Issuu

Canada’s Most Widely Read Condominium Magazine

November 2019 • Vol. 34 #6

A MANAGER'S

GUIDE TO

ELECTRICAL

SYSTEM MAINTENANCE

PM#40063056

Ask the Expert: Adopting property management technology Resident vehicle damages: Are you liable?

PA R T O F T H E

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Contents COVER STORY

A manager's guide to electrical system maintenance By Gerard Gransaull

Maintenance Concrete plans By Kent Ford

Operations Signed, sealed and delivered: Streamlining parcel management

Legal Resident vehicle damages: Are you liable? By Audrey Loeb

DEPARTMENTS

Regulatory Comment: Ontario's Auditor General misses the boat on Tarion By Leor Margulies

Industry Condos reign in Toronto housing market outlook By Rebecca Melnyk

IN EVERY ISSUE

Governance A vote for change By Denise Lash

Ask the expert

New and notable

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EDITOR'S LETTER

On with the show Welcome to the year-end edition of

CondoBusiness Magazine. With the PM Expo fresh in our minds (or memories, depending on when you're holding this), we've dedicated this issue to some of the industry developments, concerns, and hot topics that took focus during this landmark industry gathering. Our coverage includes an in-depth primer on electrical system maintenance from Gerard Gransaull, a building science director with WSP in Canada, and a familiar contributor to this publication. Within it, you'll find practical advice for extending the lifespan of your electrical systems and avoiding potential safety and operational issues that can arise when the power goes out. On the topic of operations, we also into the challenges of parcel management in the age of Amazon in Signed, sealed and delivered; while landscaping expert Kent Ford explores greenspace considerations during construction projects in Concrete plans. There is no shortage of legal and regulatory issues circling the condo industry. To that end, we've enlisted several legal experts to share their thoughts on topics such as proposed recommendations for the Tarion Warranty Company, care of Leor Margulies; the rise of electronic voting, via Denise Lash, and a discussion on parking lot liabilities from Audrey Loeb. Each of our authors has spent considerable time in the field of condo law, and their perspectives are undoubtedly worth considering. The use and value of technology in property management is also an ongoing conversation. To that end, this issue features a Q&A with Elik Jaeger, CEO of SuiteSpot Technology, on the challenges firms can face when bringing in new tools into their operations. With an additional look at Toronto's condo market and a glimpse at regulatory changes in Alberta, it's fair to say we've cast our net wide. I hope you find something within these pages to take back into your office or discuss on the PM Expo floor. This is my last issue as the editor of CondoBusiness magazine. I am thankful for the opportunity to be a part of this publication and happy to leave this publication in the skillful hands of our online CondoBusiness editor Rebecca Melnyk. Thank you to all who contributed during my tenure and everyone who took the time to read what the team and I were proud to produce. All the best,

Publisher Robert Hertzman Editor Matthew Bradford Advertising Sales Kelly Nicholls Jonathan Tosti Melissa Valentini Senior Designer Annette Carlucci Production Manager Rachel Selbie Contributing Writers Matt Bradford, Kent Ford, Gerard Gransaull, Denise Lash, Audrey Loeb, Leor Margulies, Rebecca Melnyk, Erin Ruddy 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.

Matthew Bradford Editor, CondoBusiness matthewb@mediaedge.ca

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Ask the Expert: Adopting property management tech New and evolving technologies are re-coding how condo property managers work. Yet while there are certainly benefits to bringing digital systems, mobile innovations, and “smarter” tools into an operation, ensuring a smooth adoption among staff and tenants can be a challenge. For this edition of Ask the Expert, we met with Elik Jaeger, CEO of SuiteSpot Technology, to discuss strategies for pushing through tech integration barriers.

8 CONDOBUSINESS | Part of the REMI Network

ASK THE EXPERT

that a new product is built for their workflows and addresses their day to day issues, that resistance disappears. What are the main barriers to tech adoption in property management? The key barrier is the status quo – the idea that "this is how we do things for many years, and it worked well for us." Change management is the biggest challenge for finding and implementing new technologies. In our experience, having a trusted and respected champion or project manager in the organization has proven to be a key contributor to the successful adoption of new technologies.

