www.ccitoronto.org VOL. 13, NO. 2 • WINTER 2008 PM #40047055 PUBLICATION OF THE CANADIAN CONDOMINIUM INSTITUTE - TORONTO & AREA CHAPTER PUBLICATION DE L’INSTITUT CANADIEN DES CONDOMINIUMS - CHAPITRE DE TORONTO ET RÉGION 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
Transcript
www.ccitoronto.org VOL. 13, NO. 2 • WINTER 2008
PM #40047055
PUBLICATION OF THE CANADIAN CONDOMINIUM INSTITUTE - TORONTO & AREA CHAPTERPUBLICATION DE L’ INSTITUT CANADIEN DES CONDOMINIUMS - CHAPITRE DE TORONTO ET RÉGION
The Nuts& Bolts
of TurnoverMeetings
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
333Winter 2008 thecondovoice
Features6 The Nuts & Bolts of Turnover Meetings
by Armand G.R. Conant
13 The Power of Proxies: Uses and Abusesby Lou Natale
16 Minutesby Dean McCabe
21 Insurance Appraisals 101by Vic Persaud
25 The Leaky Unit Above: Repair Obligations and Insuranceby David A. Di Lella
29 Condominium Fees - How Low Can They Go? How High is Up?by John Warren
Iam privileged and deeply honoured to be taking over the helm of CCI-Toronto and AreaChapter. The President’s shoes are certainly large ones to fill given the strong leadership thatCCI-Toronto and Area has had over the last 19 years.
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 haveworked so very hard for us and accomplished so much. I would like to thank JohnWarren forhis guidance and support over the last year as he tried to prepare me to become President (Ihope it worked).
It is through the leadership of these and many other Presidents, and the incredible and tireless work of all the Directorsover the last 19 years that CCI-Toronto and Area has been able to prosper and grow, becoming the largest CCI Chapterin Canada, with our membership closing in on 1,000. Our current Directors are all talented individuals with busy busi-ness lives, yet they manage to put in countless hours of volunteer work for us. Despite the workload, we still manage tohave fun and I can say it is the best Board I have ever worked with.
CCI-Toronto andArea is one of 15 Chapters of CCI National, spread across Canada, and we were fortunate to have wonthe 2008 Chapter of the YearAward. I congratulate Janice Pynn on becoming President of CCI National, and I know wewill work well together as we move CCI to bigger and better achievements. We have also had the wonderful administra-tive 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 ofOntario (“ACMO”), and I wish their incoming President, Chris Antipas, the very best. CCI and ACMO have alreadyworked closely together on a number of projects, including: the Annual Condominium Conference (the 12th conferencewas a smashing success at its new location in Markham); the Government Relations Committee; and the LegislativeCommittee working on the Legislative Brief to be submitted to the government. Together we will succeed in improvingall 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 coursematerial for the three levels of the Directors’ condominium course; not only continuing, but enlarging the Presidents’Clubwhich has become a great success; the completion and submission of the Legislative Brief; a variety of special projectsto assist owners and directors; constant upgrading of our website; organizing the 13th Annual Conference; liaison withCCI National and the American equivalent, CAI; continuing our great publication “thecondovoice”; membership driveto 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 andsuppliers, so to all – thank you! We recommend that everyone acquire a copy of our professional and trade directory asthey 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 upholdthe high standards and dedication of those who have gone before me, and I look forward to working with our talentedBoard, all for the betterment of condominiums and the industry.
Cheers to all.
Armand Conant, B.Eng., LL.B., D.E.S.S.
Winter 2008 thecondovoice 5
From the Editor
Should a Board or a Succession of Boards beAllowed to Change the Class of a BuildingWithout the Consent of Owners?
The following story illustrates why condominiumsshould not be allowed to downgrade their original qual-ity of construction and lifestyle.
By way of background, the “Melrose Place” is a healthyand vibrant condominium community that was built 20 years ago. It is in a verydesirable 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 con-structed 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, exceptthat the average age of “Malibu Beach Club” purchasers was much higher. Theaverage sale price in both buildings was the same 20 years ago.
During the last twenty years, the series of boards that have governed the “MelrosePlace” did so in a meticulous manner and have maintained the building’s originalstandard of construction, lifestyle and general appeal. Common expenses are nowabout 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 atboth buildings are basically the same.
“Malibu Beach Club’s” history can be split into two clear segments. In the first tenyears, the boards were also meticulous about the building’s maintenance and repairstandards. However, as more investors and younger families moved in, the pres-sure to keep common expense increases very low was intense and the subject alwaystook over the board meetings and AGMs. The original purchasers vehemently dis-agreed with the declining standards accepted by each subsequent board, but sincethey were in the minority, they were unsuccessful in convincing the board membersto retain the building’s standards. “Malibu Beach Club’s” decline was almost unno-ticeable year to year. However, over 20 years, the decline was striking when com-pared to the “Melrose Place”. Many of the “Malibu Beach Club” residents who didnot like the building’s decline, and who could afford to move, did so. Those whocould 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 andlifestyle acceptable? It is an important issue considering that the “Malibu BeachClub” story is repeated over and over again in Ontario.
There needs to be a clear standard given to boards. Why? The Act unequivocallyrecognizes that a change in assets or services over 10% of the yearly budgetrequires the vote of 66 2/3% of all owners. Why is it that a vote of owners is notrequired when the actions of a board are such that there is a 25% reduction in thevalue of the units? The effect of the latter, from a monetary perspective, is a result
“TheCondoVoice” is published 4times per year – Spring, Summer,Fall and Winter, by the CanadianCondominium Institute - Toronto&Area Chapter.
EDITOR: Mario DeoMAGAZINE DIRECTORS:Brian Horlick & Lisa KayADVERTISING: Marie McNameeCOPY EDITOR: Ruth MaxCOMPOSITION: E-Graphics
All advertising enquiries shouldbe directed to Marie McNamee at(905) 852-2802 or [email protected]
If you are interested in writing articles forTheCondoVoice magazine, please contactMarie McNamee at (905) 852-2802 or [email protected]. Article topics mustbe on issues of interest to CondominiumDirectors and must be informative ratherthan commercial in nature.
The author, the Canadian CondominiumInstitute and its representatives will not beheld liable in any respect whatsoever forany statement or advice contained herein.Articles should not be relied upon as aprofessional opinion or as an authoritativeor comprehensive answer in any case.Professional advice should be obtained afterdiscussing all particulars applicable in thespecific circumstances in order to obtain anopinion or report capable of absolvingcondominium directors from liability [unders. 37 (3) (b) of the Condominium Act, 1998].Authors’ views expressed in any article arenot necessarily those of the CanadianCondominium Institute. All contributors aredeemed to have consented to publication ofany information provided by them, includingbusiness or personal contact information.
Consider supporting the advertisersand service providers referred to inthis magazine, recognizing that they havebeen supporters of CCI.
Advertisements are paid advertising and donot imply endorsement of or any liabilitywhatsoever on the part of CCI with respectto any product, service or statement.
Publications Mail Agreement #40047055 -Return undeliverable Canadian addressesto Circulation Dept. 2175 Sheppard Ave. E.,Suite 310, Toronto, ON M2J 1W8
CCI Toronto welcomes responses and comments from members. Please forward yourcomments to the attention of the Editor at [email protected]
Continued …
thecondovoice Winter 20086
of deliberate decisions and has aneffect on values which is far greaterthan a one-time expenditure of 10% ofthe budget.
The lack of clear building class stan-dards is detrimental to a particularlyvulnerable group in our society. Manyretirees today purchase condominiumunits to live out their golden years.Retirees are less likely to move everyfew years and they will, therefore, bearthe brunt of declining building stan-dards more so than any other segmentof the population. This is simply unfairand will become more and more of aproblem as our population ages.
The commercial sector has clear stan-dards for commercial buildings. Thereare A, B, C, & D class buildings.Should a condominium board be ableto change a condominium from anA toa B class building without approval ofa super majority of owners (let’s say65-85%)? Clearly, this should not beallowed since it is contrary to the phi-losophy of a change in services orassets without the express consent ofowners, which presently exists in theAct.
It is clear that the time has come tomandate that condominium corpora-tions subscribe to a particular buildingclass and follow strict requirements forowner approval to shift between class-es.At present, there is really no guaran-tee or even a guideline that a building
will maintain a particular standard overtime, which is unfair to purchasers ofnew or resale units that are entitled toknow what they are buying over thelong term. Such a mandate, eitherthrough legislation, or contained in acondominium's declaration (the latterof which is unlikely to happen), is need-ed not only to preventAbuildings frombecoming B buildings, but is even moreimportantly needed to prevent D build-ings from becoming completely sub-standard. In the writer’s view, this is avery serious and urgent issue that thecondominium industry must grapplewith as more and more badly governed
From the EditorContinued from page 4
DONNASWANSONACCI, FRIReal EstateBrokerage
For your Real Estate Needs call:416-515-2121
• Real Estate Broker of Record - speci al i zi ng in CondominiumSal es since 1982
• Current condominiumOwner, 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 currentDirecto r of Toronto Chapter of REIC
we wish all of our readers awonderful Holiday Season and a
Healthy and Successful 2009!
Kindly note that the CCI Toronto administrationoffices 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.
buildings are being forced to apply foradministrators. The appointment of anadministrator is a clear sign that a build-ing has declined hopelessly below a Dclass.
In the next issue, the idea of how con-dominium buildings should be classi-fied and how the classification can bedefined will be explored.
Mario Deo, LL.B.
thecondovoice Winter 20088
The Nuts & Bolts ofTurnover Meetings
BY ARMAND G.R. CONANT, B.ENG., LL.B., D.E.S.S. (SORBONNE)HEENAN BLAIKIE LLP
With all the new condominiumcorporations that have beenbuilt over the past few years
and many in the process of transferringtitle of the units, the question that weare often asked by owners, steeringcommittees and others is “What isnext?” or “Why is this meeting calledthe ‘Turnover Meeting’”.
The first year of a corporation after reg-istration is critical for a number of rea-sons and many important matters orissues must be looked after in order toproperly protect the owners and the cor-poration. This article will deal with onesuch issue, the turnover meeting undersection 43 of the Condominium Act,1998 (the “Act”).
Turnover is just that – when the devel-oper turns control of the corporationand documents over to a new board ofdirectors. The reason for this is thatunder Section 43 of the Act, the devel-oper/declarant must appoint the firstboard within 10 days after registrationof the declaration. The developer couldalso have held an owner(s) meeting(s)to elect a Board, but with the develop-er controlling the units, this board is
usually controlled by the developer.
The government believed that newowners should not have to wait until thenext annual general meeting to electtheir new directors, but rather thereshould be a point in time when a meet-
ing must be held to elect directors andhopefully take control of the boardaway from the developer. This proce-dure is set out in Section 43 of the Actand was also in the previous legislation.
Section 43 states that the first board
99Winter 2008 thecondovoice
shall call a meeting (the “TurnoverMeeting”) within 21 days after title toa majority of the units have been trans-ferred by the developer. The meetingmust then be held within 21 days there-after. If the board does not call themeeting within the required time, thenan owner or mortgagee(s) who has the
right to vote under Section 48, may callthe meeting. Note that it is the firstboard that calls the meeting and not thedeveloper, so the board must be sure tofollow up with the developer to deter-mine when to call it. Failure to call themeeting or turn over all the requireddocuments is an offence under Section137 and can result in a significant fineagainst the developer, the first boardand the developer’s solicitor, amongstothers. So usually the TurnoverMeeting is called on time, but vigilanceis still necessary.
However, note that so long as the devel-oper owns a majority of the units, thenno such meeting need be called.Usually developers want these meet-ings to take place as soon as possible,however we all have seen situationswhere the developer wishes to retaincontrol as long as possible.
An example of this is with the corpora-tion for which I was appointedAdministrator by the courts (details areset out in my article in the Fall 2007issue of “thecondovoice”). In this casethe developer retained ownership of allthe commercial units and just enoughresidential units to maintain control andensure he did not have to hold aTurnover Meeting.
I was appointedAdministrator approx-imately 17 months after the declarationwas registered, and the court alsoordered the removal of the first board.
The limited records turned over to theAdministrator by the developer showedthat the first board had not collectedcommon expenses from the developerfor the 28 commercial units nor had anylien been registered. Also, at the sametime he controlled the Board, the devel-oper acted as property manager of the
building. There are many other issuesarising from this unfortunate caseagainst the previous board members,the developer and others, all of which issubject to ongoing litigation.
