where frequent access to hidden ducting is needed.

Renovation of lobbies and recreation facilities is strictly a discretionary matter depending on the choices made by the elected board.

Swimming pools are expensive to maintain. Outdoor pools are troublesome and many are abandoned, but they seem to be maintained where there are numerous children and the residents can tolerate the extra cost that appears in their monthly fee. Tennis courts,

however, are generally poorly maintained or are converted to basketball courts.

Mechanical Systems There is not a lot to say about elevators or garbage systems except that they are always well maintained due to enforcement by government inspectors.

Domestic water distribution lines are normally copper pipe and tubing. The older grades tend to develop pinhole leaks, especially in the hot water return lines. As for heating systems, the latest trend even in high rises is for units to have individual hot water tanks, or individual hot water/heating/air conditioning units. In older high rises, gas-fired central boilers tend to be replaced by rental units with service included.

Failures of the buried services such as water and gas lines, and sewers are actually not common. With storm sew-

ers, catch basins are subject to partial collapse of their concrete walls, or leaking of the connection with the line. Both failures will cause gradual or sometimes sudden undermining of the pavement beside the catch basin. Manholes may have similar connection failures.

Electrical Systems in High-rise Buildings Emergency generators usually have oil tanks for energy supply, but there are some gas-fired ones. The oil tanks now require dikes that can contain the entire tank contents. These generators are always tested monthly and fully serviced annually. The only question is whether their capacity is adequate to service all of the intended items, namely emergency lights, an elevator, hall and shaft air pressurization, fire pumps and consoles, and security systems, and for how long.

High-rise buildings lacking generators rely on battery-based emergency lights, fire alarms and safety consoles, and door opening controls. The inspector has to look for test reports.

Hallway and garage lighting are inspected including measurement of lighting levels with a lux meter. Subcode levels is a common finding.

Security systems vary from old master key entry to card reader and transponder types. However, virtually all garages have updated to modern types with keyed entry back-up. Closed circuit TV cameras are installed in all high-rise buildings and underground garages. The quality of the software and monitors, e.g. whether analog or digital, varies from building to building.

Driveways and Grounds With the grounds, the key areas of inspection are the irrigations system (if

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installed), and the trees (as to their condition, i.e. healthy, overgrown, ugly, etc.) The use of a landscape architect is always recommended.

Pavement deterioration is shown first by un-repaired cracks, then alligatorpattern cracking, and finally, the last stage of deterioration, pot-holes!.

Don Gratton is a consultant for J.J. Molnar Realty Advisors Inc. serving the GTA and Golden Horseshoe. Previously, from 2003 until mid-2007 he conducted performance audits, technical audits and did reserve fund studies for First Condo Group Ltd.. He has maintained a professional engineer s license in O ntario since 1969. Contact info@jjmolnar.com, or visit the website www.jjmolnar.com. â&#x2013;

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MAKING UP RATHER THAN BREAKING UP Dispute Resolution Techniques and Processes

BY DAVID F. ALEXANDOR, Q.C.

ondominium corporations are involved in a wide variety of disputes with different parties. Conflicts can arise with the declarant, with tenants, with adjoining condominiums relating to shared facilities, with property managers, or with suppliers. For the sake of simplicity and brevity, most references in this article will be to disputes with owners; obviously, the comments should be read in context.

Doing It Ourselves? Best Practices in Communication & Negotiation Are there ways in which disputes can be settled before they reach the formal conflict resolution processes of mediation, arbitration or the court system? Many professionals believe that a significant number of them can be successfully addressed by utilizing effective two-way communication processes. In other cases, there are techniques which, without resolving the disagreement, can still have the effect of minimizing hostility and distrust â&#x20AC;&#x201C; attitudes which often constitute obstacles to settlement.

We know that there are frequently a variety of underlying sources of disputes. Language barriers, differing values, psychological needs, history of relationships, emotional responses, cultural differences, misplaced assumptions, incorrect attributions of intentions â&#x20AC;&#x201C; all of these can contribute to conflict. The most common source is the absence of data: lack of knowledge and /or understanding of the rules, the obligations of the Board, the history of enforcement.

Property managers are frequently instructed to write letters to owners demanding compliance and warning of consequences. The correspondence may be read as criticism without justification. It may be construed as threatening or insulting, or viewed as minimizing a complaint the owner has made. Typical psychological responses include denial, defensiveness, and counterattack. These letters rarely address the underlying sources; they often have the effect of escalating the conflict.

So what can the Corporation do? Face to face meetings with the property manager and / or informal meetings with

members of the Board can be helpful. These can provide settings for open nonadversarial discussions which address many of the underlying sources of the dispute. Of equal importance, meetings can provide owners with the feeling of being heard; this usually results in demonstration of a greater willingness to listen. A focus on needs and interests in a respectful principled negotiation can result in a joint problem-solving attitude leading to an exploration of alternatives or outside resources for sources of information or guidance in the decision making process.

Can a Neutral Professional Help? Sometimes the involvement of a neutral third party provides a perspective and credibility where it does not otherwise exist. Accountants have been instrumental in providing independent opinions on issues relating to first year budgets and shared facilities. Engineers can be of assistance in dealing with disputes on structural defects, noise, or cigarette smoke. Where controversial changes in common elements are on the agenda for a general meeting, a Summer 2008

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professional facilitator can provide owners with an environment for discussion in which they feel their views are being taken into consideration and contributing to the end result.

An appropriate neutral fact-finder or evaluator can be a source of reassurance that issues are being appropriately and/or fairly exposed and dealt with. This is particularly true if all parties feel they have been involved in or at least consulted regarding these decisions.

Mediation: How and Why it Works Mediation is essentially facilitated negotiation. The mediator tries to help the parties reach a mutually acceptable resolution by structuring the negotiation, maintaining the channels of communication, helping parties draw out their strengths and recognize their weaknesses, participating in the clarification of issues and their implications on both parties, and helping them identify interests that might be motivating factors underlying the conflict.

Why can’t the parties do this in meetings with the property manager and with the Board? Mediation is designed to help the parties understand each other’s perspective. When we have disputes, we frequently do not “hear” the other party. This can be for a variety of reasons such as the ones mentioned as underlying sources of dispute. Positions taken and arguments made often fail to explain the interests of the parties and the reasoning behind the actions being taken. In a mediation session, everything is confidential; nothing said can be used as evidence or even repeated to anyone

vention of the Act, or a contravention of the declaration, by-laws or rules (as opposed to a disagreement with them), the mediation and arbitration provisions will not apply.

Gaps in the Legislation

after the session. This safe environment lends itself to the expression of concerns of how the other party’s actions currently or in the past have contributed to problems. Through questions and summarizing of each party’s statements, the mediator tries to ensure that each party listens to and hears the other party’s concerns and interests, and that the parties feel that they have been heard.

Under What Circumstances are Mediation and Arbitration Required? Section 132 of the Act requires that many types of disagreements be submitted to mediation and arbitration: with an owner regarding changes to the common elements under S. 98(1) or issues relating to the declaration, bylaws or rules; with the declarant on issues arising out of the first year’s budget or other agreements, with another condominium corporation on matters such as sharing of utilities or parking, and with a property manager. Tenants, other non-owners, suppliers and third parties are not bound by these provisions.

The section refers to “disagreements” relating to the condominium declaration, by-laws, or rules. It does not mention disagreements relating to the Act. Accordingly, if the dispute can be categorized as a disagreement or contra-

S. 134(1) Compliance Order - provides that an owner, occupier, corporation, declarant, or mortgagee may make an application to the Superior Court of Justice for an order enforcing compliance with the Act, the declaration, the by-laws, the rules or a shared facilities agreement between corporations . But S. 134(2) stipulates that if the mediation and arbitration processes are available, a person is not entitled to apply for an order under subsection (1) until the person has failed to obtain compliance through using those processes. The obvious question is what does “available” mean? The Act provides no guidance whatsoever on how that should be interpreted.

S. 135 - Oppression Remedy - provides that an owner, corporation, declarant or mortgagee may make an application to the Superior Court of Justice. Where the court determines that the conduct complained of is or threatens to be oppressive or unfairly prejudicial to the applicant or unfairly disregards the interests of the applicant, the court may make an order to rectify the matter. When is conduct to be construed as a disagreement with the declaration, by-laws or rules as opposed to “oppressive” conduct? Again there is no delineation between a “disagreement” under S. 132 and a scenario which can be addressed under the Oppression remedy.

These are significant “grey” areas. Case law in general has tended to support the requirement of submitting disputes to mediation and arbitration. Summer 2008

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However, in one case, the court found that an applicant under S. 135 who had demonstrated conduct oppressive or unfairly prejudicial or unfairly disregarded the interest of the applicant did not have to resort to mediation and arbitration notwithstanding that the conduct might be related to a disagreement about the declaration, bylaws or rules. In another case, the court implicitly acknowledged the validity of the framing of an application as a noncompliance dispute under other

party to send to the other party a Notice of Submission of the disagreement to mediation, a summary statement of the complaint issues, and the names and resumes of several qualified mediators, together with a demand for a Response within a reasonable time; the responding party should agree to one of the mediators named, or alternatively submit a list of other qualified mediators. If there is no Response to the original Notice, or no reply to the Response, or no ultimate agreement on choice of

process. It can stipulate that the decision cannot be appealed on the grounds of error in fact or law (subject only to the judicial review rights in the statute). What follows is a summary of some of the issues which can be addressed in such a by-law.

