CondoBusiness * April 2020

Canada’s Most Widely Read Condominium Magazine

April 2020 • Vol. 35 #1

COPING IN CONDOS PM#40063056

What managers have learned from the coronavirus so far

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Insurance crisis, rethinking climate change risk and preserving windows

PA R T O F T H E

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September 2-3, 2020

P A R T

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Contents COVER STORY

DEPARTMENTS

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26

Governance Tips for supporting managers

By Pat Crosscombe

28

Legal Handling unreasonable treatment

By Cheryll Wood

Coping in condos What managers learned from the coronavirus so far

FOCUS: MAINTENANCE

12

PMs guide to window maintenance

By Max Jaffray

16

Taking over tasks when a manager leaves

By Eric Plant

24

How will climate change affect condos?

By Rebecca Melnyk

IN EVERY ISSUE

5

Observations

8

Ask the Expert

30

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EDITOR'S LETTER

A Silver Lining?

A season most symbolic

of new beginnings has arrived alongside a pandemic with no definitive end in sight. There is no denying the COVID-19 crisis is changing every facet of modern life, including the many condo communities across Canada. Getting back to normal seems seasons away. Some industry insiders wonder if this crisis will potentially leave condos in a better place. Such optimism remains in limbo with the number of infectious cases rising across the nation, but as Murray Johnson notes in this month’s cover story, “we have to find that silver lining wherever we can.”

CondoBusiness spoke with several other property managers to find out how they’re coping with changes. On top of a long list of tasks they normally oversee, most are working longer hours to keep residents and staff safe, while addressing cleaning and disinfection—a maintenance issue that has intensified.

On the topic of maintenance, our focus for this issue, we also present a package of articles that interpret its many meanings—from preserving buildings to preserving relationships. Max Jaffray gives you a long list of to-dos when it comes to window inspection and upkeep. Eric Plant shares how boards can handle maintenance and other duties if they are suddenly thrown into the role of property manager. Pat Crosscombe offers advice on how boards can support managers and help them thrive in an often stressful job.

With flooding about to make its rounds again this year, another feature delves into extreme weather events and maintenance concerns related to condos and climate change.

Perhaps a temporary silver lining of this global health crisis is the drop in carbon dioxide emissions due to our lighter human footprint and a renewed appreciation for what lessons the pandemic holds for our environment. A McKinsey and Company report this month suggests COVID-19 provides society with a taste of what a full-blown climate crisis could mean in terms of simultaneous shocks to supply and demand and disruption of supply chains, among other consequences.

For now, at least in the condo world, most residents are pegging COVID-19 as a primary threat to daily life. Lessons that condos draw from this experience are hard to predict. A future issue down the road will delve into larger lessons learned post-pandemic. But one thing is clear: this crisis has impressed itself upon the industry’s psyche and there’s probably no going back to preCOVID-19 living.

Rebecca Melnyk Editor, CondoBusiness rebeccam@mediaedge.ca

Publisher Robert Hertzman Editor Rebecca Melnyk Advertising Sales Kelly Nicholls Melissa Valentini Senior Designer Annette Carlucci Production Manager Rachel Selbie Contributing Writers Pat Crosscombe, Sonja Hodis, Max Jaffray, Eric Plant, Cheryll Wood Digital Media Director Steven Chester Subscription Rates Canada: 1 year, $60*; 2 years, $110* Single Copy Sales: Canada: $10*.

Elsewhere: $12 USA: $85 International: $110 *Plus applicable taxes Reprints: Requests for permission to reprint any portion of this magazine should be sent to info@mediaedge.ca.

Circulation Department Taras Kozak circulation@mediaedge.ca (416) 512-8186 ext. 234 CONDOBUSINESS is published six times a year by

President Kevin Brown Director & Group Publisher Sean Foley Controller Nadia Piculik, CPA, CMA 2001 Sheppard Avenue East Suite 500 | Toronto, Ontario M2J 4Z8 (416) 512-8186 Fax: (416) 512-8344 e-mail: info@mediaedge.ca CONDOBUSINESS welcomes letters but accepts no responsibility for unsolicited manuscripts or photographs.

Canadian Publications Mail Product Sales Agreement No. 40063056 ISSN 0849-6714 All contents copyright MediaEdge Communications Inc. Printed in Canada on recycled paper.

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The effort to accurately address the COVID-19 pandemic is especially important for us at CondoBusiness. As public health officials scramble to contain the outbreak, journalists must keep up with the facts. The news changes weekly and any misinformation can be more hazardous than useful. Please visit our REMI Network for breaking news and current feature stories: www.reminetwork.com

5 www.REMInetwork.com | April 2020 7

Insurance Crisis Q&A

Insurance costs for condo corporations have been rising across Canada. Some are facing sharp increases in premiums and deductibles; others are unable to renew their insurance. For many, this challenge has reached a crisis stage. Here, Pete Karageorgos, director of consumer and industry relations from the Insurance Bureau of Canada, offers some answers.

What is causing insurance premiums to spike in the condo industry?

Not all condo corporations are facing extreme premium increases. Insurance is ab out risk and premiums are commensurate with the level of risk a property faces. A good deal of the challenge in the condo market is driven by claims.

Unfortunately, some condo corporations have been using their insurance as a maintenance policy. Insurance is supposed to be used for the unexpected. It becomes expensive if it’s being used for the expected. Many of the condos seeing

8 CONDOBUSINESS | Part of the REMI Network

large increases have a significant history of claims. IBC is aware of one condo corporation that made 11 water-related claims in just six years.

Much of the problem is also driven by the cyclical nature of the commercial insurance market, which experiences periods of expansion and contraction. Compounding the problem is insurers have more discipline in commercial underwriting and are reviewing each risk very carefully. We’ve also seen years of severe weather losses, low return on investments, and increased claims activity. When combined, these factors have forced insurers to review their rates.

ASK THE EXPERT Condo corporations with reasonable claims histories may still experience an increase as a result of market conditions, but we are hearing from some brokers and insurers that these increases are often closer to the 20 to 30 per cent range.

Why are some condos seeing higher increases than others?