Remember that holding the TurnoverMeeting does not necessarily mean thatyou will take over control of the board.The developer will most likely stillown or control a large block of units,and we all have seen the lack of inter-est of many owners in participating inthe election process. So it will beimportant for owners to properlyorganize themselves (often a steeringcommittee is established to deal withthis and the many other issues in thefirst year) and get the vote out, in per-son or by proxy – get out there andsolicit proxies.
It is only through taking control of yourboard that you will have some say overyour immediate future, including suchmatters at the first year performanceaudit. We cannot emphasize enoughhow important this is and then to retainand work with professionals (auditor,engineers, property management andlawyer, etc.). The sooner this is donethe better for your owners and the cor-poration.
So, the Turnover Meeting has beencalled. What happens at it?
Firstly, the meeting should be profes-sionally run with a proper agenda,
which must include the election of newdirectors.
We recommend that a condominiumlawyer or very experienced manager bepresent at this meeting. Sometimes thedeveloper will have their lawyer pres-ent and generally they do a good and
equitable job. Other times, but rare, thesteering committee will hire their ownlawyer, which usually occurs whereproblems or disputes have already aris-en with the developer.
The key to these meetings is receivingall the documents the developer isrequired to turnover. The Act hasimproved the process from that underthe previous statute because it was rec-ognized that there are certain docu-ments that just cannot be ready in timefor the Turnover Meeting. So the Acthas broken the turnover of documentsinto two parts: (a) 7 types to be turnedover at the meeting, which are criticalfor the immediate operation of the cor-poration (Sec. 43(4)); and (b) 13 othertypes within 30 days of the meeting(Sec. 43(5)).
Please refer to Section 43 for a com-pete list of documents, but as a quickreference, the 7 types of TurnoverMeeting 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 thedeclarant on behalf of the corpora-tion, including management agree-ment, deeds, leases, etc.;
4) copy of all policies of insuranceand insurance trust agreements;
5) bills of sale or transfers for allassets of the corporation;
‘It is only through taking control of your boardthat you will have some say over your immediate future’
thecondovoice Winter 200810
CLOTHES DRYER FIRE PREVENTION“Serving the Condominium Community Since 1996”
PROVIDING:• CLOTHES DRYER AND DRYER DUCT WORK CLEANING
as prescribed by the Fire Marshal and all ApplianceManufacturers
• In suite and common area exhaust and ventilation ductworkcleaning
3) as-built specifications, indicatingall substantive changes from orig-inal specifications;
4) existing plans for underground siteservices, site grading, drainage,etc.;
5) all other existing plans and infor-mation relevant to the repair andmaintenance of the property;
6) If corporation is subject to Tarionwarranty, then proof that enrolledand a copy of all required finalinspection reports:
7) table setting out responsibilitieswith respect to repair after damageand maintenance indicatingwhether corporation or ownerresponsible;
8) schedule setting out what consti-tutes a “standard unit” for eachclass of unit;
9) if meeting is held after 9 monthsfrom registration of declaration,then a copy of the first year reservefund study;
10) all financial records of corporationand developer from the date of reg-istration of the declaration;
11) copy of all reserve fund studiesthat have been completed or thatare required to have been complet-ed at the time of the meeting;
12) copy of most current disclosurestatement; and
13) all other material required by gov-ernment regulations.
Owners can, of course, ask for addition-al documents. As an example, we have
been asked by clients to obtain therights to, and protect, the name of theircomplex (usually as it was marketed bythe developer). Often this has signifi-cant goodwill and/or marketing valuefor owners. If turnover has notoccurred, then request documents relat-ing to ownership of the rights to thename and ask if the developer willassign them to the corporation. Theremay be others that you or your profes-sionals may think of, and although thedeveloper may refuse, as the old clichégoes “It never hurts to ask”.
So you can see that there are quite anumber of detailed documents thatyour new board will receive. So besure to get them all. We have foundthat most developers try their best tocooperate with the new boards, turneverything over, and on time.However, if you happen to have one ofthe less professional developers, thendo not accept “no” or “they do notexist” as answers. Remember yourright to go to court to compel theturnover of these documents, along
thecondovoice Winter 200812
with significant fines that can belevied.
Also, under no circumstances shouldthe new board sign a form of release atthe Turnover Meeting or even when thepost meeting documents have beenturned over. If any release is to besigned, be very sure that it is limited toan acknowledgement of receipt of thedocuments and not as to their contentsor completeness.
Obtaining and reviewing these docu-ments is a vital step to ensuring yourcorporaton starts off on the right foot, orat least it will alert you to possible prob-lems and allow you to try to plan fortheir correction.
Armand G.R. Conant, B. Eng., LL.B.,D.E.S.S. (Sorbonne), is a partner in the fullservice law firm of Heenan Blaikie LLP,co-heading up its extensive condominiumand real estate department. Armand isPresident of CCI (Toronto), and is Chair of
the Legislative Committee (preparing abrief for the Ontario government with rec-ommendations for changes to theCondominium Act, 1998). Armand is alsoa member of CCI National’s GovernmentRelations Committee and assembled a“Condominium Primer”. In addition,Armand is a member of ACMO and sits onits Discipline Committee.
Armand also is the first lawyer in Ontario tobe a court appointed full Administrator, totake over all the duties of a Board ofDirectors of, and run, a troubled corpora-tion. Armand is also an engineer and hav-ing received a Masters of Law degree fromthe Sorbonne (France), he is bilingual.Armand can be reached at 416-643-6873;email: [email protected] �
Winter 2008 thecondovoice 13
The Power of Proxies:Uses and Abuses
BY LOU NATALE B.A., LL.B.,FOGLER RUBINOFF LLP
There is no greater means for aunit owner to effect change in acondominium than the ability to
vote at an owners’ meeting. Ownersare often asked to vote on significantand sometimes contentious matterssuch as the election and removal ofdirectors, the approval of new by-laws,the amendment or revocation of a ruleor the approval of a “substantialchange” to the common elements.
On an individual basis, the voting powerof a single owner generally does notalter the outcome of the voting process.However, by soliciting and collecting anumber of proxies from other owners,it is quite possible that one or more own-ers working together can certainly makea big impact on the results of the vote.By definition, a proxy is a documentgiving power or authority to act foranother. The proxy process has longbeen recognized as a useful and neces-sary tool to permit shareholders of com-
panies who are unable or unwilling toattend a corporate meeting to stillexpress their voting intentions through aself-appointed “proxy”. The proxy inturn is obligated to vote at the meeting ina manner as expressed in the proxyform. While most condominium expertsand stakeholders would agree that theproxy process is an important compo-nent of the democratic voting regimeestablished for condominiums corpora-
tions, the potential for serious abuse cansometimes overshadow the positiveintent and purpose of the proxy. Thisarticle is not intended to be an exhaus-tive overview of the types of abuseswhich can arise within the proxy processor how to challenge such abuses throughlegal intervention, but rather, this arti-cle will suggest some practical and real-istic ways to reduce the likelihood ofproxy abuses in your condominium.
We have all heard of stories about how
the collection of multiple proxies byone owner resulted in a vote outcomethat was either not in the best interest ofthe condominium and/or was in directcontradiction of the clear and statedintentions of those owners who took thetime to attend the meeting. How doesthis happen? In many situations, anaggressive and motivated owner will beable to collect proxies from a number ofowners who are simply not interested
or concerned enough to attend an own-ers’ meeting because they feel that“things are just fine the way they are sowhy bother to attend”? In other cases,multiple proxies are collected by anowner or a small group of ownersworking together who unfortunatelyuse manipulation, misinformation andoutright fraud as means of solicitingand collecting the proxies.
Although, the new Condominium Act,1998 included some safeguards to
‘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.’
thecondovoice Winter 200814
reduce abuses relating to proxies usedin the election or removal of directors,there really is no way of eliminating themany forms of abuses which can arisewith the proxy process. However, hereare some suggestions to reduce the like-lihood of abuses, in no particular orderof importance:
1. “Unit Owner Apathy” -In my view, one of the most sig-nificant underlying reasons whyabuses occur with the proxyprocess is what I call “unit ownerapathy” – where owners simply donot feel that it is necessary, rele-vant or useful to attend owners’meetings. How do you make unitowners interested enough to wantto personally attend meetingsinstead of voting by proxy or sim-ply choosing not to attend? Thekey, in my view, is to make unitowners feel engaged with theprocess.
Get owners interested to attendmeetings by making the meetingsmore informative and relaxed andless formal and stilted. Forstarters, make sure the meetinglocation, date and time are conven-ient for as many owners as possi-ble. Include specific topics on themeeting agenda which might beprovocative and/or relevant to anumber of owners. However, tryand make sure the owners’ meet-ings don’t run on too long and thatthere is adequate seating at themeeting venue.
There is nothing worse to discour-age owners from re-attending anowners’ meeting if their memoryof the last meeting was that themeeting venue was stuffy, crowd-ed and lasted more than 3 hours.
As well, encourage owners toattend by arranging for a guestspeaker (like a representative fromthe municipality, police or firedepartment) to make a short pres-entation on a topic of local interest.If possible, have refreshments andperhaps door prizes or a draw fol-
lowing the termination of themeeting. These suggestions maysound “off the wall” but in myview, the Board and managementshould consider whatever it prac-tically takes to get the owners toattend meetings (taking into con-sideration the specific circum-stances and demographics of thecondominium).
2. CommunicationBy informing and educating unitowners through regular writtencommunication and timely infor-mation meetings, the Board canreduce the chance of proxy abuse.The ability for a small group ofowners to manipulate and misin-form a large number of other own-ers who in turn become disen-chanted with the Board and thendecide to sign proxies is dependentin large part on the “uninformedunit owner”.
Getting information to the ownersis critical for many reasons — notonly does it build the owners’ con-fidence and awareness in what theBoard and management are doing,but it also helps to reduce the pos-sibility for a small group of own-ers to distort the facts as they havebeen conveyed to the ownersthrough newsletters and noticesissued by the Board. Commun-ication does not necessarily meanissuing notices to owners everymonth or holding numerous infor-mation meetings. Sometimes, toomuch information will have theopposite effect.
Also consider posting minutes ofthe board meetings each month tokeep owners “in the loop”.Creating a condo website will alsoprovide another means of informa-tion flow and awareness and willencourage participation by own-ers.
3. Proxy by-lawSome consideration should begiven to pass a new by-law (oramend an existing by-law) dealing
Winter 2008 thecondovoice 15
with the collection, solicitation,registration of proxies. In myview, section 56 of the Act grantsthe authority to the Board to passsuch a by-law, so long as it is rea-sonable and consistent with theAct and the corporation’s Declara-tion.
A proxy by-law, if drafted proper-ly, would reduce the possibility ofproxy abuse, manipulation andfraud while providing moreintegrity and transparency to thevoting process. For instance, theproxy by-law may include provi-sions requiring (i) that only a cer-tain type of proxy form (as estab-lished by the Board) can be used atthe meeting, (ii) that the proxyform must be completed in theowner’s handwriting and that theowner’s initials must be placednext to the voting sections in theproxy and must initial the date andtime the proxy was signed, (iii)that proxies must be registeredwith the management office on orbefore a certain time in advance ofthe start of the meeting and (iv)that there be a restriction on thenumber of proxies that can begiven to any one unit owner.
This type of by-law, if draftedproperly, should be acceptable andnon-contentious for most owners.
Proxies are a fundamental voting toolwhich, when utilized as intended, canassist in the democratic voting processestablished for condominiums. Ownersshould be encouraged to attend meet-ings in person however if they can’t,owners (and the Board) should havefull confidence and faith in the proxyprocess.
Lou Natale is the head of the Condo LawGroup at Fogler Rubinoff LLP which serv-ices the condominium industry throughoutthe Greater Toronto Area, the GoldenHorseshoe and Cottage Country. �
thecondovoice Winter 200816
Now in general conversationthese matters may not come upor seem very important if they
did, but if you are being interviewed aspart of the discovery process in a slipand fall claim from last winter, theanswers to these questions could saveyour corporation a lot of aggravationand possibly a lot of money.
I think most of us acknowledge that theminutes, as part of the corporaterecords of the corporation are impor-tant. So for those interested in takinga few minutes to read this article, I pro-pose that we have a brief test onwhether or not your corporation is fol-lowing good practices in minute tak-ing and record keeping.
Do your minutes containthe information that they willneed to make them usefuldocuments?
Ultimately, this is the yardstick againstwhich the corporations minutes will bemeasured in the future. Ironically themost common problem is not minutesthat do not give enough information butminutes that provide too much unnec-essary information. A proper set of
minutes is not a transcript of the meet-ing but a record of the topics discussed,decisions made and directions given.Comments made by individuals duringthe discussions or debates are general-ly not necessary.
