CondoVoice - Winter 2008

www.ccitoronto.org

VOL. 13, NO. 2 • WINTER 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

The Nuts & Bolts of Turnover Meetings

Plus: Highlights of the 12th Annual Joint Condominium Conference ■ Condominium Fees - How Low Can they Go? How High is Up? ■ The Power of Proxies: Uses and Abuses ■ The Leaky Unit Above: Repair Obligations and Insurance ■ Insurance Appraisals 101 … and more ■

PM #40047055

Canadian Condominium Institute / Institut canadien des condominiums Toronto & Area Chapter

Contents Features

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The Nuts & Bolts of Turnover Meetings

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The Power of Proxies: Uses and Abuses

Armand Conant, B.Eng., LL.B., D.E.S.S. (Chair, Legislative Committee, Member, Conference Committee) Heenan Blaikie LLP

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Minutes

VICE-PRESIDENT

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Insurance Appraisals 101

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The Leaky Unit Above: Repair Obligations and Insurance

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Condominium Fees - How Low Can They Go? How High is Up?

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Performance Audits - Why? - What? - When? - Who?

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Schlock, Schmooze & Superficiality - Choosing Your Professional Partners Wisely

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

2008/2009 Board of Directors

by Armand G.R. Conant

by Lou Natale

PRESIDENT

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

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 and Legislative Committees) 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. Janice Pynn, RCM, ACCI, FCCI (CCI National Liaison, CAI Liaison) Simerra Property Management Inc. Bill Thompson, BA, RCM, ACCI (Chair, Membership Committee, Vice-Chair Education Committee) Malvern Condominium Property Management Sally Thompson, P.Eng. Halsall Associates Ltd.

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

ADMINISTRATOR - Lynn Morrovat ADMINISTRATIVE ASSISTANT - Josee Lefebvre

by Dean McCabe

by Vic Persaud

by David A. Di Lella

by John Warren

by Jeff Jeffcoatt

by Michael H. Clifton

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Conflict in Condominiums: Waste or Value-Added?

by Richard A. Elia

CCI News 4 President’s Message 5 From the Editor 33 Highlights of the 12th Annual Condominium 47 54 56 58 60 64

Conference Condo of the Year CCI National News New Members Members Corner Recycling Update Condo Word Find Winter 2008

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President’s Message am privileged and deeply honoured to be taking over the helm of CCI-Toronto and Area Chapter. The President’s shoes are certainly large ones to fill given the strong leadership that CCI-Toronto and Area has had over the last 19 years.

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Since I first became a Director I have had the pleasure of working under three Presidents: Bob Gardiner, Janice Pynn and the current Past President, John Warren, all of whom have worked so very hard for us and accomplished so much. I would like to thank John Warren for his guidance and support over the last year as he tried to prepare me to become President (I hope it worked).

It is through the leadership of these and many other Presidents, and the incredible and tireless work of all the Directors over the last 19 years that CCI-Toronto and Area has been able to prosper and grow, becoming the largest CCI Chapter in Canada, with our membership closing in on 1,000. Our current Directors are all talented individuals with busy business lives, yet they manage to put in countless hours of volunteer work for us. Despite the workload, we still manage to have fun and I can say it is the best Board I have ever worked with.

CCI-Toronto and Area is one of 15 Chapters of CCI National, spread across Canada, and we were fortunate to have won the 2008 Chapter of the Year Award. I congratulate Janice Pynn on becoming President of CCI National, and I know we will work well together as we move CCI to bigger and better achievements. We have also had the wonderful administrative support of Taylor Enterprises, and I cannot imagine operating without them.

I look forward to continuing, and in fact increasing, our partnership with the Association of Condominium Managers of Ontario (“ACMO”), and I wish their incoming President, Chris Antipas, the very best. CCI and ACMO have already worked closely together on a number of projects, including: the Annual Condominium Conference (the 12th conference was a smashing success at its new location in Markham); the Government Relations Committee; and the Legislative Committee working on the Legislative Brief to be submitted to the government. Together we will succeed in improving all aspects of the condominium industry.

2009 will be a busy year for CCI-Toronto and Area with such projects as the re-vamping and improving of our course material for the three levels of the Directors’ condominium course; not only continuing, but enlarging the Presidents’ Club which has become a great success; the completion and submission of the Legislative Brief; a variety of special projects to assist owners and directors; constant upgrading of our website; organizing the 13th Annual Conference; liaison with CCI National and the American equivalent, CAI; continuing our great publication “thecondovoice”; membership drive to surpass the 1,000 mark; supporting many other initiatives throughout the GTA and much, much more.

It should not be forgotten that we can only be successful with the continued support and growth of our professionals and suppliers, so to all – thank you! We recommend that everyone acquire a copy of our professional and trade directory as they are all listed in it.

So it is with excitement and trepidation that I start my term as President. I can promise you that I will work hard to uphold the high standards and dedication of those who have gone before me, and I look forward to working with our talented Board, all for the betterment of condominiums and the industry.

Cheers to all.

Armand Conant, B.Eng., LL.B., D.E.S.S.

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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.

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

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

Publications Mail Agreement #40047055 Return undeliverable Canadian addresses to Circulation Dept. 2175 Sheppard Ave. E., Suite 310, Toronto, ON M2J 1W8

Should a Board or a Succession of Boards be Allowed to Change the Class of a Building Without the Consent of Owners?

The following story illustrates why condominiums should not be allowed to downgrade their original quality of construction and lifestyle.

By way of background, the “Melrose Place” is a healthy and vibrant condominium community that was built 20 years ago. It is in a very desirable part of town and was constructed as a fairly high-end condominium.

“Malibu Beach Club” was constructed with the same standards and, in fact, was constructed by the same developer. It, too, was in a very desirable part of town.

Basically, the profile of original purchasers at both buildings was the same, except that the average age of “Malibu Beach Club” purchasers was much higher. The average sale price in both buildings was the same 20 years ago.

During the last twenty years, the series of boards that have governed the “Melrose Place” did so in a meticulous manner and have maintained the building’s original standard of construction, lifestyle and general appeal. Common expenses are now about 8% higher than “Malibu Beach Club”, but the units at the “Melrose Place” now sell for about 25% more than “Malibu Beach Club”. The neighborhoods at both buildings are basically the same.

“Malibu Beach Club’s” history can be split into two clear segments. In the first ten years, the boards were also meticulous about the building’s maintenance and repair standards. However, as more investors and younger families moved in, the pressure to keep common expense increases very low was intense and the subject always took over the board meetings and AGMs. The original purchasers vehemently disagreed with the declining standards accepted by each subsequent board, but since they were in the minority, they were unsuccessful in convincing the board members to retain the building’s standards. “Malibu Beach Club’s” decline was almost unnoticeable year to year. However, over 20 years, the decline was striking when compared to the “Melrose Place”. Many of the “Malibu Beach Club” residents who did not like the building’s decline, and who could afford to move, did so. Those who could not afford to move had to suffer the consequences.

From a legal standpoint, there is no clear breach of the Condominium Act, 1998 by “Malibu Beach Club’s” successive boards. However, is the change in standard and lifestyle acceptable? It is an important issue considering that the “Malibu Beach Club” story is repeated over and over again in Ontario.

There needs to be a clear standard given to boards. Why? The Act unequivocally recognizes that a change in assets or services over 10% of the yearly budget requires the vote of 66 2/3% of all owners. Why is it that a vote of owners is not required when the actions of a board are such that there is a 25% reduction in the value of the units? The effect of the latter, from a monetary perspective, is a result Continued …

CCI Toronto welcomes responses and comments from members. Please forward your comments to the attention of the Editor at ccitoronto@taylorenterprises.com Winter 2008

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From the Editor Continued from page 4 of deliberate decisions and has an effect on values which is far greater than a one-time expenditure of 10% of the budget.

The lack of clear building class standards is detrimental to a particularly vulnerable group in our society. Many retirees today purchase condominium units to live out their golden years.

Retirees are less likely to move every few years and they will, therefore, bear the brunt of declining building standards more so than any other segment of the population. This is simply unfair and will become more and more of a problem as our population ages.

will maintain a particular standard over time, which is unfair to purchasers of new or resale units that are entitled to know what they are buying over the long term. Such a mandate, either through legislation, or contained in a condominium's declaration (the latter of which is unlikely to happen), is needed not only to prevent A buildings from becoming B buildings, but is even more importantly needed to prevent D buildings from becoming completely substandard. In the writer’s view, this is a very serious and urgent issue that the condominium industry must grapple with as more and more badly governed

The commercial sector has clear standards for commercial buildings. There are A, B, C, & D class buildings.

Should a condominium board be able to change a condominium from an A to a B class building without approval of a super majority of owners (let’s say 65-85%)? Clearly, this should not be allowed since it is contrary to the philosophy of a change in services or assets without the express consent of owners, which presently exists in the Act.

It is clear that the time has come to mandate that condominium corporations subscribe to a particular building class and follow strict requirements for owner approval to shift between classes. At present, there is really no guarantee or even a guideline that a building

DONNA SWANSON ACCI, FRI

Real Estate Brokerage

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buildings are being forced to apply for administrators. The appointment of an administrator is a clear sign that a building has declined hopelessly below a D class.

In the next issue, the idea of how condominium buildings should be classified and how the classification can be defined will be explored.

Mario Deo, LL.B.

On behalf of everyone at the CCI Toronto office, we wish all of our readers a wonderful Holiday Season and a Healthy and Successful 2009!

Kindly note that the CCI Toronto administration offices will be closed for the holidays from Wednesday, December 24th through Friday, January 2nd, 2009.

The office will re-open on Monday, January 5th, 2009.

For your Real Estate Needs call: 416-515-2121

• Real Estate Broker of Record - s peci al i zi ng i n Co ndo mi ni um Sal es since 1982 • Current condominium Owner, Pas t Pres i dent and Di recto r • ACCI - An Associate of the Canadian Condominium Institute • Pas t Di recto r of Toronto Chapter of CCI • FRI - Fellow of the Real Estate Institute of Canada and current Di recto r of Toronto Chapter of REIC

Email: donnaswanson@sympatico.ca

The Nuts & Bolts of

Turnover Meetings

BY ARMAND G.R. CONANT, B.ENG., LL.B., D.E.S.S. (SORBONNE) HEENAN BLAIKIE LLP

ith all the new condominium corporations that have been built over the past few years and many in the process of transferring title of the units, the question that we are often asked by owners, steering committees and others is “What is next?” or “Why is this meeting called the ‘Turnover Meeting’”.

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The first year of a corporation after registration is critical for a number of reasons and many important matters or issues must be looked after in order to properly protect the owners and the corporation. This article will deal with one such issue, the turnover meeting under section 43 of the Condominium Act, 1998 (the “Act”).

Turnover is just that – when the developer turns control of the corporation and documents over to a new board of directors. The reason for this is that under Section 43 of the Act, the developer/declarant must appoint the first board within 10 days after registration of the declaration. The developer could also have held an owner(s) meeting(s) to elect a Board, but with the developer controlling the units, this board is 8

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usually controlled by the developer.

The government believed that new owners should not have to wait until the next annual general meeting to elect their new directors, but rather there should be a point in time when a meet-

ing must be held to elect directors and hopefully take control of the board away from the developer. This procedure is set out in Section 43 of the Act and was also in the previous legislation.

Section 43 states that the first board

shall call a meeting (the “Turnover Meeting”) within 21 days after title to a majority of the units have been transferred by the developer. The meeting must then be held within 21 days thereafter. If the board does not call the meeting within the required time, then an owner or mortgagee(s) who has the

The limited records turned over to the Administrator by the developer showed that the first board had not collected common expenses from the developer for the 28 commercial units nor had any lien been registered. Also, at the same time he controlled the Board, the developer acted as property manager of the

which must include the election of new directors.

We recommend that a condominium lawyer or very experienced manager be present at this meeting. Sometimes the developer will have their lawyer present and generally they do a good and

‘It is only through taking control of your board that you will have some say over your immediate future’ right to vote under Section 48, may call the meeting. Note that it is the first board that calls the meeting and not the developer, so the board must be sure to follow up with the developer to determine when to call it. Failure to call the meeting or turn over all the required documents is an offence under Section 137 and can result in a significant fine against the developer, the first board and the developer’s solicitor, amongst others. So usually the Turnover Meeting is called on time, but vigilance is still necessary.

However, note that so long as the developer owns a majority of the units, then no such meeting need be called.

Usually developers want these meetings to take place as soon as possible, however we all have seen situations where the developer wishes to retain control as long as possible.

