CondoBusiness March 2019

Canada’s Most Widely Read Condominium Magazine

March 2019 • Vol. 34 #1

RING THE ALARM PM#40063056

False fire alarms signal a deeper issue for condo managers — what can be done to prevent them?

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Contents FOCUS ON: SPRING MAINTENANCE

12

Check pests off the spring to-do list

By Dr. Alice Sinia

18

Sealing the building envelope in new construction condos

By Doug Kramer

20

Spring landscape rehabilitation

By Kent Ford

26

False alarm

By Kavita Sabharwal-Chomiuk

42

Energy Management Bill 66 seeks to remove unit submetering providers from OEB oversight

By Barbara Carss

45

Legal Pre-construction sale cancellations: What are the options?

By David Taub

48

Safety compliance for condo corporations

By Roger Tickner

DEPARTMENTS

24

Governance Tips for effective monthly reporting

By Shlomo Sharon

30

Management Managing condo and HOA service requests

By Brian Bosscher

34

Preparing for common emergencies

By Margo Malowney

38

Security Choosing the right condo security upgrades

By Scott Hill

IN EVERY ISSUE

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EDITOR'S LETTER

No smoke, no fire I am excited to sign on as acting editor

for this issue of CondoBusiness, which focuses on spring maintenance.

Condominiums will always require maintenance, whether work is needed indoors or outdoors, to common elements or within private units. However, one thing remains consistent: the risk of fire impacts everyone. While having a fire in your condominium building is a worrying idea, false fire alarms should not be met with relief – they may still carry some troubling implications.

This month’s cover story investigates false fire alarms in condominiums, the resulting effects for condominium managers, the condo board and residents, and steps condo managers must take in order to keep fire alarms and sprinkler systems properly maintained.

Michele Farley, president of FCS Fire Consulting Services Ltd., spoke with me about what a false fire alarm can mean: “The implication for the building is that it experienced a significant event that must be evaluated,” she says. “The nuisance fire alarm may be an anomaly and an isolated event, but it could be a sign that something is going wrong and management will have to evaluate the cause.”

Or, nuisance alarms could be a result of something more sinister. “Another concern, which is not uncommon, is vandalism, or a deliberate initiation of the alarm,” says Farley.

Although condo maintenance is done year-round, the arrival of spring brings about its own issues that must be addressed: Dr. Alice Sinia discusses how to prevent pests’ attempts to migrate indoors after leaving their winter shelters; Kent Ford explains how to rehabilitate soft and hard landscape features once the snow melts; and Doug Kramer offers a new option for sealing the building envelope in new construction condominiums.

Plus, a litigator discusses options a buyer has when a pre-construction condo sale transaction has been cancelled; while a disaster restoration expert highlights how to prepare for the most “predictable” environmental hazards.

Wishing you a wonderful, renewing spring!

Kavita Sabharwal-Chomiuk Editor, CondoBusiness

Publisher Dan Christie Editor Kavita Sabharwal-Chomiuk Advertising Sales Kelly Nicholls Melissa Valentini Senior Designer Annette Carlucci Production Manager Rachel Selbie Contributing Writers Brian Bosscher, Barbara Carss, Pat Crosscombe, Kent Ford, Scott Hill, Doug Kramer, Margo Malowney, Shlomo Sharon, Alice Sinia, David Taub, Roger Tickner 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 Anthony Campbell 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 5255 Yonge Street, Suite 1000, Toronto, ON M2N 6P4 (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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What are the keys to condo board success?

Serving as a director can be a daunting task, what with the responsibilities involved in governing a condo corporation’s affairs, which can include making tough financial decisions. Why do some condo boards excel and others struggle? There may be lessons to glean from the best practices successful boards tend to have in common. Pat Crosscombe, founder and CEO of BoardSpace, answers: What makes a condo board successful?

Experience as a condo board president and conversations with people involved with dozens of other condo boards suggests there are best practices that will help condo boards excel. In no particular order, here is a checklist: Introduce sound policies Good governance begins with good policies. Every condo board needs to have policies in place for governance, finances and communication.

8 CONDOBUSINESS | Part of the REMI Network

Aim for a balance of director expertise Condo boards don’t get to handpick their directors, but every board can strive for a balance of skills and expertise. For example, it can be helpful to have a director that understands the legal side of things and another with a background in financial management or accounting.

Add officers to bring in needed skill sets Officers do not vote and are not elected, so there is much more freedom in their selection. Once the board is elected, the directors can appoint officers to fill any gaps in expertise. Being an officer for a

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year or so is also valuable training before becoming a director. Adding officers lightens the overall work load of the board and when specific skills are needed, their knowledge can be extremely valuable.

Create committees Anyone can be on a committee. Many condo boards have created committees for things such as organizing social events, looking after gardens, a n d w r i t i n g n e w s l e t te r s . B e c a u s e committee members don’t have to be of ficial board members, this is also a fant astic way to g et new p eo ple i nvo l ve d . I t ’s a d v i s a b l e to i n c l u d e a board member or of ficer on each c o m m i t te e , to l i a i s e b e t w e e n t h e board and the committee. If this isn’t possible, consider asking the committee chair to attend board meetings whenever an update is required.

Have writ ten job descriptions for director positions Current or potential directors may not know what is required of a president or a treasurer. Giving ever y director a clearly defined role ensures board members understand their respective responsibilities.

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Don’t leave positions vacant Appointing a new director as soon as a position becomes vacant is a good practice. It’s not easy to find a new director, but the sooner a replacement is appointed, the better. There is always a concern that the remaining directors will be overworked (and then also leave the board) because too much is expected of them. Directors are volunteers and are already making a significant time commitment to serve on the board.

Make documents available before being asked Make all relevant documents available to everyone. Transparency is key.

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Keep corporate records organized and accessible C ondo records — such as meeting minutes and financial statements — are crucial to a condo corporation. These records must be organized, up-to-date and easily accessible to everyone who needs

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them. Directors must remember to start saving corporate records as soon as they join the board — if they wait until they leave the board, it will be too late.

Practice consistent and reasonable rule enforcement Condos have lots and lots of rules.

Enforcing all these rules is not so easy.

Rule enforcement requires t wo key aspects: be consistent and be reasonable.

Being consistent means that rules are applied equally to all owners. No one is granted special permission to ignore a rule. Being reasonable means that after an owner is informed of a rule violation, he or she is given a reasonable amount of time to fix the problem before the board takes the next step.

Commit to proactive maintenance It pays to be proactive. Maintaining building systems proactively identifies small problems before they become g i ant d is aster s. C ondu c tin g annu al inspections of major building systems costs money in the short term but pays off in the long run.

Take, fo r ex a m p l e, t h e b o a rd of high - rise tower that replaces all the unit furnace filters on an annual basis.

R e p l a c in g f il te r s im p rove s fu r n a c e efficiency and prevents damage to more expensive parts.

Overall, condo boards should strive for balance, proactivity, and transparency.

Having the proper balance of skills and understanding ensures that the board is knowledgeable and able to get the job done. Proactivity and transparency keep minor issues from becoming more significant. By following this checklist, every condo board can be successful. 1 Pat Crosscombe blogs about condo governance and management, and is t h e p a s t p re s i d e n t o f h e r c o n d o .

She is also the founder and CEO of BoardSpace, a company that provides board management software for condo boards and property managers. Pat can be reached at pat@boardspace.ca or 613-790- 0225.

The preceding article has been adapted and reprinted with permission from the BoardSpace blog: https://boardspace.co/blog/.

MAINTENANCE

Check pests off the spring to-do list Spring is a wonderful time of year – the birds are chirping, the sun is out

BY DR. ALICE SINIA

and pests craftily plot their migration into the comfort of air-conditioned condos. It is the last of these spring rituals that add

a few more boxes to check off on your spring cleaning to-do list. While maintenance teams are sprucing up outdoor amenities, trimming the trees and planting the garden, a few extra steps are necessary to discourage any unwanted houseguests.

Pests are often “out of sight, out of mind” until late spring, but really, insects, rodents and wildlife are starting to leave their winter shelters, looking to refuel and find new places to call home before then. Without a proper defense, your condo property could quickly become their new place of residence.

By the time an infestation is caught, overlooked problem areas could cause structural damage that results in high costs to management, possibly even resulting in tenant relocation.

So, it’s best to take initiative now and avoid headaches later. While improving the exterior and grounds of the property, add these additional items to your list to make sure the building is protected against pests. In order to keep the property value high, ensure

residents are happy and avoid potential pest catastrophes, add these to-dos to your spring-cleaning checklist: Windows and doors • Replace torn or worn-out door sweeps and window seals - daily wear and tear create cracks and gaps. Inspect yearly to assess what needs to be replaced.

• Clean inside window wells to eliminate moisture and organic buildup.