Recent increases in condo insurance premiums are based on a number of factors, including condominium values increasing faster than inflation, construction materials, geographical location, claims history, repair and rebuild costs, maintenance and repair schedules, and risk management strategies.

Tough market conditions can also result in premium increases on properties that may not have significant claims or maintenance issues.

Many factors outside of claims history influence premiums like geographical location, vacancy rate, number of rental units, replacement cost, age of a property, maintenance schedules, risk management strategies and mitigation programs.

How can a condo avoid risk and mitigate impacts?

One of the best strategies a condo corporation should utilize is a comprehensive preventive risk management program. Many claims are preventable and there are steps unit owners and condo corporations can take to prevent loss or damage from occurring. Ensuring that preventive maintenance and repairs are part of this overall strategy and following the direction of the reserve fund studies (depreciation reports in B.C.) will help improve the situation over the long term. Any steps a corporation can take to improve their risk profile and avoid claims will have a positive impact on future premiums. Even technology, like water detection devices coupled with automatic water shutoffs could be beneficial in mitigating the impact of loss or damage.

Condo corporations should also review options and coverages on a regular basis with their insurance representative and understand what additional steps can be taken to ensure long-term affordability. Unit owners need to mitigate losses in their units as damage can easily spread and impact others, particularly in high-rise buildings. 1 Pete Kara g e o rg o s is the d i re cto r of consumer and industry relations at the Insurance Bureau of Canada.

“One of the best strategies a condo

corporation should utilize is a comprehensive preventive risk management program.�

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ASK THE EXPERT

Why have a standard unit bylaw?

Who is responsible for

repairing hardwood

floors in a unit that has sustained water damage and whose

BY SONJA HODIS

insurance will be responsible for the loss? Can you clearly and easily answer that question?

In addition to examining the declaration and the Condominium Act, a condo corporation should have a bylaw that defines a standard unit. Doing so will help answer that question, and clarify other obscurities that arise when items in a unit are damaged.

In a properly drafted standard unit bylaw, the distinction between a unit and an improvement is legally defined. When the corporation is obligated to repair after damage, the obligation extends only up to the standard unit. Corporations are not responsible for repairing improvements; rather, this is the responsibility of the owner. Many condos have implemented standard unit bylaws to define what is included in a standard unit, but many condos have not done so.

Regarding insurance, the standard unit bylaw defines how much a unit will be repaired as a result of an insurable loss by the corporation’s

insurance and what is the responsibility of the owner’s insurance.

Insurance companies like to see standard unit bylaws. They provide clarity and certainty regarding the risks the insurance company is assuming. Having one may make an insurance company more comfortable extending insurance coverage and may also help in managing your deductibles and premiums.

Those who have not passed a standard unit bylaw are placing a heavy burden on the corporation’s insurance to repair an insurable loss. Creating one, however, will shift the responsibility for certain items to the owner’s insurance. Insurance professionals have been advising that it is much cheaper for an owner to obtain insurance for certain types of items in the unit, as opposed to the corporation. As such, it is important to determine what items make sense

to keep as part of the standard unit and what items should be removed from the definition and thereby become an improvement.

For those who have a standard unit bylaw, do not rest on your laurels. It would be prudent in this condo insurance market to revisit your standard unit definition and determine if it needs revision. A definition that made sense five years ago may no longer make economic sense in today’s insurance market. At the very least, review the standard unit definition with your insurance company and lawyer to determine if changes can improve your premiums, deductibles or ability to obtain insurance coverage. 1 Sonja Hodis is a condominium lawyer based in Barrie that practices condominium law in Ontario.

Sonja can be reached at (705) 737-4403, sonja@ hodislaw.com or you can visit her website at www.hodislaw.com.

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SAVE THE DATE

A Property Manager’s Guide to Window Maintenance Windows require maintenance like any other condo feature, and

BY MAX JAFFRAY

can last for decades if key components are properly attended to. It is typically the responsibility of the property manager to ensure

all upkeep is completed, under direction of the condo board. To keep solar and thermal properties intact for as long as possible, areas of focus include the glass, caulking and frames. Here’s some advice on how to inspect windows and ensure proper upkeep.

Conducting a window inspection Maintain a record of inspections and complaints about window conditions to determine maintenance schedule, as well as identify cleaning and repairs that should be immediately carried out.

Window inspections are best executed during the comparatively mild months of spring and fall. Each time, watch for the following issues: • Windows that do not open or close smoothly. This is an especially common problem in coastal environments where

salt in the air can create deposits on a window’s moving parts, but can still occur in all climates due to dirt build-up and lack of lubrication.

• C r a c k e d o r b r o k e n g l a s s .

Condominium window glass is typically thick and resilient, especially in high rises where high winds are often present, but extreme weather conditions can still cause cracking and other damage.

• Damaged weather strips or caulking. If any sections are missing, cracked, or

12 CONDOBUSINESS | Part of the REMI Network

peeling, it affects the integrity of the thermal seal around the windows.

• Condensation between glass layers.

When the seals between the window panes are cracked, moisture can get in and condense on the inner services, a process known as ‘fogging’.

Tips for routine window maintenance Window inspection results will dictate the maintenance routine, ranging from basic cleaning to more complex services like repairs and replacement. Some of this work

MAINTENANCE

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will require support from an experienced window cleaning and maintenance company that has experience with condos. It’s important to verify that they have workers’ compensation, sufficient insurance, and all proper safety certifications (COR, IRATA, SPRAT). It’s also a good idea for property managers to obtain at least two estimates to compare prices, as well as references for previous work.

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Clean the windows If the inside window tracks are dirty, clean them using a vacuum attachment and small brush and apply lubricant to any moving parts that need it. Then, using a microfiber cloth, apply a professional-quality detergent to the window and scrub away any dirt build-up from the glass and sill. For best results, use distilled water, which won’t leave mineral deposits on the glass, and conduct the cleaning on a cloudy day; soapy water dries quickly in the sun and can leave streaks behind.

Once the surface is fully soaped, use a squeegee to wipe away the suds and create a streak-free shine. Any residual water on the sill or ledge should be cleared away with a towel. When cleaning window interiors, always mop up any water that may have dripped onto the floor.