Preliminary: establishment of procedures for negotiation meeting(s) prior to formal mediation including exchange of written submissions and supporting documentation (which may address

The arbitration procedure can provide for a simplified, expeditious, and relatively inexpensive process. sections of the Act rather than as a “disagreement” which would have triggered the application of S. 132.

S. 56(1) authorizes the Corporation to enact by-laws to establish procedures with respect to the mediation of disputes or disagreements between the corporation and owners. Although the Act does not specifically refer to procedures for arbitration, having regard to the fact that the establishment of procedures for the arbitration process will minimize delays and costs in this area as well as in implementing the mediation procedure, the generally accepted view is that the by-law should cover both processes.

If there is no by-law, how is the mediator to be chosen and what are the requirements for setting up the mediation session? It is generally accepted that the parties have an obligation to act in good faith; if a party does not make a bona fide effort to enable the mediation to take place and the matter ends up before an arbitrator and subsequently in court, the risk is that costs may be awarded against the party that the tribunal considers has not acted in good faith. The best practices procedure is for one

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mediator, or a lack of agreement on any other issues surrounding the mediation, the mediation can be considered to have failed within the meaning of s. 132.

What happens next? If there is no bylaw in place, the Act requires arbitration under the Arbitrations Act of Ontario (the “statute”). Under the statute, an application can be made for the appointment of an arbitrator. The statute sets out in detail basic procedures and obligations of the parties and the arbitrator; the arbitration procedures can be lengthy, complex, time consuming, and costly. The hearing and reasons for the decision may or may not be private and confidential or precedent setting; the decision is not likely to be “creative”; and the decision of the Arbitrator can be appealed to the court based on error in law.

Best Practices in Drafting Mediation and Arbitration Bylaws A condominium by-law setting out mediation procedures can ensure that mediation is “available” within the meaning of S. 134(2). The arbitration procedure can provide for a simplified, expeditious, and relatively inexpensive

some of the underlying sources of dispute).

Qualifications of the mediator/arbitrator: setting out procedures for choosing a person who has formal recognized ADR training, mediation / arbitration experience, familiarity with the industry, and the appropriate background for the specific dispute. It may be legal, property management, engineering in a construction issue, or other relevant occupational or professional training and experience; qualifications may include membership in a recognized panel or association of qualified mediators such as the ADR Institute of Ontario or the Ontario Mandatory Mediation Program (court roster mediators). The Canadian Condominium Institute and the Association of Condominium Managers of Ontario can refer parties to members of their respective organizations who individually or as members of private ADR associations are qualified mediators and arbitrators.

Choosing the Neutral: the submission of names of qualified neutrals as referred to in a previous paragraph; if parties cannot agree, there can be a random “draw”; alternatively the by-law can provide for the administration of

the process. The ADR Institute of Ontario provides this kind of service: the Institute will submit names and resumes; in the event of an impasse, they will make the choice of the neutral.

Fees: The Act provides that each party shall pay the share of the mediator’s fees and expenses that the settlement specifies or, failing a settlement, that the mediator specifies. There can be significant power imbalances in disputes with owners. What are the ramifications when a party cannot or will not pay his or her share of the mediator’s costs? Does that mean that mediation is not “available”? There can be innovative solutions. When an owner stated prior to the session that he could not pay his share of the mediator’s fees, the parties agreed: the condominium would advance the owner’s initial 50% share of anticipated fees; failing agreement between the parties, the mediator would at the conclusion of the mediation determine the proportion of fees that each party should pay: and the condominium would have a lien for any amount payable by the owner which was advanced or paid for by the condominium. A by-law can establish various approaches for dealing with costs.

be on disputes with declarants, other condominiums or managers. Nevertheless, if the by-law is reasonable and generally in accordance with accepted standards and procedures, it is likely that most parties would agree to the provisions, and would be willing to proceed with the processes in accordance with the by-law.

Going to Court

It is acknowledged that in some circumstances a court application is the appropriate remedy. It can be faster. In some cases it will be less expensive. There are situations where it is evident that a

party is not acting in good faith and has no intention of doing so. Sometimes there are repeated instances of conduct categorized as a “disagreement”. Other papers and presenters at this Conference will address the advantages of going to court*. But it is submitted that in many cases appropriately managed ADR processes can provide a costeffective system for resolving conflict while preserving ongoing relationships within the condominium community.

In evaluating pros and cons of dispute resolution processes, consideration should be given to the potential benefits of mediation even when no resolution is

General: Other matters covered by the by-law might include: procedures for Notice of Mediation, time limits for reply, documents to be exchanged, location and deadlines for holding the mediation session, confidentiality requirements, authority to settle, circumstances relating to and consequences of termination of mediation. The arbitration process can be dramatically shortened: extensive authority can be granted to the arbitrator to simplify procedural and evidentiary rules; some arbitrations can even be based solely on documentation - agreed to by the parties or their counsel, or determined by the Arbitrator. Needless to say, these can result in a major saving in time and costs.

Application of By-law: Although a bylaw setting out procedures for mediation and arbitration is binding as between the condominium and an owner, it may not

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achieved? The parties gain a better understanding of the otherâ&#x20AC;&#x2122;s position. Agreement is often reached on at least some of the issues. Alternative solutions not previously considered may be explored. The parties may agree on an expeditious and simplified arbitration procedure. They may decide that the best approach is to utilize another neutral third party dispute resolution process. The communication which takes place often forestalls escalation of the dispute.

Conclusion ADR processes have proved to be effective time and cost saving approaches to conflict resolution in the court system and in many other industries and areas of community interaction. S. 132 in the Condominium Act is

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the introduction of the processes to an area where continuing relationships are fundamental to effective functioning and governance of the community. Adjustments were made in 2005 to the Ontario Mandatory Mediation Program in Toronto; many judges and lawyers believe that the system was substantially improved. It is hoped that the Government will in the near future introduce guidelines and procedures for the mediation and arbitration processes under the Act and take steps to clarify some of the ambiguities. In the meantime, the existing system can often produce positive results. *This Article is an edited version of a paper presented to the Canadian Institute Condominium Conference held March 29 - 30, 2007. â&#x2013;

CRIMES IN CONDOS BY PARK THOMPSON, C.A., ACCI FURLONG AND COMPANY

ith the computerization of business, there has been a large increase in the number of losses due to fraud or, to put it nicely, “white collar crime”. The condominium industry is no different, suffering its share of losses. A fraud survey conducted by a national accounting firm several years ago, reported that just over 50% of Canada’s largest 1000 companies had a fraud within the past year.

FRAUD AND HUMAN NATURE

A number of years ago I attended a seminar where some very interesting comments were made by a forensic auditor about the “face” of fraud:

• a statistic was given which spoke to the mind set of the general population. It said that 25% of people were good all the time and would never commit a fraud and 25% of us were rotten and would cheat and steal at every opportunity. The most amazing number to me was the one that said a full 50% of humans were undecided and could fall on either side of the fence depending on the situation. Potentially then, three out of four people or 75% could be bad apples.

This article will deal with some examples of fraud and steps that a condominium corporation should take to protect itself from such losses, namely, a strong system of internal control.

Prior to discussing internal control, it would be useful to briefly review the responsibilities and objectives of management (property management and the board of directors) and the auditor. Management’s responsibility is to safeguard the corporation’s assets from waste, inefficiency and fraud, and to prepare financial statements that properly reflect operations and financial position.

The auditor’s objective in conducting an examination of the financial statements is to express an opinion as to their fairness. The audit procedures used should normally ensure the discovery of any errors or irregularities that would have a significant or mate-

• an acronym which spells “G.O.N.E.” gives a good overview of factors often present in a fraud.

rial effect on the financial statements. The examination cannot provide absolute assurance that there are no significant irregularities because even the most complex system of controls and auditing can be circumvented by collusion, for example, a “kickback” from a contractor to a board member. It has often been said that auditors are “watchdogs not bloodhounds”.

G – Greed O – Opportunity N – Need E – Expectation (low) of beingcaught

• powerful drivers in the commission of fraud are the three R’s (not reading, writing, and rithmetic but) R – rum, an alcohol or drug dependency is often present R – race cars, a gambling habit is often present Summer 2008

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R – red heads, although a sexist comment, keeping the company of a woman or women at a higher spending level than affordable.

which were used to cover funds taken from other corporations. They also signed cheques that were not completely filled in so that the property manager was able to add a digit to the payment amount of the monthly management fee and then filled in the written amount to match.

SOME EXAMPLES Over the years I have been involved in the investigation of several frauds within condominium corporations. Some examples will illustrate the absolute necessity of a diligent board and a strong system of internal control: 1.

The fraud was completed by recording the extra one or two thousand dollars taken as the purchase of term deposits.

The corporation’s bank term deposits were registered under the name of the property manager instead of the corporation. The property manager needed money, cashed them and left town resulting in an average special assessment of $700 per unit to cover the loss.

The corporation had under 25 units so did not require an audit under the old Condominium Act. There had not been an operational board of directors in place for several years and financial statements were not prepared. One director took responsibility for the financial operations of the corporation. Unfortunately he needed funds, so over a number of years took corporation monies by forging the name of a former director on cheques.

Needless to say, had there been a board of directors reviewing expenditures, an updated list of bank signing authorities or an external audit, this fraud could not have occurred. Fidelity bond insurance would have protected the corporation from the loss. In this case a special assessment of $1,000 per unit was levied.