An example of this is with the corporation for which I was appointed Administrator by the courts (details are set out in my article in the Fall 2007 issue of “thecondovoice”). In this case the developer retained ownership of all the commercial units and just enough residential units to maintain control and ensure he did not have to hold a Turnover Meeting.

I was appointed Administrator approximately 17 months after the declaration was registered, and the court also ordered the removal of the first board.

building. There are many other issues arising from this unfortunate case against the previous board members, the developer and others, all of which is subject to ongoing litigation.

Remember that holding the Turnover Meeting does not necessarily mean that you will take over control of the board.

The developer will most likely still own or control a large block of units, and we all have seen the lack of interest of many owners in participating in the election process. So it will be important for owners to properly organize themselves (often a steering committee is established to deal with this and the many other issues in the first year) and get the vote out, in person or by proxy – get out there and solicit proxies.

It is only through taking control of your board that you will have some say over your immediate future, including such matters at the first year performance audit. We cannot emphasize enough how important this is and then to retain and work with professionals (auditor, engineers, property management and lawyer, etc.). The sooner this is done the better for your owners and the corporation.

So, the Turnover Meeting has been called. What happens at it?

Firstly, the meeting should be professionally run with a proper agenda,

equitable job. Other times, but rare, the steering committee will hire their own lawyer, which usually occurs where problems or disputes have already arisen with the developer.

The key to these meetings is receiving all the documents the developer is required to turnover. The Act has improved the process from that under the previous statute because it was recognized that there are certain documents that just cannot be ready in time for the Turnover Meeting. So the Act has broken the turnover of documents into two parts: (a) 7 types to be turned over at the meeting, which are critical for the immediate operation of the corporation (Sec. 43(4)); and (b) 13 other types within 30 days of the meeting (Sec. 43(5)).

Please refer to Section 43 for a compete list of documents, but as a quick reference, the 7 types of Turnover Meeting documents include: 1) the seal of the corporation; 2) minute book containing current declaration, by-laws, rules: 3) copies of all agreements entered into by the corporation or the declarant on behalf of the corporation, including management agreement, deeds, leases, etc.; 4) copy of all policies of insurance and insurance trust agreements; 5) bills of sale or transfers for all assets of the corporation; Winter 2008

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6) record of names and addresses of owners, etc. and notices of leases; and 7) all records it has related to the units or to employees of the corporation.

The post Turnover Meeting documents (within 30 days of the meeting) include:

1) all existing warranties and guarantees for all equipment, etc.; 2) as-built drawings (architectural, structural, mechanical, etc.);

3) as-built specifications, indicating all substantive changes from original specifications;

4) existing plans for underground site services, site grading, drainage, etc.;

5) all other existing plans and information relevant to the repair and maintenance of the property;

6) If corporation is subject to Tarion warranty, then proof that enrolled and a copy of all required final inspection reports:

7) table setting out responsibilities with respect to repair after damage and maintenance indicating whether corporation or owner responsible;

8) schedule setting out what constitutes a “standard unit” for each class of unit;

9) if meeting is held after 9 months from registration of declaration, then a copy of the first year reserve fund study;

10) all financial records of corporation and developer from the date of registration of the declaration;

11) copy of all reserve fund studies that have been completed or that are required to have been completed at the time of the meeting;

12) copy of most current disclosure statement; and

13) all other material required by government regulations.

Owners can, of course, ask for additional documents. As an example, we have

been asked by clients to obtain the rights to, and protect, the name of their complex (usually as it was marketed by the developer). Often this has significant goodwill and/or marketing value for owners. If turnover has not occurred, then request documents relating to ownership of the rights to the name and ask if the developer will assign them to the corporation. There may be others that you or your professionals may think of, and although the developer may refuse, as the old cliché goes “It never hurts to ask”.

So you can see that there are quite a number of detailed documents that your new board will receive. So be sure to get them all. We have found that most developers try their best to cooperate with the new boards, turn everything over, and on time.

However, if you happen to have one of the less professional developers, then do not accept “no” or “they do not exist” as answers. Remember your right to go to court to compel the turnover of these documents, along

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with significant fines that can be levied.

Also, under no circumstances should the new board sign a form of release at the Turnover Meeting or even when the post meeting documents have been turned over. If any release is to be signed, be very sure that it is limited to an acknowledgement of receipt of the documents and not as to their contents or completeness.

Obtaining and reviewing these documents is a vital step to ensuring your corporaton starts off on the right foot, or at least it will alert you to possible problems and allow you to try to plan for their correction.

Armand G.R. Conant, B. Eng., LL.B., D.E.S.S. (Sorbonne), is a partner in the full service law firm of Heenan Blaikie LLP, co-heading up its extensive condominium and real estate department. Armand is President of CCI (Toronto), and is Chair of

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the Legislative Committee (preparing a brief for the Ontario government with recommendations for changes to the Condominium Act, 1998). Armand is also a member of CCI National’s Government Relations Committee and assembled a “Condominium Primer”. In addition, Armand is a member of ACMO and sits on its Discipline Committee.

Armand also is the first lawyer in Ontario to be a court appointed full Administrator, to take over all the duties of a Board of Directors of, and run, a troubled corporation. Armand is also an engineer and having received a Masters of Law degree from the Sorbonne (France), he is bilingual.

Armand can be reached at 416-643-6873; email: aconant@heenan.ca ■

The Power of Proxies: Uses and Abuses

BY LOU NATALE B.A., LL.B., FOGLER RUBINOFF LLP

here is no greater means for a unit owner to effect change in a condominium than the ability to vote at an owners’ meeting. Owners are often asked to vote on significant and sometimes contentious matters such as the election and removal of directors, the approval of new by-laws, the amendment or revocation of a rule or the approval of a “substantial change” to the common elements.

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panies who are unable or unwilling to attend a corporate meeting to still express their voting intentions through a self-appointed “proxy”. The proxy in turn is obligated to vote at the meeting in a manner as expressed in the proxy form. While most condominium experts and stakeholders would agree that the proxy process is an important component of the democratic voting regime established for condominiums corpora-

the collection of multiple proxies by one owner resulted in a vote outcome that was either not in the best interest of the condominium and/or was in direct contradiction of the clear and stated intentions of those owners who took the time to attend the meeting. How does this happen? In many situations, an aggressive and motivated owner will be able to collect proxies from a number of owners who are simply not interested

‘by soliciting and collecting a number of proxies from other owners, it is quite possible that one or more owners working together can certainly make a big impact on the results of the vote.’

On an individual basis, the voting power of a single owner generally does not alter the outcome of the voting process.

However, by soliciting and collecting a number of proxies from other owners, it is quite possible that one or more owners working together can certainly make a big impact on the results of the vote.

By definition, a proxy is a document giving power or authority to act for another. The proxy process has long been recognized as a useful and necessary tool to permit shareholders of com-

tions, the potential for serious abuse can sometimes overshadow the positive intent and purpose of the proxy. This article is not intended to be an exhaustive overview of the types of abuses which can arise within the proxy process or how to challenge such abuses through legal intervention, but rather, this article will suggest some practical and realistic ways to reduce the likelihood of proxy abuses in your condominium.

We have all heard of stories about how

or concerned enough to attend an owners’ meeting because they feel that “things are just fine the way they are so why bother to attend”? In other cases, multiple proxies are collected by an owner or a small group of owners working together who unfortunately use manipulation, misinformation and outright fraud as means of soliciting and collecting the proxies.

Although, the new Condominium Act, 1998 included some safeguards to Winter 2008

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reduce abuses relating to proxies used in the election or removal of directors, there really is no way of eliminating the many forms of abuses which can arise with the proxy process. However, here are some suggestions to reduce the likelihood of abuses, in no particular order of importance: 1.

“Unit Owner Apathy” In my view, one of the most significant underlying reasons why abuses occur with the proxy process is what I call “unit owner apathy” – where owners simply do not feel that it is necessary, relevant or useful to attend owners’ meetings. How do you make unit owners interested enough to want to personally attend meetings instead of voting by proxy or simply choosing not to attend? The key, in my view, is to make unit owners feel engaged with the process.

2.

Get owners interested to attend meetings by making the meetings more informative and relaxed and less formal and stilted. For starters, make sure the meeting location, date and time are convenient for as many owners as possible. Include specific topics on the meeting agenda which might be provocative and/or relevant to a number of owners. However, try and make sure the owners’ meetings don’t run on too long and that there is adequate seating at the meeting venue.

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Communication By informing and educating unit owners through regular written communication and timely information meetings, the Board can reduce the chance of proxy abuse.

The ability for a small group of owners to manipulate and misinform a large number of other owners who in turn become disenchanted with the Board and then decide to sign proxies is dependent in large part on the “uninformed unit owner”.

Getting information to the owners is critical for many reasons — not only does it build the owners’ confidence and awareness in what the Board and management are doing, but it also helps to reduce the possibility for a small group of owners to distort the facts as they have been conveyed to the owners through newsletters and notices issued by the Board. Communication does not necessarily mean issuing notices to owners every month or holding numerous information meetings. Sometimes, too much information will have the opposite effect.

There is nothing worse to discourage owners from re-attending an owners’ meeting if their memory of the last meeting was that the meeting venue was stuffy, crowded and lasted more than 3 hours.

As well, encourage owners to attend by arranging for a guest speaker (like a representative from the municipality, police or fire department) to make a short presentation on a topic of local interest.

If possible, have refreshments and perhaps door prizes or a draw fol-

lowing the termination of the meeting. These suggestions may sound “off the wall” but in my view, the Board and management should consider whatever it practically takes to get the owners to attend meetings (taking into consideration the specific circumstances and demographics of the condominium).

3.

Also consider posting minutes of the board meetings each month to keep owners “in the loop”.

Creating a condo website will also provide another means of information flow and awareness and will encourage participation by owners.

Proxy by-law Some consideration should be given to pass a new by-law (or amend an existing by-law) dealing

with the collection, solicitation, registration of proxies. In my view, section 56 of the Act grants the authority to the Board to pass such a by-law, so long as it is reasonable and consistent with the Act and the corporation’s Declaration.

A proxy by-law, if drafted properly, would reduce the possibility of proxy abuse, manipulation and fraud while providing more integrity and transparency to the voting process. For instance, the proxy by-law may include provisions requiring (i) that only a certain type of proxy form (as established by the Board) can be used at the meeting, (ii) that the proxy form must be completed in the owner’s handwriting and that the owner’s initials must be placed next to the voting sections in the proxy and must initial the date and time the proxy was signed, (iii) that proxies must be registered with the management office on or before a certain time in advance of the start of the meeting and (iv) that there be a restriction on the number of proxies that can be given to any one unit owner.

This type of by-law, if drafted properly, should be acceptable and non-contentious for most owners.

Proxies are a fundamental voting tool which, when utilized as intended, can assist in the democratic voting process established for condominiums. Owners should be encouraged to attend meetings in person however if they can’t, owners (and the Board) should have full confidence and faith in the proxy process.

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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Minutes ow in general conversation these matters may not come up or seem very important if they did, but if you are being interviewed as part of the discovery process in a slip and fall claim from last winter, the answers to these questions could save your corporation a lot of aggravation and possibly a lot of money.

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BY DEAN MCCABE BROOKFIELD PROPERTY MANAGEMENT

What happened at your Board meeting in November 2007?

Which Board members were present?

What topics were discussed?

Did the Board approve the contract for snow removal at that meeting?

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I think most of us acknowledge that the minutes, as part of the corporate records of the corporation are important. So for those interested in taking a few minutes to read this article, I propose that we have a brief test on whether or not your corporation is following good practices in minute taking and record keeping.

Do your minutes contain the information that they will need to make them useful documents?

Ultimately, this is the yardstick against which the corporations minutes will be measured in the future. Ironically the most common problem is not minutes that do not give enough information but minutes that provide too much unnecessary information. A proper set of

minutes is not a transcript of the meeting but a record of the topics discussed, decisions made and directions given.

Comments made by individuals during the discussions or debates are generally not necessary.

Your minutes should include the names of those in attendance, the location and time of the meeting, the issues discussed and the subheadings following the agenda under which each item was discussed as well as clearly worded motions which clearly identify the director who made and seconded each motion.

Compare the following two examples of a motion to approve the landscape contract:

It was MOVED by A. Smith and SECONDED by B. Jones that ABC Landscaping start as soon as possible at the price quoted. CARRIED. Or

It was MOVED by A. Smith and SECONDED by B. Jones that ABC Landscaping be approved as the landscape contractor at a cost of $1,500 per month as quoted for a term of three

years starting November 1, 2008. CARRIED.