• Install or repair weather stripping to keep ants and other crawling insects out of the building.

• Replace any torn window or door screens.

Building façade • Clean dirt, leaves or lint from the exhaust

12 CONDOBUSINESS | Part of the REMI Network

of dryer vents. Dryer vents are already fire hazards with their proclivity for lint buildup, but they can also harbor wildlife and birds.

• Seal off any openings or gaps around utilities.

• Clean gutters and clear out debris to keep the water from pooling and collecting around the property. Melting snowfall and spring rain can create standing water, attracting birds and water breeding insects such as midges and mosquitoes.

Landscaping • Ensure throughout spring and summer that no tree branches and vegetation are touching the building by trimming them back. Pests can use tree branches as a bridge to crawl inside.

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MAINTENANCE

• Surround the building with a metre- • Install ponds or fountains with moving wide strip of gravel that is made of small or running water to help deter insects pebbles (less than one centimetre in like mosquitoes from laying eggs diameter). The gravel creates tough and on the water’s surface. Be sure the intimidating terrain that will obstruct water is circulated regularly. crawling pests on their quest to get inside • W hile p l anter s are b e au tiful, the or burrow in building foundation. saucers collect water over time that • If using mulch, consider cedar, as the can not only start to smell, but also natural oils and chemicals in the wood at tract unwelcome crit ters. M ake helps repel pests. Cedar is also resistant sure to dump them – especially after to decay and lasts longer than some other rainy days. woods, making it a more effective and efficient option.

Building amenities • In the spirit of planting and making new, • Install covered outdoor trashcans and consider how pests view each plant. dumpsters that have tight-fitting lids.

Plants that produce nuts, fruits and seeds This will help prevent trash buildup provide snacks for pests that encourage outside, and covering the units is key to them to overstay their welcome. Vines preventing water buildup and avoiding and crawling shrubs provide dense habitat pest feeding grounds. for pests. Fragrant and brightly coloured • Make sure any faucets or water units flowers can draw in bees and wasps, so are not leaking. be sure to plant them away from doors, • Remove any clutter around the property windows and walkways (if you plant them that may have built up over the winter. at all). A pest management provider can Clutter and unused equipment can advise which plants are safe to pot near provide pest harbourage. doors and windows, and which should be • Give communal spaces a thorough DelProperty_Condo_March_2018_torevise.pdf 1 2018-04-13 2:44 PM planted farther away. cleaning. A deep clean in the spring can

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help remove any dirt or buildup that may attract pests looking for their next meal.

While in the process of spring cleaning, invite a pest management provider to inspect the property and bring attention to any problem areas. Pest pressures can change from season to season, and a proactive inspection will help identify and address hot spots for pest activity. If there are areas that need extra attention, there is no bet ter time than during spring maintenance to get a condo in tiptop shape. 1 Alice Sinia, Ph.D. is Quality Assurance Manager – Regulatory/Lab Services for Orkin Canada focusing on government regulations pertaining to the pest control industry. With more than 15 years of experience, she manages the Quality Assurance Laboratory for Orkin Canada and performs analytical entomology as well as provides technical support in pest/insect identification to branch offices and clients. For more information, email Alice Sinia at asinia@orkincanada.com or visit www.orkincanada.com.

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NEVER LIVE WITH SOMETHING HAPPENING TO MY TENANTS. Ensuring my staff and I always hire Licensed Electrical Contractors for electrical work isn’t only good for business, it’s good for my peace of mind. Hiring a ‘guy’ may seem cheaper, but doing it legally saves my tenants downtime, and saves me from sleepless nights.”

-Mark Levinson Property Manager

Mark manages nine commercial properties and is considering using ESA’s time saving Continuous Safety Services. To learn more about your legal obligations and the benefits of CSS, visit esasafe.com/propertymanagers

SPONSORED CONTENT

SMART ENERGY CONSERVATION AND REPORTING

The last decade has given rise to a flood of ‘smart’ electronics and devices designed to make everyone’s lives easier. Whether or not they have been successful in this mission, the reality is that smart technology is here and it is having a clear impact on all business sectors, including condo management.

No doubt, new innovations and technologies in property management are enabling players to automate mundane tasks and connect their organization in unprecedented ways – but the possibilities do not end there. By adopting green technology, more and more condominiums are discovering new ways to reduce energy consumption and, in the process, lower their operating costs.

What it means to be green Green technology is technology intended to mitigate or reverse the effects of human activity on the environment. LED lighting, for example, is becoming a widely accepted way of controlling and reducing lighting costs, while many condos are also investing in Electric Vehicle Charging (EVCs) stations.

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Enter: Suite metering Not only is the data gathered through green technologies advantageous, but it is also now required by law. Under the Reporting of Energy Consumption and Water Use regulation, Electricity Act, 1998, S.O. 1998, c. 15 Schedule A, property stakeholders now have to collect information about their building’s gas, electricity and water every year from January to December.

Herein, the most effective way to track actual utility usage and reduce electricity and water consumption is by installing a suite metering program. With this program in place, each condo suite is billed individually, meaning each resident becomes responsible for taking the steps necessary to reduce their utility usage and, thereby, keeping their bills low. Residents who consume more will pay more, making suite metering not only an energy saving incentive but a money-saving opportunity as well.

Suite metering also provides property staff with a breakdown of energy and water consumption per unit and common area. Not to mention, it can enable stakeholders to measure the

amount of electricity being used in underground garages and EVCs. It’s worth noting that in order to invoice each resident appropriately, a reliable utility billing company serving the suite metering market is required. Often, metering equipment is installed at no capital cost and the installation of a suite meter system is done by licensed electrical contractors.

Test it for yourself Suite metering can be new territory for condo managers.

That’s why it’s always a good idea to work with a trusted provider to test a metering program first. During a typical pilot program, a portable test meter is installed on the suite risers for a defined period to coincide with the building’s bulk electricity billing.

This allows for an accurate comparison of electricity costs between suites and common areas.

“More control for your residents and the property managers results in a wellbalanced condo community, and increased building value,” says Andrew Beacom, President of Priority Submetering Solutions. “Test Metering provides an overview of how much the maintenance

fees could be reduced and a review of monthly electricity consumption, while also showing the benefits of investing in energy efficiency.

It can serve as a backdrop for your buildings initial assessment and system design required for an effective suite metering initiative.”

Becoming future ready New regulations mean building performance and energy performance statistics are now publicly available.

As such, expect players in the property and financial markets to compare and

analyze each building result against one another. Buildings will also be given an Energy Star score which is disclosed and reported nationwide, and if your building scores below 50, questions and concerns will be raised.

Suite metering is a smart way to stay on top of these new obligations and stay ahead of the pack.

To learn more about suite metering, and the value of investing in smart energy conservation technologies, visit prioritymeter.com/ca/propertymanagers-developers/ .

Hannah Tough is the Marketing Coordinator at Priority Submetering Solutions, a licensed, full-service utility Suite Metering and billing company serving multi-unit buildings across North America. For more information please visit www.prioritymeter.com.

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Sealing the building envelope in new construction condos An efficient building envelope is the Holy Grail for builders looking for energy efficiency

BY DOUG KRAMER

and cost savings. This is

especially true when constructing large-scale residential buildings, where the savings potential is even greater.

18 CONDOBUSINESS | Part of the REMI Network

MAINTENANCE Creating an envelope in a residential tower where balconies, windows and exterior walls come together in multiple layers is challenging and increases the likelihood that thermal bridges will form. This can happen where insulation is interrupted, forming gaps.

Typically, this occurs at connections between building components, such as at the junction between two walls or where a wall and floor meet.

Thermal bridges can also form wherever a building structure changes its composition, such as where a concrete balcony extends its floor slab through the building envelope. A thermal bridge not only creates a loss of heat, but it also causes the warm air inside the unit to cool down where it meets a cold surface.

This could potentially result in condensation and other unwanted challenges.

The key to an efficient building envelope is continuous insulation (CI), and for decades, fibreglass batts were the material of choice.

More recently, rigid polystyrene foam panels have been used to increase energy efficiency, but these must be joined and sealed together, increasing the likelihood of air gaps occurring. Foam panels also require builders to add other components such as a vapour barrier, which adds to construction time and costs. When spray foam (SPF) insulation came into the market, builders saw that it solved several problems at once.

Spray foam can be installed much faster than rigid foam boards, and since it expands to seal gaps and cracks, temperature fluctuations and drafts for occupants can be dramatically reduced or eliminated altogether.

Not only is it an excellent insulator, but it also acts as an air and moisture barrier, which allows builders to use fewer products while saving time, since there are no joints to treat.