Several corporations were managed by the same property manager who did not have signing authority. Members of the board signed occasional blank cheques

A second kind of fraud was perpetrated by the property manager paying utility bills and then being reimbursed by the corporation. In essence, the same bills were presented for payment twice with the second payment being taken by the property manager. If the board had not signed incomplete and blank cheques, or had reviewed term deposit purchase receipts, these frauds could not have occurred. Approximately $100,000. was taken from these corporations.

The corporation allowed its property manager to “invest” its reserve funds over a number of years. It was subsequently determined that the funds had been stolen and a special assessment resulted. A board member of a condominium which required only one cheque signer billed the corpora-

tion for non-existent or unnecessary mechanical repairs. The cheque signer was either complacent or not paying attention.

We discovered two situations where a corporation’s guest suite income did not get fully deposited to their bank accounts. In the first one, the administrator was taking cash and was charged and convicted of theft. The second example was similar but since the paper trail was less complete charges were not laid. Both situations could

have been prevented if a closer eye had been kept on monthly revenues.

The head concierge of a condominium who was in charge of extra Security duty for overtime and the party room padded the hours of a guard. He was caught when a comparison of security costs and party room usage was matched.

Several interesting situations occurred in a large self managed corporation. While it was never proven, since charges were thrown out on a charter matter, there were allegations that the director was receiving a kickback which was extorted from a contractor.

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have artificially inflated the price quoted on repair jobs. Receipts which were submitted for reimbursement were described as being for “condominium type” expenses when in fact, were for personal consumption. A small and simple fraud occurred in a corporation when maintenance staff charged cigarette purchases

on the gas credit card claiming that it was for oil purchases. The property manager became suspicious at the apparent high oil use.

10. We discovered a theft in a condominium which had a bank account which was not a part of the corporation’s books and records. It was used to collect monies from owners which were later gifted to staff

as Christmas bonuses. It did not have the same controls as the regular bank accounts and the property manager used the account to steal funds. I have recently heard allegations of a similar situation.

INTERNAL CONTROL As previously noted, it is the responsibility of the board of directors to ensure that a good system of internal control is in place—to safeguard assets and produce accurate financial statements.

A general maxim of internal control is that one person should not handle all phases of a transaction from beginning to end. For example, review tenders, approve the contract, approve payment, sign cheques and record the transaction in the books. That is, a person should not be able to commit an error or fraud and then conceal it. The hardest part of a fraud is its concealment.

Having stated that the separation of duties within a corporation is of utmost importance, one inherent limitation of internal control is cost; it is simply too expensive for a small corporation to have different employees performing these separate duties. The effectiveness of a good system of internal control is also limited by human error and collusion. Perhaps the most critical factor in a condominium’s system of internal control is having a diligent board of directors which does not believe in simply “rubber stamping” its financial transactions. For example, it should carry out an in depth review of the monthly financial statements and carefully scrutinize supporting documentation before signing cheques. The Board should also have an established set of “conflict of interest” guidelines.

QUOTATIONS AND TENDERS If I was asked for one area that I think should be and could be easily strengthened, it would be the quotation and tendering process. 28

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Without question, a sealed or blind tendering process should be policy for larger expenditures. This entails receiving sealed tenders by a particular time and date, which are then simultaneously opened by the Board. For example, in a garage project, an engineer would be engaged to create specifications, qualify bidders and subsequently analyze tenders received after being opened by the Board. This helps to prevent kickbacks or secret commissions. As a result, the corporation is assured of getting the best price and quality and the Board and property management fulfill their responsibility of due diligence. The transparency of the process enhances credibility.

The expression “perception is reality” has become popular, meaning that it doesn’t matter what the actual facts of a situation may be, its how it looks to an outside observer. With more openness and clarity there is less room for rumour and innuendo.

As for a size policy, I have a large, self managed condominium client that uses a sealed tender for all work over $5,000. Most situations I see would be around the $25,000. range.

The industry standard of three quotes minimum should be obtained for Board review for most other sizable jobs.

Let me describe some examples where the perception or appearance of several situations upset unit owners: • the child of a highly respected Board member supplied the corporation with a small piece of a large redecoration project. A huge uproar followed and the member sold his unit and moved from the building.

• a Board member did work for the corporation and after a requisitioned meeting and a costly investigation, was voted from office.

• a property manager’s parent did some repair work for the corporation which caused a stir at the annual meeting.

• unknown to the Board, a property manager’s ex-spouse did repair work for the corporation. The manager was terminated for a number of reasons. • a Board member was voted from office when it became known that his wife was supplying services to the corporation.

• a property manager was fired for having a contractor added to the tender list that was being managed by the engineer project manager.

Sections 40 and 41 of the Condominium Act and its Regulations 16(4), and (5), discuss conflict of interest situations and the steps which must be followed. Some corporations also have a clause in their declaration or bylaws that sets out procedures that must be taken.

The following is a quick checklist of some additional internal controls: CASH

• a monthly bank reconciliation should be prepared, preferably by a person who does not sign cheques, with a subsequent review by a board member. • petty cash should be kept to a minimum. • the number of bank accounts in use should be limited to two in most cases: operating and reserve fund. • two signatures should be required on all cheques (which should be prenumbered) preferably one board member and the property management. • blank cheques should never be signed nor should cheques be made out to “cash”. • the receipt of assessments and other amounts in cash should be discouraged. • signing authorities must be updated with each change in the board.

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INVESTMENTS

• always in the name of the corporation and all transactions done in writing; copies of receipts/certificates maintained. • a detailed list should be a part of the monthly financial statements. • interest earned should be reconciled monthly. • for investments that are not government backed, the $100,000. deposit insurance limit should be recognized. • invest in only safe vehicles in accordance with the Condominium Act, declaration and bylaws; • the use of an “investment advisor/broker” provides another level of control with the added benefit of professional advice. COMMON ELEMENT ASSESSMENT

• a monthly aged report of owner’s assessment receivable should be prepared for board review. • arrears should be minimal and when necessary a lien should be applied per the board’s policy and the Condominium Act. OTHER ASSETS

• maintain a register of all substantial assets owned by the corporation including location. All items should be counted periodically. EXPENSES

• prenumbered purchase orders should be used to authorize all purchases over a predetermined amount, authorized by a director when over a predetermined limit. • cheques should not be signed for any expenditures unless proper supporting documentation exists; after payment, invoices should be cancelled by noting the date of payment, cheque number, account coding etc. • wages for all corporation personnel should be approved by the board of directors and minuted. 30

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REVENUES

• assessments and other recurring sources of revenue such as parking or rentals should be reconciled to the budget or contracts. • a register of prenumbered receipts and rental agreements should be maintained for revenues such as party room and guest suite rentals which could then be reconciled to the income recorded in the books. • cash from laundry room machines should be collected and counted by two persons. FINANCIAL STATEMENTS

• should be prepared on a monthly basis and compared to budget which will allow the board to identify unfavourable variances, trends and unusual expenditures. • many statement packages contain the detailed general ledger account transactions which allow a review of the month’s and year to date balances including adjusting entries made. FIDELITY BONDS

• the board should ensure that property management is bonded up to the amount of funds handled. • all board members and corporation employees should also be bonded since director’s and officer’s insurance does not cover fraud. MINUTES

• there is a debate about the amount of detail that should be contained in Board meeting minutes. • Minutes provide a historical record of decisions made and proof that the Board has met its responsibilities. It is important that sufficient detail is written. For example, I believe that the names of contractors who quoted on a job and their pricing should be noted along with the Board’s decision. ■

Hiring Practices and Human Rights:

Don’t Get too Personal BY RHONDA SHIRREFF, HEENAN BLAIKIE LLP

hile it is not illegal to ask candidates questions that relate to the protected grounds, caution is strongly advised. A Board that asks for information about, for example, a candidate’s religious affiliation or medical condition opens the door to a potential human rights complaint. The danger is that a candidate who has been passed over for legitimate reasons might seize the opportunity to allege that he or she has been the victim of discrimination.

It is important to hire competent and reliable employees. To that end, in order to make the most informed hiring decisions possible, employers (including condominium Boards of Directors) often try to gather as much personal information as they can from job candidates. What they need to remember, however, is that human rights legislation in Ontario places practical constraints on what information an employer may collect during the hiring process. Underlying human rights legislation is the concept that employment decisions should be based on a candidate’s ability to do the job rather than on personal factors unrelated to job requirements, qualifications and performance. The Ontario Human Rights Code (the Code) guarantees the right to be free from discrimination in employment on the basis of a number of protected grounds: race, ancestry, place of origin, colour, ethnic origin, citizenship, creed/religion, sex, sexual orientation, age, record of offences, marital status, family status and disability.

In light of the requirements of the Code, Boards must take particular care in drafting employment advertisements, requesting personal information on job applications, and interviewing promising candidates.

Employment Advertisements Advertisements should not directly or indirectly differentiate on the basis of a protected ground. Requiring “Canadian experience” or indicating a preference for childless applicants leaves employers vulnerable to allegations of discrimination. Instead, advertisements should describe requirements and expertise directly related to the job. For example, it is reasonable and job-related to advertise for a concierge who speaks clearly in Summer 2008

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Information requested on job applications should be limited to what the Board needs in order to make its initial assessment of the candidate. English. It runs afoul of the Code, however, to advertise for someone who speaks English “without an accent”.