I think it is clear which motion will provide a more clear record of the decision that the Board made in the event that the records need to be reviewed in the future. In example #1 the individual reading minutes would also need copies of the quote and the contract in order to determine the will of the Board. Try reviewing a set of your corporation’s minutes from 2006 and see if you are satisfied with the level of clarity that they provide of the discussions and decisions. If not, then maybe you should be reviewing your current minutes to see if they have improved.

Are they being properly produced in a manner that means they are accurate?

The minutes of your meeting should be reviewed by all Board members as soon as possible after the meeting to ensure

greater accuracy. It is difficult to remember the discussions of a month ago and producing draft minutes within 3 or 4 days allows all Board members to recall if something important was missed in the minutes or if the minute taker misunderstood the discussions on a topic that the Board had. It is important to note that in the reviewing and approval of minutes all Board members should be treated equally. No one Board member should be reviewing the minutes prior to their distribution. Once a draft is produced it should only be changed with the input of all Board members and changes approved at the next meeting of the Board.

Many Boards are using the services of outside minute taking services and it is a practice that has proven very successful, as it allows the manager and all of the Board members to remain engaged in the discussions going on at the meeting. It is difficult, if not impossible, to be taking the minutes of a meeting and be an actively engaged participant of

that meeting at the same time. The other advantage to these minute taking services is that as they become more popular within the Condominium sector the recording secretaries become well versed in the topics being discussed as they gain a general understanding of the operations of Condominiums and the minutes are becoming much more professional and reliable records.

Are they properly kept in a manner that means someone reviewing them can rely on their accuracy?

The first step in protecting the integrity of the minutes in your minute book is to ensure that the Board is approving the minutes of the previous meeting and signing the minutes for inclusion in the corporations minute book. Auditors will rely on reviewing the motions and contract approvals in the minutes when performing their reviews of the corporations finances and unsigned minutes

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cannot be relied on by the auditor.

Have you ever attended meetings where the Board identified corrections in the minutes of the previous meeting that were required and then signed the circulated minutes and asked the manager to make the correction and insert the new page into the minute book? That practice undermines the integrity of the records and reduces the protection that they provide for the Board and Management. A simple step like initialing each page next to the page number will reduce any chance that the minutes are altered in the future.

Are they being properly edited to protect the privacy of staff, residents and owners in the event that they are reviewed in the future?

Once a set of minutes has been created they become a record of the corporation and, as such, they must be produced for review whenever a unit owner requests them. Even draft minutes (although they must clearly be marked draft on every page) should be viewed as records of the corporation.

That does not mean, however, that the corporation does not have to take steps to protect the people who are discussed as part of the business meeting of the corporation.

It used to be said that keeping two sets of books was a bad thing – and I guess in the post Enron business world it still is – but keeping two sets of minute books in the Management Office is becoming not only accepted but a good business practice. As condominiums deal with the requirements of the Privacy Act (PIPEDA) it is necessary to protect the identity of unit owners or individuals even in records of the corporation that other owners have the right to view under the Condominium Act.

One possible approach to addressing this concern would see the manager bring two sets of minutes to Board for approval. Both sets are identical except 18

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that sensitive information would be blacked out. See the example below:

Smoking Infraction – Suite #___: In response to several complaints about smoke smells in the corridors and stairwells, Management has had security patrol the stairwells every hour until the guilty party was found smoking in the stairs. A Notice of Infraction has been sent from the City of Toronto to the resident of unit #___.

One set of unedited minutes will still be kept in the minute book of the corporation but the edited version is kept in a separate file for viewing by owners if requested. This prevents the manager from spending time reviewing and editing the minutes after a request is received. It also eliminates the suspicion that this information is being edited only from the eyes of the owner who has requested to view the minutes.

Now that you have invested 10 minutes reading this article, I would suggest that you consider for another couple of minutes whether or not your condominium is following good record keeping practices. Are the records accurate? Is their integrity intact? Are good business practices being followed? I hope that you find that the answer to these questions is yes but if it is not – then I hope something in this article has suggested a way to correct that.

Dean McCabe joined Brookfield in 2001.

He has been a Property Manager for 16 years attaining his R.C.M. in 2003. Dean is currently a Board member for the Association of Condominium Managers of Ontario and the chair of the Membership and Marketing Committee for that Association.

As an instructor for ACMO he has taught the Administration and Human Relations course at Humber College and Mohawk College as well as for Brookfield employees through the in-house education program.

In the fall of 2007, Dean was promoted to Regional Manager with Brookfield and is a co-recipient of the 2008 Manager of the Year Award. ■

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Insurance Appraisals 101 The Basics of Insurance Appraisals

BY VIC PERSAUD B.A. (HONS.) SUNCORP VALUATIONS LTD. s I sit in my 6th floor office and look out my window, I have a beautiful view of two white cranes. Unlike the Whooping Cranes, these large white metal cranes are far from being endangered but rather are a common sight in many of the major urban centers across Canada; they are symbolic of the condo construction boom. With new condominium developments being started every year, there are increased construction costs.

A

These cost increases can vary not only by construction type (i.e., wood frame, reinforced concrete, etc.) but also by geographic location. For example, Sudbury is currently experiencing construction cost increases of 7% to 9% due to a limited labour pool. In contrast, Windsor is only experiencing increases of approximately 3% to 4% due to the poor economic conditions resulting from the down cycle in the automotive industry. It is therefore important to reflect these construction cost regional variances in the Replacement Cost Insurable Value of both newly constructed and existing condominiums since section 99 (7) of the condominium states: “Subject to a reasonable deductible, the insurance required under this section shall cover the replacement cost of the property damaged by the perils to which the insurance applies. 1998, c.

19, s. 99(7).”

The calculation of this important Replacement Cost value requires the expertise of an accredited appraiser who can complete an Insurance Appraisal of the condominium and provide the value in a formal appraisal report.

In addition, the condominium’s Declaration and/or By-Laws may have specific requirements relative to the completion of an Insurance Appraisal (i.e., an Insurance Appraisal must be completed every 3 years with updates in the interim years). Furthermore, your Insurance Broker may recommend that an Insurance Appraisal be completed if your condominium has:

1. An outdated Insurance Appraisal (typically older than 3 years) 2. Never completed an Insurance Appraisal

3. Insurable Values that have been developed from less-than-reliable sources

Once you have determined that it is time to complete an Insurance Appraisal, the next step would be to engage a qualified Appraisal Firm. In

order to familiarize you with what to expect, below are the basic steps involved with the Insurance Appraisal Process: 1. Request for a Proposal from an Insurance Appraisal Firm This is your first contact with the Insurance Appraisal Firm. The typical details that qualified appraisal firms require to provide a proposal include:

• Condominium Corporation Number • Condominium Address

• Type of Condominium (High-Rise, Low-Rise, Townhouse, etc.)

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• # of Buildings/Blocks

plex with Shared Facilities, it will take more time to appraise the condominium since the appraiser may have to review the architectural plans, declarations, shared facilities agreements and consult with the property manager(s) of the entire complex. In these situations, it is best to complete a separate appraisal for each of the condominiums and the Shared Facilities at the same time since efficiencies can be gained by the appraiser in reviewing all the plans and documents at once.

• # of Units

• Year Built

• Amenities of the Condominium (Swimming Pool, Tennis Court, etc.)

• Is there a Standard Unit By-Law? – The existence of a Standard Unit ByLaw can have an impact on the Insurable Value. The Standard Unit By-Law sets out a list of standard features that comprise each class of unit being described in the by-law.

The appraiser will need to review this document to develop the current costs since Standard Unit By-Laws can exclude insurable items such as floor finishes, countertops or even all interior finishes of the standard unit.

• Are the Architectural Plans available? – The construction of any new condominium starts with detailed construction plans, therefore, the best source to develop current Replacement Costs are the construction plans. More specifically, the Architectural Plans are most important for an Insurance Appraisal since the majority of the building value is contained in the structural elements of the building. If there are no Architectural Plans available, ask the appraisal firm if they can assist you with obtaining the plans from other sources such as the Municipal

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The above information should provide the Appraisal Firm with the details to send you a no-obligation proposal.

Building Department or Land Registry Office. If there are still no plans available, the appraisal firm can measure the buildings to determine the approximate square footage.

• Are there any Shared Facilities? – With the increasing complexity of condominium complexes, Shared Facilities among condominium highrises are becoming more prevalent.

This creates an issue since the boundaries of the Shared Facilities can be entirely separate or be part of one the buildings.

If the condominium is part of a com-

2. Site Inspection After your authorization of the service, the Appraisal Firm should arrange a site inspection. The purpose of the site inspection is to allow the appraiser to record the architectural, mechanical, interior and exterior features of the building.

For high-rise condominiums, the appraiser will need access to the roof, mechanical and electrical rooms, underground parking garage and amenities rooms. For townhouse condominiums, the appraiser can record most of the details from a walk-around of the

exterior of the condominiums. For both high-rises and townhouses, it is also helpful to see a typical suite with the standard finishes of the condominium.

Furthermore, it is helpful if the property manager or a site contact that is knowledgeable about the building details be available to answer any questions.

Lastly, the appraiser will need to borrow the architectural plans from the condominium to assist with developing the Replacement Cost of the Condominium.

3. Development of Appraisal Reports The development of the Insurance Appraisal Report starts with a review of the Architectural Plans. The appraiser will use the Architectural Plans to calculate the gross floor area of each floor plate of the building and verify their notes relating to the structure of

the building(s). The appraiser will then enter this information into a Software Costing System such as the Marshall Valuation Service. Additional costing sources and internal databases should be used to ensure the accuracy of the costs. The appraisal method employed will be the Segregated Cost Method, Model-Based Method or a combination of both Methods.

The Segregated Cost Method involves estimating the current unit cost of installed components, sections or systems of the building structure under appraisal. The unit price includes costs of materials, labour, overhead, fees and profits required to replace the building components new, as of the date of appraisal.

The Model-Based Method uses as a basis, the current cost per square foot of other properties that are similar to the subject property in their design, style, construction and function. This

benchmark cost is then adjusted to more closely suit the specifications and construction quality of the subject property being appraised. Once adjusted, this unit cost is applied to the subject’s gross floor area with additional consideration given to any specialty features.

After the Replacement Cost is developed in the Insurance Appraisal Report, there should be a formal review by another internal appraiser to verify that the costing methodology and Replacement Cost value are accurate. Upon completion of the review, the Insurance Appraisal Report is issued to the Condominium.

4.

Insurance Appraisal Updates

If an Insurance Appraisal Report is more than one year old it is recommended that the corporation get an Insurance Appraisal Update provided by the company that completed the initial appraisal. Most Insurance Appraisal

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companies should be able to provide the Insurance Appraisal Update at a nominal cost. The Updated Insurable Value is typically the Replacement Cost Value from the initial Insurance Appraisal indexed up for construction cost increases. Construction cost increases in Ontario have exceeded 4% annually in the last five years. This is significantly higher than the Canadian

Consumer Price Index which has been in the range of 1.8% to 2.8% and is sometimes incorrectly used to update Insurable Values.

5. Re-Appraisals One appraisal is not enough! With constantly changing construction costs the condominium should complete a full

re-appraisal every three years.

Additional reasons for completing a reappraisal include:

1) The condominium may have had property additions, deletions or changes to components of the building. For example, many condominiums are currently upgrading to energy efficient boilers and chillers. This can impact the Insurable Value;

2) Some condominiums are choosing to pass a Standard Unit By-Law which can result in changes to the amount of insurance needed by the Corporation;

3) Indexing up of the initial appraised value beyond two years becomes increasingly inaccurate over time. By indexing up the past appraised value, the corporation is not taking into consideration specific cost increases to building components such as steel frames and concrete walls. A re-appraisal would result in a re-costing of these building components to accurately reflect their costs; and

4) The Declaration and/or the ByLaws may require the corporation to complete an Insurance Appraisal every 3 years.

In conclusion, as we continue to see new condominiums rise across Canadian cities it is important to keep in mind that the construction costs associated with these condominiums continue to rise as well. The extent of construction cost increases can vary significantly and are strongly affected by the natural forces of supply and demand as well as economic factors. In order to maintain an accurate Replacement Cost Insurable Value, make sure that regular Insurance Appraisals and Updates do not become an endangered species for your condominium! â–

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The Leaky Unit Above: Repair Obligations and Insurance

BY DAVID A. DI LELLA B.A., HONS, LL.B HORLICK LEVITT BARRISTERS & SOLICITORS

very property manager and condominium board has, or certainly will, address a claim by a unit owner regarding damage occasioned from the unit above him or her.