For windows that cannot be safely accessed via ladder, contact a window cleaning company, ideally one that uses

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MAINTENANCE rope access. This system allows technicians to move more freely, which is a bonus for buildings with hard-to-access windows, and it can be set up and dismantled comparatively quickly, which saves time and therefore cost.

2

Apply window caulking If any caulking is cracked or missing, clear it all away from the window or frame using a putty knife and use a caulk gun to apply a replacement strip. With a damp rag or even a wet finger, push the caulk into the gap and smooth it out.

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Replace weather stripping Remove any worn or damaged weather stripping using an adhesive cleaner, and fill old nail holes, if necessary. To apply adhesive-style stripping, remove the backing and press firmly into place. For nail-in stripping, nail through the pre-punched holes.

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Replace broken panes or windows Broken glass is not only unsightly and a source of energy loss: it is also dangerous. Depending on the style of the window and the extent of the damage, the entire window may have to be replaced.

Although a well - built window should have a ser vice life of more than 25 years, a lot depends on its location, level of exposure to the elements, and maintenance schedule. A smaller firstfloor window shielded by a second floor balcony is not going to need as much attention as a window wall in a downtown high rise. Take these factors into account to create a maintenance schedule that keeps the windows in prime shape all year round.

Caulking helps to keep the warm air in and cool air out, which is especially important given the typical weather in Canada. Window stripping is equally important as caulking, as it too ensures a le ak- free w ind ow. W hen w ind ow stripping is compromised, immediate repairs are required. 1 Max Jaffray is the owner of High Rise Window Cleaners, which specializes in condominium window cleaning and maintenance in Edmonton, Calg ary, and Saskatoon. To learn more, visit: w w w.hig hrisewind owc le aners.c a o r email: info@highrisewindowcleaners.ca.

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Taking Over

W hen most people run for the board of directors of their condominium, the last thing they imagine

is a situation where they’re

BY ERIC PLANT

actually running the condominium. A condominium is

a multimillion-dollar business with hundreds of moving parts, something that a management company is specially trained and licensed to handle. But time and time again, a board of directors is thrown into the role of property manager.

One of the most common instances occurs when a management company is fired. While most management contracts have a sixty-day termination clause, which should allow the board time to find another company, some boards prefer not to have their manager stick. In these cases, boards may choose to pay the sixty days, “walk them out” and end the relationship early. If this is the case, the board may temporarily find itself signing up for a new (unpaid) job.

Sadly, the condominium does not stop

running if there is no property manager.

Units still have leaks, fees need to be collected, and contractors continue to show up to work on different parts of the building. So how does a volunteer board of directors suddenly take on this role?

Work together The absolute worst thing the board can do at this time is point fingers and blame each other for the condominium’s current situation. This not only takes up valuable

16 CONDOBUSINESS | Part of the REMI Network

time, but also makes it difficult for the board to get anything done. The best approach is to start focusing on moving forward. Identify the board members’ different skills and put them to use. For example, if there is an engineer on the board, that person may be best suited to look after the maintenance contracts.

If one of the board members is an accountant, he or she may want to speak with the bank to ensure the banking is under control. Divide up the roles to keep

MAINTENANCE the tasks manageable and avoid any overlap, and then put together a plan of action. Make note of critical deadlines and make sure each person is clear on their responsibility.

Key Deadlines • Pre - authorized payments must be collected at the beginning of each month.

• Vendors need to be paid.

• The Annual General Meeting must be held within six months of the fiscal year-end.

• Periodic information certificates are due after the first and third quarter of the fiscal year.

• Insurance must be renewed annually.

invoices. An owner or real estate agent may request a Status Certificate at any time, and the condominium should be able to produce it. Once the documents have been sorted and organized, the board should have a much clearer picture of their operations. For example, a quick pass through the financial reports will show who the main contractors are. From there, the board can start looking for signed contracts. This is also a great opportunity to scan some of these documents to make them easier to find and organize in the future.

Talk to the Bank Once you have the corporate documents sorted and you know who the suppliers are, calls can be made to clarify any outstanding questions. Most important at this time are the banks, as the board will need to ensure that they have sole signing authority to pay bills and that they can collect maintenance fees from the homeowners.

It is also important to know the location of the condominium’s investment accounts and the terms of these investments.

Get Organized If the previous property manager was fired and walked out, there is a good chance that things were not going so well in the condominium. Important records may not have been kept in order, and the board may need to do some work in getting organized.

Focus on the documents that are most recent and most important, like past audits and budgets, insurance certificates, contracts, fire Rely on the staff DelProperty_Condo_March_2018_torevise.pdf 2018-04-13 2:44 safety reports and, of course, copies of paid If the1 condominium has PM a staff, they’re

Get Help While all of this is happening, the main focus should be on hiring a new management company. Most companies have handled difficult transitions and are well equipped to get the major pieces moving on a tight timeline. The sooner a new company can start, the sooner they can take the pressure off of the board. Just be sure to pick the right company so that you don’t have to start all over again in a few months. 1 Eric Plant is director at Brilliant Property Management.

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already handling many of the day-to-day operations and minor problems. Have one or two board members sit down with staff members and go over their routines. A lot can be learned from the on-site personnel.

In some cases, certain responsibilities of the previous manager can even be delegated to the superintendent. For example, booking the elevators or party room can be temporarily added to their responsibilities until a new manager is hired. However, it is best to consult a lawyer before making any major changes to staff routines.

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MANAGEMENT

COPING IN CONDOS What managers have learned from the coronavirus so far

18 CONDOBUSINESS | Part of the REMI Network

TECHNOLOGY

Condo communities are facing many uncertainties as the rapidly shifting COVID-19 pandemic unfolds.

With tight living quarters and frequent opportunities for residents to criss-cross paths, multi-unit residential buildings have qualities that make slowing the spread of the virus more challenging. The coronavirus is testing the resilience of these communities, adding pressure to daily operations. CondoBusiness reached out to property managers and a few building service providers to get a sense of how they are coping, lessons learned so far and how this crisis might change the way condos are managed in the future.

www.REMInetwork.com | April 2020 19

COVER STORY

“

This is a scary time for anyone who ventures outside of home and condo managers are not immune to that fear. I suspect that once this is over most condo’s will have invested in technology that will help them moving forward. I also think that managers are relearning how to manage a condominium from a distance. We have less visibility, but I for one am more busy now than I was under normal circumstances. Directors are learning to meet virtually and are discovering that it’s just as efficient, if not more efficient than sitting face to face.