Application Forms And Interviews Most employers understand that application forms should not include questions directly related to any of the protected grounds. What they often overlook, however, are requests for information or documentation that may indirectly reveal details that could lead to a human rights complaint. For example, it is a common mistake to ask for a candidate’s social insurance number prior to making a conditional offer of employment. What many employers don’t realize is that a social insurance number may be used to access other personal information, including a candidate’s age and date of arrival in Canada. Requiring candidates to provide details about the years they attended school or the name of the school itself could reveal the candidate’s age, religious affiliation and place of origin. Similarly, asking for a photograph of the candidate may reveal race or ethnic origin.

Information requested on job applications should be limited to what the Board needs in order to make its initial assessment of the candidate. The type of information that should be collected at this stage varies according to the position the Board seeks to fill. It is a bona fide inquiry, for example, to ask candidates applying for a position that requires driving a vehicle on or off condominium premises whether they have a valid driver’s license. Asking the same question of candidate for a concierge position, however, serves no reasonable purpose.

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Just as Boards should not ask for information on a job application that relates to a protected ground, so too should they avoid such inquiries during the interview process. Nevertheless, they may expand on the scope of bona fide job-related questions at the interview to the extent necessary to determine the candidate’s ability to perform the job.

Criminal Record Checks Because condominium employees often perform all or a significant part of their work on condominium premises and interact with residents and their families on a day-to-day basis, a Board may decide to make an offer of employment conditional upon a clear criminal record check. While this may be a prudent practice, it is important to note that the Code prohibits discrimination in employment because of a “record of offences”. The provisions of the Code suggest that an applicant, or an existing employee for that matter, may be subject to discrimination in employment (i.e. refused employment or fired) if he or she has been convicted of an offence under the Criminal Code and has not been granted a pardon. However, a Board will violate the Code if it refuses to hire a candidate because he or she has a criminal conviction which has been pardoned, or a conviction for a provincial offence, unless the Board can establish that a clear criminal record is a bona fide occupational qualification.

Insofar as inquiring about a candidate’s record of offences on a job application is concerned, the Ontario Human Rights Commission takes the position that the only permissible question on the application form is: Have you ever been convicted of a Criminal Code offence for which a pardon has not been

granted? During an interview, the Board may expand on this question, provided that this is necessary to determine the candidate’s ability to perform the essential duties in question. For example, it may be permissible to make inquiries to determine if an applicant is bondable, provided that this is a reasonable qualification of the job, or to determine if the applicant has a record of convictions under the Highway Traffic Act, if driving is an essential job duty. Above all, and throughout the entire hiring process, condominium Boards of Directors should gather only as much information as they need to find the right candidate for the job. Of course, if candidates volunteer extra personal information during an interview or on a resumé, the Board is free to discuss it with them. Even so, if the Board uses this as an opportunity to delve too deeply into a candidate’s background, it will run the risk of a human rights complaint from unsuccessful and disgruntled candidates.

With the foregoing in mind, Boards are well-advised to audit their hiring practices to ensure compliance with the underlying principles of human rights legislation. Boards looking to conduct a privacy audit may wish to have counsel review their employment advertisements, job application forms and interview questions to ensure that they do not contain requests for unnecessary and potentially problematic information.

Reprinted with permisstion from the Spring 2008 issue of The Condo Report published by Heenan Blaikie LLP. ■

A D VERTORIAL

A Successful Energy Savings Program at Two Aberfoyle BY JIM BOOK, CONDO BOARD DIRECTOR, MTCC 1398 ur successful Energy Savings Program at Two Aberfoyle has achieved an average of 32% savings in gas consumption and 18% in electricity consumption over the first two years. Savings and incentive payments have repaid the $165,000 investment in equipment early in the third year.

We feel good about our program. The energy savings are a reduction of 482 Tonnes of CO2 per year and equivalent to taking 135 cars off the road. For estimating data see: www.seen.org/pages/db/method.shtml

www.ecobusinesslinks.com/carbon_ offset_wind_credits_carbon_reduction .htm

Ours is a multi-storey, residential, condominium building with 116 suites on twelve floors, two underground parking levels, and with HVAC equipment on the roof. The common area on the first floor includes a party room, billiard room, exercise room, washrooms, change rooms and an indoor pool. The building was first occupied in 2001. Following is the story of the successful program. Hopefully this story may lead others who have not yet done so to pursue a similar program. Some technical, estimating and financing details have been included that may be of

interest. Some helpful suggestions are made based on our experience.

Developing the Recommendation of Projects In 2004 our Board of Directors decided to pursue energy savings and an Energy Savings Committee was formed. One source of energy-saving ideas is found at the CHMC website (www.cmhc.ca/en/inpr/bude/himu/wae nsati/index.cfm ).

The City of Toronto Better Buildings Partnership website (www.toronto.ca/ bbp/index .htm) lists prequalified energy management firms. Representatives of the three firms toured the building, provided written proposals, and then presented those proposals to the committee in evening meetings.

One of the proposals included an estimate from Enbridge of the gas-savings incentive payment to be earned. A copy of their calculations allowed us to estimate gas savings for the individual projects.

In reviewing the estimates, we learned the airflows appropriate for the Make Up Air (MUA) unit which delivers air to the corridors. The calculations estimated the gas savings to be expected by reducing the airflow and by decreasing the temperature setting in the heat-

ing season. A lower air flow during the cooling season and at a higher temperature would also result in air conditioning electricity savings.

We also learned that 90% of the gas consumption for boilers is taken care of by 50% of the capacity. This allows one high efficiency boiler, with half the capacity of the system, to capture nearly all the savings that would be available by replacing all of the systemâ&#x20AC;&#x2122;s capacity. This is described as a lead/lag system, with the high efficiency boiler as lead boiler and the remaining boiler or boilers as lag or backup boilers.

Projects Recommended by the Committee: 1) Variable Frequency Drive (VFD) on the Make Up Air (MUA) Unit ($10,395) 2) T8 Lighting and Electronic Ballasts to Replace T12 Lighting in the Parking Garage ($11,100) 3) Carbon Monoxide (CO) Sensors to Control Exhaust Fans in the Parking Garage ($10,050) 4) High Efficiency Condensing Boiler and Savastat Control to Replace One of Two Atmospheric Domestic Hot Water (DHW) Boilers ($43,740) 5) High Efficiency Boiler and Savastat Control to Replace One of Four Atmospheric Fan Coil Boilers and Summer 2008

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Repiping to Provide a Primary/ Secondary Loop ($51,675) 6) High Efficiency Boiler and Savastat Control to Replace One of Two Atmospheric Prime (Common Area/Pool/Slab) Boilers and Repiping to Provide a Primary/ Secondary Loop $(36,775) Total Cost $163,735

Response of the Board The Board was concerned about the reliability of the savings estimates. For payback time calculations, it is better to be conservative in order to not overpromise and under-deliver. For this reason the savings estimates were reduced by 10% to 25% to be conservative. The electricity savings for the T-8 Lighting and CO Sensors projects, expected to be reasonably accurate, were reduced by 10%. For the MUA VFD both gas and electricity savings

were reduced by 15% and the gas savings for the Boiler projects were reduced by 25%.

At the time our gas contract was about to run out, and we were facing a gas price increase. Gas contract price information can be found at www.energyshop.com. We expected inflation in the electricity price as well. Expected increases were included in the payback time calculations. The result was payback times of 0.2 years for the MUA VFD, 1.5 years for the T8 Lighting, and approximately 5 years for the CO Sensors and Boiler projects. The overall combined estimated payback time was about two years.

The first three projects were additions of equipment. The three boiler projects required replacement of three four-year old boilers which was cause for concern. However, references provided by a quoting firm indicated that savings of 25% and more were achievable.

Financing and Implementing the Projects

The Board took a cautious approach and first proposed to pursue the first three projects which were less expensive than boilers and had faster payback. This is sometimes described as “picking the low-hanging fruit”. There is a danger that the more costly and slower payback projects, i.e. the “higher-hanging fruit”, will not get picked. The expression “Show me the money!” also was heard, supporting the cautious approach in order to demonstrate savings, gain credibility, and supply cash for financing further projects.

After reviewing all financing options, the Board decided not to borrow money but to finance the projects from the surplus or operating fund. Fortunately the latter was healthy as a result of a significant increase in fees in the early years to provide cash for projects and improve the health of the Reserve Fund.

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Also, in our case, interest on borrowed money would increase the payback time. At this time the building was only 4 ½ years old, so the Reserve Fund for future major maintenance and replacement could not be used. It would be helpful to financing if the Condominium Act would permit borrowing from the Reserve Fund for energy-savings projects under the guidance of the engineer responsible for the Reserve Fund Study. Other government incentives would have been welcomed as well.

The next step was a town-hall meeting with suite owners to acquaint them with the program. Support for the program was good, so good that the fourth project, the DHW Boiler Project was added to the list. The surplus was able to finance it. The plan was to finance the remaining two boiler projects from savings from the first four projects. The end result was a three-year program. The spending in each of the three years was less than 10% of our annual budget. According to Section 97 of the Ontario Condominium Act, the changes were not “substantial” requiring a 66 2/3% vote in favour by owners, but requiring notification of owners.

The first four projects were carried out in the fall of 2005, the fifth in the fall of 2006 and the sixth in the fall of 2007. Charts 1 and 2 show the gas and electricity consumptions for 2003 to 2007, and a projection for 2008.