Even before energy codes required an individual air barrier material, CI in the form of SPF was already being implemented in construction. It drove the movement to remove other materials from the wall and rely on insulation to act as an all-in-one air, water and vapour barrier. Initially it was used on single-family homes, but developers and builders of multi-storey buildings are increasingly noticing its efficacy for use in larger projects.

SPF is sprayed onto the exterior sheathing (or masonry back up wall), adhering to the surface, and expanding outward to create the desired thickness. Spray foam will selfsupport and adhere to common construction materials, including itself.

The Royal Connaught, an iconic luxury hotel in Hamilton, Ont. that opened in 1916 and hosted celebrities, prime ministers and royalty for decades, was slated for conversion into a modern condominium development. As an architectural highlight of Hamilton’s downtown, the developers sought to retain as much as possible of the hotel’s brick exterior while rebuilding the interior and adding a modern tower to the project. Establishing an airtight building envelope was a central goal of the project.

Closed-cell SPF was chosen as the insulating material due to its high 7.1 per square inch R-value and air-sealing capabilities. It was applied to the building’s exterior walls, rooflines, shafts and soffits, the health club area and the parking garage.

The challenge in an older building is that each floor may be different; the key is to ensure consistent coverage with no breaks.

In this case, SPF was applied between steel wall cavities against a variety of surfaces – precast concrete or brick, new masonry or glass sheathing and original surfaces of the historic structure.

Specialists ensured that, despite varying depths and surfaces, the integrity of the building envelope was maintained. In addition, the adhesion and structural rigidity of SPF solidifies and strengthens the entire wall system. Building studies conducted in 1992, 1996 and 2007 have shown that applying SPF to wall cavities can increase racking strength (such as resistance to horizontal forces like high winds) versus those without SPF. In addition, SPF is proficient at sound attenuation – a major

consideration in multi-family dwellings.

T he advancements in continuous insulation materials has helped engineers and manufacturers build a wall that’s better, stronger and greener. It provides several benefits to a building besides the elimination of thermal bridges. It increases the overall durability of the wall assembly and increases energy efficiency, which over time, can reduce the building’s energy bill. If also installed as an air barrier, it can reduce the risk of condensation and moisture infiltration.

Flat roofs can also benefit from the application of SPF as a seamless, stable and energy-efficient addition to the building envelope. SPF keeps heat out in the summer and in during the winter, lowering energy costs, while a silicone top coating resists UV light, protecting the foam and reducing heat absorption. SPF paired with silicone coatings, which in most cases, can be applied over existing roof substrates, can extend the life of an existing roof, increasing durability of roof systems and lowering life-cycle costs.

Whether you are planning to retrofit an existing building or embarking on a new build, multi-purpose continuous insulation is key to establishing an effective building envelope, creating a quieter, stronger, energy efficient structure that will endure. 1 Doug Kramer, president of Icynene-Lapolla, has been a leading figure in the spray foam insulation and roofing products industry for over 20 years with manufacturing, operations, sales and marketing experience in a broad variety of elastomeric coatings and polyurethane foam for construction.

www.REMInetwork.com | March 2019 19

MAINTENANCE

Consider replacing damaged plants with salt-tolerant plant materials, such as the Dwarf Mugho Pine.

Spring landscape rehabilitation Winter is not for the faint of heart. Frequent freeze-thaw t e mp e r at u r e c y c l e s , de-icing

BY KENT FORD

salts and snow piling all take their toll on both the hard and soft

landscape features of any condominium exterior. The visual verdict come April may be disheartening, but it is possible to remediate the damage.

20 CONDOBUSINESS | Part of the REMI Network

MAINTENANCE H ave a landsc ape architect draw up construction cross-sectional details and specifications to ensure that the contractor rebuilds each feature correctly and with a proper workmanship warranty related to those specifications. If budget prevents this, patching of concrete and partial relaying of interlocking brick or interlock unit block walls can occur in the interim. However, once this is done, the same shifting, heaving and cracks will reoccur the following spring, and will typically get worse over time.

It is important to note that concrete will ultimately crack due to winter’s freeze/ thaw cycle and the effects of de-icing salts.

The level of detail of specifications by a consultant, drawn up in advance, and the workmanship of the installing contractor will minimize this reality. Plan for this. Consider dry laid (no mortar joints) natural stone which will withstand winter’s effects, or unit pavers (interlock) which have a stronger internal strength than poured concrete and can be replaced and matched in sections far easier than a cracked section of concrete.

CONSULTING ENGINEERS

Repairing hardscape damage When temperatures fluctuate between above zero Celsius and the minus teens, expansion and contraction of concrete, asphalt and interlocking brick will occur.

Once the final thaw of all ground frost occurs in April, property managers should inspect walkways, retaining walls and asphalt for cracks and heaving. Retaining walls should be examined for any vertical shifting and pulling apart of the concrete unit blocks that comprise them. If any of these have occurred, it is a warning that these hardscape elements of the landscape were not installed properly, in terms of the subgrade compaction and granular bases installed.

It is common for asphalt potholes to be addressed by a patch job, however poured-in-place concrete, interlock paving and unit (interlock) retaining walls should ultimately be deconstructed and replaced if such damage is observed from year to year.

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MAINTENANCE

All asphalt is not created equal. Insist on specifications from your asphalt contractor and confirm that heavier duty vehicular areas are treated differently from lighter duty vehicular and pedestrian areas.

Repairing softscape damage The use of de-icing salts appears to be a necessary evil for winter maintenance companies. Unfortunately for all operators, insurance premiums for slip - and -fall claims have gone through the roof and most companies deal with the fear of their rates climbing even more by over-salting walkways, stairs and driveways.

Unfortunately, the new generation of ‘eco-friendly’ de-icing products fare only marginally better in terms of reduced damage to hard and soft landscape elements. The key to reducing damage is moderation of use – in other words, less salt and more shoveling.

Salt is deadly to plant materials and corrosive to concrete. Take a close look at shrubs, groundcovers and perennials that may have had direct contact with salt or piled salt-contaminated snow over the

Sod damage is revealed after contaminated snow has melted.

winter. If evergreen foliage has browned, that is an indication of salt damage. If the browned foliage can be removed in a minor way, the plant material may be worth keeping and will rebound in the future. More often than not, however, the plant material will have to be replaced.

If grass abuts walkways and driveways that received salt, it is likely those areas will require re -seeding or re -sodding.

R e - s e e d i n g i s re c o m m e n d e d ove r re-sodding, as new sod requires more initial watering to establish.

In addition to reducing the amount of salt used, saturating the damaged plant

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areas with hose watering in the spring will dilute the salt contamination and flush it out. This same detox method should be followed for concrete and natural stone walkways and driveways, which should be power-washed each spring to not only relieve these surfaces of impregnated salt, but also brighten them up by removing built up algae and dirt.

Consider replacing damaged plants and sod with salt-tolerant plant materials, such as Dwarf Mugho Pine, Shore Juniper, Bayberry Shrub, Perennial Lady’s Mantle and Happy Returns Daylily. Often when small strips of salt- damaged sod are replaced with plant material, the cost of maintenance reduces. Remember that there is no higher maintenance element in the condominium landscape than grass.

Before planting, determine whether the area in question has been saltcontaminated for several years. If so, the soil may be literally poisoned to a depth of two feet. It is essential in those cases that the contaminated soil be removed and replaced with new triple mix top soil. Such remediation of sof tscape areas will also provide the opportunity for reduction of bedding annuals with new perennials. Replacing masses of begonias, impatiens and geraniums planted in beds each year with shrubs, groundcovers and perennials can add up to significant cost savings over time.

Summer flowering bulbs are another worthwhile option, including a wide range of perennial Asiatic and Oriental Lilies that can be planted in early spring. The flowers are stunning and fragrant from late June into September, and will multiply with time. Plant these in late April and neighboring buildings will be green with envy by the August long weekend!

Winter does not have to be an attack that condominium properties spend the first few months of spring recovering from. Plan carefully, construct, plant and maintain differently and your landscape will welcome the upcoming summer and fall seasons with its best face forward. 1 Kent Ford is founder and principal of Kent Ford Design Group Inc., an award-winning, Toronto - based landscape design and project management firm. Kent can be reached at kent@kentforddesign.com or at 416-368-7175.

22 CONDOBUSINESS | Part of the REMI Network

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GOVERNANCE

Tips for effective monthly reporting The management of a condominium corporation is a shared assignment between the property manager and

BY SHLOMO SHARON

the board. While some boards may be more active than others, the manager is the one who is constantly on the ground and is aware and involved in the daily

operating activities of the condominium corporation and their requirements.

24 CONDOBUSINESS | Part of the REMI Network

GOVERNANCE

Usually once per month, the condo board and the manager have the opportunity to sit together and review the ongoing activities of the condominium corporation. It is the moment of bonding, where the board is looking to the manager to be fully updated.