This pandemic is terrible, no question, but we have to find that silver lining wherever we can and perhaps the forced learning of new ways will leave post-COVID-19 condos in a much better place. Even basic occupational health and safety requirements for work places seemed to be the first thing cut if budgets had to come down. Now we are seeing boards of directors paying attention to the OHSA requirements and taking a different look at the workplace that they are responsible for. While COVID-19 is still fresh in everyone’s memory, new budgets will reflect the currently overlooked areas and processes, and that is a good thing. When this is over, we must sit down and analyze what went well and what didn’t, and take steps for the next time a pandemic is declared. I believe that it is only a matter of time before the next deadly outbreak comes.”

Murray Johnson, vice-president of client operations at Crossbridge Condominium Services

“

One the main changes that may take place due to the coronavirus pandemic is a shift to working at home. Companies are quickly learning that letting their staff work from home is not only possible with today's technology, but that it can potentially save them thousands in rent and office expenses. Add to this the positive benefits associated with the reduction in commute times, and I could see a big push coming from employers to continue allowing work from home. What I hope to see from developers is a push to start building in rentable workspaces as part of the building amenities. A condo tower with a dozen or so offices and a conference room would allow at least some of the residents to work from home without actually being at home. This could mean more revenue for the condo, and a lot less cars on the streets.”

Eric Plant, director at Brilliant Property Management Inc.

“

As we are now coping everyday with the devastation of COVID-19, being human and keeping cautiously optimistic, we know that this will also pass. Along with finding the best way to fight this virus is to compile a list of some sort of “lessons learned,” in order to be better prepared next time. Most condominiums did not have pandemic mitigation plans in place when all this started. So far, we learned we need clear operational procedures dealing with closing facilities, deliveries and parcel delivery in case of a pandemic, communication with residents and clients, how visitors and service providers access the buildings, and enhanced cleaning and disinfection procedures, specifically tailored for virus/pathogen outbreaks. Along with fighting the virus we need to get better prepared and learn from everything that we are doing now to curb the spread and reduce the impact on our communities for the next time we are faced with a similar threat.”

Bogdan Alexe, president and CEO of B1 Management Group Inc.

“

Life in condominium communities took an unforeseen twist, leaving corporations without the control mechanisms needed within each condominium or strata’s own governing documents. While in Ontario Section 117 of The Condominium Act, 1998, offered some ability to restrict common element access, there was not a clear sense of being able to ‘completely take control and take charge within defined boundaries,’ which may have been of great value to high-intensity living environments. Perhaps, if we had a specific ‘disaster rule,’ then residents would have stayed within already defined boundaries. Instead, we were faced with having to create boundaries that some objected to—rather firmly. How often does a resident really need to take their recycling out? Some did so several times a day as a form of exercise. Such a rule, set by the board of directors in a time of calm, would allow owners to carefully consider the needs of the community over the demands and perceived entitlements of the few.”

Debbie Dale, president of MCRS Condominium Property Management

“

We are now busier than ever, trying to deliver from home what we deliver in the office or on the property of the corporations we manage. We constantly communicate with boards and residents. Boards are also trying to do the right thing for the unit owners, and since there is so much information from everywhere, there are many questions. Many debates fill our email inboxes and constant conference calls happen every day. We strive to deliver the same service and make everyone feel that we are there for them just as in any other time, or even more.”

Elena Schneider, vice-president of operations for ICON Property Management

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COVER STORY

“

COVID-19 swarmed in like a hurricane and placed a lot of fear and uncertainty globally. These are very difficult and challenging times for all human beings. Within the condominium industry, property managers are working relentlessly to keep their residents and staff safe. In partnership, boards and management are working collectively to minimize chaos within their respective properties. Some condominiums have installed plexiglass around the perimeter of the concierge desk to protect all. Property managers have a stressful position in normal circumstances, wearing many hats in one day, while multitasking and taking care of their buildings. Now, they have the added duties to their daily tasks with COVID-19. I have witnessed a great support system for each other with boards and property managers, but most of all, it is admirable how property managers have come together to cope with this. It is irrelevant who your employer or competitors are. Managers have been sharing tips on how to make things better in their communities and have come untied to work together to do their part in flattening the curve.”

Audrey McGuire, vice-president of operations at FirstService Residential and president of the Association of Condominium Managers of Ontario

“

It is amazing how much closer we feel being forcibly isolated in this new world of COVID-19. Our operations team has been in conference calls several times a week. We have examined all manner of concerns related to Covid-19, in order to prepare regular communication releases to our staff and clients. We had many snowbirds returning, in some cases, more than 50 per cent of a large building. The manager of one such building spearheaded a program for safe deliveries to the door, for medications and groceries, and also for garbage pick up to ensure there is no need for residents to leave the safe haven of their homes. Staff are working incredible amounts of overtime—even when working from home. Technology has helped in this regard. We are extremely proud and grateful to our dedicated and seemingly superhuman team. To all others working the front lines of this crisis, there are no words to express how we feel about your selfless sacrifices to keep us safe.”

Catherine Murdock, district manager at DEL Property Management

“

Condominiums are vastly changing with the recent pandemic, which has led to the closure of many businesses crucial to dayto day-activities in condominiums. The biggest worries are the availability of contractors due to lay-offs and budget cuts and also essential service supplies, required to help run multi-family dwellings, will diminish through the buy-up of all our current resources and surplus.

Another grave concern is the fact that so many people are losing their jobs and a condominium sustains its revenues through its owners. At what point will a condominium not be able to pay its day-to-day bills? A different outlook on the funding of reserve accounts will have to be looked at and maybe a more rational approach to controlling daily expenditures will be implemented.

Focusing on the needs, not the wants, appears to be a more practical approach.”

Curtis Siracky, president of the Association of Condominium Managers of Alberta

“

Every year, more and more towers rise from what were once under-utilized portions of our growing cities. This growth has brought unintended consequences, the type that rarely reveal themselves, except in times of crisis.