Chart 3 shows the costs of the projects, the expected cost savings in each year, and the actual savings versus the average costs before the program. 2008 is again projected. Note that gas savings incentive payments are included.

There were several reasons for exceeding expectations in 2006, the first year. It was a milder winter, possibility 10% milder, saving gas (weather data can be found at www.weatherdatadepot.com/ dd.asp). The indoor pool was shut down for a significant time, saving both gas 40

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ing the air conditioning seasons which were not estimated beforehand. There were also probably some electricity savings from replacing incandescent light bulbs with compact fluorescent bulbs. Note also that there was an Enbridge gas incentive payment of $12,000, which had been included in the estimates. The achieved savings provided credibility for the program. As a result the Fan Coil Boiler System Project was approved for installation in the fall of 2006.

Savings exceeded expectations again in 2007, the second year. The winter was similar to those before the program, but again there were a pool shutdown and unestimated MUA air conditioning and other lighting electrical savings. No incentive payment was received or estimated for that year. The savings provided cash for the expected gas price increase and for the third boiler project, installed in the fall of 2007.

and some electricity. There were electricity savings from decreased airflow and increased MUA temperature dur-

In the third year, with the addition of the Prime Boiler Project, a further reduction of MUA airflow overnight, and a further Enbridge incentive, we expect savings to exceed those of the second year, providing the weather is similar to the pre-program levels and there is no significant pool shutdown. For the first three years of the program

we expect to reach 96% of the gas savings estimates used in the payback calculations and exceed the electricity savings estimate by 75%.

The costs of the program have been repaid by savings and incentive payments early in 2008, the third year.

Some Information Based on Our Experience

Total Gas Savings

We suggest that gas savings of 25% or more from the installation of high efficiency lead-boilers in existing atmospheric boiler systems, combined with similar savings from the installation of a variable speed drive and lower temperature settings on the makeup air unit can result in savings of 25% or more of the total annual gas consumption.

We strongly recommend that Enbridge provide estimates of the gas savings and incentive payments for use in determining payback times. Note: This article is condensed from one with more technical detail and suggestions which may be found at www.ccitoronto.org. â&#x2013;

Variable Frequency Drive (VFD) on the Make Up Air (MUA)

Airflow of 100 to 120 cfm per suite is considered adequate to control cooking odours and provide ventilation to the suites. During non-peak times, e.g.; overnight, even lower airflows are suitable. Reducing the temperature setting during the heating season and increasing it during the cooling season result in further gas and electricity savings, which combined can result in savings of 25% or more and a payback time of a fraction of a year for the Variable Frequency Drive. Carbon Monoxide (CO) Sensors to Control Exhaust Fans in the Parking Garage

Cost will depend on the number of sensors. One rule of thumb is one sensor per 10,000 square feet, but layout will be a factor as well. Savings of 90% are achievable. Boilers

Our atmospheric boilers were rated at 75% efficiency. The high efficiency condensing boiler is rated at 95%. Repiping reduced standby losses. The Savastat load compensation control monitors the load on the boiler and provides added savings. The Enbridge calculations included estimates for the above savings and additional annual savings for the whole system.

The same comments as above apply to the Fan Coil and Prime heating boilers except that they are rated at 85% as there is no cold water supply and therefore no condensing feature.

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WINDANCER Wind Turbine Reinvented BY MICHAEL JOSEPH LIVELYPOSSIBILITIES.COM

n 1973 the world experienced its first oil shock, when OPEC reduced output causing oil prices to spike and long lines at the pumps for gasoline in the United States plus a great deal of uneasiness world wide. It happened again to a lesser extent in 1975 and in response, the international community brought forth alternative energy products one of which is the three bladed wind turbine patterned after the airplane propeller and still in usage today.

In 2005 two people from Southern Ontario Dr Alfred Mathieu and Sharolyn Vettese wondered if a wind turbine couldn’t be developed for residential and commercial use in addition to the mega watt wind projects. Dr Mathieu headed up development

projects in Africa on behalf of the United Nations and so was schooled in the art of “making do.” That thinking was incorporated into the design of the wind turbine. The rationale was “less is more”. By not over engineering they were able to keep moving parts to a minimum. In fact there is only one, the alternator shaft.

Sharolyn was part of a citizen’s coalition in 2003 making recommendations to the city regarding wind and shadow effect from a proposed high rise tower complex that was planned for Yonge Street north of Sheppard. The city determined that there would be no appreciable difference in the wind profile as a result of that development. It turned out the city engineers miscalculated and a year later when construction was complete swirling and acceler-

ated winds were the result.

She then wondered what could harness these energetic winds and the idea to develop Windancer (as the turbine is called) was born.

Together with Dr Mathieu, himself a mechanical engineer, they researched what was available on the market at that time. It surprised them to find out that there didn’t exist anything that would conform to noise by-laws, able to sit atop a high rise tower or be retrofitted to a single family dwelling.

They asked themselves, why is it, that particular design has remained the same since 1975? The biggest factor working against the use of wind turbines for an urban setSummer 2008

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ting was noise or rather vibration. They thought if they could eliminate that element they could have something suitable for a residence that would be both silent and durable. Once that problem was addressed, at least on paper it then became evident that the next situation to deal with was weight. Weight stems from blade length and blade length is the result of the large gaps between the blades (wasted space). Finally they arrived at a design using eight blades instead of three, giving it a lot of power and torque but compact in size. No gears, no electronics and a direct drive alternator instead of a generator.

Another question they asked themselves was, if a megawatt turbine sits atop a thirty or even a fifty meter tower why not take advantage of an under utilized resource, the roofs of high rise buildings. Still it was only on paper and nothing was built even though the plans looked good. If a high rise building or even a

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detached home was to use one of these, maintenance would have to be kept to a minimum. To accomplish this, not only would there have to be fewer moving parts, but an instant remote shut

down system would have to be incorporated.

To stand up to an Ontario winter and the new weather patterns Environment

Canada says are in store for us, all blades are lassoed to the arms, the arms themselves are lassoed to the body as is the tail.

Another year and two designs later eight patents were applied for, five of which are safety related. Dr Mathieu is reluctant to discuss how they work until they are a little further along in the patent process. This much he would say, in gale force gusts three bladed models have to be shut down, not so with Windancer. An automatic device turns Windancer to an oblique angle to the wind thereby slowing it down but not stopping it. When the winds die down Windancer turns itself automatically back into the power band (patented process). Should there be an emergency, Windancer’s automatic shut down system comes into play (patented process).

winter including gale force gusts and two ice storms without a glitch.

In October 2007 Windancer was entered in the engineering sector of a design contest sponsored by the Globe and Mail. They thought they had a decent chance and the engineers agreed. Windancer won the gold medal in the Design Exchange 2007 competition beating out products submitted by multi-national corporations.

Sticking to sound engineering principles brought forth a product that has good economics as well as sound design. Already a residential model powers a home in the GTA and two commercial models purchased by a condominium developer will be on rooftops of high-rise buildings, by spring of 2008.

They may sit atop high-rise buildings but you could say this is electricity production at “street level”. It too can make a difference along with the megawatt wind farms. In 2001 Micheal and Jacqueline Joseph created livelypossibilities.com, helping companies in the marketing of recently patented products.

In 2006 Lively Possibilities began marketing for Wind Simplicity and their product Windancer a new design of wind turbine. Michael Joseph www.livelypossibilities.com michael@livelypossibilities.com

■

In 2006 a small high tech manufacturer was located in Southern Ontario who understood what was trying to be accomplished. They built the prototype of Windancer and put it outside their plant for field testing. Nine months later the testing showed no adjustments were needed, proving they got the prototype right the first time. In the nine months that Windancer was field-tested it came through an entire

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Seeking to Grow Enthusiasm for Balcony Gardening BY JUSTINE COOKE

ummer is upon us and it’s time to transform that barren balcony into an urban oasis. Is your balcony currently a concrete wasteland punctuated by empty pots? Maybe you want to extend your living space outdoors but aren’t sure how to get started, or you’re just looking for inspiration to germinate your own ideas.

contact info to the greenest thumbs in Toronto. A quick perusal of the Toronto Master Gardeners Fact Sheet on Container Gardening is a good primer for your trip to the nursery. Find out about the Master Gardeners Q&A online or telephone services. Groups can book a Master Gardener for a free on-site seminar.

The folks at Toronto Balconies Bloom want to help Toronto’s balconies to blossom. With a newly launched website, this volunteer project hopes to inspire, inform and help grow a broad community of balcony garden enthusiasts.

Inspiring Ideas The Toronto Balconies Bloom website is designed to nurture your horticultural instincts. Photos and stories of local balcony gardens include helpful information, such as the direction the blogger’s balcony faces and the growing conditions on it so you can compare them with your own. 46

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Even if your ambitions don’t extend beyond a couple of pots of geraniums, you’ll appreciate the spectacular Landscape Ontario award-winning balcony gardens.

If you have inspiring photos and tales of your own balcony garden, the site organizers urge you to send them in for inclusion into their growing gallery.

Informing Tips and Expert Links The Toronto Balconies Bloom website is a hub, providing helpful links and

Check out the down-to-earth but stylish You Grow Girl website, where laid-back urban gardeners can learn how to over-winter a red pepper or transform an ugly plastic container into something worthy of all their gardening efforts.

Does your balcony face north or south? Local gardener Louise Warner gives tips about which easy and decorative annuals to choose, based on whether your balcony gets a lot or a little sunlight. (Here’s one: leaf lettuce makes a beautiful and edible container plant!)