Your minutes should include the namesof those in attendance, the location andtime of the meeting, the issues dis-cussed and the subheadings followingthe agenda under which each item wasdiscussed as well as clearly wordedmotions which clearly identify thedirector who made and seconded eachmotion.
Compare the following two examplesof a motion to approve the landscapecontract:
It was MOVED by A. Smith and SEC-ONDED by B. Jones that ABCLandscaping start as soon as possibleat the price quoted. CARRIED.
Or
It was MOVED by A. Smith and SEC-ONDED by B. Jones that ABCLandscaping be approved as the land-scape contractor at a cost of $1,500 permonth as quoted for a term of three
What happened at yourBoard meeting inNovember 2007?
Which Board memberswere present?
What topics werediscussed?
Did the Board approve thecontract for snow removalat that meeting?
BY DEAN MCCABEBROOKFIELD PROPERTYMANAGEMENT
Minutes
Winter 2008 thecondovoice 17
years starting November 1, 2008. CAR-RIED.
I think it is clear which motion will pro-vide a more clear record of the decisionthat the Board made in the event thatthe records need to be reviewed in thefuture. In example #1 the individualreading minutes would also need copiesof the quote and the contract in orderto determine the will of the Board. Tryreviewing a set of your corporation’sminutes from 2006 and see if you aresatisfied with the level of clarity thatthey provide of the discussions anddecisions. If not, then maybe youshould be reviewing your current min-utes to see if they have improved.
Are they being properly pro-duced in a manner that meansthey are accurate?
The minutes of your meeting should bereviewed by all Board members as soonas possible after the meeting to ensure
greater accuracy. It is difficult toremember the discussions of a monthago and producing draft minutes with-in 3 or 4 days allows all Board mem-bers to recall if something importantwas missed in the minutes or if theminute taker misunderstood the discus-sions on a topic that the Board had. Itis important to note that in the review-ing and approval of minutes all Boardmembers should be treated equally. Noone Board member should be review-ing the minutes prior to their distribu-tion. Once a draft is produced it shouldonly be changed with the input of allBoard members and changes approvedat the next meeting of the Board.
Many Boards are using the services ofoutside minute taking services and it isa practice that has proven very success-ful, as it allows the manager and all ofthe Board members to remain engagedin the discussions going on at the meet-ing. It is difficult, if not impossible, tobe taking the minutes of a meeting andbe an actively engaged participant of
that meeting at the same time. Theother advantage to these minute takingservices is that as they become morepopular within the Condominium sectorthe recording secretaries become wellversed in the topics being discussed asthey gain a general understanding of theoperations of Condominiums and theminutes are becoming much more pro-fessional and reliable records.
Are they properly kept in amanner that means someonereviewing them can rely ontheir accuracy?
The first step in protecting the integri-ty of the minutes in your minute bookis to ensure that the Board is approvingthe minutes of the previous meeting andsigning the minutes for inclusion in thecorporations minute book. Auditorswill rely on reviewing the motions andcontract approvals in the minutes whenperforming their reviews of the corpo-rations finances and unsigned minutes
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thecondovoice Winter 200818
cannot be relied on by the auditor.
Have you ever attended meetings wherethe Board identified corrections in theminutes of the previous meeting thatwere required and then signed the cir-culated minutes and asked the manag-er to make the correction and insert thenew page into the minute book? Thatpractice undermines the integrity of therecords and reduces the protection thatthey provide for the Board andManagement.A simple step like initial-ing each page next to the page numberwill reduce any chance that the minutesare altered in the future.
Are they being properly editedto protect the privacy of staff,residents and owners in theevent that they are reviewed inthe future?
Once a set of minutes has been createdthey become a record of the corpora-tion and, as such, they must be pro-duced for review whenever a unitowner requests them. Even draft min-utes (although they must clearly bemarked draft on every page) should beviewed as records of the corporation.That does not mean, however, that thecorporation does not have to take stepsto protect the people who are discussedas part of the business meeting of thecorporation.
It used to be said that keeping two setsof books was a bad thing – and I guessin the post Enron business world it stillis – but keeping two sets of minutebooks in the Management Office isbecoming not only accepted but a goodbusiness practice. As condominiumsdeal with the requirements of thePrivacy Act (PIPEDA) it is necessaryto protect the identity of unit owners orindividuals even in records of the cor-poration that other owners have theright to view under the CondominiumAct.
One possible approach to addressingthis concern would see the managerbring two sets of minutes to Board forapproval. Both sets are identical except
that sensitive information would beblacked out. See the example below:
Smoking Infraction – Suite #___: Inresponse to several complaints aboutsmoke smells in the corridors and stair-wells, Management has had securitypatrol the stairwells every hour untilthe guilty party was found smoking inthe stairs. A Notice of Infraction hasbeen sent from the City of Toronto tothe resident of unit #___.
One set of unedited minutes will stillbe kept in the minute book of the cor-poration but the edited version is kept ina separate file for viewing by owners ifrequested. This prevents the managerfrom spending time reviewing and edit-ing the minutes after a request isreceived. It also eliminates the suspi-cion that this information is being edit-ed only from the eyes of the owner whohas requested to view the minutes.
Now that you have invested 10 minutesreading this article, I would suggest thatyou consider for another couple of min-utes whether or not your condominiumis following good record keeping prac-tices. Are the records accurate? Is theirintegrity intact? Are good businesspractices being followed? I hope thatyou find that the answer to these ques-tions is yes but if it is not – then I hopesomething in this article has suggesteda way to correct that.
Dean McCabe joined Brookfield in 2001.He has been a Property Manager for 16years attaining his R.C.M. in 2003. Dean iscurrently a Board member for theAssociation of Condominium Managers ofOntario and the chair of the Membershipand Marketing Committee for thatAssociation.As an instructor for ACMO he has taughtthe Administration and Human Relationscourse at Humber College and MohawkCollege as well as for Brookfield employeesthrough the in-house education program.In the fall of 2007, Dean was promoted toRegional Manager with Brookfield and isa co-recipient of the 2008 Manager of theYear Award. �
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Winter 2008 thecondovoice 21
Insurance Appraisals 101The Basics of Insurance Appraisals
BY VIC PERSAUD B.A. (HONS.)SUNCORP VALUATIONS LTD.
As I sit in my 6th floor office andlook out my window, I have abeautiful view of two white
cranes. Unlike the Whooping Cranes,these large white metal cranes are farfrom being endangered but rather are acommon sight in many of the majorurban centers across Canada; they aresymbolic of the condo constructionboom. With new condominium devel-opments being started every year, thereare increased construction costs.
These cost increases can vary not onlyby construction type (i.e., wood frame,reinforced concrete, etc.) but also bygeographic location. For example,Sudbury is currently experiencing con-struction cost increases of 7% to 9%due to a limited labour pool. In contrast,Windsor is only experiencing increasesof approximately 3% to 4% due to thepoor economic conditions resultingfrom the down cycle in the automotiveindustry. It is therefore important toreflect these construction cost regionalvariances in the Replacement CostInsurable Value of both newly con-structed and existing condominiumssince section 99 (7) of the condomini-um states:
“Subject to a reasonable deductible,the insurance required under this sec-tion shall cover the replacement cost ofthe property damaged by the perils towhich the insurance applies. 1998, c.19, s. 99(7).”
The calculation of thisimportant ReplacementCost value requires theexpertise of an accreditedappraiser who can com-plete an InsuranceAppraisal of the condo-minium and provide thevalue in a formal apprais-al report.
In addition, the condo-minium’s Declarationand/or By-Laws may havespecific requirements rel-ative to the completion ofan Insurance Appraisal(i.e., an InsuranceAppraisal must be com-pleted every 3 years withupdates in the interimyears). Furthermore, your InsuranceBroker may recommend that anInsurance Appraisal be completed ifyour condominium has:1. An outdated Insurance Appraisal
(typically older than 3 years)2. Never completed an Insurance
Appraisal3. Insurable Values that have been
developed from less-than-reliablesources
Once you have determined that it istime to complete an InsuranceAppraisal, the next step would be toengage a qualified Appraisal Firm. In
order to familiarize you with what toexpect, below are the basic stepsinvolved with the Insurance AppraisalProcess:
1. Request for a Proposal from anInsurance Appraisal Firm
This is your first contact with theInsurance Appraisal Firm. The typicaldetails that qualified appraisal firmsrequire to provide a proposal include:
• Condominium Corporation Number
• CondominiumAddress
• Type of Condominium (High-Rise,Low-Rise, Townhouse, etc.)
thecondovoice Winter 200822
• # of Buildings/Blocks
• # 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 By-Law can have an impact on theInsurable Value. The Standard UnitBy-Law sets out a list of standardfeatures that comprise each class ofunit being described in the by-law.The appraiser will need to review thisdocument to develop the currentcosts since Standard Unit By-Lawscan exclude insurable items such asfloor finishes, countertops or even allinterior finishes of the standard unit.
• Are the Architectural Plans avail-able? – The construction of any newcondominium starts with detailedconstruction plans, therefore, the bestsource to develop current Replace-ment Costs are the constructionplans. More specifically, theArchitectural Plans are most impor-tant for an InsuranceAppraisal sincethe majority of the building value iscontained in the structural elementsof the building. If there are noArchitectural Plans available, ask theappraisal firm if they can assist youwith obtaining the plans from othersources such as the Municipal
Building Department or LandRegistry Office. If there are still noplans available, the appraisal firmcan measure the buildings to deter-mine the approximate square footage.
• Are there any Shared Facilities? –With the increasing complexity ofcondominium complexes, SharedFacilities among condominium high-rises are becoming more prevalent.This creates an issue since the bound-aries of the Shared Facilities can beentirely separate or be part of one thebuildings.
If the condominium is part of a com-
plex with Shared Facilities, it willtake more time to appraise the condo-minium since the appraiser may haveto review the architectural plans, dec-larations, shared facilities agreementsand consult with the property man-ager(s) of the entire complex. Inthese situations, it is best to completea separate appraisal for each of thecondominiums and the SharedFacilities at the same time since effi-ciencies can be gained by the apprais-er in reviewing all the plans and doc-uments at once.
The above information should providethe Appraisal Firm with the details tosend you a no-obligation proposal.
2. Site Inspection
After your authorization of the service,theAppraisal Firm should arrange a siteinspection. The purpose of the siteinspection is to allow the appraiser torecord the architectural, mechanical,interior and exterior features of thebuilding.
For high-rise condominiums, theappraiser will need access to the roof,mechanical and electrical rooms, under-ground parking garage and amenitiesrooms. For townhouse condominiums,the appraiser can record most of thedetails from a walk-around of the
Winter 2008 thecondovoice 23
exterior of the condominiums. For bothhigh-rises and townhouses, it is alsohelpful to see a typical suite with thestandard finishes of the condominium.
Furthermore, it is helpful if the proper-ty manager or a site contact that isknowledgeable about the buildingdetails be available to answer any ques-tions.
Lastly, the appraiser will need to bor-row the architectural plans from thecondominium to assist with developingthe Replacement Cost of the Condo-minium.
3. Development of Appraisal Reports
The development of the InsuranceAppraisal Report starts with a reviewof theArchitectural Plans. The apprais-er will use the Architectural Plans tocalculate the gross floor area of eachfloor plate of the building and verifytheir notes relating to the structure of
the building(s). The appraiser will thenenter this information into a SoftwareCosting System such as the MarshallValuation Service. Additional costingsources and internal databases shouldbe used to ensure the accuracy of thecosts. The appraisal method employedwill be the Segregated Cost Method,Model-Based Method or a combinationof both Methods.
The Segregated Cost Method involvesestimating the current unit cost ofinstalled components, sections or sys-tems of the building structure underappraisal. The unit price includes costsof materials, labour, overhead, fees andprofits required to replace the buildingcomponents new, as of the date ofappraisal.
The Model-Based Method uses as abasis, the current cost per square footof other properties that are similar tothe subject property in their design,style, construction and function. This
benchmark cost is then adjusted tomore closely suit the specifications andconstruction quality of the subject prop-erty being appraised. Once adjusted,this unit cost is applied to the subject’sgross floor area with additional consid-eration given to any specialty features.
After the Replacement Cost is devel-oped in the InsuranceAppraisal Report,there should be a formal review byanother internal appraiser to verify thatthe costing methodology and Replace-ment Cost value are accurate. Uponcompletion of the review, the InsuranceAppraisal Report is issued to theCondominium.