In order to be effective in this form of communication, it is highly important for the manager to be organized and precise in outlining the outstanding issues, if any. The preparation for the board meeting should not be done last-minute, but rather should start at the end of the last board meeting and continue throughout the period leading up to the next board meeting.

The following steps provide a guideline of what can be done to prepare before the next board meeting:

1.

Prepare and circulate the agenda First, prepare and circulate the agenda, in accordance with the Act and the corporation’s bylaws. The agenda should include notification of any invitee to the board meeting and the reason for it, as well as the time allocated to each of the invitees.

It should also include the approval of the previous board meeting minutes, any outstanding issues which the board has asked the manager to deal with and any items up for discussion and approval (i.e. contracts, etc.).

Prepare a management report The items on the agenda should be addressed in a very concise way in the management report, including what was done, how the manager was able to resolve it, and if they were not able to resolve it, why it could not have been resolved. Any physical issue with the maintenance of the common elements should be detailed, along with the recommendation by the manager on how to resolve it, and if possible, at least three detailed quotations which should include the work involved and if any guarantee is being provided and the length of guarantee, where it may be required.

In addition, the manager’s recommendation on which contractor to choose and the reasons for the selection should be included.

Some work may require the involvement of an engineer, and if so, the manager should also provide the board with three quotations which should describe the work required and the cost.

2.

Review the corporation’s financial position Finally, it is important to review the corporation’s financial position and the result of operations for the month or quarter end prior to the board meeting. The manager must remember that the board has a responsibility to all unit owners, and as such, should be apprised on the status of the corporation’s financial position. This requires the manager to review and fully understand the financial reporting.

3.

The manager should remember that the financial position of the corporation is an important tool for the directors. It is the item that will influence the decisions of the board on issues related to the management of the affairs of the corporation and will determine the future of the corporation’s budget. There will be physical items, which despite the financial position of the corporation, will be required to be completed, while others may be required to be postponed.

The manager should be well-versed in the financial position as his or her input will assist the board members in their decision making.

The input of the manager should not be limited only to the physical and financial aspects of the corporation, but also to other aspects. This input can be with respect to any other building issues which may occur, such as noise complaints, people smoking in the stairwells or littering in and around the building. It should also be the manager’s initiative to bring suggestions to the board for a community event or circulation of a newsletter.

The more proactive the manager, the more benefit the board will receive. 1 Shlomo Sharon is the CEO of Taft Management Inc.

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COVER STORY

FALSE ALA

26 CONDOBUSINESS | Part of the REMI Network

COVER STORY

ARM

BY KAVITA SABHARWAL-CHOMIUK

Nuisance alarms in condominiums may seem like no more than an inconvenience, but in reality, the implications are farther-reaching than initially obvious.

www.REMInetwork.com | March 2019 27

COVER STORY Once a fire alarm in a condominium is determined to be a false alarm, residents are likely to feel relief. After all, there is no real danger. However, for condo managers, a false fire alarm results in a slew of new issues. What happens when a fire alarm goes off at a condominium when no smoke or fire is present?

It could be a maintenance issue: the fire alarm could be experiencing electrical or mechanical failure, or an equipment malfunction. It could also be a result of improper maintenance, such as a dirty smoke detector or an aging system. Nuisance alarms, as they’re called, may also be caused by a leak in the sprinkler system, which trips a flow switch, resulting in the fire alarm going off. These are often the top causes, according to Michele Farley, president of FCS Fire Consulting Services Ltd. “The implication for the building is that it experienced a significant event that must be evaluated,” she says. “The nuisance fire alarm may be an anomaly and an isolated event, but it could be a sign that something is going wrong and management will have to evaluate the cause.”

Or, nuisance alarms could be a result of something more sinister. “Another concern, which is not uncommon, is vandalism, or a deliberate initiation of the alarm,” says Farley.

False fire alarms in condominiums can have some serious safety and financial impacts. Here’s a look at the implications of false fire alarms in condos, and what condo managers can do to prevent them from occurring in the future.

Safety Douglas Baker, a condominium manager with Crossbridge Condominium Services, experienced two nuisance fire alarms last year due to attempted bike thefts in the parking garage of the building he manages. In both cases, the perpetrators activated the alarm in order to exit the locked parking garage.

“[Nuisance alarms] take away firefighters who might be missing an actual call,” notes Baker.

Even if the building is safe, false fire alarms may impact residents’ perception of the condominium if they are set off with some regularity.

“It may give a sense of an unsafe building, or the perception that proper maintenance is not being carried out, if there are a number of fire alarms. It’s a disruption,” Baker adds. “It just gives a sense of instability, and maybe people who move in think this may not be a good neighbourhood if people are pulling fire alarms. It’s obviously something from that perspective that you don’t want.”

Costs The rule of thumb is, if smoke and/or fire is present, the condominium is not charged a vehicle fee for the fire department to investigate. However, nuisance alarms follow different rules.

“Each building receives one free false alarm per year,” Farley says. “So, if you just have one and the fire department can’t find anything wrong, they won’t know what caused it but there is no fire. The incident goes into the municipal system as the building’s one free alarm. The next time it goes off, [the building is] charged.”

Currently, Farley says the average nuisance false alarm fee in a high-rise condominium is $1,396.25 per dispatch, as alarms at high-rise buildings are often attended by three vehicles. For smaller condominiums, low-rise or townhomes, the fire department charges $465.42 for each attending vehicle.

Farley notes that the condominium corporation can be charged with failing to maintain the fire alarm system in operating condition, pursuant to Article 6.3.1.4 of the Fire Code. The condominium corporation and property management company can be held responsible for nuisance alarms or persistent

troubles with the fire alarm system, even if they are not sure what is causing them.

Fire department charges can also proceed to court and result in a summons when there have been multiple occurrences.

Any individual who has care and control of the building is considered an owner as per the definition in the Ontario Fire Code, so property managers and the property management company, supervisory staff and even the board of directors and the building’s superintendent can be charged up to $100,000 per count and two years in jail, as permitted under the Provincial Act. However, Farley notes fines are generally not that high and jail time is exceedingly rare, unless in the cases of a serious fire that results in loss of life or significant repeat offences.

If the alarm was not caused by a vandal, a service company should be called in to evaluate what caused the nuisance alarm.

If the service company can’t determine the problem, condominium managers may want to turn to a consulting firm to do a fire alarm technical assessment of the building to see if they can determine what the cause and risk is.

If nuisance alarms are being caused by someone pulling a pull station, however, it is possible to have some of those costs reimbursed – provided condo managers follow the recommendations set out by the fire department in order to reduce the occurrence of false fire alarms.

For Baker, whose building experienced two theft-related nuisance alarms and two that were triggered by contractors in 2018, the City of Toronto Fire Services department sent him a letter noting a few different options to pursue to cut down on the number of nuisance alarms triggered in his building.

Some of the City of Toronto Fire Services department’s recommendations include the installation of security cameras, employing security personnel to patrol the building, organizing tenant groups to act

“Nuisance alarms take away firefighters who might be missing an actual call.”

28 CONDOBUSINESS | Part of the REMI Network

COVER STORY

“At the end of the day, it is life safety and the fire alarm is in place to save people’s lives and where we have nuisance alarms, we always have that risk of complacency.”

as fire wardens in troublesome buildings, posting letters signed by the Fire Chief warning people of the dangers associated with false alarms, and installing covers over pull stations, which is the method Baker employed.

Complacency According to the Ontario Office of the Fire Marshal and Emergency Management, the province has a stay-or-go policy in place for residents of high-rise buildings. Although the Office recommends residents leave the building as soon as possible after the fire alarm is triggered, residents are within their rights to stay in their unit.

“People can stay, but they are supposed to take specific measures that are outlined in the fire safety plan,” reports Farley. “So people may decide to stay, and that may or may not be the right decision, depending on whether it’s really a fire or not.”

Although nuisance alarms often pose little risk to public safety, if they are set off frequently, it may cause residents to begin to ignore them, even those that are legitimate.

While leaving is always the safest option,

with an aging population, it is not always possible.

“If you can’t see fire or smell smoke, it may mean that there’s no fire and you’re not in harm’s way, or it just may mean that it’s not on your floor,” she continues. “We’re running into a really serious problem with the aging population because we have buildings where the majority of the people cannot leave.

At this point it’s a personal choice. Because of nuisance alarms, a lot of people prefer to just stay in their suite and wait and see what happens next. That’s a common reaction.”

What can be done?

Farley recommends using a qualified service provider to conduct both monthly and annual fire safety plan maintenance requirements.

She also advises that for any testing and repairs, to mandate prompt records from the service provider and keep any related documentation, in case the maintenance of the alarm system is called into question.