And don’t forget to watch for gardening-related incentives from the retail supporters of the project.

Growing Community – Demonstration projects Toronto Balconies Bloom will showcase a variety of balcony gardening projects across the city with the goal of sharing inspiring and educational experiences. A group of any size will qualify – friends, neighbours or communities – any group that wants to garden balconies gather together to share collective wisdom and wacky or wonderful experiences.

Toronto Balconies Bloom invites you to join the growing ranks of gardeners who are getting down and dirty in the city. It’s a fun and affordable way to expand and beautify your living space. Justine Cooke is a Toronto-based writer currently plotting her own balancy garden. ■

Check out the Toronto Balconies Bloom website at www.torontobalconiesbloom.ca!

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Enforcing Your Lien in a Recession BY LOU NATALE B.A., LL.B. FOGLER RUBINOFF LLP n the wake of concerns that a slumping U.S. housing market and recession will soon migrate north, condominium boards and property managers should ready themselves for a general increase in common expense arrears. Not only will some condo owners not be able to pay their realty taxes, mortgage payments, credit cards and car leases, it is quite likely that the monthly common expenses won’t be paid either. Stories of condo unit owners and investors “walking away” from their units and leaving the banks and condominium corporations to pick up the pieces, will not be stories of fiction but ones of reality.

While I am optimistic and confident that the inevitable “cooling off” of the condo-housing market in Ontario will not match what has happened so far in the U.S., I think it is prudent and necessary for boards of directors and managers to prepare themselves for the negative fiscal and administrative impacts arising from an increase in common expense arrears and the resulting cashflow issues.

In many cases, once a lien is registered against a unit, the lender holding a mortgage on the unit will typically payoff the arrears quickly if the owner fails to do so. However, for various reasons,

some lenders either choose not to pay the arrears or will wait until the corporation issues a power of sale. All along, the corporation is left to deal with the account receivable and the reduced cash-flow. What happens if there is a surge in the number of owners who stop paying their common expenses, as is expected with an economic slow down? Some boards will be faced with the dilemma of not having enough money to pay bills for operating expenses or having to defer important repairs and replacements.

How can a board of directors avoid or limit the negative impacts of a recession and the resulting cash-flow problems? Here are some recommendations which can be considered (if not already implemented by your corporation):

1. When to register a lien

Section 85(2) of the Condominium Act states that “the lien expires three months after the default” in common expenses arises. Many boards and managers wait until the owner has failed to pay 3 months before sending a Form 14 and instructing the lawyer to register a lien. Waiting until the third month may be considered to be a compassionate

approach to an owner who is unable to pay common expenses, however, it is not necessarily the best corporate fiscal policy. By the time the lien is registered, the owner is already 3 months in arrears and it could take many more months by the time the corporation eventually recovers its money. In some cases, it could take over a year for a corporation to get paid if it is required to obtain a court order to evict the owner or tenant, list the unit for sale and then find a buyer and close the sale. To reduce the time-frame to collect arrears, a board of directors could pass a resolution with instructions to the manager to proceed with a Form 14 early in the second month of arrears and then register the lien by the end of the second month. The board can also consider taking a stricter approach by registering a lien by the end of the first month. This may be considered rather harsh, however, it may be appropriate where a corporation has a serious arrears and cash flow problem and requires immediate action.

2. Enforcing the lien

What does this mean? According to Section 85(6) of the Act, a lien “may be enforced the same as mortgage”. The three most effective means to enforce a lien are (i) power of sale (ii) Summer 2008

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statement of claim seeking an order for “possession” of the unit and (iii) notice of payment of rent served on a tenant. Depending on the circumstances, the corporation may use one or more of these enforcement tools to collect the arrears. The key is to commence enforcement proceedings quickly and effectively. Boards should consider passing a resolution which contains general instructions to their managers and solicitors to automatically proceed with enforcing a lien between 30 and 45 days or sooner following the registration of the lien unless satisfactory

property for sale and enter into an agreement of purchase and sale. Before this can practically happen, however, the corporation must first obtain “possession” of the unit, which means the owner has either been evicted from the unit through a court order or the unit has been voluntarily vacated by the owner, or in the case of a unit occupied by a tenant, that the tenant is paying rent to the corporation and is co-operating with the corporation by permitting access to the unit. “Possession” of the unit is essential to permit the appraiser and real estate agent to have

and therefore the length of time to obtain “possession” of the unit will be extended.

(iii) Notice of Payment of Rent: Section 87 of the Act permits the corporation to serve a written notice on the tenant of a unit requiring that tenant to pay all future rent to the corporation until all common expense arrears have been paid in full. If the tenant fails to pay his or her rent to the corporation, the lease may be terminated by the corporation through a court order pursuant to Section 134(4) of the Act. As you

The key is to commence enforcement proceedings quickly and effectively. arrangements have been made by the owner or lender to pay off the lien. Keep in mind that all legal costs associated with registering and enforcing the lien are the sole responsibility of the defaulting unit owner.

To understand why it is so important to proceed quickly with enforcing a lien, boards of directors and managers should be aware of the estimated length of time it can take to collect the arrears when the owner or lender does not pay the common expenses:

(i) Power of Sale: Technically, a power of sale can be issued immediately after the lien is registered, however, the practice is to allow a reasonable period of time for the owner or lender to pay the arrears after receiving written notice that the lien has been registered. Assuming that the corporation issues the power of sale 30 days after the lien is registered, the law requires the corporation to allow the owner the right to “redeem” or pay off the lien for a period of at least 45 days without the corporation taking any other enforcement steps during this “redemption period”. After the expiry of the 45 day redemption period, the corporation can list the

access to the unit during the listing and sale process.

(ii) Statement of Claim: Immediately after the lien is registered, the corporation is entitled to issue a Statement of Claim against an owner seeking an order for “possession” of the unit. Generally speaking, the Claim is not issued until after the power of sale is issued and the “redemption period” has expired. Like all Statement of Claims, the owner-defendant has 20 days to file a defence. If the owner does not defend the Claim, the Corporation’s solicitor can move to obtain default judgment and an order for possession which could take as long as 30 to 60 days. After the default judgment is obtained, there is a fairly lengthy and paper-driven process to direct a Court Sheriff to evict the occupant of the unit.

The eviction process can take another 30 to 60 days or longer. As you can see, the length of time to obtain a default court order for “possession” and to have the occupants evicted from the unit can take up to 6 months or more. Of course, if the owner defends the Claim, the corporation will have to take additional steps to obtain a court order

can see, this can be a quick and effective method of collecting arrears from units that are rented by tenants. As soon as the lien is registered, if the owner or lender fails to quickly pay off the arrears, the corporations should consider using this enforcement procedure. The manager should notify the Corporation’s solicitor that the unit is occupied by a tenant.

(iv) Conclusion: By understanding the enforcement tools available to corporations to collect common expense arrears and by Board of Directors passing resolutions which implement general instructions to managers and solicitors, there is a much better chance that a corporation will be better able to weather the storm of an economic recession which is bound to migrate from south of the border.

Lou Natale is the head of the Condo Law Group at Fogler Rubinoff LLP which services the condominium industry throughout the Greater Toronto Area, the Golden Horseshoe and Cottage Country. ■

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ACMO-CCI Government Relations Committee BY ALEXANDRA KYRIAKOS, GLOBAL PUBLIC AFFAIRS INC. The joint CCI and ACMO Legislative Committee has been busy lately with its efforts to raise the profile of their respective organizations and their issues with the Government of Ontario. The joint committee, which is represented by two members from CCI (Toronto and Area Chapter) and two members from ACMO, has undertaken several activities to help further their goal of recognition for the condominium sector and for a greater government understanding of condominium sector issues.

Many CCI and ACMO members will recall the last minute efforts that the organizations undertook last summer when the Ministry of Energy was preparing to implement its smart meter policy initiative which would have made it immediately mandatory for all condominium corporations in Ontario to install smart meters in their buildings. Although CCI-ACMO was successful in helping the government to understand the implications of the implementation of its policy for the condominium sector, the experience highlighted a communication gap in the CCI-ACMO relationship with the government.

Reflecting on this, the ACMO-CCI joint committee felt that the organizations had to do a much better job of educating government about the sector. They also felt that they had to create a more partnership like approach with government so that CCI-ACMO would be in a position of representing the views of their sector whilst the government was in the process of developing their policies as opposed to representing their views once the government had 52

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already made their policy decisions.

As part of their renewed efforts with the provincial government, ACMOCCI has engaged a government relations consulting agency, Global Public Affairs Inc. (Global), to help them develop a more focused government relations program. Global, with the help of the committee members, has laid out some of the key priorities and objectives of the organizations. These include profile building, condominium legislation reform and consumer education.

Profile Building

Building a strong profile with the Ontario Government, or any government for that matter, requires a long term commitment to getting to know the government officials who influence and make policy decisions affecting your sector. And it requires a long term commitment to getting these officials to know and understand your organization.

The joint committee members have already completed a series of initial meetings with some of the key elected and non-elected officials who influence condominium sector policy. These meetings have been successful in that the government has acknowledged the need to narrow the communications gap and the need to work more closely with the sector to better understand their issues. For CCI-ACMO, the goal is to continue to meet with these officials on a regular basis in order to develop a more communicative relationship that will lead to mutual trust and a high level of credibility for the organizations.