During the period of recommended physical distancing how do we manage this when we share a small number of elevators with hundreds of neighb ours? Building managers who pride themselves on the regular cleaning of their common spaces now strain to constantly clean and re-clean these areas to minimize potential spread of the virus between hundreds of residences under their roofs. They are currently managing with a composite of their existing janitorial staff as well as support from trained, experienced service providers that specialize in disinfection services when confirmed cases are detected.

As this situation evolves, and we learn to live with our new realit y, additional costs, training and an overall heightened focus will be critical in order to maintain the standard of cleanliness and safety required of condos.”

Jim Mandeville, senior project manager, Large Loss North America, FirstOnSite

“

T h e c o n d o m a r ket p l a c e w a s i nu n d a te d w i t h s o m u c h information on products that would kill and/or control the virus that it was hard to figure out what works and what does not.

Products that kill bacteria, viruses and fungi are tested by Health Canada and when they pass their testing, the product is given a DIN number. It is against the law to use a product that kills things in Canada unless the product has a DIN number indicating its been tested and confirmed by the government. It’s amazing how many items being sold to condo corporations as biocides or biostats do not have a DIN number.”

Lee Senter, CEO, Dryit.ca

“Perhaps the forced

learning of new ways will leave post-COVID-19 condos in a much better place.” www.REMInetwork.com | April 2020 21

SPONSORED CONTENT

TECH-SAVV Y

RESIDENT

How Rogers is re-defining internet and entertainment for Canada’s multi-res consumers It’s a content-streaming, always connected, on-the-go world of online entertainment, and condo residents expect nothing less.

No matter their location or accommodations, the fact is Canadian condo seekers are favouring accommodations with highspeed connections, cutting-edge entertainment, and the tools to connect with friends, family, and co-workers across the globe.

“Canadians have the same expectations for their internet, TV, and phone services regardless of where they live,” says Greg Stokes, Director of Sales with Rogers Communications.

“They want fast, reliable, and top-quality access to their networks – and they want it on their terms.”

Certainly, the days of basic cable and landline services have passed. And to meet today’s tech-savvy demands, the telecommunication industry is

forging stronger inroads with multiresidential owners/managers to bring industry-leading internet, phone, and TV services to Canada’s multi-res communities.

For example, says Stokes, “Our network is already 90% hybrid fibrecoaxial, which allows us to maintain more than one-gigabyte speeds through our Ignite internet service.

That translates to 4K entertainment, next-gen streaming, and lightning-fast

SPONSORED CONTENT

online activity, which is not only what modern residents want, but what they are coming to expect.”

Connectivity and Control Internet Protocol television (IPTV) is among the technologies that are redefining home entertainment.

The technology uses lightning-fast internet speeds to deliver 4K visuals, crystal-clear audio, and reliable streaming entertainment.

Moreover, says Stokes, IPTV is being used in concept with advanced applications and systems to provide consumers with greater customization and control over their internet and entertainment services: “The advance of streaming, cloud-based platforms, and mobile technologies has opened up so many ways for customers to get content, but it can be overwhelming. Customers want those options, but they also want them to be streamlined, user-friendly, and available when and where they prefer.”

To that end, Rogers has designed its services like Ignite TV provides to facilitate what it calls an “effortless TV experience.” Features that have proven popular with its customers include user-friendly search interfaces (including Netflix and YouTube); voice-activated controls; mobile streaming apps; and advanced parental controls.

Part of that control also means enabling residents to enjoy their content on their terms, whether within the comfort of their condo or on the go. Herein, Stokes says mobile streaming apps; download & go functionality; and cloud PVR capabilities are also gaining in popularity: “Customers

are becoming accustomed to tailored, mobile, and on-demand service in all aspects of their lives, so it’s no surprise they expect that level of control over their home entertainment.”

To each their own Multi-residential communities may share the same expectations for internet and TV, but individual unit owners’ needs will always vary. As such, it’s important to offer choices when it comes to packages and pricing.

“There are no cookie-cutter solutions; it all depends on the customer’s needs,” agrees Stokes. “A family with three teenagers is going to have different needs than that of a single professional, which is why we always make sure to determine who is using the service, how often they intend to use it, how many devices they may require, and even when they plan on using it the most.

That way we can advise them on what packages might work best and cater a solution – and price – for them.”

It doesn’t matter where Canadians call home. Expectations for fast, reliable, and consistently exceptional internet, TV, and phone service is universal. And as those expectations evolve, it pays to align with telecommunication partners who can keep pace.

Greg Stokes is Director of Sales with Rogers Communications. For more information, visit www.rogers.com or call 1-888-764-3771.

MAINTENANCE

Under the Weather In the coming wave of more intense weather events, condo corporations in Ontario may be wondering how they can better adapt

BY REBECCA MELNYK

and if this is something they should even be considering in the near future.

Climate experts say yes. Some are already persuading condos to outline plans if they haven’t done so already.

“We know climate change has happened, is happening and will continue to happen,” says Dr. Blair Feltmate, professor and head of the Intact Centre on Climate Adaptation at the University of Waterloo. “It is irreversible, and any condo corporation would be well advised to put measures in place to mitigate and anticipate extreme weather events.”

While many condos haven’t yet experienced major effects of increasing rainfall or prolonged heat waves, statistics and case studies foreshadow the impacts that could come.

From 1948, when nation-wide records became available, to 2016, the best estimate of Canada’s annual average temperature increased 1.7 C. This is twice the global average, according to Canada’s Changing Climate Report released last year. Higher temperatures will only become more persistent and intense, fueling the severity of heatwaves. Environment Canada estimates that by 2050, a summer temperature exceeding 30 C in southern Canada will be four times more frequent than today.

“The overall temperature is going up and that certainly is an issue that has impact over decades, not years,” says Dr. Jeffrey Siegel, professor of civil and mineral engineering at the University of Toronto. “What does have an impact in the short term are extended heat waves.”

He says condos are perhaps better protected because of air conditioning, but there are costs associated with that, along with stress on the electrical grid, which leads to more outdoor air pollution. There is also the issue of “equity in society.” Older people (many who have downsized to condos) and persons with disabilities often face more challenges during power outages and longer-lasting bursts of high temperatures.