Usually, such damage is caused by a leak of some form or another. Despite the frequency of this scenario, confusion abounds. Who bears responsibility for the repair after damage to the

E

tion does not include the obligation to repair after damage to improvements that are made to a unit. Accordingly, the section requires the condominium corporation to repair after damage to the standard unit only. Further, damage to the standard unit is covered by the condominium corporation’s insurance policy, as required by section 99 of the Act, while improvements are not.

described in a by-law made under clause 56 (1) (h) Act.

Section 56 (1)(h) of the Act confers authority for the creation of a by-law to describe a standard unit “for the purpose of determining the responsibility for repairing improvements after damage and insuring them.” It is important to underscore that the by-law establish-

Where a condominium corporation has not created a standard unit by-law, it appears that our courts may find that items constitute part of the standard unit, even where it is apparent that a unit owner has added or clearly improved the unit with an item. units? Are the items that require repair after damage improvements, or are they part of the standard unit? If there is no standard unit by-law in place, how will a court determine what constitutes the standard unit, as opposed to an improvement? Is there insurance available for the required repairs?

Section 89 of the Condominium Act 1990 (the “Act”) sets out that a condominium corporation shall repair the units and common elements of the condominium after damage. This obliga-

Given that the obligation to repair pursuant to section 89 of the Act pertains to the standard unit only, and given that the condominium corporation must obtain an insurance policy that insures the standard unit for specified perils (but not improvements) pursuant to section 99, the determination of what constitutes the standard unit is an important one. The Act sets out that such a determination shall be made with reference to a “standard unit for the class of unit to which the unit belongs” and that the standard unit for the class is as

ing the standard unit has the dual purpose of assisting in the determination of the responsibility for repairing improvements after damage and for insuring them. If the board has not made such a standard unit by-law, the standard unit is as described in the schedule that the developer is to provide at the turnover meeting.

Where a condominium corporation has not created a standard unit by-law, it appears that our courts may find that items constitute part of the standard Winter 2008

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unit, even where it is apparent that a unit owner has added or clearly improved the unit with an item.

For example, in D’Alessandro v.

Carleton Condominium Corp. No. 43 2006 WL 3060589 (Ont. S.C.J.) 2006 CarswellOnt 6651 the Board of the Defendant Corporation had not enacted a by-law pursuant to section 89 to establish a “standard unit“. Accordingly, the plaintiff submitted that Carleton Condominium Corp. No. 43 (the “Corporation”) had a legal obligation to repair her floor after damage (which was hardwood) even though the flooring was clearly an “improvement“ to her unit, having regard to the carpet which was originally installed in it.

Justice R. Houlahan held that the Corporation could not, in view of the amendments to the Act, impose “standard unit” criteria on the plaintiff at the time that the damage was incurred, by reference to the unit and its amenities at the time the Corporation was created by registration of the Declaration. He therefore, in the absence of a Section

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89(3) by-law, found the Corporation liable to repair the unit as it existed on the date the damage occurred (in this case with a hardwood floor.)

While the court may have been correct in ruling that it was improper to impose “standard unit” criteria in the absence of a Section 89(3) by-law, the D’Alessandro case is troubling in that the court found the Corporation liable to carry out the repairs to the unit, despite the fact that the declaration clearly placed the responsibility for repair after damage on the unit owner:

“The Corporation therefore argues that this provision in the Declaration clearly transfers the obligation to repair the unit after damage to the unit owner. It further argues that the Corporation had the authority under the “old” Condominium Act to impose the obligation to repair the unit and particularly improvements thereto on the owner through the Declaration. This authority was carried forward into the new Act, but in a much altered form. With great

respect to Counsel for the Corporation, in my opinion, this argument does not address the Plaintiff’s position.

The Declaration addresses the obligation to repair the “unit” by which I understand relates to the repair of the physical structure comprising the unit.

It does not address the issue raised by the Plaintiff which is the obligation to repair an “improvement” to the unit after damage.”

With respect, it is our opinion that the conclusions of Justice R. Houlahan, insofar as they relate to the responsibility of the Corporation to carry out the repair, are wrong in law. Again, while the court may have been correct in pointing out the impropriety of imposing “standard unit” criteria in the absence of a Section 89(3) by-law, this should have impacted on the coverage provided by the Corporation’s insurer (which presumably provided insurance for standard units and not improvements) and not the repair obligations of Corporation itself.

According to section 91 the Act, a declaration may alter the obligation to maintain or repair after damage, and provide that an owner shall repair the owners unit after damage. The previous statute governing condominiums in Ontario, the Condominium Act, R.S.O.1990, c. C.26 (the “Old Act”) also provided such a “contracting out” provision at section 41(5). The declaration in the D’Alessandro apparently shifted the obligation of repair as contemplated by section 41(5) of the Old Act (as do most declarations today pursuant to section 91 of the Act). This should have meant that the obligation to repair after damage of both the improvements and the standard unit rested with the plaintiff. After such repair was carried out, the Corporation should have submitted a claim on behalf of the plaintiff to the Corporation’s insurer for consideration.

The lack of the standard unit bylaw in D’Alessandro suggests that, when presented with the aforementioned claim, the insurer for the Corporation should have provided coverage for the costs of the repair in accordance with the reasoning of Justice R. Houlahan.

Nevertheless, if the Corporation’s insurer instead maintained an off coverage position (based on the hardwood floors constituting an improvement or otherwise) the unit owner would not, in our opinion, have had any recourse against the condominium corporation.

Such recourse would have properly rested with any offending unit owner that caused the damage (based on tort principles) and the condominium corporation’s insurance company (for breach of contract.)

Bearing the above comments in mind, when property managers and directors are faced with the determination of who bears responsibility for the repair after damage to condominium units, it is important to start the analysis with the corporation’s declaration. It’s more likely than not that the declaration will contract out of the Act and set out that the obligation to repair the standard unit rests with the unit owner. Despite this, the cost of such repair may still be cov-

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ered by the corporation’s insurance policy. Once again, the corporation has an obligation to obtain and maintain insurance, on its own behalf and on behalf of the owners, for damage to the units and common elements caused by major perils or the other perils that the declaration or the by-laws specify (usually an all risks policy is purchased). The fact that the policy covers the “units” and is “on behalf of all owners” means that a unit owner is an insured, and that the corporation’s policy should respond to cover damage to the units, regardless if the owner is responsible for repair after damage.

In a sense, when a declaration contracts out of the Act and the repair of the standard unit rests with the unit owner, it is no longer an important issue for the condominium corporation to make a determination as to what constitutes an “improvement” and what constitutes the “standard unit”. The unit owner is responsible for the repair after damage

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for both, and the condominium corporation maintains insurance for the latter.

The allocation of repair after damage to either an improvement or a standard unit remains important insofar as the condominium corporation’s insurance policy itself only covers the “standard unit”. Accordingly, it should be the insurer to whom a claim is presented that looks to the by-law describing the standard unit or, failing this, the standard unit described in the schedule.

Despite the fact that the absence of a standard unit by-law should have a greater impact on insurers than condominium corporations (notwithstanding the D’Alessandro case), a well crafted standard unit by-law can avoid problems for everyone. That is, of course, until everyone starts pointing fingers regarding the payment of deductibles.

We will leave that one for another day.

David earned an undergraduate degree in political science from the University of

Western Ontario and graduated from Osgoode Hall Law School in 1998. He is a member of both the Ontario and the New York State Bar.

David’s practice focuses on litigation, with an emphasis on insurance defence and coverage disputes, tort claims and condominium related disputes. He has appeared before the Superior Court of Ontario, the Court of Appeal for Ontario and numerous administrative tribunals, litigating on behalf of his clients. Where appropriate, David has also achieved success for his clients through mediation and other forms of alternate dispute resolution.

David is a member of the Defence Research Institute and Canadian Defence Lawyers.

He is also a member of the Law Society of Upper Canada and the Ontario Bar Association. He resides in Toronto with his wife and two sons. ■

Condominium Fees How Low Can They Go? How High is Up?

JOHN WARREN, CA uring discussion of the financial statements at annual general meetings I am often asked how to reduce condominium fees or asked how high can condominium fees go, always in the context that owners are paying too much. Not quite so often, but more dangerously, owners stand for election to the Board of Directors and the main plank in their election platform is a promise to reduce fees though how that is to be accomplished is always unclear. The desire to reduce current fees and eliminate future fees increases, though understandable, reflects, at best a misunderstanding of condominium costs and if put into effect are almost always damaging to the quality of life of those who live there.

D

COMMUNITY LIVING Before we discuss costs, it is important to understand the meaning of community living. That is when you live in a

house you can do things that are not possible in a community living environment. In your own house, if you don’t have the money, you can decide not to fix the fence, not to repair the roof, not to clean the windows, to ignore the flowers and bushes and so on until you can’t put up with your neighbours complaints or the municipality issues work orders to compel you to fix up your house. In a condominium that is not possible because, in addition to owners with limited incomes, some owners will be selling and want the most curb appeal and others will want the fence and roof fixed and the windows cleaned because that is the environment in which they want to live.

Owners have to recognize that their particular circumstances do not determine their condominium’s costs; it is the collective circumstances of all in the condominium which determines them. Owners also have to understand that not all costs benefit owners equally. An owner once told me that owners

who live on the ground floor should not have to pay for the elevators as they did not use them and was not, I think, entirely convinced when I replied that, whether owners use them or not, they have to pay because that is the nature of community living – all owners contribute to all common element costs.

IT’S NOT ABOUT FEES - IT’S ABOUT COSTS It truly is not about fees, but only about costs. There is no landlord making a profit and no profit margin – the owners are the landlord. So to calculate condominium fees all you do is add up all the costs to operate the community of homes and collect each owner’s proportionate share, as outlined in Schedule D to the Declaration.

If you want fees to go down, costs must go down, which sounds simple but isn’t; because it’s anything but easy to arrive at the “right” costs. CondominWinter 2008

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ium costs are determined by the price, quality and quantity of utilities, goods and services purchased and so before the “right� costs can be determined, the community has to decide on the quality they want.

Quality considerations include such things as the quality of concierge, management, cleaning and other service providers, how often the building is to be cleaned, how many times the windows are to be washed each year, how extensive the plantings and landscaping are to be, how often carpets and hallways are to be refurbished and on and on.

For example, owners have to decide the concierge coverage necessary for their security and how skilled the concierge personnel have to be to meet their standards. Is it necessary to have two concierge personnel 24/7; one concierge 24/7 or something less than full time coverage? What quality of concierge personnel is necessary, those paid minimum wage or those with better skills who are paid more. This is not an easy task as owners will have different opinions; different abilities to pay and their expectations change over time.

Once the quality determinations are made, the job of the Directors is to obtain the best price, quality and service that meet those expectations

CONDOMINIUM COSTS Condominiums spend money only in five broad areas.

1. Funding the reserve for major repairs and replacements The Condominium Act mandates reserve fund studies and these studies include a recommended funding plan. Directors that choose not to follow the recommended funding plan do so at their peril as that course of action may expose them to liability and, in my opinion, Directors should never expose themselves to the possibility of lia-

bility no matter how remote. There is just no realistic opportunity to reduce this cost.

2. Utilities Heat, lights, air conditioning and water are largely a function of the weather and usage. Residents set their thermostats, turn lights on and off and use water in the manner that suits them. If it is hotter than average the air conditioning costs go up; if colder, then heating costs go up (and vice versa). Water costs what the municipality charges for amounts used.

All the board can do is exhort residents to reduce consumption; look for ways to reduce heating and air conditioning costs in the common areas and institute energy saving measures such as boiler retrofits if the community is prepared to pay for them. However there are limits to reductions of heat and air conditioning in the common areas both by regulation and by the comfort that residents expect.

Cable television can always be purchased at a better price in bulk by the condominium than individually. Communications costs are largely legislated, that is the number of telephones required is mostly determined by regulation, one in each elevator, one in the pool, one in the hot tub, one in the mechanical room, etc. and the price is set by the authority that regulates telephone companies. There are limited savings possible in utilities after energy savings measures are instituted.

3. People costs People costs include concierge, landscaping and snow plowing, cleaning, management, superintendent, elevator and mechanical service, window washing and garage cleaning. These costs can be reduced but only if owners are prepared to accept reductions in service levels or the quality of services provided. For instance, the

Board could reduce people costs by either hiring cheaper concierge personnel, by reducing the hours the concierge is on site from say 24 hours a day to 12 hours a day or some other number. Cheaper personnel are cheaper for a reason; they are generally not as well trained nor as motivated, while reducing coverage leaves the building exposed when the concierge is not on duty.