“If the service company cannot seem to find the source [of the nuisance alarms], look to a technical assessment by a consultant or third party to see if they can determine where

the problem is,” instructs Farley. “At the end of the day, it is life safety and the fire alarm is in place to save people’s lives.”

In addition, proper training for staff is important as they are the ones that are responsible for a significant percentage of the fire safety plan’s Fire Code requirements and will need to take charge in the event of an actual emergency. They should be trained regularly, knowledgeable on the test requirements and service reports required in the building and well-informed on the most up-to-date fire safety measures.

Farley finds that the majority of buildings get their training from the fire alarm company, which is equipment-centric. However, proper fire safety training includes fire drills, sprinkler maintenance and other areas in the building that demand attention. It also includes the distribution of a fire safety plan to all residents upon moving into the condominium, which should also be posted online and distributed annually in a newsletter.

Another option, which Baker is considering for the building he manages, is arranging meetings with building occupants.

“It’s a good idea anyway with regards to emergency procedures in the case of an actual fire alarm and it can be mentioned during that meeting that false fire alarms do cost us,” he says.

To prevent mechanical failure, Farley recommends following the fire safety plan’s stated testing intervals for both the fire alarm and the sprinkler system. Ultimately, if nuisance alarms continue to occur and all steps have been taken, a third-party consulting firm may be able to help.

Over 50 per cent of mandates in the Fire Code are the responsibility of a building’s supervisory staff, so proper training of life safety systems and Fire Code responsibilities and remaining on top of the condo’s fire safety plan is of utmost importance. After all, next time it may not be a false alarm. 1

www.REMInetwork.com | March 2019 29

MANAGEMENT

Managing condo and HOA service requests Managing owner and resident requests is an integra l par t of a propert y manager’s job.

BY BRIAN BOSSCHER

However, it can also be overwhelming – within even a modestly sized community, there may be dozens of requests which need to be actioned at times. What’s the best way to stay on top of it all? This article will cover

five best practices to ensure owners and residents receive the best service possible.

30 CONDOBUSINESS | Part of the REMI Network

MANAGEMENT

Set expectations First, it’s extremely important to be clear on service level agreement (SLA) and supported communication channels.

How fast will the management team be expected to respond to requests? What constitutes a high priority or low priority request? How should residents contact management? Is a casual chat in the lobby considered an actionable request, or should residents submit all requests online or at a minimum, in writing?

T hese ex p ec t ations and rules of engagement are usually set by the board and management together, and will depend on the building, the type of requests and the staffing level of the building. All of these factors impact what constitutes a reasonable turnaround.

The biggest danger here is in not setting expectations at all – if service levels are not made explicit, some residents (or even board members) will have unmet expectations.

goes into one spot for requests, no matter how it originated.

Store everything in one spot Regardless of whether a request comes in via email, a phone call, an in-person chat or a letter slipped under the office door, property managers should endeavor to get all of their requests into one consolidated list.

Whether using a simple Excel file or an online database system, this best practice has several benefits. Users can see at a glance what is outstanding and can sort requests by urgency or type to see which items need to be addressed first.

By using an online software package, it’s easy to report on other important statistics: how many requests are being received per month? On average, how long does it take to close a request?

Which units or individuals are submitting the most requests? It’s also possible to answer these questions by tracking all requests in Excel, but it will take more work to get the answers.

The key with this best practice is to pick one database and stick with it. Everything

Focus on clear communication Once a request has been received, it is important to keep the requestor up to date on what’s happening. Property managers should provide updates on the following key points:

Ditch email; receive requests online Tw e n t y y e a r s a g o , e m a i l w a s considered a great new tool for businesses. Now, email is more of a ball and chain than an effective tool.

Our inboxes are littered with junk and promotional emails, and stuf f easily gets lost in an inbox that could be hundreds or thousands of messages deep. What’s a manager to do?

The most effective approach is to avoid emails completely by directing residents to put their request into an online portal system. Here’s how it works: set up an auto-responder which automatically sends a reply detailing the steps clients will need to take in order to log their request via the online portal. The change won’t happen overnight, but over time, requests will eventually be diverted and put directly into the online database.

1. A f t e r t h e r e q u e s t i s r e c e i v e d , acknowledge the request and ideally provide a reference number. (This can easily be automated through an online portal.)

2. Update them again to communicate any important updates; e.g, if there is an expected timeline for resolution, or when access to their suite will be required, etc.

3. Finally, it’s important to close the loop and notify them again when the request is considered complete. Consider taking this opportunity to ask for feedback.

These are basic steps but can easily be skipped in the day-to-day rush of a busy

management office. By having everything stored in one spot, all updates can be easily searched and reviewed. If some staff are on vacation or out sick, their replacement can easily pick up the trail and ensure the request doesn’t get stuck.

Process requests in batches Wherever possible, try to work on service requests in batches, which is more efficient than losing time and energy having to constantly switch between tasks. Many managers have times when their office is closed, allowing them to focus. Setting aside two hours per week will help check off requests on the list.

Of course, this won’t always be possible (there will always be an emergency request which demands immediate attention), but once expectations have been sufficiently set, that should only occur with truly urgent items.

Managing service requests is a core part of property management; and while it is a rather mundane and sometimes repetitive part of the job, it doesn’t have to be stressful. By getting organized and following these best practices, managers can take the stress and uncertainty out of the process and focus on the task at hand. If managers haven’t yet established a clear process for request handling in their community, it should be added to the agenda for the next board meeting.

Taking proactive steps will make the process smoother for everyone, leading to a happier board and residents. 1 Brian Bosscher is the president and founder of Condo Control Central, a leading Toronto - based company that provides web - based communication, management and security cloud solutions for condominiums of all sizes. He is also a former board member, having served more than 12 years as both treasurer and president. He can be reached through the “Contact Us” page on the Condo Control Central website.

www.REMInetwork.com | March 2019 31

SPONSORED CONTENT Enbridge Smart Savings

Measure by Measure Cutting costs and keeping property owners happy

Keeping tenants happy, buildings occupied, and property values high are top priorities for property management firms. In reality, that's easier said than done – especially in an era where “plugged-in” lifestyles, rising labour costs, and rental regulations are making it increasingly difficult for property stakeholders to find financial breathing room.

“The rental market is inundated with not just energy-related concerns, but also rent control, new building evaluations and regulations, and lower vacancy rates,” agrees George Hantzis, Large Commercial Energy Solutions Manager with Enbridge, adding, “all of those things intensify the challenges to keep tenants satisfied while continuing to grow a business.”

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They also emphasize the need to partake in energy retrofits and smart cost-saving measures to lean out operating costs and free up money for their core business: delivering quality rental supply.

“There's no one thing that will improve your bottom line. That's why, when people like us go into a facility to help property owners or managers find ways to save energy, we are always looking at the issue from a holistic approach,” says Dominic DiMuzio, Enbridge Multi-Residential Energy Solutions Consultant.

Enbridge's team of technical experts collectively work with hundreds of multire s i d e n t i a l b u i l d i n g s a n n u a l l y t o h e l p stakeholders optimize their energy usage and save money. It's that hands-on experience that has equipped them with cost-saving insights and proven energy smart measures.

Here are just a few:

Tweak your controls A few system tweaks can go a long way.

Energy Consultants can play a big role in identifying energy-wasting procedures and make small – yet impactful – changes that will result in long-term savings.

For example Carmine Faiella, Multi-Residential Energy Solutions Consultant offers this advice, “when you reduce your set point temperatures the savings are automatic. That said, you need to be careful and considerate of tenant comfort.”

Get with the program A number of energy-saving consultation programs are available to property stakeholders at no cost. In some cases, such as Enbridge's Commercial Custom Retrofit Incentives programs, participants can receive

financial rewards for implementing energysaving measures.

“We'll work with customers, free of charge, to identify energy efficiency opportunities that save natural gas and in return save them money. And if they implement any of our recommendations, we will cover up to 50 per cent of the project cost,” explains Hantzis.

“These programs are available, and they've been proven to work – so there's no downside to trying them.” Adds DiMuzio Good tenants plus stable occupancy rates equal high property values (and happy owners). It's a simple formula that's becoming harder to apply. With some smart energy measures and assistance from those in the know, property managers can find a friendly balance.

Make smarter retrofits When it comes time to replace or upgrade critical building components, consider that an ideal opportunity to not only seek a more energy-efficient solution, but to upgrade connected systems.

“When a customer is changing their boiler, for instance, that's an ideal time to also take a look at changing the way they pump those boilers or control them,” offers DiMuzio.

As for what jobs to prioritize, Hantzis adds: “We’ve had a lot of success working with property managers on boiler efficiency upgrades, as well as installing Variable Frequency Drives (VFDs) on ventilation systems. If those have not been done, I would recommend doing those first.”