4. Insurance Appraisal Updates
If an Insurance Appraisal Report ismore than one year old it is recom-mended that the corporation get anInsurance Appraisal Update providedby the company that completed the ini-tial appraisal. Most InsuranceAppraisal
thecondovoice Winter 200824
companies should be able to providethe Insurance Appraisal Update at anominal cost. The Updated InsurableValue is typically the Replacement CostValue from the initial InsuranceAppraisal indexed up for constructioncost increases. Construction costincreases in Ontario have exceeded 4%annually in the last five years. This issignificantly higher than the Canadian
Consumer Price Index which has beenin the range of 1.8% to 2.8% and issometimes incorrectly used to updateInsurable Values.
5. Re-Appraisals
One appraisal is not enough!With con-stantly changing construction costs thecondominium should complete a full
re-appraisal every three years.Additional reasons for completing a re-appraisal include:
1) The condominium may havehad property additions, dele-tions or changes to componentsof the building. For example,many condominiums are cur-rently upgrading to energy effi-cient boilers and chillers. Thiscan impact the Insurable Value;
2) Some condominiums arechoosing to pass a StandardUnit By-Law which can resultin changes to the amount ofinsurance needed by theCorporation;
3) Indexing up of the initialappraised value beyond twoyears becomes increasinglyinaccurate over time. By index-ing up the past appraised value,the corporation is not takinginto consideration specific costincreases to building compo-nents such as steel frames andconcrete walls. A re-appraisalwould result in a re-costing ofthese building components toaccurately reflect their costs;and
4) The Declaration and/or the By-Laws may require the corpora-tion to complete an InsuranceAppraisal every 3 years.
In conclusion, as we continue to seenew condominiums rise acrossCanadian cities it is important to keepin mind that the construction costs asso-ciated with these condominiums con-tinue to rise as well. The extent of con-struction cost increases can vary signif-icantly and are strongly affected by thenatural forces of supply and demand aswell as economic factors. In order tomaintain an accurate Replacement CostInsurable Value, make sure that regularInsurance Appraisals and Updates donot become an endangered species foryour condominium! �
25Winter 2008 thecondovoice
Every property manager and con-dominium board has, or certainlywill, address a claim by a unit
owner regarding damage occasionedfrom the unit above him or her.Usually, such damage is caused by aleak of some form or another. Despitethe frequency of this scenario, confu-sion abounds. Who bears responsibili-ty for the repair after damage to the
units? Are the items that require repairafter damage improvements, or are theypart of the standard unit? If there is nostandard unit by-law in place, how willa court determine what constitutes thestandard unit, as opposed to animprovement? Is there insurance avail-able for the required repairs?
Section 89 of the Condominium Act1990 (the “Act”) sets out that a condo-minium corporation shall repair theunits and common elements of the con-dominium after damage. This obliga-
tion does not include the obligation torepair after damage to improvementsthat are made to a unit. Accordingly,the section requires the condominiumcorporation to repair after damage tothe standard unit only. Further, dam-age to the standard unit is covered bythe condominium corporation’s insur-ance policy, as required by section 99 ofthe Act, while improvements are not.
Given that the obligation to repair pur-suant to section 89 of theAct pertains tothe standard unit only, and given thatthe condominium corporation mustobtain an insurance policy that insuresthe standard unit for specified perils(but not improvements) pursuant to sec-tion 99, the determination of what con-stitutes the standard unit is an impor-tant one. The Act sets out that such adetermination shall be made with refer-ence to a “standard unit for the class ofunit to which the unit belongs” and thatthe standard unit for the class is as
described in a by-law made underclause 56 (1) (h) Act.
Section 56 (1)(h) of the Act confersauthority for the creation of a by-law todescribe a standard unit “for the pur-pose of determining the responsibilityfor repairing improvements after dam-age and insuring them.” It is importantto underscore that the by-law establish-
ing the standard unit has the dual pur-pose of assisting in the determinationof the responsibility for repairingimprovements after damage and forinsuring them. If the board has notmade such a standard unit by-law, thestandard unit is as described in theschedule that the developer is to pro-vide at the turnover meeting.
Where a condominium corporation hasnot created a standard unit by-law, itappears that our courts may find thatitems constitute part of the standard
The Leaky Unit Above:Repair Obligations and Insurance
BY DAVID A. DI LELLA B.A., HONS, LL.BHORLICK LEVITT BARRISTERS & SOLICITORS
Where a condominium corporation has not created a standard unit by-law, it appearsthat our courts may find that items constitute part of the standard unit, even where it isapparent that a unit owner has added or clearly improved the unit with an item.
thecondovoice Winter 200826
unit, even where it is apparent that aunit owner has added or clearlyimproved the unit with an item.
For example, in D’Alessandro v.Carleton Condominium Corp. No. 432006 WL 3060589 (Ont. S.C.J.) 2006CarswellOnt 6651 the Board of theDefendant Corporation had not enacteda by-law pursuant to section 89 toestablish a “standard unit“. Accord-ingly, the plaintiff submitted thatCarleton Condominium Corp. No. 43(the “Corporation”) had a legal obliga-tion to repair her floor after damage(which was hardwood) even though theflooring was clearly an “improvement“to her unit, having regard to the carpetwhich was originally installed in it.Justice R. Houlahan held that theCorporation could not, in view of theamendments to the Act, impose “stan-dard unit” criteria on the plaintiff at thetime that the damage was incurred, byreference to the unit and its amenities atthe time the Corporation was createdby registration of the Declaration. Hetherefore, in the absence of a Section
89(3) by-law, found the Corporationliable to repair the unit as it existed onthe date the damage occurred (in thiscase with a hardwood floor.)
While the court may have been correctin ruling that it was improper to impose“standard unit” criteria in the absenceof a Section 89(3) by-law, theD’Alessandro case is troubling in thatthe court found the Corporation liableto carry out the repairs to the unit,despite the fact that the declarationclearly placed the responsibility forrepair after damage on the unit owner:
“The Corporation therefore argues thatthis provision in the Declaration clear-ly transfers the obligation to repair theunit after damage to the unit owner. Itfurther argues that the Corporation hadthe authority under the “old”Condominium Act to impose the obli-gation to repair the unit and particular-ly improvements thereto on the ownerthrough the Declaration. This authoritywas 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 notaddress the Plaintiff’s position.
The Declaration addresses the obliga-tion to repair the “unit” by which Iunderstand relates to the repair of thephysical structure comprising the unit.It does not address the issue raised bythe Plaintiff which is the obligation torepair an “improvement” to the unitafter damage.”
With respect, it is our opinion that theconclusions of Justice R. Houlahan,insofar as they relate to the responsibil-ity of the Corporation to carry out therepair, are wrong in law. Again, whilethe court may have been correct inpointing out the impropriety of impos-ing “standard unit” criteria in theabsence of a Section 89(3) by-law, thisshould have impacted on the coverageprovided by the Corporation’s insurer(which presumably provided insurancefor standard units and not improve-ments) and not the repair obligations ofCorporation itself.
Winter 2008 thecondovoice 27
According to section 91 theAct, a dec-laration may alter the obligation tomaintain or repair after damage, andprovide that an owner shall repair theowners unit after damage. The previ-ous statute governing condominiums inOntario, 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 decla-ration in the D’Alessandro apparentlyshifted the obligation of repair as con-templated by section 41(5) of the OldAct (as do most declarations today pur-suant to section 91 of the Act). Thisshould have meant that the obligation torepair after damage of both theimprovements and the standard unitrested with the plaintiff. After suchrepair was carried out, the Corporationshould have submitted a claim onbehalf of the plaintiff to theCorporation’s insurer for consideration.
The lack of the standard unit bylaw inD’Alessandro suggests that, when pre-sented with the aforementioned claim,the insurer for the Corporation shouldhave provided coverage for the costs ofthe repair in accordance with the rea-soning of Justice R. Houlahan.Nevertheless, if the Corporation’sinsurer instead maintained an off cover-age position (based on the hardwoodfloors constituting an improvement orotherwise) the unit owner would not, inour opinion, have had any recourseagainst the condominium corporation.Such recourse would have properlyrested with any offending unit ownerthat caused the damage (based on tortprinciples) and the condominium cor-poration’s insurance company (forbreach of contract.)
Bearing the above comments in mind,when property managers and directorsare faced with the determination of whobears responsibility for the repair afterdamage to condominium units, it isimportant to start the analysis with thecorporation’s declaration. It’s morelikely than not that the declaration willcontract out of the Act and set out thatthe obligation to repair the standard unitrests with the unit owner. Despite this,the cost of such repair may still be cov-
thecondovoice Winter 200828
ered by the corporation’s insurance pol-icy. Once again, the corporation has anobligation to obtain and maintain insur-ance, on its own behalf and on behalf ofthe owners, for damage to the units andcommon elements caused by major per-ils or the other perils that the declara-tion or the by-laws specify (usually anall risks policy is purchased). The factthat the policy covers the “units” andis “on behalf of all owners” means thata unit owner is an insured, and that thecorporation’s policy should respond tocover damage to the units, regardless ifthe owner is responsible for repair afterdamage.
In a sense, when a declaration contractsout of theAct and the repair of the stan-dard unit rests with the unit owner, it isno longer an important issue for thecondominium corporation to make adetermination as to what constitutes an“improvement” and what constitutesthe “standard unit”. The unit owner isresponsible for the repair after damage
for both, and the condominium corpo-ration maintains insurance for the latter.The allocation of repair after damageto either an improvement or a standardunit remains important insofar as thecondominium corporation’s insurancepolicy itself only covers the “standardunit”. Accordingly, it should be theinsurer to whom a claim is presentedthat looks to the by-law describing thestandard unit or, failing this, the stan-dard unit described in the schedule.
Despite the fact that the absence of astandard unit by-law should have agreater impact on insurers than condo-minium corporations (notwithstandingthe D’Alessandro case), a well craftedstandard unit by-law can avoid prob-lems for everyone. That is, of course,until everyone starts pointing fingersregarding the payment of deductibles.We will leave that one for another day.
David earned an undergraduate degree inpolitical science from the University of
Western Ontario and graduated fromOsgoode Hall Law School in 1998. He is amember of both the Ontario and the NewYork State Bar.David’s practice focuses on litigation, withan emphasis on insurance defence and cov-erage disputes, tort claims and condomini-um related disputes. He has appearedbefore the Superior Court of Ontario, theCourt of Appeal for Ontario and numerousadministrative tribunals, litigating on behalfof his clients. Where appropriate, David hasalso achieved success for his clients throughmediation and other forms of alternate dis-pute resolution.David is a member of the Defence ResearchInstitute and Canadian Defence Lawyers.He is also a member of the Law Society ofUpper Canada and the Ontario BarAssociation. He resides in Toronto with hiswife and two sons. �
Winter 2008 thecondovoice 29
During discussion of the financialstatements at annual generalmeetings I am often asked how
to reduce condominium fees or askedhow high can condominium fees go,always in the context that owners arepaying too much. Not quite so often,but more dangerously, owners stand forelection to the Board of Directors andthe main plank in their election plat-form is a promise to reduce fees -though how that is to be accomplishedis always unclear. The desire to reducecurrent fees and eliminate future feesincreases, though understandable,reflects, at best a misunderstanding ofcondominium costs and if put intoeffect are almost always damaging tothe quality of life of those who livethere.
COMMUNITY LIVING
Before we discuss costs, it is importantto understand the meaning of commu-nity living. That is when you live in a
house you can do things that are notpossible in a community living envi-ronment. In your own house, if youdon’t have the money, you can decidenot to fix the fence, not to repair theroof, not to clean the windows, toignore the flowers and bushes and soon until you can’t put up with yourneighbours complaints or the munici-pality issues work orders to compel youto fix up your house. In a condomini-um that is not possible because, in addi-tion to owners with limited incomes,some owners will be selling and wantthe most curb appeal and others willwant the fence and roof fixed and thewindows cleaned because that is theenvironment in which they want to live.
Owners have to recognize that theirparticular circumstances do not deter-mine their condominium’s costs; it isthe collective circumstances of all inthe condominium which determinesthem. Owners also have to understandthat not all costs benefit owners equal-ly. An owner once told me that owners
who live on the ground floor should nothave to pay for the elevators as they didnot use them and was not, I think,entirely convinced when I replied that,whether owners use them or not, theyhave to pay because that is the nature ofcommunity living – all owners con-tribute to all common element costs.
IT’S NOT ABOUT FEES - IT’SABOUT COSTS
It truly is not about fees, but only aboutcosts. There is no landlord making aprofit and no profit margin – the own-ers are the landlord. So to calculatecondominium fees all you do is add upall the costs to operate the communityof homes and collect each owner’sproportionate share, as outlined inSchedule D to the Declaration.
If you want fees to go down, costs mustgo down, which sounds simple butisn’t; because it’s anything but easy toarrive at the “right” costs. Condomin-
Condominium FeesHow Low Can They Go?
How High is Up?