Directors have little room to reduce services in any significant way because if the cuts are large enough to substantially reduce costs, the change in service level probably requires approval by a vote of the owners and approval is very difficult to obtain.

4. Repair and maintenance costs Repairs and maintenance include such things as annual plantings, fire, elevator and mechanical equipment inspections and repairs, cleaning and maintenance supplies such as cleaning materials, bulbs and parts, ice melter, waste disposal, cleaning and routine repair and maintenance to the exterior, interior and mechanical, electrical and plumbing systems. These costs can be reduced but only at the expense of the long term condition of the building.

Deferred maintenance, as it is called, sacrifices the long term condition of the building to short term cost cutting. If the common areas are not well maintained then over time they become run down, negatively affecting the quality of life in the building, market values and ultimately increasing future costs to fix the building. If the property is to be properly maintained, there is not a lot of room to reduce these costs

5. Administrative costs Administrative costs include insurance, professional fees, office and meetings and other costs incidental to operations. Insurance is mandated by the Condominium Act. Winter 2008

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Professional fees are either mandated, as with the audit, or necessary to protect the condominium and its Directors. Office, meetings and other costs are generally small and significant reductions are not possible.

Overall, once the quality decisions are made the Board of Directors has limited ability to significantly reduce costs without reducing quality and many costs are not easily reduced at all.

HOW HIGH IS UP? So, if cost reduction is problematic, how high can condominium fees go?

Forecasting the future is more than a bit of a guess, but I think there is general recognition that the costs in our lives go up each and every year; that is we spend more for a cup of coffee, a coat, a car, a house and a car mechanic, plumber or electrician than we did

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last year and we recognize that this trend will, in all probability, continue.

It is not a large leap to recognize that price increases in the general economy, over time, will result in increases in condominium costs. The most often used measure of cost inflation is the Consumer Price Index, the CPI; however, the consumer price index is not all that applicable to condominiums as the basket of goods and services in the CPI calculation is different from the costs incurred by condominiums. Condominiums consume more utilities and do not purchase food, clothing, cars or vacations, for instance. A better measure of the cost inflation prospects for condominiums would be one of the construction cost indexes but that information is not generally available and so we are stuck with the CPI. My best prediction is that, barring extraordinary increases caused by such things as oil at $200 a barrel or regulatory changes such as the new garbage disposal costs

in Toronto, is that owners should expect costs to rise at rates perhaps slightly in excess of CPI increases.

In summary, it is difficult to reduce condominium fees in any significant way without reducing the quality of life in the condominium and if lifestyle quality is to be maintained in the future, condominium fees will rise over time at least by inflation.

John M. Warren, C.A. is a partner with Adams & Miles LLP, Chartered Accountants who provide audit and financial services to over 200 condominiums. He is the immediate Past President of the Canadian Condominium Institute – Toronto and Area Chapter and a past member of the Associates Executive Committee of the Association of Condominium Managers of Ontario. He writes regularly on financial matters in condominiums and is a frequent speaker at educational programs for managers and directors and at condominium conferences and seminars. â–

12th annual condo conference he 12th Annual CCI/ACMO Joint Condominium Conference was held on October 31st and November 1st, 2008 at the Markham Hilton Suites Hotel. It turned out that the new venue and the overlap of the conference with Hallowe’en were both great hits, as we experienced our highest attendance turnout to date, and excellent feedback on the location of the new facilities.

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The conference was officially launched on the morning of October 31st with a welcome speech presented by the Honourable Michael Bryant, Minister of Economic Development. The room was filled to capacity with delegates eager to hear his message and begin two days of learning and networking.

This years’ theme of “Building Better Values” was extended into many of the session topics spread over the two-day period. The performance on early Saturday morning by Canadian comedian and satirist, Ron James was anoth-

October 31st to November 1st, 2008 Hilton Suites Toronto/Markham Conference Centre & Spa 8500 Warden Avenue, Markham, ON L6G 1A5

er highlight of the conference. Ron had the venue packed and the audience rolling with laughter – not an easy feat at 8:30 on the morning following the CCI National “Hallowe’en Hoedown” which took place at the hotel on October 31st! We extend our sincere appreciation to the 62 speakers and moderators who participated this year and all the committee members from both CCI and ACMO who contributed countless hours planning for this year’s conference.

The wrap-up luncheon and closing session: “The Final and Authoritative Word - Case Law Update”, moderated

by Mario Deo again served as the ‘grande finale’ of the conference.

Congratulations and thanks to Lisa Kay, for another of her innovative and humourous introductions of the case law panelists.

An integral part of the conference is the trade show and delegates were treated

Speaker, Warren Coughlin presents to a filled to capacity audience.

to the widest ever range of products and services on display. A record 105 exhibitors supported the conference this year. In case you missed any of them, be sure to check the conference website at www.condoconference.ca for a full list of exhibitors, along with their contact information.

A sincere thanks is also offered to our conference partner, Rogers Cable. The partnership and commitment Rogers offers toward condominium education through our conference contributes significantly to our ability to offer quality programming each year and their support is truly appreciated.

Mark your calendars now for next year’s conference taking place on Friday, November 6th and Saturday, November 7th, 2009 at the Markham Hilton Suites hotel. We hope to see you there!

More photos on pages 34 & 35!

Moderator, Gina Cody leads round table discussions.

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12th annual condo conference

October 31st to November 1st, 2008 Hilton Suites Toronto/Markham Conference Centre & Spa 8500 Warden Avenue, Markham, ON L6G 1A5

Educational Sessions

Networking Lunch on Saturday November 1st.

Panelists at Sandro, Warren and Bruno's Fascinating World of Condominium Service Contracts.

The Trade Show offered information on the latest products and services available to the industry.

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CONFERENCE HIGHLIGHTS

FCCI recipient, Harry Herskowitz, with Janice Pynn and Charlie Oliver.

ACMO Past President, Harold Cipin (left) with Minister Michael Bryant (center) and CCI-Toronto Incoming President, Armand Conant.

Comedian and Satirist, Ron James.

CCI National President, Jamie Bleay.

Greg Stokes from Rogers Cable and CCI Toronto President John Warren draw for one of two TVs donated by Rogers.

Charlie Oliver presents Vic Persaud and Ramona Dhari with the prize for best costumes at the CCI National Harvest Hoedown Dinner.

Networking at the CCI National Harvest Hoedown Dinner on October 31st.

Mark Arnold (left) and Brian Horlick (right) -two of the panelists at the closing legal update session.

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Performance Audits Why? - What? - When? - Who?

By Jeff Jeffcoatt Construction Control Inc. his article is intended to help condominium Boards of Directors (and owners) to understand what is involved and what their expectations should be, as well as how much time and energy will be needed from the Property Manager during the lengthy process as there tends to be a general lack of knowledge as to the intent and process of a Performance Audit as it applies to a new Condominium Corporation.

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What is it?

The Performance Audit is a review of all Common Element facets of the building to ensure that it is performing as it should according to the design and as-built drawings. It also looks at structural integrity, Building Code and local by-law requirements and workmanship.

What a Performance Auditor is looking for is any deficiency that can be identified within the first year. (There are also second year and seventh year audits with lesser scopes). Unfortunately, if there is a design shortfall that does not come under the Building Code Tarion will not get involved. Also any deficiency items within the suite are usually considered “suite issues” and must be handled directly by the suite owner with Tarion directly.

What are the time restraints?

Under the Condo Act (1998) the Performance Audit should take place between the sixth and tenth month after registration, and then a report filed with Tarion and the Developer by the end of the eleventh month. OK – so how does that cover a twelve month warranty? – It means that the auditor will have to send in an Addendum to cover any items discovered in the twelfth month to ensure that the full first-year warranty (under the Ontario New Home Warranty Program Act) is taken full advantage of.

How is it done?

The Board of Directors selects a qualified company to carry out the Audit and then the Performance Auditor typically follows the same program of work.

First there is a review of all as-built drawings and specifications (documentation that should be handed over to the condominium corporation at the turnover meeting).

Next come the site visits –organized by the performance audit company usually with different experts in their field looking at specific areas – roofing, underground parking garage, cladding

and windows, mechanical, electrical and life-safety, roof anchors, structural, etc.

Questionnaires are also sent out to every resident asking specific questions regarding the common element components of their suites – exterior walls and windows, cracks, balconies, plumbing, heating, and electrical supply (complaints about items that are purely a “suite issue” cannot be included in the performance audit). When the questionnaires are gathered together, the Performance Auditor picks suites in different areas that reported common element deficiencies and inspect those suites to verify the deficiency and confirm if it falls within the scope of the Audit.

Once the reviews and inspections are completed, a report is written identifying the deficiencies and whether they are “construction” or “code” issues.

Since a picture is worth a thousand words digital photographs of the deficiencies are included, together with a description of the location so that there is no confusion when the Audit report is reviewed by Tarion and the Developer.

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ONWHP Act which results in the engineers filing with Tarion at the end of the eleventh month after registration (to comply with the Condo Act) and sending in an Addendum for anything found in the twelfth month (to take advantage of the 12 month Tarion warranty).

So how does it all get fixed?

Once the Performance Audit and any Addendum have been filed with Tarion by the end of the twelve months, Tarion instructs the Developer to respond to all the deficiencies identified in the Audit report. The Performance Auditors usually provide a spreadsheet of all the deficiencies to keep track of the responses and subsequent inspections that may be required and this is supplied to the Developer for them to send back their first response to each item.

The responses will typically be “to be fixed” (hopefully with a schedule), “not warrantable”, “to be reviewed”, and in some cases “more details” may be requested.

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This is where the Board of Directors becomes involved again. The performance auditors meet with the Board to go over the responses from the Developer and to provide input as to what the expectations should be for the various items. Some will be “must do”, others may be “would be nice if”, or “cosmetic”, and some just are not going to happen, so the Performance Auditor explains the options and priority of the items so that the Board of Directors is comfortable with the process.

How long will it take?

The length of time to have everything fixed, (or a combination of repairs and money in lieu), depends greatly upon the Developer. In most cases they are anxious to move ahead quickly while their trades are still available to rectify their deficiencies — the longer it drags on, the harder it is to get the original trades back — and that ends up costing more money. Because of the unknowns (how many deficiencies are there, what

is the reaction of the developer etc.) the process from here on, in terms of the Performance Auditor’s fee, is usually dealt with on an hourly basis. In many cases an “upset cost” can be given by the Performance Auditor to review the work done by the developer in rectifying the deficiencies for budget purposes.

Each time there is a response from the developer, or a review of deficiency status by the Performance Auditor, the spreadsheet is updated and distributed to the Board, the Developer, and Tarion - with a final column showing “complete” or “accepted”.

At the end of this process the majority of deficiencies (if not all) will have been looked after and the Developer may then make an offer of Settlement (cash) to obtain a Final Release from the Condominium Corporation. The Developer needs this Release to prove to Tarion that all obligations under the first year warranty have been met – at

which time Tarion will release funds held in deposit for that site to the Developer.

Where does Tarion come in?

During the ongoing process from the initial report to the succeeding tracking spreadsheets Tarion is always kept up to date by the Performance Auditor and Tarion may send out some letters where needed to keep things moving if they feel that progress is too slow.

Some things to watch out for that may weaken your case would be:

• All specific locations must now be recorded – you can no longer make a general comment that all balconies are an issue – they all have to be checked and identified individually in order to count.

• The defect must have some conse-

quence in real time – in other words it’s no use saying that something will go wrong in 2-3 years – it must be a performance issue within the 12 month period or it doesn’t count with Tarion. (There are other avenues that could be pursued legally if necessary).

• If the Board of Directors feels an

In some cases an impasse is reached where the Developer refuses to do some work that the Performance Auditors consider warrantable and so Tarion is called in. Initially Tarion will attend a “Common Element” meeting be-tween the condominium corporation, their Performance Auditors, and the Developer, to see if gentle “comments” can assist in breaking an impasse. This usually gets things moving again, but sometimes everyone sticks to their guns and a “Conciliation” meeting is requested by the condominium corporation – this is where Tarion rules for or against specific items that are documented and brought to the meeting. Conciliation could include all outstanding items, or just one or two important issues – meaning there could be more than one such Conciliation meeting. In all cases there is a “black and white” determination by Tarion so it is important that the Performance Auditor guides the Board of Directors as to their expectations. Frivolous claims are obviously frowned upon and could jeopardize future claims by that condominium corporation.

How does Tarion decide?