Do more with what you have There are several ways to optimize savings with existing equipment. For example, one is to introduce an advanced building automation system (BAS) that monitors, manages, and reduces energy usage on an interval level.

Another is to install pipe insulation across all hot water systems. And pipe insulation typically delivers a quick return on investment.”

“It's all about sustained savings,” says Chinmayee Rindani, Multi-Residential Energy Solutions Consultant. “When your building is monitored, you can track if there are any manual adjustments made on site that are pushing your energy costs up. Understanding your property’s energy consumption through monitoring can provide a roadmap to future opportunities and sustained energy savings.

For more information on Enbridge's efficiency programs, or to learn about how Enbridge’s Energy Solutions Consultants have helped multi-residential customers in the past, visit www.enbridgesmartsavings.com/business.

MANAGEMENT

Preparing for common emergencies

34 CONDOBUSINESS | Part of the REMI Network

MANAGEMENT

For many Canadians, spring is typically a time for renewal and spring cleaning. For condo or strata

BY MARGO MALOWNEY

property managers, it is a great time to reassess disaster readiness for

“predictable” hazards. The time to start preparing for these risks is always now in order to best prevent suffering later.

Risk management and disaster planning for most properties has a lot to do with where a property is located, but very generally, the main hazards to plan for include fire, flooding, tornados, earthquakes and severe storms.

Condo managers have to ensure they are properly prepared for these “predictable” hazards. Below are some precautions that can be taken:

building and ensuring the property is up to code. In many areas of the country, fire codes have recently been substantially upgraded, and major changes and improvements have been made to the minimum requirements for condominiums and apartments.

It is always a good idea to keep storage areas organized and clear and ensure places such as common areas, laundry rooms and recreational areas have smoke alarms and are free of any electrical hazards.

smaller water leaks can cause harm throughout the building. Preventive measures can include sealing off any cracks and weaknesses in your structure and installing water alarms and flood sensors.

It is also important to clean out gutters and downspouts surrounding the property.

Failing to keep these areas clear can force water back into the structure.

Lastly, install a backflow valve on the main waste line and any storm lines to prevent sewage backups. Buildings located in urban areas and areas where infrastructure is aging can be especially vulnerable to this type of loss. Storm water infrastructure in many parts of the country that were designed many decades ago are now not capable of handling the ever-increasing amounts of runoff in the spring.

1. Fire prevention For fire prevention, there are a few simple measures condo management can take to prevent damage.

First and foremost, consulting with a fire protection company is recommended in order to find out what types of sprinklers, alarms, devices and extinguishers are required in the

2. Flood/Spring Thaw With warmer weather on its way, ice and snow will begin to melt, causing flooding to become a main concern for multi-residential property owners.

Waterproofing the building is essential.

A property does not have to be completely flooded in order to suffer damage, as

3. Tornado/Wind Acc ording to Environment C anad a, C a n a d a re p o r t s a n ave r a g e of 6 2 tornadoes per year. Though they seem uncommon, the Ottawa - Gatineau tornadoes that swept through southern Ontario last fall demonstrate the impact they can have.

www.REMInetwork.com | March 2019 35

MANAGEMENT

It is imperative property managers monitor local weather apps, stations or sources and communicate any tornado-related threats to their residents. The construction or designation of a safe room should also be considered, according to International Code Council guidelines. All exterior doors and windows should be closed so high wind, rain and debris does not come in.

For any existing structures, consider retrofitting the building for greater wind resistance and structural reinforcement.

Clearing branches or trees surrounding buildings and power lines will also help mitigate the risk of falling limbs causing damage during a tornado. Have the roof and building inspected for any loose pieces and damaged areas. Look into repairing any weaker areas that could give out if there were high winds or a tornado.

4. Earthquake Canada is affected by 5,000 earthquakes annually. Most earthquakes reported are of low magnitude and do not surpass seven on the Richter Scale. Although the likelihood of encountering an earthquake may be low, precaution remains important.

The best prevention against earthquake damage is understanding your specific building risks. Many preventive measures can be implemented during design and construction of a building but for properties that exist today, it is best to consult a structural engineer who specializes in this field. Your goal is to understand your unique structural risks and plan accordingly.

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5. Severe storms Canadians are no strangers to severe winter conditions. A major storm can be anything from a thunderstorm, rain or hail to ice storms and heavy winds.

In advance of spring, it is important to make sure H VAC systems are in good condition and do not require any maintenance or repairs. Severe storms may have damaged vents or clogged t h e m w i t h d e b r i s . O ve r t i m e, t h e ducts can have a build up of dust, dirt and debris which can affect air quality throughout the building. Although this last point may not relate directly to a storm, it is a good time to consider the health of your residents.

Planning for a power outage should also be considered. Before the seasons change, have a professional inspect the power generator and fuel storage. Additionally, it’s important to check for cracked pipes, issues with electrical and water systems or other mechanical issues. Regular maintenance an d c he cku ps o n these items w ill help prevent property managers from spending extra dollars on future damage.

The longer minor damages are left unattended, the more expensive and complex the repairs could ultimately be. It’s important to get ahead of the problem in order to protect residents and your budget. 1 M argo M alowney is vice president of m a rketi n g a n d c o m m u n i c ati o n s at FirstOnSite Restoration, a leading Canadian disaster restoration services provider, providing remediation, restoration and reconstruction services nationwide, and for the U.S. large loss and commercial market. With over 1,10 0 employees, 37+ locations and 20 affiliate partners, Fi rstO nS ite se r ve s the re si d e nti a l, commercial and industrial sectors.

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SECURITY

Choosing the right condo security upgrades As condominium

BY SCOTT HILL residents become more k nowledgeable a b o ut

the responsibilities of a condominium corporation and management, the security of the building is quickly

becoming a more frequent topic of discussion at many board meetings and AGMs. When added to the number of security incidents that occur, it is no wonder that this topic is getting so much attention by investors and tenants alike.

38 CONDOBUSINESS | Part of the REMI Network

SECURITY

A recent survey from TD Canada Trust found that in Toronto, 94 per cent of investors listed security as their number-one consideration when looking to purchase a condominium.

However, many condominiums’ security systems could use some improvement.

Usually, condominiums face a challenge when looking to upgrade the security of their building, which is a lack of planning. In order to upgrade and enhance the security of the condominium complex, the first step is to review and evaluate the effectiveness of the security solutions that are already in place. Security solutions can be made up of people (concierge, security guards), technology (cameras, fobs) or policies/procedures (rules, education).

Security audit A proper review of the existing security plan takes the form of a security audit. A professional security audit will assess the security of the building, identify and rank any vulnerabilities according to the risk to the condominium, and propose solutions to address the security deficiencies. This is the beginning of having a security master plan for the condominium. Oftentimes, the abovementioned audit is commissioned in advance of the corporation updating its reserve fund study.

A note of caution must be interjected to ensure that condominiums are receiving proper information when undertaking a security audit.

Frequently, a CPTED (crime prevention through environmental design) audit is conducted and is incorrectly referred to as a security audit.

Condo managers would do well to ensure that their security auditor is familiar with both condominium operations and security best practices. It should be specified in the scope of work that the auditor visit the condominium at various times of day in order to effectively judge the security systems in place.

As mentioned, condominiums may address security vulnerabilities with one or more of three potential solutions.

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Personnel Security personnel, known as concierges or security guards, are on-site staff that protect the property by controlling access, responding to security concerns and reporting all incidents.

Security staff is the most effective security solution, but it is also the most expensive. For

www.REMInetwork.com | March 2019 39

SECURITY

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“Technology should be selected to integrate into the this reason, condominiums with security staff should ensure that they are receiving the best value for their investment. A review of the security staff should be included in a professional security audit, but below are a few pointers for condominium management to be aware of.

Security guards are legislated by the Private Security and Investigative Services Act, much like condominiums are legislated by the Ontario Condominium Act and the Protecting Condominium Owners Act. The Act states that all security personnel must be licensed by the province and must carry this license at all times while at work.

Security guards’ duties and expectations for each individual condominium should be laid out in a professional document called post orders. While condominium management is not usually provided a copy of the post orders, this document should be reviewed/ approved on a regular basis and updated when the situation requires it. In addition, the condominium should regularly receive shift reports from the guards and review any incident reports at board meetings.

As with the commissioning of a security audit, condominiums should ensure that any contracted security company is familiar with condominium operations. The condominium industry seems to be slowly moving away from management decisions based solely on the lowest cost and transitioning to a more balanced decision matrix that evaluates both performance of the company and cost.

As security staff is one of the more ex p e n s i v e s e c u r i t y s o l u t i o n s , t h e condominium should ensure that the guards are professional and knowledgeable on condominium security. One of the largest complaints seen in multiple security audits is a lack of consistency with guards being assigned to the property. This is usually the result of awarding the security contract to the lowest bidder, who in turn must compensate

40 CONDOBUSINESS | Part of the REMI Network REMI-ISSA_1/3verticalad _2019-2.25x9.563.indd 1

2019-03-06 1:52 PM

by keeping the wages of the employees low.