In general, how do you see technology changing the property management space? The property management industry has become very sophisticated, with players managing large and complex portfolios. It's in this new environment where data-driven tools and mobile technologies can transform many aspects of the job, be it inspections, preventive maintenance, service repairs, and other critical functions. Technology can also be used to connect all stakeholders to ensure everyone knows what needs to be done and when it needs to be done. For that reason, more and more property managers are leveraging advanced technology solutions to reduce risk and increase the performance of their operations. Have you experienced resistance to new technologies through your work with SuiteSpot? In every industr y, you’re always going to have employees who may not be as tech-savvy as others or, in the case of property management, ones who are overwhelmed with the idea of trading their notepads and walkie-talkies for a mobile device. That’s always something you need to consider in both the design and training stage when new technology is being brought into a company. Once employees understand

What tips would you offer property management companies when it comes to onboarding or training employees with new technology? There needs to be a strong business case. While new tech isn't always going to make you money, it will save the company a lot in terms of time and labor, and that translates to substantial operational savings. It really is more about the money you save rather than the money you'll make. Ultimately, a big part of convincing company leaders to invest in technology is making the case that it’s going to generate savings the moment you put in their employees’ hands. There is never a good time to take the time and implement new technology, but it would be hard to expect different results when following the same old and inefficient processes. How do you keep employees from slipping back into old habits? Old habits die hard, and while there are many examples of how technology contributes to increased efficiency and performance, they may not be enough to convince professionals who swear by traditional methods. There is an active change management element that needs to happen if you plan to take advantage of new technology. Not everyone is going to be open to learning new systems, and even if they are, they'll need training and experience with the technology before they start using it effectively. Ask your suppliers for adequate onboarding assistance to make sure your users are fully supported until they become comfortable with the new technology. While there may be slowdowns in the beginning, it will not be long until the benefits take shape. 1 E lik J aeger is C EO of SuiteS pot Technology (www. suitespottechnology.com)

www.REMInetwork.com | November 2019 9

Comment: Ontario's Auditor General misses the boat on Tarion

After an extensive review of the existing structure and inner

BY LEOR MARGULIES

workings of Tarion Warranty Corporation, Ontario's Auditor General, Bonnie Lysyk, issued a report on Halloween with

32 recommendations for major changes to the Corporation, in addition to the restructuring of the Corporation that is ongoing to divide the regulator from the warranty administrator. 10 CONDOBUSINESS | Part of the REMI Network

REGULATORY

“The Auditor General’s report, unfortunately, ignores the realities of the

industry, the purpose of Tarion, and the need for having builder involvement in the creation of regulations and processes because it is the builders who must implement them.”

A number of the key findings from Ontario's Auditor General include: • Tarion has too close a relationship w ith the O nt ar io H ome Buil d er s’ Association (OHBA) that has "created an imbalance over the years that favours the interest of builders at the expense of homebuyers." T he Auditor General took issue with the requirement that Tarion must provide OHBA with advance notice of new regulations and also that Tarion had 8 of the 16 seats on the Tarion Board. • Tarion's processes and practices do not always conform to the spirit or intent of the " Ontario New Home Warranties Plan Act." T he Auditor General used the practice of requiring

homeowners to deal with their builders first to rectify defaults before approaching Tarion, as an example. They also criticized the process of imposing the two, 30 - day windows for addressing and identifying defects in order for purchasers to have valid warranty claims. • Tarion is too strict with homebuyers and too lenient with builders. The report criticizes the fact that security deposits obtained from builders were less than the amount of payouts to homebuyers over the last ten years (i.e., only 3 0 per cent of payouts were covered by security). • Addressing exceptionally high s a l a r i e s a n d b o nu s s t r u c tu re fo r Ta r i o n exe c u t i v e s w i t h b o n u s e s representing 3 0 - 6 0% of annual salaries. But first, some background Ta r i o n w a s i n i t i a l l y s e t u p a s a n organization known as Housing and Urban Development Association of Canada (HUDAC), which was a voluntar y organization run by developers to create a backup new home warranty program supported by home builders for purchasers and to set standards for the industry in 1976. Back then, there were no statutor y guidelines for warranties or processes