There is a book from Tarion giving their “Construction Performance Guide-lines” (available on their website) that provides parameters for acceptability of workmanship in most areas, and this is adhered to in the Conciliation process. In some cases it comes down to an interpretation of the Building Code, and Tarion will consult their experts if need be to determine their ruling.

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issue cannot wait and must be fixed – make sure that you give the Developer every opportunity to do it first. If progress is too slow, send a letter stating what is to be done, by which contractor and for how much – giving a ‘reasonable’ time frame for the commencement of the proposed work. This allows the developer to react with their own contractor, or to make a better deal with the chosen one. If you do not take this step the developer may wash their hands of that issue and it will be difficult making a case for the costs.

What about the Second Year?

There is also a two year warranty under Tarion from the Developer on limited aspects of the building, and so the Audit for this stage is limited as to its scope as follows: • Water seepage through the basement or foundation walls - includes below grade areas and underground parking.

• Defects in materials and work including caulking, windows and doors resulting in the building envelope allowing water penetration.

• Defects in materials and work in the electrical, plumbing and heating delivery and distribution systems.

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• Defects in materials and work that result in the detachment, displacement or deterioration of exterior cladding.

• Violations of the Ontario Building Code’s health and safety provisions.

It is not unusual for the Developer to include the second-year items together with the first year Performance Audit when obtaining the Final Release from the Condominium Corporation.

Seven Year Warranty

The seven year warranty is provided by Tarion (not the Developer) and covers against “Major Defects” defined as “failure of a load-bearing part of the structure”, or “defects that significantly and adversely affects the use of the building as a home”.

Choosing a Performance Auditor

As you can see from all of the above, the process is quite complex and could last over several years, so first you need to have a Performance Auditor that you feel comfortable with and that is able to clearly explain all the steps along the way in terms everyone can understand.

Since the complete building is to be audited, it is important to use a qualified

company that provides all of the disciplines from within their own organization. If the company has to sub-contract work to other companies then there could be problems getting everyone together for meetings, reviews and ongoing site inspections that are required over the course of the negotiations and rectification process (not to mention possible extra costs).

Jeff Jeffcoatt, P.Eng, BDS, RCM is a Registered Condominium Manager and Professional Engineer and is the Condominium Specialist for Construction Control Inc. where he heads up the Mechanical & Electrical Department and the Health & Safety Programs. More recently accredited through the Ministry of Municipal Affairs and Housing for the Building Code Identification Number (BCIN) program as a building designer for Large Buildings, Building Services, Small Buildings, and Houses.

Well known for his teaching for ACMO at Humber College and via the web through Mohawk College, Jeff wrote/compiled the manual for the ACMO Physical Building Management course, and is presently CoChair of the ACMO Professional Development Committee. ■

Schlock, Schmooze & Superficiality – Choosing Your Professional Partners Wisely

BY MICHAEL H. CLIFTON, MA, LLB, ACCI (LAW) & NELSON AMARAL, MA, LLB CLIFTON KOK LLP LEGAL COUNSEL hoosing professionals is an ongoing issue and obligation of condominium boards of directors and property managers.

Condominiums frequently require professionals to handle specialized tasks and, thanks in part to the provisions of sub-section 37(3) of the Condominium Act, 1998, (the “Act”) reduce corporate and individual liabilities.1

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Very often, when we speak or write of how to choose professional service providers, we focus on skill sets and experience – each of which is very important – but forget to consider issues of character and commitment. In our view, these are essential considerations when choosing those professionals who will serve your condominium community.

In the “old days” (as we like to say as we get older) the term “professional” meant something special. Today, it refers to almost anyone who gets paid for the use of specific skills and knowledge, and is more specifically applied to a person who requires certification from a governing body to verify the presence of such skill and knowledge; but the term also used to mean, and in our view still should, that the person to whom it applied had not only specialized skill and knowledge and certification, but also exhibited a personal commitment to a high standard of ethics and to “courteous, conscientious, and generally businesslike” conduct.2

Of course, good character combined with ignorance and incompetence is of no benefit; but all the experience and intelligence in the world will not make up for the deficiencies that arise out of such things as a lack of genuine concern or either dishonest or discourteous behaviour.

In short, the real qualities of character exhibited by your professional service providers will have at least as significant an impact on their performance as

eral sense of being a member of the board or a unit owner, but a professional should be someone who understands the perspectives of the board and unit owners, and who applies his or her skills and knowledge with a genuine concern for the overall well-being and advancement of your corporation.

Your professional’s concern for you should complement and be consistent with your own. This means that he or she should not be simply “task orient-

“…all the experience and intelligence in the world will not make up for the deficiencies that arise out of such things as a lack of genuine concern or either dishonest or discourteous behaviour.” do knowledge, skill and experience.

What follows are brief discussions of some general points that in our view ought to be considered seriously when you are determining who to hire.

Professionalism and Partnership

As is suggested in one part of the title of this article, the professionals who work for your condominium corporation (or for you personally or for any business or organization with which you are associated) should be able to be considered your “partners”.

This does not mean “partner” in the lit-

ed” – striving to get done only the specific thing you have asked him or her to do – but should keep in mind the general nature and objectives of the condominium, so that the task at hand is accomplished in a manner that is consistent with them.

Thus, for example, a lawyer behaving professionally does not necessarily rush the condominium into court or strike an instantly aggressive and positional pose every time there is a requirement to enforce a condominium rule. Instead, whenever possible, he or she seeks to assist the board and other owners in finding a resolution that matches the objective of the Winter 2008

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When “Personal Service Beyond The Contract� Really Counts!

There Is Only One Name

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

jvero@veropropertymanagement.com www.veropropertymanagement.com Condominium Property Management Specialists

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condominium to maintain or create a peaceful and cooperative community.

In the event court proceedings or other formal legal action are unavoidable, the professional lawyer seeks to minimize the costs and disruption to his or her condominium client, without sacrificing seeking an appropriate outcome.

Likewise, a professional engineer conducting a reserve fund study will not take a simplistic and formulaic approach to the proposed funding plan, but will consider the actual circumstances and needs of the condominium and its constituents and assist the board in developing a plan that meets the basic statutory objective of “adequacy” (at the appropriate time) without imposing unnecessary burdens on the corporation or individual home owners.

Where genuine concern for your com-

worthiness, which is often considered to be a professional’s (as well as a profession’s) most critical asset.

Your preference should be to be served by professionals who treat you and your condominium’s residents and owners respectfully. In addition, it is advisable to prefer professionals whose conduct towards others within his or her profession is also polite and friendly.

There are frequently occasions for the members of various professions to rely on or otherwise interact with one another for your benefit. Professionals often seek other opinions or the assistance of specialists in various fields to address particular needs outside of the scope of their own skill set or experience. In a collegial fashion they will “bounce ideas” against one another, or even need to hire another professional to deal with

“…the term [“professional”] used to mean, and in our view still should, that the person to whom it applied had not only specialized skill and knowledge and certification, but also exhibited a personal commitment to a high standard of ethics and to ‘courteous, conscientious, and generally businesslike’ conduct.” munity and its objectives is present, your professional is significantly more likely to give you the service you both desire and deserve, than will a professional whose primary concern is getting the immediate task done (and getting paid for it) with no sense of how this will affect you for the future.

Professionalism and Politeness

The importance of considering a professional person’s conduct as it pertains to matters of courtesy may be less obvious than the importance of his or her skills, knowledge and genuine concern for your community. However, the manner in which a professional treats people, whether in front of or behind closed doors, can say a great deal about other more clearly serious character traits, such as honesty, integrity and responsibility, all of which impact trust-

some aspect of a problem. In the legal profession in particular there is a need for common courtesy even towards one’s opponent’s lawyers, to help ensure that personality clashes do not interfere with dispute resolution or the completion of essential processes. If your professional has burned too many bridges (through, e.g., discourtesy or a failure to use “fair play”) amongst his or her peers or the members of other professions, you might find that the services you need cannot be delivered with the efficiency and effectiveness you should be able to expect from a member of that profession.

You might also consider your own comfort level in working with someone whose language or conduct regularly expresses disrespect for others, a sense of superiority, or a tendency to gossip unkindly, and so forth. Is this the kind

of person to whom you want to trust your condominium’s most vital concerns? Can you?

Perhaps if all you want is a “hired gun” or someone to clerically and clinically do exactly what you want without consideration for the consequences (to you or others), these points may not be relevant to you. However, having said this, a condominium director seeking to employ a professional on that basis might, him/herself, lack the ethical integrity that ought to be expected of a person in that position.

None of the foregoing is meant to say, of course, that a professional may never utter an angry word, or must always perform in a perfectly polite manner – each is human after all – but these comments do rely on the time-tested principle that people who care enough about other people to, on balance, express kindness and respect in their daily interactions, even to those to whom they are opposed, are more likely able to be relied upon to treat you and the things that matter to you carefully and responsibly.

Professionalism And Personality

Of course, good manners can be faked – hence the references in the first part of the title of this article to “schlock, schmooze and superficiality” – and it is hard to get around this except by perceptiveness over time. However, a good start, when selecting a professional service provider, is not to be overly impressed by outward appearances.

The fact of the matter is that most of us are soothed by a silver tongue, impressed with a decent hair-do or stylish clothing, appreciate a fit body or a twinkling eye, get tickled by talent and awed by intellectualism, along with a host of other attractive external traits; but the further fact of the matter is that none of these things actually speaks to the quality of someone’s concern or service, his or her level of integrity, or the capacity to consider responsibly the needs and interests of others.

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fused about this. It is generally easier to trust unwittingly in the superficial cues of professional “success”, than to research and recognize those cues that indicate true professionalism.

Stephen Covey, in his now seminal book, The Seven Habits of Highly Effective People,3 writes, [My] study took me back through 200 years of writing about success…I began to feel more and more that much of the success literature of the past 50 years was superficial. It was filled with social image consciousness, techniques and quick fixes – with social band-aids and aspirin that addressed acute problems and sometimes even appeared to solve them temporarily, but left the underlying chronic problems untouched to fester and resurface time and again.

In stark contrast, almost all the literature of the first 150 years or so focussed on what could be called the Character Ethic as the foundation of success – things like integrity, humility, fidelity, temperance, courage, justice, patience, industry, simplicity, modesty and the Golden Rule.

For the balance of Mr. Covey’s book, he explains how the application of the “Character Ethic” makes us individually and organizationally more success-

ful in long-term and deep-rooted ways, compared with the “Personality Ethic” that provides only an immediate and temporary sense of satisfactory performance.

The bottom line is that a professional whose primary concern is his or her character is more likely to give you, over the long term, competent service that correctly addresses your most crucial needs and objectives, than a professional who is more focused on image than integrity. The challenge is how to test for or discover this when choosing a professional. Perhaps the best you can do is ask.

In addition to questions about such things as certifications, qualifications, skills and experience, you should ask directly about your prospective professional partner’s character and ethics.

How would he or she deal with particular situations? What advice would he or she give if…? What does he or she think about…?

Also, find out about your prospect’s reputation. Speak to former clients and to other professionals both in and out of the prospect’s profession. Speak to non professionals with whom the prospect interacts – e.g., court clerks (lawyers), trades people or contractors (engineers), bookkeepers (accountants),

etc. Ask how he or she treats people, answers inquiries, deals with disagreements over invoices, handles stressful situations or cumbersome and inconvenient processes, shares resources and knowledge with other professionals, etc. An often crucial factor is, does he or she admit mistakes readily, take responsibility for them and seek to correct them?

In summary, the traits you should look for in professional service providers (partners) for your condominium are exactly like the traits you would look for in a friend or trustworthy associate or colleague in any context. And, in the end, trusting your “gut” rarely hurts – if the conduct of your professional partner gives you pause, then you likely should take that opportunity to reconsider your relationship.

1

2 3

Sub-section 37(3) of the Act states that “A director shall not be found liable for a breach of a duty mentioned in sub-section (1) if the breach arises as a result of a director’s relying in good faith upon” the reports or opinions of a variety of persons whose professions “[lend] credibility to the report or opinion”.

Reference the Merriam-Webster Online Dictionary.

Page 18; published by Simon & Schuster Inc. as a Fireside book (paperback), 1990. ■

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CONDO OF THE YEAR Condo of the Year Award - Second Quarter Finalist The Royal Arms Condos, MTCC 1195

CCI Toronto is thrilled to announce that MTCC #1195 has been announced as the second quarter finalist of the newly launched Condo of the Year Award. The following article was written by Gary Pickering as part of the corporation’s submission for entry to the contest. Our congratulations are extended to MTCC 1195!