JOHN WARREN, CA
thecondovoice Winter 200830
31Winter 2008 thecondovoice
bility no matter how remote. Thereis just no realistic opportunity toreduce this cost.
2. UtilitiesHeat, lights, air conditioning andwater are largely a function of theweather and usage. Residents settheir thermostats, turn lights on andoff and use water in the manner thatsuits them. If it is hotter than aver-age the air conditioning costs go up;if colder, then heating costs go up(and vice versa). Water costs whatthe municipality charges foramounts used.
All the board can do is exhort resi-dents to reduce consumption; lookfor ways to reduce heating and airconditioning costs in the commonareas and institute energy savingmeasures such as boiler retrofits ifthe community is prepared to payfor them. However there are limitsto reductions of heat and air condi-tioning in the common areas bothby regulation and by the comfortthat residents expect.
Cable television can always be pur-chased at a better price in bulk bythe condominium than individual-ly. Communications costs arelargely legislated, that is the numberof telephones required is mostlydetermined by regulation, one ineach elevator, one in the pool, onein the hot tub, one in the mechani-cal room, etc. and the price is set bythe authority that regulates tele-phone companies. There are limit-ed savings possible in utilities afterenergy savings measures are insti-tuted.
3. People costsPeople costs include concierge,landscaping and snow plowing,cleaning, management, superin-tendent, elevator and mechanicalservice, window washing andgarage cleaning. These costs canbe reduced but only if owners areprepared to accept reductions inservice levels or the quality of serv-ices provided. For instance, the
ium costs are determined by the price,quality and quantity of utilities, goodsand services purchased and so beforethe “right” costs can be determined, thecommunity has to decide on the quali-ty they want.
Quality considerations include suchthings as the quality of concierge, man-agement, cleaning and other serviceproviders, how often the building is tobe cleaned, how many times the win-dows are to be washed each year, howextensive the plantings and landscap-ing are to be, how often carpets andhallways are to be refurbished and onand on.
For example, owners have to decide theconcierge coverage necessary for theirsecurity and how skilled the conciergepersonnel have to be to meet their stan-dards. Is it necessary to have twoconcierge personnel 24/7; oneconcierge 24/7 or something less thanfull time coverage? What quality ofconcierge personnel is necessary, thosepaid minimum wage or those with bet-ter skills who are paid more. This is notan easy task as owners will have differ-ent opinions; different abilities to payand their expectations change overtime.
Once the quality determinations aremade, the job of the Directors is toobtain the best price, quality and serv-ice that meet those expectations
CONDOMINIUM COSTS
Condominiums spend money only infive broad areas.
1. Funding the reserve for majorrepairs and replacementsThe Condominium Act mandatesreserve fund studies and these stud-ies include a recommended fundingplan. Directors that choose not tofollow the recommended fundingplan do so at their peril as thatcourse of action may expose themto liability and, in my opinion,Directors should never exposethemselves to the possibility of lia-
Board could reduce people costs byeither hiring cheaper concierge per-sonnel, by reducing the hours theconcierge is on site from say 24hours a day to 12 hours a day orsome other number. Cheaper per-sonnel are cheaper for a reason;they are generally not as welltrained nor as motivated, whilereducing coverage leaves the build-ing exposed when the concierge isnot on duty.
Directors have little room to reduceservices in any significant waybecause if the cuts are large enoughto substantially reduce costs, thechange in service level probablyrequires approval by a vote of theowners and approval is very diffi-cult to obtain.
4. Repair and maintenance costsRepairs and maintenance includesuch things as annual plantings,fire, elevator and mechanical equip-ment inspections and repairs, clean-ing and maintenance supplies suchas cleaning materials, bulbs andparts, ice melter, waste disposal,cleaning and routine repair andmaintenance to the exterior, interi-or and mechanical, electrical andplumbing systems. These costs canbe reduced but only at the expenseof the long term condition of thebuilding.
Deferred maintenance, as it iscalled, sacrifices the long term con-dition of the building to short termcost cutting. If the common areasare not well maintained then overtime they become run down, nega-tively affecting the quality of life inthe building, market values and ulti-mately increasing future costs to fixthe building. If the property is tobe properly maintained, there is nota lot of room to reduce these costs
5. Administrative costsAdministrative costs include insur-ance, professional fees, office andmeetings and other costs incidentalto operations. Insurance is mandat-ed by the Condominium Act.
thecondovoice Winter 200832
Professional fees are either mandat-ed, as with the audit, or necessary toprotect the condominium and itsDirectors. Office, meetings andother costs are generally small andsignificant reductions are not possi-ble.
Overall, once the quality decisions aremade the Board of Directors has limit-ed ability to significantly reduce costswithout reducing quality and manycosts 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 abit of a guess, but I think there is gen-eral recognition that the costs in ourlives go up each and every year; that iswe spend more for a cup of coffee, acoat, a car, a house and a car mechan-ic, plumber or electrician than we did
last year and we recognize that thistrend will, in all probability, continue.It is not a large leap to recognize thatprice increases in the general economy,over time, will result in increases incondominium costs. The most oftenused measure of cost inflation is theConsumer Price Index, the CPI; howev-er, the consumer price index is not allthat applicable to condominiums as thebasket of goods and services in the CPIcalculation is different from the costsincurred by condominiums. Condo-miniums consume more utilities and donot purchase food, clothing, cars orvacations, for instance. A better meas-ure of the cost inflation prospects forcondominiums would be one of theconstruction cost indexes but that infor-mation is not generally available andso we are stuck with the CPI. My bestprediction is that, barring extraordinaryincreases caused by such things as oil at$200 a barrel or regulatory changessuch as the new garbage disposal costs
in Toronto, is that owners should expectcosts to rise at rates perhaps slightly inexcess of CPI increases.
In summary, it is difficult to reduce con-dominium fees in any significant waywithout reducing the quality of life inthe condominium and if lifestyle qual-ity is to be maintained in the future,condominium fees will rise over timeat least by inflation.
John M. Warren, C.A. is a partner withAdams & Miles LLP, CharteredAccountants who provide audit and finan-cial services to over 200 condominiums. Heis the immediate Past President of theCanadian Condominium Institute – Torontoand Area Chapter and a past member of theAssociates Executive Committee of theAssociation of Condominium Managers ofOntario. He writes regularly on financialmatters in condominiums and is a frequentspeaker at educational programs for man-agers and directors and at condominiumconferences and seminars. �
12thannualcondoconference
October 31st toNovember 1st, 2008Hilton SuitesToronto/Markham Conference Centre & Spa8500 Warden Avenue, Markham, ON L6G 1A5
The 12th Annual CCI/ACMOJoint Condominium Conferencewas held on October 31st and
November 1st, 2008 at the MarkhamHilton Suites Hotel. It turned out thatthe new venue and the overlap of theconference with Hallowe’en were bothgreat hits, as we experienced our high-est attendance turnout to date, andexcellent feedback on the location ofthe new facilities.
The conference was officially launchedon the morning of October 31st with awelcome speech presented by theHonourable Michael Bryant, Ministerof Economic Development. The roomwas filled to capacity with delegateseager to hear his message and begintwo days of learning and networking.This years’ theme of “Building BetterValues” was extended into many of thesession topics spread over the two-dayperiod. The performance on earlySaturday morning by Canadian come-dian and satirist, Ron James was anoth-
er highlight of the conference. Ron hadthe venue packed and the audiencerolling with laughter – not an easy featat 8:30 on the morning following theCCI National “Hallowe’en Hoedown”which took place at the hotel onOctober 31st! We extend our sincereappreciation to the 62 speakers andmoderators who participated this yearand all the committee members fromboth CCI and ACMO who contributedcountless hours planning for this year’sconference.
The wrap-up luncheon and closing ses-sion: “The Final and AuthoritativeWord - Case Law Update”, moderatedby Mario Deo again served as the‘grande finale’ of the conference.Congratulations and thanks to Lisa Kay,for another of her innovative andhumourous introductions of the caselaw panelists.
An integral part of the conference is thetrade show and delegates were treated
to the widest ever range of products andservices on display. A record 105exhibitors supported the conference thisyear. In case you missed any of them,be sure to check the conference web-site at www.condoconference.ca for afull list of exhibitors, along with theircontact information.
A sincere thanks is also offered to ourconference partner, Rogers Cable. Thepartnership and commitment Rogersoffers toward condominium educationthrough our conference contributes sig-nificantly to our ability to offer qualityprogramming each year and their sup-port is truly appreciated.
Mark your calendars now for nextyear’s conference taking place onFriday, November 6th and Saturday,November 7th, 2009 at the MarkhamHilton Suites hotel. We hope to see youthere!
More photos on pages 34 & 35!
Speaker, Warren Coughlin presents to a filled to capacity audience. Moderator, Gina Cody leads round table discussions.
Winter 2008 thecondovoice 33
12thannualcondoconference
October 31st toNovember 1st, 2008Hilton SuitesToronto/Markham Conference Centre & Spa8500 Warden Avenue, Markham, ON L6G 1A5
Educational Sessions
Networking Lunch on Saturday November 1st. Panelists at Sandro, Warren and Bruno's Fascinating World ofCondominium Service Contracts.
The Trade Show offered information on the latest products and services available to the industry.
thecondovoice Winter 200834
Winter 2008 thecondovoice 35
CCI National President, Jamie Bleay.
Mark Arnold (left) and Brian Horlick (right) -two of the panelistsat the closing legal update session.
CONFERENCE HIGHLIGHTS
Greg Stokes from Rogers Cable and CCI TorontoPresident John Warren draw for one of two TVs
donated by Rogers.
Charlie Oliver presents Vic Persaud andRamona Dhari with the prize for best costumesat the CCI National Harvest Hoedown Dinner.
Networking at the CCI National Harvest Hoedown Dinner on October 31st.
FCCI recipient, Harry Herskowitz, withJanice Pynn and Charlie Oliver.
ACMO Past President, Harold Cipin (left) withMinister Michael Bryant (center) and CCI-Toronto
Incoming President, Armand Conant.
Comedian and Satirist, Ron James.
thecondovoice Winter 200836
Winter 2008 thecondovoice 37
Performance Audits -Why? - What? - When? - Who?
By Jeff JeffcoattConstruction Control Inc.
This article is intended to helpcondominium Boards of Dir-ectors (and owners) to under-
stand what is involved and what theirexpectations should be, as well as howmuch time and energy will be neededfrom the Property Manager during thelengthy process as there tends to be ageneral lack of knowledge as to theintent and process of a PerformanceAudit as it applies to a new Condo-minium Corporation.
What is it?
The Performance Audit is a review ofall Common Element facets of thebuilding to ensure that it is performingas it should according to the design andas-built drawings. It also looks at struc-tural integrity, Building Code and localby-law requirements and workmanship.What a PerformanceAuditor is lookingfor is any deficiency that can be identi-fied within the first year. (There are alsosecond year and seventh year auditswith lesser scopes). Unfortunately, ifthere is a design shortfall that does notcome under the Building Code Tarionwill not get involved. Also any defi-ciency items within the suite are usual-ly considered “suite issues” and mustbe handled directly by the suite ownerwith Tarion directly.
What are the time restraints?
Under the Condo Act (1998) thePerformance Audit should take placebetween the sixth and tenth month afterregistration, and then a report filed withTarion and the Developer by the end ofthe eleventh month. OK – so how doesthat cover a twelve month warranty? –It means that the auditor will have tosend in an Addendum to cover anyitems discovered in the twelfth monthto ensure that the full first-year warran-ty (under the Ontario New HomeWarranty Program Act) is taken fulladvantage of.
How is it done?
The Board of Directors selects a quali-fied company to carry out theAudit andthen the PerformanceAuditor typicallyfollows the same program of work.First there is a review of all as-builtdrawings and specifications (documen-tation that should be handed over to thecondominium corporation at the turn-over meeting).
Next come the site visits –organized bythe performance audit company usual-ly with different experts in their fieldlooking at specific areas – roofing,underground parking garage, cladding
and windows, mechanical, electricaland life-safety, roof anchors, structural,etc.
Questionnaires are also sent out toevery resident asking specific questionsregarding the common element compo-nents of their suites – exterior walls andwindows, cracks, balconies, plumbing,heating, and electrical supply (com-plaints about items that are purely a“suite issue” cannot be included in theperformance audit).When the question-naires are gathered together, thePerformanceAuditor picks suites in dif-ferent areas that reported common ele-ment deficiencies and inspect thosesuites to verify the deficiency and con-firm if it falls within the scope of theAudit.
Once the reviews and inspections arecompleted, a report is written identify-ing the deficiencies and whether theyare “construction” or “code” issues.Since a picture is worth a thousandwords digital photographs of the defi-ciencies are included, together with adescription of the location so that thereis no confusion when theAudit report isreviewed by Tarion and the Developer.