Precipitation patterns will also change. With warmer climates come more intense flooding due to increased rainfall. The annual average precipitation for 2031 to 2050 is expected to jump 5.3 to 6.6. per cent, depending on the amount of human emissions of carbon dioxide.

Flood risk maps are currently being updated as of this year, with more maps coming by 2022. The goal is to understand where surges of storm water travel to, stemming from the overflow of river banks to sewer systems backups that flood parking garages and basements.

According to Feltmate, the Weston area of Toronto, along with London and Windsor are at higher risk, but other locations are out of harm’s way, given the increasing prevalence of microburst storms.

“We’re now seeing deluages of rain pour down over short periods of time that render any area vulnerable to flooding,” he says. “Condos should assume they are subject to risk, and if they haven’t had a history of flooding, that doesn’t mean much. The weather of the past is not a very good predictor of weather of the future due to climate change.”

Take for instance the Burlington storm in 2014 where 192 mm of rain fell over the course of six to eight hours, flooding 3,500 homes, including condos. Or, more recently, the flash flood in Toronto in 2018, where 100 millimetres of rain fell in less than two hours in some parts of the city. Two individuals, trapped in an elevator of a commercial tower, almost drowned on the basement level. Increasing storms like this combined with the city’s aging sewer system are predicted to result in more flood events.

Issues indirectly related to climate may also be a cause for concern, like pest activity and indoor air quality. Dr. Sepitah Pakpour, assistant professor at the School of Engineering at UBC, unveiled research last year showing more rain events are causing fungal mould to grow faster, degrading the mechanical properties of buildings and creating health hazards for people who live in them. Meanwhile, Alice Sinia quality assurance manager at Orkin Canada, also says that not only fungi and mould, but also carpenter ants, ground beetles and rodents proliferate after floods. A combination of more rainstorms and higher temperatures creates an ideal habitat for midges, a pest vexing some condo dwellers in

24 CONDOBUSINESS | Part of the REMI Network

Toronto. They tend to flock to balconies, moreso by bodies of water.

Murray Johnson, vice-president of client operations at Crossbridge Condominium Services, wonders if the effects of climate change could possibly turn manageable problems into mainstream issues. “Right now, maintenance contracts for building systems like makeup air units are pretty standardized. When you put a building next to a construction site, you can’t wait a month to change filters; sometimes you have to change them weekly because you have dust and concrete. But I have no idea what will happen when we start to see the effects of climate change.”

Johnson is not only talking about particulate air, but increasing pest activity. “Condos have a small budget line of about $80 a month for pest control when we look at what climate change will do; that $80 per month could become $800 a month or more,” he says.

As extreme weather events increase, so do insurable losses. From 1983 to 2008, payouts from Canada’s property and casualty insurance sector tallied around $250 to $450 million annually. For ten of the past 11 years, losses have swelled to over $1 billion, for average annual claims of $1.8 billion. Although it’s unclear how much of this increase stems from condos, what is known is that flooding is the main cause of catastrophic insurable losses.

Climate change is also one factor causing premiums to rise across the country. The main culprit affecting condo premiums seems to be internal water damage from leaky pipes and sinks, says Peter Kennedy, senior vice-president and national director of the real estate practice for Aon in Canada. This is one of the major challenges in the condo insurance market now.

In certain parts of the country, flood risk would be most relevant for condos situated in flood zones, he notes. Any preventative maintenance measures condos undertake to mitigate flood and water damage risk will save them from paying deductibles. It would also save condos

MAINTENANCE

“We can all be guilty of relying on our past experiences to influence our views on the future.”

from experiencing claims that would go on their loss record, which plays a big role in determining their premiums.

“Look at your landscaping—which way the pavement runs, where your downspouts are and where are they taking the water when it rains.

Make sure the drains aren’t clogged, the windows don’t leak and roofs are in good condition,” Kennedy says. “All this stuff is just basically really good maintenance and good risk management to prevent losses.”

Mitigation also reflects ‘prudent ownership,’ Feltmate adds. “Avoiding flood risk is desirable, not only from the perspective of insurance, but also not to stigmatize a property as flood prone, which in turn would affect property value.”

To manage an unpredictable climate, industry members are promoting good old planning and procedures, as researchers explore how technology can help to some degree.

When it comes to heat waves, Natalia Moudrak, director of climate resilience at the Intact Centre, says designated cooling spaces within a condo serve as a refuge for residents should a power outage occur.

Summer days in cities can feel almost 1 to 3 C warmer than their surroundings and as much as 12 C warmer in the evening due to urban heat island effect. High humidity can make the temperatures feel even more suffocating. Cities are implementing green and reflective roofs to help ward off the heat, but a “check-in-on-your-neighbour” program is an immediate step, she adds— many residents might live without a strong social network.

Easy and affordable actions buildings can take to abate flood risk are outlined in Ahead of the Storm, a report Moudrak co-authored with Feltmate last year. For example, water sensors that automatically prevent elevators from proceeding to flood-inundated levels when water is detected. Many condos are also investing in leak detection systems, both for external and internal water damage. Installing one is critical. “If it is cost prohibitive to do so for every condo unit, then at minimum, leak detection devices should be installed on the closed circuit system where water circulates through the building,” Moudrak notes. There are many on the market, but it's best to install one that automatically shuts off water valves to minimize damage, as opposed to systems that only notify of a leak.

Other actions include preparing emergency response supply contracts and ensuring standing orders are ready with restoration and landscaping companies to provide goods and services at pre-arranged prices, under set terms and conditions. Contractors are often in high demand post flood.

Due to much turnover with building staff, there should be regular training on flood event procedures and annual practice drills performed with residents.

Equipment and supplies should also be a priority. Assembling everything from portable lights to protective clothing and making sure onsite back-up generation equipment and fuel provide electrical power to at least one elevator, and many other building systems like fire alarms for 24 to 72 hours. “These measures will probably have little to no impact on condo fees,” says Feltmate. “But if you have a major flood in a building, a percentage of which may well not be covered by insurance, then a special assessment will have to raise large sums of money to fix the problem that shouldn’t have happened in the first place.”