Further details on this contest may be found on page 49 or on the CCI-T website at www.ccitoronto.org. The closing deadline for the next quarter submissions is: February 1st, 2009. The annual grand prize winner will be selected from amongst the four quarter finalists in the early fall of 2009.

he Royal Arms Condos M.T.C.C. 1195 at 5418 Yonge St Toronto, Ontario has been in existence since 1998.

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You know you have arrived at elegance as soon as you drive into the Front Entrance of the Royal Arms Condos. The sound and sight of the beautiful waterfall immediately softens the city surroundings. The vibrant flowers and lush greenery freshen the air around you.

Governance

The current Board of Directors consists of five committed residents in the building who meet for regular monthly Board meetings as well as random meetings when necessary. We suggest to others that they may judge how well this building is run by reviewing the reserve fund study, observing the cleanliness of the building, and noting the overall state of repair of the facility.

Our reserve fund is extremely healthy despite some budget challenges this past fiscal year. We have been able to keep maintenance increases to a minimum. Board members take an interest in the

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state of repair by making random inspections of the building with a view to identifying areas that need repair or maintenance and prioritizing items in the reserve fund study.

The Board itself is comprised of members with relevant work experience such as engineering, finance, sales, and senior management. These robust board resources allow for good judgement and good decisions.

newsletter in which residents are updated on current major initiatives of the Board as well as reminders about items such as upcoming owner meetings.

In keeping with the technology revolution, the board has also approved the development of a Condo website at www.geocities.com/royalarmscondos.

Residents are always encouraged to bring their concerns to the Board via

Board members work as a team together with Property management by DEL, always with the interests of the corporation and residents being the prime focus.

The people living in the Royal Arms reflect the cultural diversity of the City of Toronto. The Board of Directors is cognizant of this fact resulting in a policy of using international or graphic signage wherever possible.

MTCC 1195 has a number of Committees including Documents Committee, Waste Management Committee, Landscaping Committee, and Guest Suite Committee. These committees meet as required and provide advice to the Board of Directors.

Communications

For the last two years, the Board of Directors has published a quarterly 48

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Consistency

Because of the Board’s policy with respect to communication with residents, i.e., having all suggestions and concerns go through the property management office and subsequently Board meetings, residents enjoy a consistent response to things such as change of flooring requests.

Environmental Concerns

The Board of Directors remains concerned about the environment and has struck a Waste Management Committee to guide the Board as to the City of Toronto’s Solid Waste Management initiatives.

Energy Initiatives

Effective Use of Committees

An example of this is the Board’s recent initiative to switch CCTV security cameras from analog to digital.

Because our rules are included in the Welcome Package given to all new residents, everyone in the building has the same obligation for making the condo run efficiently and effectively and with a minimum of disruption. It also makes it easier for our staff such as the cleaners, security, and superintendent to carry out their day to day duties.

Social Fabric of the Community

Just recently, the Board approved a retrofit of the garage lighting which is anticipated to save our residents about $40 thousand annually and will pay for the retrofit in one year. Other areas the Board is looking at are common area hallways and washrooms where the installation of motion sensor lighting might result in additional savings.

the condo can benefit.

the Property Management Office and in writing. Board members recognize that, outside the regular Board meeting venue, they are simply residents and cannot make unilateral decisions.

Forward Thinking

Members of the Board of Directors always try to have an open mind for suggestions by residents, at the same time measuring the positive effects of the suggestion on the condo overall.

Board members are always on the lookout for the latest in technology and how

We also ensure that suppliers such as the landscaping company, pool contractor and electrical contractors are environmentally friendly and use environmentally friendly products.

Other Unique Amenities

Royal Arms Condos has two guest suites available for use by residents’ visitors for a nominal fee. We also allow residents use of the party room and billiard room free of charge. ■

Do you think your condominium has what it takes to be named as the

CCI Toronto Chapter

Condo of the Year?

CCI is pleased to announce the condo of the year award, open to all CCI Toronto & Area Chapter corporate members. The contest will open July 1st, 2008 and will run until June

30th, 2009. Quarterly finalists will be selected by the CCI-Toronto Membership Committee

and the winner of each quarter will be featured an upcoming quarterly issue of the CCI CondoVoice magazine. The Grand Prize winner will be selected from amongst the four quarterly finalists by the Public Relations Committee and will be announced in the fall of

2009. The grand prize winner will be announced at the 2009 Annual General Meeting and will receive a street entry sign for their corporation – a prize worth up to $5,000.

Judging Criteria for this award will include any or all of the following: • Good Governance

• Forward 'Thinkingness'

• Social Fabric of the Community

• Consistency

• Energy Initiatives

• Environmental Concerns

• Effective Use of Committees

• Any other unique approach or program

• Communications Interested applicants should forward their submission, including photos and an article outlining why they feel their corporation is worthy of this award to:

CCI Toronto and Area Chapter, 2175 Sheppard Ave. East, Suite #306, Toronto, ON M2J 1W8 or email to ccitoronto@taylorenterprises.com

For further information, please visit the CCI Toronto website at www.ccitoronto.org

SUMMA PROPERTY MANAGEMENT INC. PROFESSIONAL PROPERTY MANAGEMENT & CONSULTING

“Your condominium deserves personal attention and service.”

Over 24 years experience!

We provide Professional Condominium Property Management with attention to detail. Your property is important to us! Regular on-site visits and inspections, attendance at all meetings. We are available to be personally contacted by Board Members at almost any time – not just ‘business hours’.

We provide Superior Service and a commitment to quality property management no matter what size your condominium is!

At Summa we take pride in managing your property!

Ryan B. Stone, CPM President

416.913.7990 416.728.2429 (Cell) propman@summapm.com www.summapm.com

When experience and quality counts!

PROVIDING EXCEPTIONAL SERVICE TO THE CONDOMINIUM INDUSTRY FOR OVER 25 Y EARS SPECIALIZING IN COMPLETE PROPERTY MANAGEMENT SERVICES: Residential High-rise & Townhouse Condominiums Industrial & Commercial Condominiums

Hands-On Management Individually Designed and Tailored To Meet And Exceed Your Communities Needs For more information, please contact: Gary Atkin, RCM, ACCI Matthew Atkin, RCM, CMOC, ARM, CPM or Nathan Atkin, B.A., RCM

G.S. Atkin Property Management Specialist Inc. One Shady Lawn Court Mississauga, Ontario L5N 1H2 24-Hour Emergency Line (905)-567-6820 Direct Line: (416)-258-6011 Fax: (905)-567-6930 Website: www.gsa-pm.com Email: info@gsa-pm.com

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CCI Winter 2009 Educational Courses - Mark Your Calendars Condo 101 Course

Basic Condominium Course

Date: Time: Location: Cost:

Dates:

Saturday, January 17, 2009 9:00 a.m. until 12:00 p.m.

Novotel North York Hotel $60 for CCI Members and $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.

Tuesday, February 11th, 18th, 25th and March 4th and 11th, 2009 Time: 7:00 p.m. to 10:00 p.m. each evening Location: Novotel North York Hotel Cost: $300 for CCI Members and $400 for Non Members

This informative five night course 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.

NEW!! – Condo 201 Course – Governance and Unit Owner Rights Date: Time: Location: Cost:

Saturday, April 18, 2009 9:00 a.m. until 12:00 p.m.

Novotel North York Hotel $75 for CCI Members and $125 for Non Members

This ½ day course will teach directors all they need to know about proper Governance issues and how to ensure a well functioning Board. This is a ‘mustattend’ session for any new Director or for any owner considering running for a Board position.

For further course information, to download registration forms or to register online, please visit www.ccitoronto.org/Education

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Conflict in Condominiums: Waste or Value-Added?

BY RICHARD A. ELIA, B.COMM., LL.B., LL.M.(ADR), ACCI

Conflict is often unavoidable due to incompatible or opposing needs, wants or other demands. Conflict is generally motivated by our needs and wants: for example, one owner’s need for a good night’s sleep vs. another owner’s need to practice the piano. The question therefore becomes: Is there value to be gained from how we deal with conflict?

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veryday conflict can arise in a variety of circumstances: from dealing with the driver who cuts us off on our drive to work to deciding with our kids what to have for dinner.

In the condominium community, the scope of possible conflict, it seems, is limited only by one’s imagination.

Non-payment of common expense arrears and noise transmission between units are some of the conflicts near to our hearts. However, if conflict can be viewed as a means to better our under-

E

standing of our own needs and the needs of others, then perhaps we can find value or derive benefit from conflict; particularly, if we can resolve it quickly and cost effectively.

Mediation is a process that belongs to the parties; the mediator is only there to facilitate the resolution. Subject to the boundaries presented by the Condominium Act, 1998 (the “Act”), the solution is developed by the parties (as opposed to being imposed by the

courts). The parties should, therefore, be able and more willing to live and comply with the solution.

The Act now presents parties, who are governed by the Act and who are in conflict, with the opportunity (and sometimes the obligation) to resolve their differences, and hopefully find resolution, through mediation. Besides being a trend used to resolve disputes, mediation or a variation of thereof (Appropriate Dispute Resolution) can be a valuable tool to manage conflict (and avoid costly disputes) as it allows the parties, with the assistance of a mediator or other third parties, to identify and share their respective interests

term in nature. Neighbours must continue to live with neighbours until such time as they move out. Individual owners must work with the condominium corporation and vice versa, to achieve the statutory and non-statutory objectives of the condominium corporation, which, at the end of the day, are for the benefit of each of the individual owners. Conflict, and the resolution of conflict, particularly if a greater dispute can be avoided, shall strengthen a community and the relationships found therein and better advance the needs and wants of the community.

Mediation is a fascinating and often

cost-effective opportunity to resolve disputes in certain situations. While not all circumstances will justify or work within the parameters of mediation, and litigation may at times be unavoidable, the drafters of the Act obviously envisioned the potential of value in conflict and its resolution through mediation.

Richard Elia has been actively involved in the area of Condomin-ium Law since 1994, and has practiced with both “boutique” and large full-service firms in Toronto. Richard has a particular interest in investigating the sources of conflict and dispute within condominium communities, and the concept of avoiding disputes by addressing conflicts at the earliest possible stages. ■

‘The Act now presents parties, who are governed by the Act and who are in conflict, with the opportunityto resolve their differences, and hopefully find resolution, through mediation.’ (i.e. needs, drives, motivations) and develop and implement practical and durable solutions without having a third party (i.e. a court) impose a solution, which may or may not (that’s the gamble) appropriately address the interests of the parties involved in the dispute.

A key starting point in a mediation is the identification of the parties’ respective interests. Often, this can be done by having the parties relate their stories to each other. This exercise should provide productive insight to one party about another party’s interpretation of the facts, perspective and his/her emotions. With this information on the table, a mediator can go forward in facilitating a solution.

Is there value to be found within the condominium community? Yes – and particularly within the community relationships, which are, generally, long

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CCI National News On October 31, 2008 – CCI National Appointed Janice Pynn as New president Janice Pynn, RCM, ARP, ACCI, FCCI, has been appointed the President of the National Board of Directors of CCI, effective October 31st, 2008.

Janice has served on the National Board since 2001 and has participated on numerous committees including Membership and Planning.

Janice has spent more than twenty five years in property management. Janice is the Executive Vice-President of Simerra Property Management Inc. As Executive Vice President and Partner of Simerra, Janice is responsible for the operation of more than 22,000 condominium units.

Janice is the immediate Past President of the Canadian Condominium Institute Toronto Chapter. With a focus on gov-

ernance, growth and promotion of the ACCI designation, Janice will be joined by a diverse team of Executives who were elected on October 31st at the CCI National meeting as follows; CHAIRMAN: Jamie Bleay, LL.B

VICE-PRESIDENT: Jim MacKenzie, MBA, DAA, FCIP (Hons) SECRETARY: Geoffrey K. Penney, BA, LL.B TREASURER: Peter Harris, CA, ACCI, FCCI

The Canadian Condominium Institute is the Voice of Condominium. This organization is the only National Association dealing exclusively with condominium issues affecting all of the participants in the condominium community. The goal of CCI is to form partnerships with its members to create, encourage and promote a strong condominium community in the vibrant Canadian marketplace.