There is a little “confusion” between
thecondovoice Winter 200838
ONWHPAct which results in the engi-neers filing with Tarion at the end ofthe eleventh month after registration (tocomply with the CondoAct) and send-ing in anAddendum for anything foundin the twelfth month (to take advantageof the 12 month Tarion warranty).
So how does it all get fixed?
Once the Performance Audit and anyAddendum have been filed with Tarionby the end of the twelve months, Tarioninstructs the Developer to respond toall the deficiencies identified in theAudit report. The PerformanceAuditorsusually provide a spreadsheet of all thedeficiencies to keep track of theresponses and subsequent inspectionsthat may be required and this is sup-plied to the Developer for them to sendback their first response to each item.The responses will typically be “to befixed” (hopefully with a schedule), “notwarrantable”, “to be reviewed”, and insome cases “more details” may berequested.
This is where the Board of Directorsbecomes involved again. The perfor-mance auditors meet with the Board togo over the responses from the Devel-oper and to provide input as to what theexpectations should be for the variousitems. Some will be “must do”, othersmay be “would be nice if”, or “cosmet-ic”, and some just are not going to hap-pen, so the Performance Auditorexplains the options and priority of theitems so that the Board of Directors iscomfortable with the process.
How long will it take?
The length of time to have everythingfixed, (or a combination of repairs andmoney in lieu), depends greatly uponthe Developer. In most cases they areanxious to move ahead quickly whiletheir trades are still available to rectifytheir deficiencies — the longer it dragson, the harder it is to get the originaltrades back— and that ends up costingmore money. Because of the unknowns(how many deficiencies are there, what
is the reaction of the developer etc.) theprocess from here on, in terms of thePerformance Auditor’s fee, is usuallydealt with on an hourly basis. In manycases an “upset cost” can be given bythe Performance Auditor to review thework done by the developer in rectify-ing the deficiencies for budget purpos-es.
Each time there is a response from thedeveloper, or a review of deficiency sta-tus by the Performance Auditor, thespreadsheet is updated and distributedto the Board, the Developer, and Tarion- with a final column showing “com-plete” or “accepted”.
At the end of this process the majorityof deficiencies (if not all) will havebeen looked after and the Developermay then make an offer of Settlement(cash) to obtain a Final Release fromthe Condominium Corporation. TheDeveloper needs this Release to proveto Tarion that all obligations under thefirst year warranty have been met – at
Winter 2008 thecondovoice 39
which time Tarion will release fundsheld in deposit for that site to theDeveloper.
Where does Tarion come in?
During the ongoing process from theinitial report to the succeeding track-ing spreadsheets Tarion is always keptup to date by the Performance Auditorand Tarion may send out some letterswhere needed to keep things moving ifthey feel that progress is too slow.
In some cases an impasse is reachedwhere the Developer refuses to dosome work that the PerformanceAuditors consider warrantable and soTarion is called in. Initially Tarion willattend a “Common Element” meetingbe-tween the condominium corpora-tion, their Performance Auditors, andthe Developer, to see if gentle “com-ments” can assist in breaking animpasse. This usually gets things mov-ing again, but sometimes everyonesticks to their guns and a “Conciliation”meeting is requested by the condomini-um corporation – this is where Tarionrules for or against specific items thatare documented and brought to themeeting. Conciliation could include alloutstanding items, or just one or twoimportant issues – meaning there couldbe more than one such Conciliationmeeting. In all cases there is a “blackand white” determination by Tarion -so it is important that the PerformanceAuditor guides the Board of Directorsas to their expectations. Frivolousclaims are obviously frowned upon andcould jeopardize future claims by thatcondominium corporation.
How does Tarion decide?
There is a book from Tarion givingtheir “Construction PerformanceGuide-lines” (available on their web-site) that provides parameters foracceptability of workmanship in mostareas, and this is adhered to in theConciliation process. In some cases itcomes down to an interpretation of theBuilding Code, and Tarion will consulttheir experts if need be to determinetheir ruling.
Some things to watch out for that mayweaken your case would be:
• All specific locations must now berecorded – you can no longer make ageneral comment that all balconiesare an issue – they all have to bechecked and identified individuallyin order to count.
• The defect must have some conse-
quence in real time – in other wordsit’s no use saying that somethingwill go wrong in 2-3 years – it mustbe a performance issue within the12 month period or it doesn’t countwith Tarion. (There are otheravenues that could be pursuedlegally if necessary).
• If the Board of Directors feels an
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issue cannot wait and must be fixed– make sure that you give theDeveloper every opportunity to do itfirst. If progress is too slow, send aletter stating what is to be done, bywhich contractor and for how much– giving a ‘reasonable’ time framefor the commencement of the pro-posed work. This allows the devel-oper to react with their own contrac-tor, or to make a better deal with thechosen one. If you do not take thisstep the developer may wash theirhands of that issue and it will be dif-ficult making a case for the costs.
What about the Second Year?
There is also a two year warranty underTarion from the Developer on limitedaspects of the building, and so theAuditfor this stage is limited as to its scope asfollows:
• Water seepage through the basementor foundation walls - includes belowgrade areas and underground park-ing.
• Defects in materials and work includ-ing caulking, windows and doorsresulting in the building envelopeallowing water penetration.
• Defects in materials and work in theelectrical, plumbing and heatingdelivery and distribution systems.
• Defects in materials and work thatresult in the detachment, displace-ment or deterioration of exteriorcladding.
• Violations of the Ontario BuildingCode’s health and safety provisions.
It is not unusual for the Developer toinclude the second-year items togetherwith the first year Performance Auditwhen obtaining the Final Release fromthe Condominium Corporation.
Seven Year Warranty
The seven year warranty is provided byTarion (not the Developer) and coversagainst “Major Defects” defined as“failure of a load-bearing part of thestructure”, or “defects that significant-ly and adversely affects the use of thebuilding as a home”.
Choosing a PerformanceAuditor
As you can see from all of the above,the process is quite complex and couldlast over several years, so first you needto have a PerformanceAuditor that youfeel comfortable with and that is ableto clearly explain all the steps along theway in terms everyone can understand.Since the complete building is to beaudited, it is important to use a qualified
company that provides all of the disci-plines from within their own organiza-tion. If the company has to sub-contractwork to other companies then therecould be problems getting everyonetogether for meetings, reviews andongoing site inspections that arerequired over the course of the negoti-ations and rectification process (not tomention possible extra costs).
Jeff Jeffcoatt, P.Eng, BDS, RCM is aRegistered Condominium Manager andProfessional Engineer and is theCondominium Specialist for ConstructionControl Inc. where he heads up theMechanical & Electrical Department andthe Health & Safety Programs. Morerecently accredited through the Ministry ofMunicipal Affairs and Housing for theBuilding Code Identification Number(BCIN) program as a building designer forLarge Buildings, Building Services, SmallBuildings, and Houses.Well known for his teaching for ACMO atHumber College and via the web throughMohawk College, Jeff wrote/compiled themanual for the ACMO Physical BuildingManagement course, and is presently Co-Chair of the ACMO ProfessionalDevelopment Committee. �
Winter 2008 thecondovoice 41
Schlock, Schmooze & Superficiality– Choosing Your Professional Partners Wisely
BY MICHAEL H. CLIFTON, MA, LLB, ACCI (LAW) & NELSON AMARAL, MA, LLBCLIFTON KOK LLP LEGAL COUNSEL
Choosing professionals is anongoing issue and obligation ofcondominium boards of direc-
tors and property managers.Condominiums frequently require pro-fessionals to handle specialized tasksand, thanks in part to the provisions ofsub-section 37(3) of the CondominiumAct, 1998, (the “Act”) reduce corporateand individual liabilities.1
Very often, when we speak or write ofhow to choose professional serviceproviders, we focus on skill sets andexperience – each of which is veryimportant – but forget to consider issuesof character and commitment. In ourview, these are essential considerationswhen choosing those professionals whowill serve your condominium commu-nity.
In the “old days” (as we like to say aswe get older) the term “professional”meant something special. Today, itrefers to almost anyone who gets paidfor the use of specific skills and knowl-edge, and is more specifically appliedto a person who requires certificationfrom a governing body to verify thepresence of such skill and knowledge;but the term also used to mean, and inour view still should, that the person towhom it applied had not only special-ized skill and knowledge and certifica-tion, but also exhibited a personal com-mitment to a high standard of ethics andto “courteous, conscientious, and gen-erally businesslike” conduct.2
Of course, good character combinedwith ignorance and incompetence is ofno benefit; but all the experience andintelligence in the world will not makeup for the deficiencies that arise out ofsuch things as a lack of genuine con-cern or either dishonest or discourteousbehaviour.
In short, the real qualities of characterexhibited by your professional serviceproviders will have at least as signifi-cant an impact on their performance as
do knowledge, skill and experience.What follows are brief discussions ofsome general points that in our viewought to be considered seriously whenyou are determining who to hire.
Professionalism andPartnership
As is suggested in one part of the titleof this article, the professionals whowork for your condominium corpora-tion (or for you personally or for anybusiness or organization with whichyou are associated) should be able tobe considered your “partners”.
This does not mean “partner” in the lit-
eral sense of being a member of theboard or a unit owner, but a profession-al should be someone who understandsthe perspectives of the board and unitowners, and who applies his or herskills and knowledge with a genuineconcern for the overall well-being andadvancement of your corporation.
Your professional’s concern for youshould complement and be consistentwith your own. This means that he orshe should not be simply “task orient-
ed” – striving to get done only the spe-cific thing you have asked him or her todo – but should keep in mind the gen-eral nature and objectives of the con-dominium, so that the task at hand isaccomplished in a manner that is con-sistent with them.
Thus, for example, a lawyer behavingprofessionally does not necessarilyrush the condominium into court orstrike an instantly aggressive andpositional pose every time there is arequirement to enforce a condomin-ium rule. Instead, whenever possible,he or she seeks to assist the board andother owners in finding a resolutionthat matches the objective of the
“…all the experience and intelligence in the world will not makeup for the deficiencies that arise out of such things as a lack ofgenuine concern or either dishonest or discourteous behaviour.”
thecondovoice Winter 200842
When “Personal Service Beyond TheContract” Really Counts!
condominium to maintain or create apeaceful and cooperative community.In the event court proceedings or otherformal legal action are unavoidable,the professional lawyer seeks tominimize the costs and disruption tohis or her condominium client,without sacrificing seeking anappropriate outcome.
Likewise, a professional engineer con-ducting a reserve fund study will nottake a simplistic and formulaicapproach to the proposed funding plan,but will consider the actual circum-stances and needs of the condominiumand its constituents and assist the boardin developing a plan that meets thebasic statutory objective of “adequacy”(at the appropriate time) without impos-ing unnecessary burdens on the corpo-ration or individual home owners.Where genuine concern for your com-
munity and its objectives is present,your professional is significantly morelikely to give you the service you bothdesire and deserve, than will a profes-sional whose primary concern is get-ting the immediate task done (and get-ting paid for it) with no sense of howthis will affect you for the future.
Professionalism and Politeness
The importance of considering a pro-fessional person’s conduct as it pertainsto matters of courtesy may be less obvi-ous than the importance of his or herskills, knowledge and genuine concernfor your community. However, themanner in which a professional treatspeople, whether in front of or behindclosed doors, can say a great deal aboutother more clearly serious charactertraits, such as honesty, integrity andresponsibility, all of which impact trust-
worthiness, which is often consideredto be a professional’s (as well as a pro-fession’s) most critical asset.
Your preference should be to be servedby professionals who treat you and yourcondominium’s residents and ownersrespectfully. In addition, it is advisableto prefer professionals whose conducttowards others within his or her profes-sion is also polite and friendly.
There are frequently occasions for themembers of various professions to relyon or otherwise interact with one anoth-er for your benefit. Professionals oftenseek other opinions or the assistance ofspecialists in various fields to addressparticular needs outside of the scope oftheir own skill set or experience. In acollegial fashion they will “bounceideas” against one another, or even needto hire another professional to deal with
some aspect of a problem. In the legalprofession in particular there is a needfor common courtesy even towardsone’s opponent’s lawyers, to helpensure that personality clashes do notinterfere with dispute resolution or thecompletion of essential processes. Ifyour professional has burned too manybridges (through, e.g., discourtesy or afailure to use “fair play”) amongst hisor her peers or the members of otherprofessions, you might find that theservices you need cannot be deliveredwith the efficiency and effectivenessyou should be able to expect from amember of that profession.