Another way to manage exposure from constantly evolving threats are regular, updated assessments of each property,

according to Jim Mandeville, senior project manager, Large Loss North America, FirstOnSite.

“As flood maps and historical references for natural disasters are frequently being updated – and in some cases, turned on their head – agility and constant vigilance are keys to successful risk mitigation strategy,” he notes. “Honesty in these assessments is also important. We can all be guilty of relying on our past experiences to influence our decisions and views on the future. Considering the changes we’re seeing in weather patterns, the old models can no longer be trusted. Any sound strategy needs to be tested on the what if rather than the what we did before.”

More costly post-construction retrofits may be warranted for critical sites. For condos worried about overland flooding, portable flood barriers are said to be easier and quicker to implement and re-use, as opposed to sandbags that become contaminated with land-fill waste.

“Hoping that climate change doesn’t occur, won’t help,” says Feltmate. “Given that it is irreversible, and knowing for certain that more extreme weather is on the way, it's irresponsible for condo corporations not to prepare for floods and extreme heat.” 1

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MANAGEMENT

On the Front Lines For proper t y managers who work on t he f ront l ines of condo corporations, day-to-day business may include interacting with

BY PAT CROSSCOMBE

owners who might

be unfriendly or keeping up with a busy and sometimes demanding board of directors. It takes a special person.

Fewer and fewer people seem willing to take on this high-stress job, it seems, as the industry faces a declining number of certified managers. Meanwhile, the number of condo corporations continues to increase. Condo boards may soon face a crisis in finding good property managers to handle their operations.

Creating less tension in the condo is one way to support managers who may be exposed to various levels of stress within their work environments. Here are ten measures boards can take to help

managers thrive, increasing their likelihood to stay on the job.

them provide the kind of service that owners and boards demand.

Organization Low-stress boards are well organized.

These boards have job descriptions for directors, hold meetings regularly, come to meetings prepared, understand the meaning of “fiduciary responsibility,” and a host of other items that improve the overall organization of the condo board.

Being well organized makes life less stressful for property managers and helps

Code of conduct policy A code of conduct spells out expected behaviours. One aspect is how owners and directors communicate with property managers. The policy clearly identifies that interactions must be courteous and professional at all times; in other words, owners are expected to be nice.

Being nice doesn’t mean an owner can’t raise an issue of concern to the manager.

26 CONDOBUSINESS | Part of the REMI Network

GOVERNANCE But it does mean that the owner presents the problem courteously and professionally. Boards may need to educate unit owners on how to interact with managers and should always step in if any owner transgresses the policy. Property managers should never need to be worried about nasty emails or confrontations.

Accountability Yes, directors are unpaid, but they shouldn’t make excuses for not accomplishing a task because they are volunteers. Property managers are far too busy to be kept waiting when directors fail to meet deadlines. Knowing directors are reliable helps mitigate stress arising from the uncertainty of unfulfilled duties.

Expectations These are the types of informal agreements or policies that go beyond the contract that the board has already signed with the management company. For example, directors know that their role is to govern, and they never expect their managers to take on this role. Directors, most definitely, should ask their managers for advice and recommendations, but should never expect the manager to make decisions for the board.

Having such expectations are stress inducing.

Managers manage and boards govern.

of condo life, managers need to save time for other tasks Meeting protocols Given that the majority of interactions between boards and managers take place during meetings, this time must be well spent. Every director must promise to come to meetings fully prepared and ready to contribute productively. Those who are unprepared waste everyone’s time, especially managers who are looking to the board to make decisions. Hesitation is likely to cause consequences for the manager who, unable to follow through with a task, falls behind.

Timely minutes Meeting minutes are essential documents.

Draft minutes need to be provided as soon as possible after meetings since directors and managers rely on that information.

As the minutes serve as a record of the board’s decisions, they are essential communication tools for the manager who works from these decisions. Obtaining this information promptly reduces the possibility of any confusion arising as to the board’s decisions.

Openness to technology New technology has already changed the way most people work. Boards need to be willing to learn about new technology that could help streamline a property manager’s work.

An added bonus Imp lementing these strategies will significantly reduce property managers’ stress lo ads. T hey also c re ate a welcome but unintended consequence of lowering stress among directors who benefit from increased efficiencies and organization. A win-win result benefits all. 1 Pat Crosscombe is the founder and C EO o f B o a rd S p a c e , a c o m p a n y ded ic ated to bringing the best software to condo b oards. She is also the past president of her condo corporation and has been actively blogging and writing about issues fa c i n g c o n d o b o a rd d i re cto rs a n d managers. This is her sixth article for Condo Business Magazine. She can be reached at pat@boardspace.ca

Managing disagreements Directors and managers will disagree. Hopefully, serious differences occur only occasionally. The best directors know that the relationship with their managers is professional at all times and always open to resolution. Never let personal feelings attend board meetings, and when conflicts do arise, resolve them as quickly as possible.

All for one and one for all Debate and discussion are expected during board meetings, but once a decision is made, all directors need to be supportive of the outcome. When appropriate, decisions can be shared with owners, without commentary that differs from the board decision.

This translates to managers receiving clear instructions and guidance from the board— always knowing exactly what to do. If more than one director offers instructions or is unclear, managers may get stressed while trying to figure out what to do next.

Keeping up to date on current condo affairs Being a director means keeping up-to-date on condo affairs by following relevant blogs, surfing the Internet and attending educational sessions.

Rather than educate directors on every intricacy

www.REMInetwork.com | April 2020 27

LEGAL

Bad Behaviour The Protecting Condominium Owners Act, 2015 provided some new

BY CHERYLL WOOD

protections for owners, but may not have gone

far enough to provide protection for condominium directors, managers and condominium corporations as a whole.

While the majority of condo owners treat each other, the board and management with respect, there are some who do not. If this is happening to you – or in your condo – what should you do? Here are some steps that condo corporations should consider to protect managers and directors from unreasonable treatment.

Document, Document, Document It is critical to document any issues and bring them to the attention of the board of directors of the condominium. When documenting, it is helpful to set out the date, time and location of the incident and any steps that were taken to address the issues at that time. Preparing notes contemporaneously to the events is also helpful as it would then be fresh in your mind.