Recognizing that a successful partnership is usually a two way street, the joint committee members understand that not only do they need the governmentâ&#x20AC;&#x2122;s help to achieve their goals but the government truly needs the sector in order to be better able to make good policy decisions.

The unprecedented boom in condominium development in Toronto and the GTA over the past decade has clearly impacted the housing sector in this region creating a different array of issues for policymakers. Do government policymakers understand all of the issues and do they have all the accurate information necessary to make the best decisions possible? Most often the government depends on sector experts for knowledge and sound advice before moving forward with an initiative. CCIACMO are well positioned within the condominium sector to provide the Ontario Government with the knowledge and expertise that it is lacking in order to move forward with good policies, programs and legislation for this housing sector.

Condominium Legislation Reform

Condominium legislation reform is an area where CCI-ACMO has an enormous amount of valuable information and expert advice to give to the government. The joint committee members have been very busy ensuring that their organizations are prepared to present a legal brief with their recommended changes to the current Condominium Act, 1998. The Ontario Government has indicated its interest in receiving this important input as it seeks to ensure

that the current condominium legislation is as relevant and effective as possible. The joint committee’s advocacy efforts are currently focused on this issue.

Consumer Education The last (but not the least) important priority for the government relations committee vis-à-vis the Ontario Government is a greater consumer education presence in the marketplace. The committee believes that the boom in the condominium sector has not been well matched by an increase in consumer awareness of the rules, responsibilities and lifestyle implications of condominium ownership. For example, CCI-ACMO members well know that the majority of condominium owners are not likely to be aware of the fact that there is an accreditation process for condominium property managers—a very important piece of information for prospective condominium buyers as well as current owners. The Ontario Government, which plays a significant role in consumer protection including consumer education in a wide range of areas, has the capacity to develop educational initiatives for the condominium sector. The CCI-ACMO committee would like to build on this capacity and has been advocating for a working partnership with the Ontario Government to deliver more and better consumer protection information that will benefit all Ontarians who live in this exciting and vibrant housing sector.

The CCI-ACMO joint legislative committee believes that they have made some substantial headway in articulating their objectives and in beginning the work necessary to implement their plan. They are realistic about the work that needs to be done but they are excited by the progress to date and are confident that the Ontario Government will listen to CCI-ACMO as it plans its initiatives in this important sector of the economy. ■

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Hands-On Management Individually Designed and Tailored To Meet And Exceed Your Communities Needs

jvero@veropropertymanagement.com www.veropropertymanagement.com

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

1256 Cardiff Blvd., Unit A Mississauga, Ontario Phone: (905) 696 (8376) Fax: (905) 696-0729 Condominium Property Management Specialists

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SPECIALIZING IN COMPLETE PROPERTY MANAGEMENT SERVICES: Residential High-rise & Townhouse Condominiums Industrial & Commercial Condominiums For more information, please contact: Gary Atkin, RCM, ACCI Matthew Atkin, RCM, CMOC, ARM, CPM or Nathan Atkin, B.A., RCM

Member’s Corner

CCI Toronto Welcomes the Following New Members Corporate Members DSCC # 0213

DVLCC # 0208 HSCC # 0526

MTCC # 0757 MTCC # 0935 MTCC # 1113

MTCC # 1132 OCC # 0013

PCECC # 0810

PCECC # 0827 PSCC # 0817

PSCC # 0819

TSCC # 1446 TSCC # 1855 TSCC # 1870 TSCC # 1883 TSCC # 1891 TSCC # 1897 TSCC # 1899 TSCC # 1903 TSCC # 1904

TSCC # 1906 TSCC # 1911

TRCECC # 1102

YRSCC # 1095

YRSCC # 1104

YRSCC # 1109

Individual Members E. Mateus B. Butler W. Karaszewski N. Roth

Professional Members

Lavonne McCumber Eals A Place for Mediation

Heather Warner Atrens Counsel Insurance Brokers

Paul Chisholm Berkley Property Management

Steven Liu Build Max Limited Vinay Kumar Caldwell Banker

Marco Graziani Fine & Deo LLP

Ada Clarke Simerra Property Management

New Trade Members Sandra Ruales CSP Window Cleaning

Michael Grist Professional Choice Services Inc. Paula Dinis Sure Seal Crack Injections Company Ltd.

Mario Robeiro Triumph Roofing and Sheet Metal Inc.

Don’t Forget to Renew Your Membership for 2008-2009! By the time of this mailing, you will have already received your membership renewal invoice for the 2008-2009 membership year. Please take the time to review and update all contact information and send your renewal back to us at your earliest convenience.

Condo corporations in particular are requested to ensure that we have an up to date listing of all current board members in order that they may each receive magazines and other information from us. New this year, is a request to provide us with the name of a Board member who will serve as the CCI Liaison contact (see full details in Bill Thompson’s article on page 59).

Continued support through your membership is appreciated and we thank you for your confidence in CCI. A strong membership provides CCI with a large collective voice to advocate on your behalf with various levels of governments on matters important to condominiums.

Kevin Scholes Willowbrook Landscape Contracting Inc. Toronto and Area Chapter

Summer 2008

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Call for Article Submissions 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.

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In Memoriam

Henry Cohen Henry Cohen lead a remarkable life. At the age of 11 he contracted an illness which left him partially immobilized for the rest of his life. Notwithstanding this setback at such an early age, Henry overcame this challenge with grace and good humour and it never affected his ability to reach the highest levels in his field.

His sudden passing on May 8, 2008, will leave a void in the condominium field and many of us who had the opportunity to get to know or work with Henry, known to many readers of the CondoVoice as “Mr. D”, will miss his knowledge, charm and tireless dedication to the condominium community.

Henry had an accounting background and worked for many years in the property management field. During this period Henry also served as the longest standing president of the board of YCC #74. Once Henry retired as President of the Board, he was elected to the CCI Toronto Board in 2001 where he served on the Special Projects, Ethics and Membership committees.

The entire condominium community mourns Henry’s passing and sends along sincere condolences to Henry’s constant companion on his life’s journey, his wife, Lynda.

Submitted By Denise Lash Past VP of CCI Toronto National CCI director

Summer 2008

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DONNA SWANSON ACCI, FRI

Real Estate Brokerage

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 & Di recto r and a Pas t Pres i dent • 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

Check out the “Members Only” section on the CCI Toronto Website!

www.ccitoronto.org 58

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Toronto and Area Chapter

CCI Needs You! BY BILL THOMPSON, RCM, ACCI CHAIR, CCI TORONTO MEMBERSHIP COMMITTEE ow many times have you read well-meaning advice in this publication urging you to “Communicate, Communicate, Communicate”? That advice is the answer to almost every question and the solution to every problem in the condominium arena. CCI Toronto has now decided that we should take our own writers advice!

By the time of this mailing, you will have received your Condominium Corporation renewal package from CCI Toronto Chapter. Part of that package is a new area asking each board to appoint a member of their Condominium Corporation as the “CCI Liaison” – to become a communication conduit between the board and the CCI Toronto Chapter. This important new position will fulfill the role of filtering and disseminating information from the CCI to the board and owners of their condominiums, and also sending information back to the CCI.

• the CCI Liaison may take a few minutes at the Annual General Meeting to discuss the new initiatives taken by the CCI in the past year, or maybe discuss new legislation that could affect the owners, that CCI will bring to your attention. • Important decisions are made each month about how the CCI can best represent the interests of Condominium Corporations. There will be times when it will be useful to get input directly from our members. In such a case, the Liaisons will be contacted via email, and asked to get a response from their board.

• Liaisons may raise issues of concern to the CCI and communicate suggestions that will benefit Condominium Corporations. • CCI Liaison members may contribute relevant articles to the CondoVoice in an effort to help

solve condominium related problems, or simply to open up a dialogue for discussion.

• CCI Liaisons will be encouraged to attend the Annual General Meeting and the Wine & Cheese reception on behalf of their Condominium Corporations.

If your Condominium Corporation is a member of the CCI Toronto Chapter, please ask your board to appoint a “CCI Liaison” at your next board meeting, and ensure that you fill in the information in your renewal application. It is anticipated that we will have the database for email addresses completed by early fall and you will start receiving topical emails from CCI Toronto shortly thereafter. All contact will be via email. Your information will be kept strictly confidential and will not be sold, or used for any purpose other than the stated objectives of the Canadian Condominium Institute. ■ Summer 2008

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CCI Website Updates CCI Toronto is pleased to report that our website continues to expand and develop and that Web traffic for the month of April 2008 reached its highest levels ever. If you have not visited the site lately be sure to do so today at www.ccitoronto.org. The latest new development on the site has been the addition of an internal search engine, now making it easier to find exactly what you are looking for. Just type in your keywords and be instantly directed to all information available on that topic on the site.

Our “Links” page also continues to expand. Did you know that all professional and trade members can request a complimentary reciprocal link between the CCI Toronto website and their own company website? One-way links from the CCI Toronto site are also available for a nominal annual fee. Contact us today to have your company listed!

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ACCI ASSOCIATE OF THE CANADIAN CONDOMINIUM INSTITUTE If you are a professional member of the Canadian Condominium Institute, you should seriously consider applying for your professional accreditation. Successful candidates are entitled to use the designation letters ACCI as recognition of their high degree of skill, professionalism and outstanding achievements. ACCI members also receive the benefit of being listed in the Resource area on the CCI Toronto & Area website as “Condominium Experts”. Candidates for the ACCI accreditation must be a professional member of CCI for at least two years prior to their application and must also have a minimum of three years of professional condominium experience. In addition, participation in the condominium community through writing articles, participating in seminars or providing other services must be demonstrated prior to being accepted to write the ACCI examination. For further information on how to apply, please visit the CCI Toronto & Area website at www.ccitoronto.org or email us at ccitoronto@taylorenterprises.com.