You might also consider your owncomfort level in working with someonewhose language or conduct regularlyexpresses disrespect for others, a senseof superiority, or a tendency to gossipunkindly, and so forth. Is this the kind
of person to whom you want to trustyour condominium’s most vital con-cerns? Can you?
Perhaps if all you want is a “hired gun”or someone to clerically and clinicallydo exactly what you want without con-sideration for the consequences (to youor others), these points may not be rel-evant to you. However, having said this,a condominium director seeking toemploy a professional on that basismight, him/herself, lack the ethicalintegrity that ought to be expected of aperson in that position.
None of the foregoing is meant to say, ofcourse, that a professional may neverutter an angry word, or must always per-form in a perfectly polite manner – eachis human after all – but these commentsdo rely on the time-tested principle thatpeople who care enough about otherpeople to, on balance, express kindnessand respect in their daily interactions,even to those to whom they are opposed,are more likely able to be relied upon totreat you and the things that matter toyou carefully and responsibly.
Professionalism AndPersonality
Of course, good manners can be faked– hence the references in the first part ofthe title of this article to “schlock,schmooze and superficiality” – and itis hard to get around this except by per-ceptiveness over time. However, a goodstart, when selecting a professionalservice provider, is not to be overlyimpressed by outward appearances.
The fact of the matter is that most of usare soothed by a silver tongue,impressed with a decent hair-do or styl-ish clothing, appreciate a fit body or atwinkling eye, get tickled by talent andawed by intellectualism, along with ahost of other attractive external traits;but the further fact of the matter is thatnone of these things actually speaks tothe quality of someone’s concern orservice, his or her level of integrity, orthe capacity to consider responsibly theneeds and interests of others.Unfortunately, we are often easily con-
“…the term [“professional”] used to mean, and in our viewstill should, that the person to whom it applied had not onlyspecialized skill and knowledge and certification, but alsoexhibited a personal commitment to a high standard of ethics andto ‘courteous, conscientious, and generally businesslike’ conduct.”
thecondovoice Winter 200844
Winter 2008 thecondovoice 45
ful in long-term and deep-rooted ways,compared with the “Personality Ethic”that provides only an immediate andtemporary sense of satisfactory per-formance.
The bottom line is that a professionalwhose primary concern is his or hercharacter is more likely to give you,over the long term, competent servicethat correctly addresses your most cru-cial needs and objectives, than a pro-fessional who is more focused on imagethan integrity. The challenge is how totest for or discover this when choosinga professional. Perhaps the best you cando is ask.
In addition to questions about suchthings as certifications, qualifications,skills and experience, you should askdirectly about your prospective profes-sional partner’s character and ethics.How would he or she deal with partic-ular situations? What advice would heor she give if…? What does he or shethink about…?
Also, find out about your prospect’sreputation. Speak to former clients andto other professionals both in and outof the prospect’s profession. Speak tonon professionals with whom theprospect 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 disagree-ments over invoices, handles stressfulsituations or cumbersome and incon-venient processes, shares resources andknowledge with other professionals,etc. An often crucial factor is, does heor she admit mistakes readily, takeresponsibility for them and seek to cor-rect them?
In summary, the traits you should lookfor in professional service providers(partners) for your condominium areexactly like the traits you would lookfor in a friend or trustworthy associateor colleague in any context.And, in theend, trusting your “gut” rarely hurts – ifthe conduct of your professional partnergives you pause, then you likely shouldtake that opportunity to reconsider yourrelationship.
1 Sub-section 37(3) of the Act states that “Adirector shall not be found liable for abreach of a duty mentioned in sub-section(1) if the breach arises as a result of adirector’s relying in good faith upon” thereports or opinions of a variety of personswhose professions “[lend] credibility tothe report or opinion”.
2 Reference the Merriam-Webster OnlineDictionary.
3 Page 18; published by Simon & SchusterInc. as a Fireside book (paperback),1990. �
fused about this. It is generally easierto trust unwittingly in the superficialcues of professional “success”, than toresearch and recognize those cues thatindicate true professionalism.
Stephen Covey, in his now seminalbook, The Seven Habits of HighlyEffective People,3 writes,
[My] study took me back through 200years of writing about success…Ibegan to feel more and more thatmuch of the success literature of thepast 50 years was superficial. It wasfilled with social image conscious-ness, techniques and quick fixes –with social band-aids and aspirinthat addressed acute problems andsometimes even appeared to solvethem temporarily, but left the under-lying chronic problems untouched tofester and resurface time and again.In stark contrast, almost all the liter-ature of the first 150 years or sofocussed on what could be called theCharacter Ethic as the foundation ofsuccess – things like integrity, humil-ity, fidelity, temperance, courage, jus-tice, 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 individu-ally and organizationally more success-
thecondovoice Winter 200846
Winter 2008 thecondovoice 47
The RoyalArms Condos M.T.C.C. 1195 at 5418Yonge St Toronto, Ontario hasbeen in existence since 1998.
You know you have arrived at elegance as soon as you drive into the Front Entranceof the Royal Arms Condos. The sound and sight of the beautiful waterfall immedi-ately softens the city surroundings. The vibrant flowers and lush greenery freshen theair around you.
Governance
The current Board of Directors consists of five committed residents in the buildingwho meet for regular monthly Board meetings as well as random meetings whennecessary. We suggest to others that they may judge how well this building is runby reviewing the reservefund study, observing thecleanliness of the build-ing, and noting the overallstate of repair of the facil-ity.
Our reserve fund isextremely healthy despitesome budget challengesthis past fiscal year. Wehave been able to keepmaintenance increases toa minimum. Board mem-bers take an interest in the
CONDO OF THE YEARCondo of the Year Award - Second Quarter FinalistThe Royal Arms Condos, MTCC 1195
CCI Toronto is thrilled toannounce that MTCC #1195has been announced as thesecond quarter finalist of thenewly launched Condo of theYear Award. The followingarticle was written by GaryPickering as part of thecorporation’s submission forentry to the contest. Ourcongratulations are extendedto MTCC 1195!
Further details on this contestmay be found on page 49 or onthe CCI-T website atwww.ccitoronto.org. Theclosing deadline for the nextquarter submissions is:February 1st, 2009. The annualgrand prize winner will beselected from amongst thefour quarter finalists in theearly fall of 2009.
thecondovoice Winter 200848
state of repair by making randominspections of the building with a viewto identifying areas that need repair ormaintenance and prioritizing items inthe reserve fund study.
The Board itself is comprised of mem-bers with relevant work experience suchas engineering, finance, sales, and sen-ior management. These robust boardresources allow for good judgement andgood decisions.
Board members work asa team together withProperty management byDEL, always with theinterests of the corpora-tion and residents beingthe prime focus.
Social Fabric of theCommunityThe people living in theRoyal Arms reflect thecultural diversity of theCity of Toronto. TheBoard of Directors is cognizant of thisfact resulting in a policy of using inter-national or graphic signage whereverpossible.
Energy InitiativesJust recently, the Board approved aretrofit of the garage lighting which isanticipated to save our residents about$40 thousand annually and will pay forthe retrofit in one year. Other areas theBoard is looking at are common areahallways and washrooms where theinstallation of motion sensor lightingmight result in additional savings.
Effective Use of CommitteesMTCC 1195 has a number ofCommittees including DocumentsCommittee, Waste ManagementCommittee, Landscaping Committee,and Guest Suite Committee. Thesecommittees meet as required and pro-vide advice to the Board of Directors.
CommunicationsFor the last two years, the Board ofDirectors has published a quarterly
newsletter in which residents are updat-ed on current major initiatives of theBoard as well as reminders about itemssuch as upcoming owner meetings.
In keeping with the technology revolu-tion, the board has also approved thedevelopment of a Condo website atwww.geocities.com/royalarmscondos.Residents are always encouraged tobring their concerns to the Board via
the condo can benefit.
An example of this is the Board’s recentinitiative to switch CCTV security cam-eras from analog to digital.
Consistency
Because of the Board’s policy withrespect to communication with resi-dents, i.e., having all suggestions andconcerns go through the property man-agement office and subsequently Boardmeetings, residents enjoy a consistentresponse to things such as change offlooring requests.
Because our rules are included in theWelcome Package given to all new res-idents, everyone in the building has thesame obligation for making the condorun efficiently and effectively and witha minimum of disruption. It also makesit easier for our staff such as the clean-ers, security, and superintendent to
carry out their day to dayduties.
EnvironmentalConcerns
The Board of Directorsremains concerned aboutthe environment and hasstruck a Waste Manage-ment Committee to guidethe Board as to the Cityof Toronto’s Solid WasteManagement initiatives.
We also ensure that sup-pliers such as the landscaping company,pool contractor and electrical contrac-tors are environmentally friendly anduse environmentally friendly products.
Other Unique Amenities
Royal Arms Condos has two guestsuites available for use by residents’visitors for a nominal fee. We alsoallow residents use of the party roomand billiard room free of charge. �
the Property Management Office andin writing. Board members recognizethat, outside the regular Board meetingvenue, they are simply residents andcannot make unilateral decisions.
Forward Thinking
Members of the Board of Directorsalways try to have an open mind forsuggestions by residents, at the sametime measuring the positive effects ofthe suggestion on the condo overall.
Board members are always on the look-out for the latest in technology and how
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
• Social Fabric of the Community
• Energy Initiatives
• Effective Use of Committees
• Communications
Interested applicants should forward their submission, including photos and an articleoutlining 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 1W8or email to [email protected]
Do you think your condominium has what it takes to be named as the
CCI Toronto Chapter
Condo of the Year?
• Forward 'Thinkingness'
• Consistency
• Environmental Concerns
• Any other unique approach or program
For further information, please visit the CCI Toronto website at www.ccitoronto.org
thecondovoice Winter 200850
PROVIDINGEXCEPTIONAL SERVICETOTHECONDOMINIUM INDUSTRY FOR OVER 25 YEARS
SUMMA PROPERTY MANAGEMENT INC.PROFESSIONAL PROPERTY MANAGEMENT & CONSULTING
“Your condominium deservespersonal attention and service.”
Over 24 years experience!
We provide Professional Condominium PropertyManagement with attention to detail. Your propertyis important to us! Regular on-site visits andinspections, attendance at all meetings. We areavailable to be personally contacted by BoardMembers at almost any time – not just ‘businesshours’.
We provide Superior Service and a commitmentto quality property management no matter whatsize your condominium is!
Date: Saturday, January 17, 2009Time: 9:00 a.m. until 12:00 p.m.Location: Novotel North York HotelCost: $60 for CCI Members and
$95 for Non Members
This half-day seminar will focus on thetopics that every Director should beaware of and will provide participantswith a basic knowledge of the condomini-umAct. The course is an excellent meansto find out what you need to know to beeffective as a condominium owner ordirector. The information presented willbe of interest to those purchasing a con-dominium or to those who want to knowwhat a condominium is and what it meansto live in one.
Basic Condominium Course
Dates: Tuesday, February 11th,18th, 25th and March 4thand 11th, 2009
Time: 7:00 p.m. to 10:00 p.m.each evening
Location: Novotel North York HotelCost: $300 for CCI Members and
$400 for Non Members
This informative five night course is amust attend for all new Directors orCondominium Residents who want a bet-ter understanding of the wayCondominiums function and should oper-ate. Topics covered include: TheDirectors’ Role, Insurance, PropertyManagement, Budgets and Finance,Reserve Funds and Physical BuildingManagement.
NEW!! – Condo 201 Course –Governance and Unit OwnerRights
Date: Saturday, April 18, 2009Time: 9:00 a.m. until 12:00 p.m.Location: Novotel North York HotelCost: $75 for CCI Members and
$125 for Non Members
This ½ day course will teach directors allthey need to know about properGovernance issues and how to ensure awell functioning Board. This is a ‘must-attend’ session for any new Director orfor any owner considering running for aBoard position.
CCI Winter 2009 Educational Courses - Mark Your Calendars
For further course information, to download registration forms or to register online, please visitwww.ccitoronto.org/Education
thecondovoice Winter 200852
Everyday conflict can arise in avariety of circumstances: fromdealing with the driver who cuts
us off on our drive to work to decidingwith our kids what to have for dinner.In the condominium community, thescope of possible conflict, it seems, islimited only by one’s imagination.Non-payment of common expensearrears and noise transmission betweenunits are some of the conflicts near toour hearts. However, if conflict can beviewed as a means to better our under-
Conflict is oftenunavoidable due toincompatible oropposing needs, wants orother demands. Conflictis generally motivated byour needs and wants: forexample, one owner’sneed for a good night’ssleep vs. another owner’sneed to practice thepiano. The questiontherefore becomes: Isthere value to be gainedfrom how we deal withconflict?
standing of our own needs and theneeds of others, then perhaps we canfind value or derive benefit from con-flict; particularly, if we can resolve itquickly and cost effectively.