for enforcement, and builders recognized that purchasers would need this kind of protection, failing which the government would legislate the same. HUDAC was later rolled into a separate corporation known as the Ontario New Home Warrant y Corporation and is a delegated governmental authorit y. It, too, was set up to establish statutory warranties for new homes and provide insurance for purchasers where builders did not honour these warranties. O v e r t h e y e a r s , Ta r i o n ( i t subsequently changed its name) has evo l ve d i nto w h a t e s s e nt i a l l y i s a consumer protection organization for the province on new home sales and services, creating structures and regulations and warranties without the need to go through the cumbersome legislative process if it was a governmental department. T he Auditor General's repor t, unfortunately, ignores the realities of the industry, the purpose of Tarion, and the need for having builder involvement i n t h e c re a t i o n of re g u l a t i o n s a n d processes because it is the builders who must implement them. As a commercial real estate lawyer with more than 35 years of experience, here are my thoughts on some of those key report items:

www.REMInetwork.com | November 2019 11

REGULATORY The closeness of the OHBA/Tarion relationship Tarion cannot create regulations in a vacuum without having discussions with the industry. If these regulations were being prepared at the legislative level, there would be several readings, committees, and in-depth input from all affected groups. Currently, regulations are posted on the Tarion website for c o m m e nt b y a l l c o n c e r n e d . T h e discussion with the industry at the early

stage is a healthy one and does not mean that the industry decides what the regulations are. Tarion takes into account the realities of building and balances them with the rights of consumers. Under the new structure of Tarion, the regulation-making arm will be divorced from the administration and registration arm of Tarion and have an independent Board. It still will need the input of builders and other qualified professionals to review proposed regulations and get

CONSULTING ENGINEERS

their input. Similarly, having builders on the board does not mean that Tarion has a close and cozy relationship with builders. It merely gets their input on industry issues. I have been involved with the Building Industry and Land Development Association (BILD) for over 20 years and served on the Tarion/OHBA Liaison Committee for almost as long. Taking into account builder concerns does not mean that the builders control Tarion. In my experience, builders on the Tarion Board take serious responsibility for their fiduciary duties. However, it is inconceivable to have only nonindustry directors totally running the corporation without builder representation. Input is received from governmental and consumer groups represented on the board as well. It is clear that Tarion has conducted itself impartially and, if anything, has always landed on the side of homeowners and consumer protection. Tarion warranty process The process of having a 30-day obligation to provide defects after occupancy and a further 30-day update one year after occupancy effectively protects builders and consumers. Without having a structure in place, the warranty process becomes a free-for-all for the first year. This process has resulted in detailed lists of deficiencies being provided by all consumers. Tarion is exceptionally diligent in ensuring that all consumers know of their rights. Builders are required to provide detailed information to the purchasers on the occupancy of the process so that purchasers can utilize these rights where required. There is now a portal on the website for inputting information and tracking information. Does the Ontario Auditor General suggest defects should be submitted at any time during the one-year period?

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Deficiency in funding Tarion payouts Here again, the Auditor General misses the boat in assessing the financial position of Tarion. Tarion gets revenues from premiums that are available for use in warranty payouts. That would be the primary source for any insurance company. It takes in premiums and then it pays out claims and makes a return on its capital investment. Tarion has tremendous reserves from the premiums and has fully covered all warranty payouts with a considerable reserve left over. Security requirements are a unique process for the building industry that is not usual in insurance situations. Builders provide security on both low-rise and high-rise projects, and the

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REGULATORY

“Tarion’s structure and operations

went through an extensive review by Mr. Justice Cunningham several years ago, which has resulted in the new structures splitting the regulatory and administrative processes.” fact that 30 per cent of claims have been paid out from this security alone leaves the Tarion funds from premiums even higher and well-positioned. I, therefore, take strong exception with the Auditor General's approach that Tarion is lenient with builders and strict with consumers. Tarion is a regulator and has to administer the process fairly for both sides. There is no reason to necessarily increase security beyond what is required. A detailed review is in the process of being completed. The Auditor General does not address whatsoever as to how the barriers to entry that these high levels of security and

the stringent registration and operating requirements that Tarion imposes are impacted. These certainly limit entry and competition. The Auditor General did not address this issue. Tarion's structure and operations went through an extensive review by Mr. Justice Cunningham several years ago, which has resulted in the new structures splitting the regulatory and administrative processes. This review already investigated and addressed similar issues as are in the report.