Toronto and Area Chapter

www.ccitoronto.org

CCI National Events

CCI National Semi Annual Meetings May 2008 – Vancouver, BC The 2008 CCI National semi annual meetings took place from May 22nd through May 24th on the beautiful west coast, in Vancouver, BC. The CCI Toronto Chapter was fortunate to be able to send several delegates to these meetings, which took place in conjunction with a well-attended Chapter Clinic during which Chapter representatives from across the nation were able to share information and best practices.

Also taking place during this event-filled week was a seminar hosted by the CCI Vancouver Chapter on hot topics for owners and Strata Council members. The topics covered included building envelope repairs and building maintenance – presented by Halsall Associates Ltd. Paul Duchaine and Jim MacKenzie discussed Strata Insurance 101 – How to Insure Your Condominium and the session finished with a legal round up – presented by a panel of lawyers who specialize in condominium law from across the country.

Vancouver City Scape - site of the 2008 National Semi-Annual Meetings

Delegates were also treated to several networking opportunities and social events, which included a trip up Grouse Mountain and a Harbour Dinner Cruise aboard the MPV Constitution. The semi annual National meetings will take place in Hamilton, ON in 2009 – stay tuned for further details as they become available.

CCI National Board meets in Vancouver on May 22, 2008

Building Better Values

Mark Your Calendars 12th Annual Joint ACMO-CCI-T Conference

Toronto and Area Chapter

October 31 - November 1, 2008 Hilton Suites - Toronto/Markham Conference Centre and Spa, Markham, ON

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Upcoming Events

Mark Your Calendars! Condo 101 Course Date: Time: Location: Cost:

Saturday September 20th, 2008 9:00 a.m. until 12:00 p.m. Novotel North York Hotel $60 for CCI Members $95 for Non Members

This half-day seminar will focus on the topics that every Director should be aware of and will provide participants with a basic knowledge of the condominium Act. The course is an excellent means to find out what you need to know to be effective as a condominium owner or director. The information presented will be of interest to those purchasing a condominium or to those who want to know what a condominium is and what it means to live in one. To register for this CCI Toronto event and/or to obtain further information, please visit the website at www.ccitoronto.org or call the office at (416) 491-6216.

Toronto Condo Show Dates & Times:

Thursday, October 2nd - 7:00 pm to 10:00 pm Friday, October 3rd - 11:00 am to 8:00 pm Saturday, October 4th - 11:00 am to 8:00 pm Sunday, October 5th - 11:00 am to 6:00 pm

Location:

Metro Toronto Convention Center, 255 Front Street West, Toronto ON

Visit the CCI booth at the 3rd annual Toronto Condo Show. Check out the show website at www.torontocondoshow.com for full event details and programming.

12th Annual CCI/ACMO Condominium Conference: Our Condominium Community – Building Better Values Dates: Times: Location: Website:

Friday October 31st and Saturday November 1st, 2008 8:45 to 4:45 on October 31st and 8:00 to 3:30 on November 1st Hilton Suites Toronto/Markham Conference Centre and Spa 8500 Warden Avenue, Markham, ON L6G 1A5 www.condoconference .ca (Check our website for updated programming, pricing and other information as it becomes available).

Basic Condominium Course – New Format! Dates:

Time: Location: Cost:

Saturday, October 18th and Saturday, October 25th, 2008 9:00 a.m. to 4:00 p.m. each day Novotel North York Hotel $300 for CCI Members and $400 for Non Members

This informative two day is a must attend for all new Directors or Condominium Residents who want a better understanding of the way Condominiums function and should operate. Topics covered include: The Directors' Role, Insurance, Property Management, Budgets and Finance, Reserve Funds and Physical Building Management. To register for these CCI Toronto events and/or to obtain further information, please visit the website at www.ccitoronto.org or call the office at (416) 491-6216.

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This popular two day conference and trade show designed for condominium managers, directors, owners and others interested in ‘everything condominium’ will focus this year on Building Better Values within the Condominium Community. The spectacular line up of speakers and topics to be covered this year are sure to offer a variety of ideas and solutions to managers and directors alike. Session topics this year will include: Condo Activism, Management Contracts, Noises and Other Nuisances, Human Rights, Reserve Funding and Bringing Value to the Community through Financial Values, Condo Crimes – Protecting Your Values, Getting New Condos Off and Running plus much, much more!. Sponsorship and exhibit opportunities are still available – visit www.condoconference.ca for full conference details.

CCI-Toronto Annual General Meeting and Wine & Cheese Reception Date: Time: Location:

Thursday November 27th, 2008 7:00 p.m to 10:00 p.m. Novotel North York Hotel – 3 Park Home Avenue – Gibson Ballroom

Members are asked to mark their calendars now and plan on joining us on November 27th to elect the CCI Toronto Board of Directors for 2008-2009, to hear committee reports on activities over the past year and to network with the board and other members at the Wine and Cheese Reception following the meeting. The award for the Best Condo Newsletter of the Year will also be presented that evening. Watch for further AGM materials to be circulated to members in the early fall of 2008.

Diversions & Distractions

CONDO WORD FIND

accountant an appraisal at attention balconies be behooves bid big board bull concurrent conference congenial council election engineer envelope forms

fund general going if instill it late leak lease legal liar license lien manager mild mitigate money mould new no

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nonprofit nose note notices now organize out pests pets pin pool pot power pronounce public rag requisition reserve rig roof

rubber rules run serve spirit strata superintendents tell theory to unfair unfriendly unravel vacant we window winning

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

Attention Board Members and Managers! If you have abandoned bicycles accumulating in parking garages or storage lockers and would like to dispose of them in an environmentally friendly manner we would like to draw your attention to a non-profit organization called Community Bicycle Network or CBN. CBN’s main goal is to rescue bicycles destined for the waste stream, rebuild them and sell them as fully reconditioned bicycles for a very reasonable cost to those who cannot afford new bicycles. For further information contact: Community Bicycle Network 761 Queen Street West Toronto, ON M6J 1G1 Phone: (416) 504-2918 Website: www.communitybicyclenetwork.org

Summer 2008

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List of Advertisers A.R. Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 ACMO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 Adams & Miles LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 Atrens Counsel Insurance Brokers Inc. . . . . . . . . . . . . . . . . . . . . . .50 Atrens Management Group Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Brady & Seidner Associates Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Brokers Trust Insurance Group Inc. . . . . . . . . . . . . . . . . . . . . . . . . .26 Brook Restoration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Brookfield Residential Services . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Brown & Beattie Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Canlight Hall . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Carma Industries Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Certified Clean Air Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 Chubb Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 Condominium Living Management . . . . . . . . . . . . . . . . . . . . . . . . . .4 Construction Control Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68 Corpland Contracting Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 CPL Design Interiors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Davroc Consulting Engineers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 Don Gratton, P.Eng. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 Donna Swanson Real Estate Brokerage . . . . . . . . . . . . . . . . . . . . .58 Dryerfighters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 D-Tech (Nexus) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 E.J. Walsh & Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56 Enbridge Electric Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Enbridge Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 Enerplan Building Consultants . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Essential Landscaping Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 Fine & Deo Barristers & Solicitors . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Firenza Plumbing & Heating Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . .65 Fogler, Rubinoff LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 G4S Security Services Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Gardiner Miller Arnold LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Genivar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Gerald R. Genge Building Consultants Inc. . . . . . . . . . . . . . . . . . . .38 GSA Property Management Specialists Inc. . . . . . . . . . . . . . . . . . .54 Gulesserian Associates Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60 Heenan Blaikie LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 Holman Insurance Brokers Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Horlick Levitt Barristers & Solicitors . . . . . . . . . . . . . . . . . . . . . . . .42 ICC Property Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . .57 J.J. Molnar Realty Advisors Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Jansen Engineers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 JCO & Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Larlyn Property Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . .50 M & E Consulting Engineers Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . .30 Maple Hill Tree Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 Maple Ridge Community Management Ltd. . . . . . . . . . . . . . . . . . .41 Mareka Property Management Inc. . . . . . . . . . . . . . . . . . . . . . . . . .20 Martin K.I. Rumack Barrister & Solicitor . . . . . . . . . . . . . . . . . . . . .45 Maxium Condo Finance Group . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Metro Group of Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 Morrison Hershfield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 Nadlan-Harris Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Nu Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33-36 Ontario Screen Systems Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Percel Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56 Premier One . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 Pro-House Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Provident Energy Management . . . . . . . . . . . . . . . . . . . . . . . . . . .28 Rogers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 Royal Grande Property Management Ltd. . . . . . . . . . . . . . . . . . . . . .7 Samuel Property Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . .38 SR Wise Management Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Stratacon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 Summa Property Management Inc. . . . . . . . . . . . . . . . . . . . . . . . . .65 Suncorp Valuations Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 Toronto Condo Show 08 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Toronto Star . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Vero Property Management Services Inc. . . . . . . . . . . . . . . . . . . . .54 Waste Solutions Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Whiterose Janitorial Service Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . .56 Wilson Blanchard Management Inc. . . . . . . . . . . . . . . . . . . . . . . . .24

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