Mediation is a process that belongs tothe parties; the mediator is only thereto facilitate the resolution. Subject tothe boundaries presented by theCondominium Act, 1998 (the “Act”),the solution is developed by the parties(as opposed to being imposed by the
Conflict in Condominiums:Waste or Value-Added?
BY RICHARD A. ELIA, B.COMM., LL.B., LL.M.(ADR), ACCI
Winter 2008 thecondovoice 53
courts). The parties should, therefore,be able and more willing to live andcomply with the solution.
The Act now presents parties, who aregoverned by the Act and who are inconflict, with the opportunity (andsometimes the obligation) to resolvetheir differences, and hopefully findresolution, through mediation. Besidesbeing a trend used to resolve disputes,mediation or a variation of thereof(Appropriate Dispute Resolution) canbe a valuable tool to manage conflict(and avoid costly disputes) as it allowsthe parties, with the assistance of amediator or other third parties, to iden-tify and share their respective interests
(i.e. needs, drives, motivations) anddevelop and implement practical anddurable solutions without having a thirdparty (i.e. a court) impose a solution,which may or may not (that’s the gam-ble) appropriately address the interestsof the parties involved in the dispute.
A key starting point in a mediation isthe identification of the parties’ respec-tive interests. Often, this can be doneby having the parties relate their storiesto each other. This exercise should pro-vide productive insight to one partyabout another party’s interpretation ofthe facts, perspective and his/her emo-tions. With this information on thetable, a mediator can go forward infacilitating a solution.
Is there value to be found within thecondominium community? Yes – andparticularly within the community rela-tionships, which are, generally, long
term in nature. Neighbours must con-tinue to live with neighbours until suchtime as they move out. Individual own-ers must work with the condominiumcorporation and vice versa, to achievethe statutory and non-statutory objec-tives of the condominium corporation,which, at the end of the day, are for thebenefit of each of the individual own-ers. Conflict, and the resolution of con-flict, particularly if a greater dispute canbe avoided, shall strengthen a commu-nity and the relationships found there-in and better advance the needs andwants of the community.
Mediation is a fascinating and often
cost-effective opportunity to resolvedisputes in certain situations. While notall circumstances will justify or workwithin the parameters of mediation, andlitigation may at times be unavoidable,the drafters of the Act obviously envi-sioned the potential of value in conflictand its resolution through mediation.
Richard Elia has been actively involved inthe area of Condomin-ium Law since 1994,and has practiced with both “boutique” andlarge full-service firms in Toronto. Richardhas a particular interest in investigating thesources of conflict and dispute within con-dominium communities, and the concept ofavoiding disputes by addressing conflicts atthe 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.’
thecondovoice Winter 200854
CCI National News
Janice Pynn, RCM,ARP,ACCI, FCCI,has been appointed the President of theNational Board of Directors of CCI,effective October 31st, 2008.
Janice has served on the National Boardsince 2001 and has participated onnumerous committees includingMembership and Planning.
Janice has spent more than twenty fiveyears in property management. Janice isthe Executive Vice-President ofSimerra Property Management Inc. AsExecutive Vice President and Partnerof Simerra, Janice is responsible for theoperation of more than 22,000 condo-minium units.
Janice is the immediate Past Presidentof the Canadian Condominium InstituteToronto Chapter. With a focus on gov-
ernance, growth and promotion of theACCI designation, Janice will be joinedby a diverse team of Executives whowere elected on October 31st at the CCINational meeting as follows;
The Canadian Condominium Instituteis the Voice of Condominium. Thisorganization is the only NationalAssociation dealing exclusively withcondominium issues affecting all of theparticipants in the condominium com-munity. The goal of CCI is to form part-nerships with its members to create,encourage and promote a strong con-dominium community in the vibrantCanadian marketplace.
CCI’s role is to educate those involvedin condominium, to provide profession-al referrals to members, to improve leg-islation affecting condominium in everyprovince, and to develop standards andbest practices for condominium direc-tors and professionals. The Chaptersthroughout the country provide practi-cal comparisons to the different provin-cial Acts and allow CCI to lobby forbetter reforms as gained from practicalexperience. CCI assists its members inestablishing and operating successfulcondominium Corporations througheducation, information dissemination,workshops and technical assistance. �
On October 31, 2008 – CCI National AppointedJanice Pynn as New president
Winter 2008 thecondovoice 55
thecondovoice Winter 200856
New Trade MembersTuck YiongCaldwell Securities Ltd.
Brian BosscherCondo Web Access
Laura LeeEnhanced ManagementServices
Kevin Chappell and ChrisDaleMarkham Garage Doors Ltd.
For current updates on city wastepick up, including information onopting to switch to private garbagecollection- see the CCI Torontowebsite at www.ccitoronto.org
Winter 2008 thecondovoice 57
thecondovoice Winter 200858
The CCI Toronto and Area Chapter was thrilled to be therecipient of the 2007-2008 Lorne Young Chapter of the Yearaward presented by CCI National at the annual Awards din-ner (the ‘Harvest Hoedown’) held on Friday October 31st,2008. The Toronto and Area chapter was nominated for thisaward by last year’s recipient, the CCI South SaskatchewanChapter. �
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.
CCI Toronto Wins Lorne Young Chapter of the Year Award!
Member’s Corner
2008 Annual General Meeting – CCI Toronto
On Thursday November 27th, members of the CCI Toronto &Area chapter gathered for theAnnual General Meeting – heldat the North York Novotel Hotel.
Elections for Board positions were held in accordance with theChapter by-laws and four positions were filled that evening.Returning to the Board are directors Mario Deo, ArmandConant, and Bob Girard. Newly elected to the board is SallyThompson, an Engineer with Halsall Engineering.
Plaques of appreciation were presented to Past PresidentJanice Pynn as well as outgoing President JohnWarren. BothJohn and Janice contributed greatly to the advancement ofthe Institute during their respective terms as President.
As in the past, the Annual General Meeting also served as aforum for the Annual Awards Ceremony. The CondominiumNewsletter of the YearAward for 2008 went to TSCC # 1849– “Kilgour 1 News’– and Communications Committee mem-bers, Val Taylor, Nina Morris, Paul Mariai, Dave Milne, TaraPollard and Miriam Preszler were thrilled with the award.(see photo)
It was with great pleasure that Membership Chair, BillThompson, announced the first recipient of a Platinum Levelaward under the chapter’s Ambassador Program. SimerraProperty Management Ltd successfully recruited 20 newmembers to CCI during the 2007-2008 year. Executive VicePresident of Simerra, Janice Pynn was on hand to receivetheir award. �
Janice Pynn accepts a plaque ofappreciation as Past President from
Vice President, Mario Deo.
Outgoing President John Warrenis presented with a plaque of
appreciation from Past President,Janice Pynn.
Membership Chair, Bill Thompsonpresents Janice Pynn of Simerra
Property Management with aPlatinum Ambassador Award.
TSCC 1849 President, Val Taylor, left,Communications Committee Member,
Nina Morris and Board Director,Ken Karp accept their award.
Long time CCI-Toronto mem-ber Harry Herskowitz,received the distinguishedhonour of receiving his FCCIdesignation at the CCINational Gala Awards Dinnerheld on Friday October 31st,2008.
Harry is a partner and head of the realestate department of DelZotto, ZorziLLP, devoting his practice to real estate,mortgage lending and commercialtransactions, with particular emphasison land development and condomini-um law.
Harry is a former vice-chair of the RealProperty Section of the Canadian BarAssociation of Ontario, and has taughtreal property law at Osgoode Hall LawSchool. He is also the author of numer-ous papers and case comments on con-dominium and real property law, mort-gage matters and land developmentissues for the Ontario Bar Association,the Law Society of Upper Canada, andInsight Educational Services.
Winter 2008 thecondovoice 59
Member’s Corner
Harry was actively in-volved in representing theUrban Development Insti-tute and the Greater TorontoHome Builders’Associationon their joint submission tothe Ministry of Consumerand Commercial Relationsregarding proposed amend-
ments to The Condominium Act.
Harry has spoken at numerous confer-ences including the annualACMO/CCICondominium Conference on a varietyof condominium and real property lawissues.
Harry is currently a member of theToronto Chapter of CCI, the ADRInstitute of Ontario, and is vice-chairof the board of directors of TarionWarranty Corporation.
The Toronto Chapter was proud tonominate Harry Herskowitz as a Fellowof the Canadian Condominium Instituteto recognize his significant achieve-ments in the industry. �
Harry Herskowitz Receives FCCI Designation
Chris Jaglowitz Receives ACCI DesignationCongratulations go out toChris Jaglowitz for earninghis ACCI Designation inLaw. This designation waspresented to Chris at the CCINational Annual GeneralMeeting held on FridayOctober 31st, 2008.
Chris is a senior associate with the lawfirm Gardiner MillerArnold LLPwhereover 80% of his practice is devoted tocondominium law. He is a member ofthe Law Society of Upper Canada, theCanadian Bar Association, theAssociation of Condominium Man-agers of Ontario and the Canadian
Condominium Institute.Chris has appeared as coun-sel on numerous reportedcourt decisions, including thefirst case to consider s.105(3) of the CondominiumAct, 1998.
Chris is a regular attendee atCCI courses and at the ACMO/CCIannual conference, where, in 2004, hesat on the Legal Experts Panel. He is aguest lecturer at the RCM Law courseat Humber College and has been a con-tributing author to the CondoVoicemagazine. �
The CCI Toronto chapter was aproud sponsor and exhibitor at therecent Toronto Condo Show, heldon October 2nd through 5th, 2008at the Metro Toronto ConventionCentre.
The chapter organized and present-ed a 1 ½ hour seminar at the showaimed at new purchasers.“Purchasing a Condo – What YouNeed to Know” lead attendeesthrough the ins and outs of purchas-ing a condo and most importantlytaught them the questions to askbefore they make their purchase.
Thanks to session presenters; BillThompson, Armand Conant,Donna Swanson and JulianMcNabb. �
CCI Director Gina Cody and Graham Oliverstaff the CCI Booth in the exhibit area of
the Toronto Condo Show.
thecondovoice Winter 200860
City of Toronto Recycling UpdateCan I throw my plastic bags in myBlue Bin?Grocery and other retail plastic shoppingbags can now go into your Blue Bin.
Do I just throw them in?No. The bags have to be empty; removeany receipts and put all the bags in onebag and then tie closed. Do not use a rub-ber band or twist tie.
Can all plastic bags go in?No. At this time only plastic retail andgrocery bags can go in.
What type of bags can’t go in?Bags with drawstrings, hard plastic han-dles and metal details cannot go in. Theycan 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 includedat this time because of contaminationconcerns (e.g., biodegradable outer milkbags, odour from inner milk bags). Plastic
retail and grocery bags represent 70% ofplastic film and recycling markets for thismaterial are more stable than “all plasticfilm” markets.
Why are plastic retail and grocerystore bags being recycled? Aren’t peo-ple re-using them?It’s best if people reduce the number ofplastic bags they are getting by re-usingthem. If bags cannot be re-used, theycan be recycled after December 8, 2008.
How else can I reduce the number ofplastic bags?By refusing them in the first place andusing durable reusable bags when shop-ping.
Can polystyrene items go into the BlueBin?Polystyrene is one of the most widelyused kinds of plastic and comes in twotypes: clear/rigid polystyrene and poly-styrene foam. Only polystyrene foam canbe put in your Blue Bin.
What foam polystyrene items can go inthe Blue Bin?• Foam packaging (hard, white – usedfor cameras, stereos, etc.)
• Foam cups• Foam takeout containers
• Foam meat trays• Foam egg cartons
Do I need to rinse these?Yes. All food residue needs to beremoved.
What about other polystyrene items?Packing peanuts (popcorn) and pure solidpolystyrene, which is a hard plastic withlimited flexibility, are not accepted in theBlue Bin Program at this time.
Polystyrene can be transparent or can bemade to take on various colours. Solidpolystyrene is used in hard (rigid) prod-ucts such as plates, glass, cutlery,clamshells and clear egg cartons, plasticmodels, CD and DVD cases. These itemsare not accepted in the Blue Bin.
What about those clear clamshells usedfor fruits and vegetables?No, these are not accepted in the BlueBin. Please put these in the Grey GarbageBin. �
thecondovoice Winter 200862
CCI’s Most PopularSelling Book
The Condominium Handbookby Gerry Hyman has been updated and is nowavailable in the Seventh Edition!
Order your copytoday!
Visit the CCI onlinebookstore atwww.ccitoronto.orgto order online ordownload an orderform.