This results in a reduction of professional morale and significant staff turnover.

Technology As with all things technological, rapid advancements in development results in prices dropping for the consumer. Security technologies that would be outside many budgets 10 years ago are now readily available for purchase online at a fraction of the cost. However, condominiums are advised to exercise extreme caution when purchasing do-it-yourself security solutions.

Technology should be selected to integrate into the overall security plan. A security review of the current equipment in place will highlight any gaps as well as emphasize what equipment needs to be upgraded and when that should take place.

For example, a security audit was conducted at a condo that was suffering from bike thefts. A camera was installed but was not of any use because there was not enough security lighting in the vicinity to produce an image that could be used to identify the perpetrators. The condominium was looking to upgrade to a higher resolution camera with IR (infrared) capabilities. The recommendation of the security audit was that the resolution of the camera was sufficient (it was only a few years old), and that the installation of occupancy-sensing lighting (with motion readers directed to the bike area) would act as a deterrent while ensuring that the camera would capture effective images/footage.

Additionally, the cost of security solutions is resulting in some properties turning to Intrusion Detection Systems (IDS) in critical areas, such as prop-alarms and motionsensing alarms, however it is important to ensure that the solutions proposed are not over-designed. A camera with facial recognition software and pan-tilt-zoom capacities is better suited to a high-traffic

SECURITY

Policies and procedures Policies and procedures are a result of security education of residents within the building, relying on human nature and consideration of the residents in protecting the property. As such, it is the lowest-cost security solution. For example, since it is difficult to ask residents to confront anyone trying to “tailgate” a resident, gaining unauthorized entry to the building, it is very helpful to have signage that reinforces the fact that all visitors to the building should be granted access by the unit they are visiting.

Other security awareness pointers can be discussed at the AGM or included on the condominium website or in newsletters.

Rules can be put in place to help condominium management safeguard the condo’s well-being. As mentioned previously, this is where it becomes beneficial to have a security auditor that is familiar with condominium operations as proposed rules may be included in the security report.

Having an auditor that knows the difference between a rule and a condominium bylaw (and how each are passed) will greatly assist the board of directors and condo manager C in ensuring that they act effectively and efficiently to protect the corporation andM all its assets (the most important being its Y residents).

CM In conclusion, there are many different MY options that are available to condominiums looking to increase the security of theCY property. Judging by the TD Canada TrustCMY survey, these efforts may be required inK order to maintain investor value and market share. 1 Scott Hill of 3D Security Services has been a practicing RCM with ACMO since 2012, a Physical Security Professional (PSP) with ASIS and a Certified Security Project Manager (CSPM) with the Security Industry Association.

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airport rather than a condominium parking garage. At the same time, the security plan must confirm that the security equipment in place is both effective and is working in harmony with other security solutions used.

Following that, a plan for upgrading all security equipment at the end of its useful life should be included in both the security master plan and the reserve account funding schedule.

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www.REMInetwork.com | March 2019 41

Bill 66 seeks to remove unit submetering providers from OEB oversight A planned repeal of the Ontario Energy Board’s authority to set

BY BARBARA CARSS

electricity rates for sub-metered units in multi-residential buildings is

among amendments to more than a dozen provincial statutes introduced in Bill 66, the proposed Restoring Ontario’s Competitiveness Act. Accordingly, rental housing industry observers foresee that it could heighten competition between sub-metering enterprises and residential landlords for tenants’ limited funds.

42 CONDOBUSINESS | Part of the REMI Network

TorontoDecorating_Condo_November_2016_FINAL.pdf

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2016-11-10

ENERGY MANAGEMENT

C

M

Y

CM

MY

CY

CMY

K

“If the sub-metering fees go up, it is more difficult for the landlord to secure a rent increase or for tenants to maintain the ability to pay,” said Joe Hoffer, a partner specializing in residential tenancy, real estate and land use planning law with Cohen Highley LLP. “So it is actually in landlords’ interests to ensure the sub-metering providers are regulated from a consumer protection perspective.”

In practice, the Ontario Energy Board (OEB) has never exercised its oversight of how unit sub-metering providers (USMP) charge for services since it is a new responsibility, arising from the previous government’s circa 2017 Fair Hydro Plan Act, which came into force in 2018. At that time, the OEB decreed that existing contracted rates would remain in place while it completed consultations and established a rate-setting methodology.

“USMPs may, on an interim basis, apply the charges set out in any agreements with their customers until new charges are approved by the OEB,” the OEB ordered on March 15, 2018. “To be clear, when the OEB establishes USMP charges on a final basis, it may decide to make them retroactive to April 1, 2018, in which case the revenue difference between the interim and final charges would be recovered from, or refunded to, the USMP’s customers, as the case may be.”

An Ontario government backgrounder, released in association with the introduction of Bill 66, estimates sub-metering providers will save an estimated $1.3 million annually when the OEB’s regulatory authority is rescinded. “It would also reduce a barrier to investment

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by giving investors greater confidence in the competitiveness of this market,” the backgrounder maintained.

An USMP executive notes that his sector is already highly regulated. “We are already licensed and regulated by the OEB and must comply with all applicable legislation, including the Unit Submetering Code,” said Peter Mills, co-CEO, Wyse Meter Solutions.

“The Code prescribes conduct that USMPs must follow, as related to: installation, verification of meters, opening and closing new accounts, transferring accounts from one USMP to another, connections and disconnections, security deposits, tampering, billing consumers, record-keeping, and application of provincial programs.”

Ontario’s Energy Consumer Protection Act mandates suite meters 8:59 in AMall newly constructed multi-residential buildings. To protect against potentially disadvantageous deals developers may have signed with USMPs, condominium corporations can withdraw from agreements during the first 12 months of their incorporation. However, Hoffer cautioned that few in-suite end-customers have sophisticated market knowledge.

“Most tenants just sign the documents and don’t do an analysis of the reasonableness or competitiveness of the admin charges levied by sub-meter providers,” he submitted.

“Having consumers pay for energy and/or water use by metering at the suite level has proven savings and should be encouraged, but, in my opinion, consumers should be protected from unwarranted costs suite meter providers might charge,” said Andrew Pride, an energy management consultant specializing in sustainability and strategic conservation planning. “Perhaps that could be measures in the Condominium Act and the Residential Tenancies Act to ensure that USMP rates are no higher than the default local utility charge.”

However, Hoffer sees that solution as more problematic than simply leaving consumer protection oversight with the OEB. “Controlling rates in any way under the Condominium Act or the Residential Tenancies Act would then expose landlords and condo boards to substantial costs associated with challenging the admin charges,” he noted. “Those challenges can require sophisticated accounting and opinion evidence, normally presented at the OEB in the context of rate regulation.” 1 Barbara Carss is editor-in-chief of Canadian Property Management.

44 CONDOBUSINESS | Part of the REMI Network

Pre-construction sale cancellations: What are the options?

What can a purchaser do when their agreement to purchase a pre-

construction condominium unit is cancelled?

BY DAVID TAUB

This affects condo investors, or

landlords, that buy multiple new units to lease out.

www.REMInetwork.com | March 2019 45

LEGAL

“Regardless of why developers terminate their sale agreements, the end result is the same for purchasers, who are thrown back into the real estate market.�

Over the last two years, multiple news headlines announced further cancelled pre-sale condominium projects. While there are many causes for the cancelled projects, two key reasons are the significant and rapid increase of both the construction costs and interest rates, which can cause projects to fail.

The increased costs put developers in situations where their projects, which appeared lucrative at the outset, are no longer viable or profitable.

Increasing real estate values can also lead to cancelled sale agreements if a developer believes it can increase its profits by

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re-selling the units at a higher price. These projects are not cancelled in their entirety, but instead, the pre-sale agreements are terminated by the developer and then those same units are remarketed at the higher current market prices. This step is not taken lightly by developers and only some developers will do this, as it damages their reputational capital.

However, the fact is that this has been the outcome for a number of large pre-sale condominium projects in the Greater Toronto Area in the last few years.

Developers usually will rely on specific conditions in their sale agreements which permit termination of the contract in specific enumerated circumstances. Whether the termination was properly made under the terms of the sale agreement depends on the facts of each individual case, and each individual agreement.

Regardless of why developers terminate their sale agreements, the end result is the same for purchasers, who are thrown back into the real estate market. There are often years between the date that the sale agreements were made and the date of cancellation. In the interim, real estate prices and the cost of alternative condominiums have risen significantly, with the result that these alternatives are less attractive than the original sale agreement. For the luckless purchaser, the prospect of another pre-construction sale agreement appears risky and undesirable.