CCI’s role is to educate those involved in condominium, to provide professional referrals to members, to improve legislation affecting condominium in every province, and to develop standards and best practices for condominium directors and professionals. The Chapters throughout the country provide practical comparisons to the different provincial Acts and allow CCI to lobby for better reforms as gained from practical experience. CCI assists its members in establishing and operating successful condominium Corporations through education, information dissemination, workshops and technical assistance. ■

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New Members

CCI Toronto Welcomes the Following New Members Corporate Members

DSCC # 0214 MTCC # 0599 MTCC # 0989 MTCC # 1175 MTCC # 1329 MTCC # 1404 PCC # 0100 PCECC # 0832 PSCC # 0814 PSCC # 0837 TCECC # 1943 TSCC # 1922 TSCC # 1923 TSCC # 1948 TSCC # 1952 YCC # 0068 YCC # 0075 YCC # 0266 YCC # 0398 YCC # 0486 YRSCC # 1125

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Individual Members A. Bergs C. Romany L. Folds K. Mondor A. Chenier M. Filice M. Robson R. Brown L. Benetton J. Oliveros D. Goad

Professional Members

Michael Kudrac Cape Property Management Ltd.

Rudy Tassone ING Insurance of Canada John Moher Fine & Deo

Winter 2008

New Trade Members Tuck Yiong Caldwell Securities Ltd. Brian Bosscher Condo Web Access

Laura Lee Enhanced Management Services

Kevin Chappell and Chris Dale Markham Garage Doors Ltd.

QCTI/VICOMMUNITY.COM Janice Pynn Simerra Property Management Ltd.

Shahid Arifuddin Skyline Building Systems Inc. David G. Sim Smart Watering Systems

City Waste Pick Up and Recycling Updates For current updates on city waste pick up, including information on opting to switch to private garbage collection- see the CCI Toronto website at www.ccitoronto.org

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Member’s Corner

2008 Annual General Meeting – CCI Toronto On Thursday November 27th, members of the CCI Toronto & Area chapter gathered for the Annual General Meeting – held at the North York Novotel Hotel.

Elections for Board positions were held in accordance with the Chapter by-laws and four positions were filled that evening.

Returning to the Board are directors Mario Deo, Armand Conant, and Bob Girard. Newly elected to the board is Sally Thompson, an Engineer with Halsall Engineering.

Plaques of appreciation were presented to Past President Janice Pynn as well as outgoing President John Warren. Both John and Janice contributed greatly to the advancement of the Institute during their respective terms as President.

Janice Pynn accepts a plaque of appreciation as Past President from Vice President, Mario Deo.

Outgoing President John Warren is presented with a plaque of appreciation from Past President, Janice Pynn.

As in the past, the Annual General Meeting also served as a forum for the Annual Awards Ceremony. The Condominium Newsletter of the Year Award for 2008 went to TSCC # 1849 – “Kilgour 1 News’ – and Communications Committee members, Val Taylor, Nina Morris, Paul Mariai, Dave Milne, Tara Pollard and Miriam Preszler were thrilled with the award. (see photo)

It was with great pleasure that Membership Chair, Bill Thompson, announced the first recipient of a Platinum Level award under the chapter’s Ambassador Program. Simerra Property Management Ltd successfully recruited 20 new members to CCI during the 2007-2008 year. Executive Vice President of Simerra, Janice Pynn was on hand to receive their award. ■

Membership Chair, Bill Thompson presents Janice Pynn of Simerra Property Management with a Platinum Ambassador Award.

TSCC 1849 President, Val Taylor, left, Communications Committee Member, Nina Morris and Board Director, Ken Karp accept their award.

CCI Toronto Wins Lorne Young Chapter of the Year Award!

The CCI Toronto and Area Chapter was thrilled to be the recipient of the 2007-2008 Lorne Young Chapter of the Year award presented by CCI National at the annual Awards dinner (the ‘Harvest Hoedown’) held on Friday October 31st, 2008. The Toronto and Area chapter was nominated for this award by last year’s recipient, the CCI South Saskatchewan Chapter. ■ On hand to receive the award were: (l to r) Bill Thompson, Bob Girard, Armand Conant, Brian Horlick Vic Persaud, Janice Pynn, Jeanette Fu, and Mario Deo. The plaque is presented by Jim McKenzie (foreground in ‘Jays’ shirt) and Charlie Oliver, far right.

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Member’s Corner Harry Herskowitz Receives FCCI Designation Long time CCI-Toronto member Harry Herskowitz, received the distinguished honour of receiving his FCCI designation at the CCI National Gala Awards Dinner held on Friday October 31st, 2008.

Harry is a partner and head of the real estate department of DelZotto, Zorzi LLP, devoting his practice to real estate, mortgage lending and commercial transactions, with particular emphasis on land development and condominium law.

Harry is a former vice-chair of the Real Property Section of the Canadian Bar Association of Ontario, and has taught real property law at Osgoode Hall Law School. He is also the author of numerous papers and case comments on condominium and real property law, mortgage matters and land development issues for the Ontario Bar Association, the Law Society of Upper Canada, and Insight Educational Services.

Harry was actively involved in representing the Urban Development Institute and the Greater Toronto Home Builders’Association on their joint submission to the Ministry of Consumer and Commercial Relations regarding proposed amendments to The Condominium Act.

Harry has spoken at numerous conferences including the annual ACMO/CCI Condominium Conference on a variety of condominium and real property law issues.

Harry is currently a member of the Toronto Chapter of CCI, the ADR Institute of Ontario, and is vice-chair of the board of directors of Tarion Warranty Corporation.

The Toronto Chapter was proud to nominate Harry Herskowitz as a Fellow of the Canadian Condominium Institute to recognize his significant achievements in the industry. ■

The CCI Toronto chapter was a proud sponsor and exhibitor at the recent Toronto Condo Show, held on October 2nd through 5th, 2008 at the Metro Toronto Convention Centre.

The chapter organized and presented a 1 ½ hour seminar at the show aimed at new purchasers.

“Purchasing a Condo – What You Need to Know” lead attendees through the ins and outs of purchasing a condo and most importantly taught them the questions to ask before they make their purchase.

Thanks to session presenters; Bill Thompson, Armand Conant, Donna Swanson and Julian McNabb. ■

Chris Jaglowitz Receives ACCI Designation Congratulations go out to Chris Jaglowitz for earning his ACCI Designation in Law. This designation was presented to Chris at the CCI National Annual General Meeting held on Friday October 31st, 2008.

Chris is a senior associate with the law firm Gardiner Miller Arnold LLP where over 80% of his practice is devoted to condominium law. He is a member of the Law Society of Upper Canada, the Canadian Bar Association, the Association of Condominium Managers of Ontario and the Canadian

Condominium Institute.

Chris has appeared as counsel on numerous reported court decisions, including the first case to consider s.

105(3) of the Condominium Act, 1998.

Chris is a regular attendee at CCI courses and at the ACMO/CCI annual conference, where, in 2004, he sat on the Legal Experts Panel. He is a guest lecturer at the RCM Law course at Humber College and has been a contributing author to the CondoVoice magazine. ■

CCI Director Gina Cody and Graham Oliver staff the CCI Booth in the exhibit area of the Toronto Condo Show.

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City of Toronto Recycling Update Can I throw my plastic bags in my Blue Bin? Grocery and other retail plastic shopping bags can now go into your Blue Bin.

Do I just throw them in?

No. The bags have to be empty; remove any receipts and put all the bags in one bag and then tie closed. Do not use a rubber band or twist tie.

Can all plastic bags go in?

No. At this time only plastic retail and grocery bags can go in.

What type of bags can’t go in?

Bags with drawstrings, hard plastic handles and metal details cannot go in. They can go in, if you cut these items off.

The following bags are also not included: • Dry cleaning • Milk (outer and inner) • Produce • Bread • Sandwich • Plastic food wrap

Why can’t all types of plastic bags go in?

Some plastic bags are not being included at this time because of contamination concerns (e.g., biodegradable outer milk bags, odour from inner milk bags). Plastic

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retail and grocery bags represent 70% of plastic film and recycling markets for this material are more stable than “all plastic film” markets.

Why are plastic retail and grocery store bags being recycled? Aren’t people re-using them?

It’s best if people reduce the number of plastic bags they are getting by re-using them. If bags cannot be re-used, they can be recycled after December 8, 2008.

Do I need to rinse these?

Yes. All food residue needs to be removed.

Can polystyrene items go into the Blue Bin? Polystyrene is one of the most widely used kinds of plastic and comes in two types: clear/rigid polystyrene and polystyrene foam. Only polystyrene foam can be put in your Blue Bin.

Polystyrene can be transparent or can be made to take on various colours. Solid polystyrene is used in hard (rigid) products such as plates, glass, cutlery, clamshells and clear egg cartons, plastic models, CD and DVD cases. These items are not accepted in the Blue Bin.

How else can I reduce the number of plastic bags?

By refusing them in the first place and using durable reusable bags when shopping.

What foam polystyrene items can go in the Blue Bin? • Foam packaging (hard, white – used for cameras, stereos, etc.)

• Foam cups • Foam takeout containers

• Foam meat trays • Foam egg cartons

What about other polystyrene items?

Packing peanuts (popcorn) and pure solid polystyrene, which is a hard plastic with limited flexibility, are not accepted in the Blue Bin Program at this time.

What about those clear clamshells used for fruits and vegetables?

No, these are not accepted in the Blue Bin. Please put these in the Grey Garbage Bin. ■

CCI’s Most Popular Selling Book

The Condominium Handbook

by Gerry Hyman has been updated and is now available in the Seventh Edition!

Order your copy today!

Visit the CCI online bookstore at www.ccitoronto.org to order online or download an order form.

Cost is $15.00 plus tax and $2.00 shipping.

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List of Advertisers A.R. Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 ACMO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 Adams & Miles LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Atrens Counsel Insurance Brokers Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Atrens Management Group Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 Ben Engineering Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Brady & Seidner Associates Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 Brokers Trust Insurance Group Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 Brook Restoration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Brookfield Residential Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 Brown & Beattie Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 Carma Industries Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Certified Clean Air Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Chubb Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Condominium Living Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Construction Control Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68 Connaisseur Painting Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 CPL Condominium Design Interiors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Criterium Jansen Engineers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57 CustomBuiltCalendars.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Davroc Consulting Engineers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 Donna Swanson Real Estate Brokerage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Dryerfighters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 D-Tech (Nexus) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 E.J. Walsh & Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 Enbridge Electric Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Enbridge Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 Enerplan Building Consultants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57 Enhanced Management Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Essential Landscaping Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Fine & Deo Barristers & Solicitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Firenza Plumbing & Heating Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Fogler, Rubinoff LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Four Season Duct Cleaning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 G4S Security Services Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Galaxy Fire Protection Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Gardiner Miller Arnold LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Genivar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Gerald R. Genge Building Consultants Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . .36 GSA Property Mana gement Specialists Inc. . . . . . . . . . . . . . . . . . . . . . . . . . .50 Gulesserian Associates Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 Heenan Blaikie LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Holman Insurance Brokers Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Horlick Levitt Barristers & Solicitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 ICC Property Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 J. Edick & Sons Landscape Contractors Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . .66 J.J. Molnar Realty Advisors Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60 Larlyn Property Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 M & E Consulting Engineers Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Maple Hill Tree Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Maple Ridge Community Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . .24 Mareka Property Management Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 Martin K.I. Rumack Barrister & Solicitor . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Maxium Condo Finance Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 Metro Group of Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56 Miller Thomson LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Morrison Hershfield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Nadlan-Harris Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Ontario Screen Systems Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Percel Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Premier One . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 Professional Choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 Pro-House Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 Provident Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 RBC Dominion Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57 Rikos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Rogers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 Royal Grande Property Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Samuel Property Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Simerra Property Management Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 SR Wise Management Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57 Stratacon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 Summa Property Management Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 Suncorp Valuations Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Training Wheel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 Vero Property Management Services Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Waste Solutions Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 Whiterose Janitorial Service Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 Wilson Blanchard Management Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54

Call for Article Submissions If you are interested in writing articles for TheCondoVoice magazine, please contact Marie McNamee at (905) 8522802 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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Diversions & Distractions CONDO WORD FIND r e u s a b l e s t n e m e g a n a m

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WASTE abide advising building bulk caution choose city collection compactor comply concrete could current

date environment escalate garbage general instead management manager must opt organics out owners

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- RECYCLING pad private provincial reapply rebate receive recycling regulations reinstated requirement reusables room services

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CLASSIFIED SECTION

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Total Security Solutions for Condominiums • • • • •

Visitor entry phones Access control Video surveillance Hands-free parking control 24/7 alarm monitoring

Lorne Middleton Manager, Sales & Operations, Central Ontario 5201 Explorer Drive Mississauga, Ontario L4W 4H1

Phone: 905-206-8458 Fax: 905-206-8486 lmiddleton@chubbsecurity.com www.chubbsecutiry.com

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

www.ccitoronto.org 66

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