Violence and Harassment Policies and Rules Ideally, condominium corporations can consult their violence and harassment policy, which should be in place before a harassment problem arises from within the community.

It is also recommended that a rule be passed confirming that the provisions of the policy (which govern workers) are also applicable to owners and directors in the condominium. The policy and, hopefully, the adopted rule, will define violence and harassment and set out steps that can be taken in the event that a manager, director or owner faces inappropriate treatment.

28 CONDOBUSINESS | Part of the REMI Network

The condo corporation should ensure that it is taking the required steps as outlined in the violence and harassment policy. This usually begins with a review of the procedures, including receipt of a complaint and consideration of whether the complaint amounts to harassment. It is important that the policy be practical and user friendly in order to be effective.

The corporation may wish to obtain legal advice in order to ensure that the policy has outlined the necessary steps to protect the manager or director(s) who might encounter such difficult behaviour.

Dealing with Problematic Behaviour or Complaints It is essential to address behaviour that is making life difficult for managers, directors and even other owners. Generally, the implementation of a policy and rule should set the tone and standard for acceptable behaviour within the community. In the event that specific problems arise, the corporation must take action to address the situation.

The corporation should immediately consider writing to the affected owners, directors or manager to confirm the basis for complaint and the allegations of improper conduct. This letter should also confirm that the respondent has a right to know who is making allegations against them, and that he or she will receive a copy of the complaint.

The corporation should then write to the person who engaged in the behaviour to confirm the complaint and seek a response. In the

LEGAL case of clear contraventions of the Condominium Act, 1998, and the corporation’s declaration, by-laws and rules, the letter can confirm what breaches have occurred and advise that the behaviour must stop. The letter could also state that a failure to comply with the obligations under the Condominium Act, 1998, and the corporation’s declaration, by-laws and rules could result in the matter being turned over to legal counsel.

Depending on the nature of the complaint, the condo corporation may consider appointing an external investigator to determine whether the alleged behaviour occurred and make recommendations to the condo board.

If the behaviour does not stop, legal counsel may need to get involved.

The circumstances of each individual case will then be reviewed to determine how best to proceed and resolve the situation.

In some cases, a communication protocol can be developed to control behaviour. Other times, a meeting between parties may resolve the conflict or problematic behaviour. In cases when the behaviour does not stop, despite several letters and attempts to resolve the matter, the corporation will need to bring an application for compliance to the court and seek the court’s assistance in resolving the matter.

Goldview Property Management Ltd. will guarantee the highest standard of property management services. Our meticulous attention to detail, innovative and cost-effective solutions, advanced communication networks, and green technology have established Goldview Property Management as a leader in the industry for the past 30 years.

Case in Point Contact Goldview Property Management and your Corporation can also realize significant The court’s assistance may be necessary to establish protection orders financial and operational benefits. and remove the person engaging in harassment or violence if the behaviour continues. www.goldview.ca • 416.630.1234 We recently had to seek an injunction from the court due to an owner’s problematic behaviour. The behaviour continued to escalate 51 Toro Road, Suite #200 Toronto, Ontario, M3J 2A4 because of an ongoing disagreement between the owner and the Fax: 416.630.3132 corporation. Despite many letters and previous court orders, the owner continued to harass, intimidate and abuse the board and their spouses, the corporation’s manager and contractors.

The court reviewed the behaviour and found that the owner’s conduct Goldview_Condo_July_2017.indd 1 2017-08-02 included harassment, intimidation, verbal abuse and physical assault of directors, associated personnel and residents of the condo. The court declared the owner’s behaviour, including the physical misconduct and his campaign of aggression, constituted workplace harassment—a breach of the Occupational Health and Safety Act and a breach of Section 117 of the Condominium Act. As a result, the corporation’s motion was granted. The owner was ordered to comply with the Condo Act, declaration, by-laws and rules, and prohibited from communicating with the board, management and contractors—except in very Testing • Design • Installation specific circumstances. The owner was also ordered to pay all of the corporation’s costs.

There have been other cases where the court has ordered the removal of a problem tenant or the forced sale of an owner’s unit when the behaviour was severe enough. Unfortunately, the court process can take time and often leaves managers and directors who are exposed to this type of behaviour frustrated and exhausted. An interim protection order may be necessary if the litigation process is slow-moving.

Managers and directors must be protected by the condo corporation.

While it is hopeful that owners will show managers and directors proper respect, in the event they do not, the condo corporation needs to take steps to ensure they are protected. This includes creating policies to Your plumbing & follow and taking immediate steps to seek compliance in the event of mechanical service problematic behaviour. 1 experts

3:38 PM

BACK FLOW PREVENTERS

Cheryll Wood is an associate at Davidson Houle Allen LLP, and has been practicing condominium law for seven years. She represents condominium corporations, their directors, owners and insurers throughout eastern Ontario.

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NEW AND NOTABLE

Energy efficiency powers condo to LEED Platinum Aqualina at Bayside became the first high-rise condo in Toronto to earn LEED Platinum certification.

Topping off at 13 storeys in the mixed-use Bayside Toronto Community south of the Distillery District, the building is also the second high-rise multi-residential project in Canada to achieve the designation. Completed in 2017 by developers Hines and Tridel, Aqualina at Bayside sought LEED Platinum certification well before the first inklings of construction began.

“It’s very difficult to achieve LEED Platinum, let alone for a condo,” says Adrian Wang, director of innovation and sustainability at Tridel.

“In a condo, there are less incentives for a developer to actually target those levels of LEED certification. Once the condo is sold, the utility savings go directly into the pockets of the homeowners who are paying utility costs from month to month.”

30 CONDOBUSINESS | Part of the REMI Network

A significant up-front investment in technology was used to lower energy costs for the project. Solar panels for renewable energy, water-efficient plumbing fixtures and lower-emitting materials were acquired. There was also a push for behavioural changes to lower residents’ heating profiles. Units were sub-metered to a much higher degree for hot and cold water, electricity and British thermal units.

Building crews were also taught progressive construction practices, while those in trades were educated on working with new equipment and technology, such as variable flow refrigerant systems—a different way of heating and cooling a building. The project also took a more integrated design approach, making sure there was buy-in from all collaborators on the project, not only the customers.

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