Some of these buyers will consider their legal options, including a claim against the developer. Both builders and buyers should to know what options are available to a jilted buyer.

The deposits are typically returned to the purchasers and the purchasers are left with two options: 1) accept the return of their deposits and move on, or 2) bring a claim against the developer for breach of contract. The remedy for breach of contract will be either an award of monetary damages or, in exceptional circumstances, an order for specific performance.

Specific performance Specific performance is a remedy awarded by the courts in which a contracting party who is in breach of contract is compelled to perform its contractual obligations. This is an exceptional remedy which is only granted where monetary damages are not sufficient as a remedy. In respect of a contract for the sale of land, specific performance is available only if the property is "unique."

46 CONDOBUSINESS | Part of the REMI Network Goldview_Condo_July_2017.indd 1

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LEGAL

Residential properties, particularly condominium properties, are mass produced. If a deal falls through for one property, another comparable property is frequently readily available.

That said, there have been recent cases in which courts have ordered specific performance of the vendor for the sale of condominium units. In these cases, the purchasers were able to show evidence that the properties were unique, given the size, features and location of the properties. Importantly, in these cases, the units were either already completed or nearly completed.

If the condominiums are still in the pre construction or early construction stages when the sale agreement is terminated, it is highly unlikely that specific performance will be ordered.

Damages In most cases, where the developer is found to have breached the contract, purchasers will be limited to a claim for monetary damages.

Damages in these circumstances would be quantified based on the difference between the purchase price under the agreement of purchase and sale and the market value of a replacement property on or about the date the agreement was terminated. Any deposit not returned by the developer would also be included in the quantification of damages.

As well, in Canada, parties to a contract are obligated to perform those contracts in good faith. If a Court determines that the developer acted in bad faith in terminating the contract, it may award punitive damages, which are usually in the range of 10 to 20 per cent of the assessed damages.

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Class actions Individual consumer claims are certainly problematic for developers, but it is unlikely that each purchaser would bring a claim and damages on an individual scale may not cause serious concern. The greater risk for a developer and benefit for a consumer is a class action lawsuit.

Class action lawsuits require only one plaintiff, who represents that entire class of plaintiffs. If a class action was commenced against a developer for terminating its sale agreements, only one purchaser would need to act as the representative plaintiff for all of the project's purchasers, but damages for all of the purchasers would be at issue in the action. The developer is potentially liable for the total damages for all of the terminated sale agreements. As well, class actions often attract media attention, which can damage the developer's reputational capital.

Unlike in conventional litigation, in which lawyers are typically paid at an hourly rate, and the successful party hopes to collect some of its legal costs at the conclusion of the litigation, class action lawyers typically work on "spec" – meaning they do not get paid unless and until the litigation is successful, whether by a judgment or a settlement. As such, members of the class will not incur the upfront legal costs of supporting the action. 1

David Taub, a litigator with Toronto business law firm Robins Appleby LLP, works with financial institutions including chartered banks and commercial lenders, developers and builders, private corporations, manufacturers, retailers and major landlords, successfully representing them at all levels of Court in Ontario.

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48 CONDOBUSINESS | Part of the REMI Network

LEGAL

Safety compliance for condo corporations Now more than ever, condo corporations are at a heightened risk of legal exposure as employers

BY ROGER TICKNER

as a result of an important decision handed down by the Ontario Court of Appeal in 2017 that provided interpretation around the “general duty” clause 25(2)(h).

Employers know they must “take every precaution reasonable for the protection of a worker,” a standard mandated in the Occupational Health and Safety Act (OHSA), however the judge in Ontario (Labour) v. Quinton Steel (Wellington) Limited, 2017 ONCA 1006, stated that, “compliance with regulations may not be enough” to comply with 25(2)(h).

To put it bluntly, it appears that compliance to the Act and Regulations may not necessarily represent the entirety of an employer’s obligations, and that employers may be required to go above and beyond the minimum legislated standards. Compliance with the Act and Regulations no longer means you are necessarily risk-free. The legislated requirement of “general duty” must look at the circumstances and need for every reasonable precaution, legislated or not.

Tragically, in the above noted case from 2012, a welder employed

by Quinton Steel died after falling six-and-a-half feet, or two metres, from one of the A-frame platforms, below the height at which tying off was considered required. The Ontario regulation that applied to the workplace had no provisions relating to scaffolds (to which the A-frame platform was similar) or temporary platforms; however, the regulations applicable to construction projects required that a guardrail be erected around a scaffold when working at 2.4 metres (eight feet) or above.

The employer faced charges, but a trial and appeal justice dismissed them, stating that the applicable OHSA regulation dealing with guardrails did not require them to be at a height of six feet in this specific situation. The lower court’s argument maintained that the general duty clause cannot be used by the Ministry of Labour to levy requirements greater than those in the OHSA and Regulations.

The Ontario Court of Appeal disagreed, noting that the trial justice failed to address whether the guardrails system in place was a reasonable precaution.

In Ontario (Labour) v. Quinton Steel (Wellington) Limited, 2017, ONCA 1006, the judge said: [44] “But prescriptive certainty is not required in the context of regulatory offences such as s. 25(2)(h). That section establishes a standard, rather than a rule, the requirements of which are tailored to suit particular circumstances. Employers must take every precaution reasonable in the circumstances in order to protect workers.

Reasonableness is a well-known legal concept that is interpreted and applied in a wide variety of legal contexts. Its use in s 25(2)(h) does not give rise to intolerable uncertainty”.

[45] “It may not be possible for all risk to be eliminated from a workplace, as this court noted in Sheehan Truck, at para. 30, but it does not follow that employers need do only as little as is specifically prescribed in the regulations. There may be cases in which more is required – in which additional safety precautions tailored to fit the distinctive nature of a workplace are reasonably required by s. 25(2)(h) in order to protect workers. The trial justice’s erroneous conception of the relationship between s. 25(2)(h) and the regulations resulted in his failure to adjudicate the s. 25(2)(h) charge as laid”.

The subsequent decision means that an employer can comply with all of its obligations under the regulations under OHSA and yet still be prosecuted under the “general duty” clause, even where the charges impose obligations that are greater than those set out in the Act. The general duty clause therefore requires all employers, whether they are condos, property managers, property management companies, contractors or service providers to the condominium industry to “take every precaution reasonable in the circumstances” using the Act and Regulations, along with precautions to address each working circumstance.

Now more than ever, the risks are too high to ignore.

www.REMInetwork.com | March 2019 49

NEW AND NOTABLE

Canada’s first multi-res net-zero building The federal government is investing in Canada’s first multi-residential net-zero apartment building, set to rise in London, Ont. The Government of Canada is investing $3.9 million toward the construction of Canada’s first net-zero, mixed-use, multi-unit apartment building in the West 5 sustainable community in London, Ont. The investment is being provided through Natural Resources Canada’s Energy Innovation Program.

The 175,000-square-foot residential building, Helio, hopes to demonstrate the possibility of net-zero energy for residences to inspire change across the country’s construction industry. Net-zero buildings are designed and constructed to produce at least as much energy as what they consume on an annual basis.

"This project will demonstrate first-of-its-kind net-zero energy construction in high-rise residential buildings, making it a model for the future,” said Amarjeet Sohi, Minister of Natural Resources, in a press release.

Helio, which was designed with both luxury and value in mind, will feature a multimedia amenity room available for private bookings, yoga studio and gym, theatre room, party room with a functional kitchen and lounge area and access to a walkable, pedestrian-centric community connected to trails, paths and open green spaces. The solar panel-wrapped mixed-use building will also include 25,000 square feet of retail space on its ground floor.

50 CONDOBUSINESS | Part of the REMI Network

Some of its sustainability features include individual hydro metering, in-suite thermostat-controlled heating and air conditioning, bicycle storage, stainless steel, ENERGY STAR-rated appliances, sensored corridor lighting, in-suite “all off” light switch and EV charging stations.

The building, which will be constructed by Sifton Properties Limited, will also include a monitoring system that will be used to optimize energy-efficiency performance. This system may become a boon to the industry, going forward.

"Helio will be the most energy-efficient high-rise in Canada, designed and constructed to be 77 per cent more efficient than a similar building built under the current Ontario Building Code,” added Richard Sifton, president of Sifton Properties. “This is quite an accomplishment, and there is no doubt that the Energy Innovation Program has enabled us to push Helio further than thought possible. It will be an incredible addition to West 5.”

Helio will fit right in to the West 5 sustainable community, which plans to feature community gardens, solar streetlights, solar parkades, a green roof and EV charging stations.

At completion, which is scheduled for April 2020, Helio is expected to be the most energy-efficient multi-use residential high-rise in the province.

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