thoughts in her review, but overall, is out of touch with the commercial reality of the building industry in assessing Tarion's history to - date and its achievements. Ontario has one of the best new home warranty programs in the world, with the strongest and lengthiest warranties, and the healthiest of insurance funds to support the warranty program. It remains to be seen how these recommendations "will be implemented" in the new Tarion structure, as the government and Tarion have suggested. 1

Parting thoughts The Auditor General has some good

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Condos reign in Toronto housing market outlook Housing activity is expected to rebound in the Greater Toronto Area over the next couple of years,

BY REBECCA MELNYK

with condo apartments leading the way in sales and construction, according to The Canada Mortgage and Housing Corporation’s (CMHC) recent Housing Market Outlook for Canada.

16 CONDOBUSINESS | Part of the REMI Network

INDUSTRY

A population influx, more jobs, and lower interest rates will all fuel buyer demand. The market also predicts housing starts in the Toronto area will increase from this year’s average between 28,600 and 32,100 to 31,500 and 36,800 next year, with up to 30,500 in multi-unit buildings. The condo market, currently in sellers' territory with a sales-to-listing-ratio around 70 per cent, will likely see above-average price growth soon, particularly within the city and downtown cores of certain 905 areas, which are experiencing a huge supply crunch. CMHC forecasts the average home price will rise to an average between $765,300 and $898,400 by the end of next year. In 2021, the price is expected to further jump to an average between $771,000 and

$949,400. The average price currently stands between 740,600 and 854,600 for 2019. Prices will continue to increase, but not at the pace the market experienced in the last two years, according to Dana Senagama, CMHC’s principal market analyst for Toronto. “If we continue to see strong rental demand, immigration, and rising house prices, there will be a higher demand for condo apartments. We should see prices go up." S he s ays c o n d o s h ave b e en the “s av in g g r a c e” in t hi s hi g h - p r i c e d housing market and remain a more affordable option for new home owners in Toronto. Single - det ache d homes average above the $1 million mark , while a townhouse nears $800,000 to

$900,000 on average. Condos average around 500,000 for resale or 650,000 for a new unit, still more expensive than the average Canadian home. A lack of purpose - built rentals and changing demographics will keep the vacancy rate low and rental demand steady. Investors currently rent out about one-third of condos in Toronto. Developer Perspective Zev Mandelbaum, president and CEO of Altree Developments and a thirdgeneration developer based in Toronto, is seeing more people invest in condos as a source of income for later stages of life, such as retirement. He also sees investors who use renting as a way to tr y out a

www.REMInetwork.com | November 2019 17

INDUSTRY

“Imagine how many different needs,

backgrounds, different family sizes, and relationships there are. It is so diverse, and it's what makes Toronto so amazing.” neighbourhood before putting roots down or to acquire a more disposable income. User demographics are also boosting demand. “Older people want to change their housing style, creating a market for new housing on a smaller-scale," he says. "Boomers are looking at retirement and want the comforts of a small, tight-knit community with less maintenance. Millennials are getting older with families and are getting used to urbanization." He says the new housing outlook reassures him that Toronto is a healthy place to build, noting, “It affirms that what we go

through in the market during a lull is often driven by sentiment or international politics. It affirms housing is coming back, and there is a real need for it." Every year, people move to Toronto looking for a place to live. The city's population is predicted to rise from about 2.96 million to 4.27 million in 2046, an increase of 44.5 per cent in the next three decades or so. “Imagine how many different needs, backgrounds, different family sizes, and relationships there are," Mandelbaum notes. "It is so diverse, and it's what makes Toronto so amazing." A developer can’t build without thinking of the growing diversity that emanates

through the city, Mandelbaum adds, and this growing demand means creating a product mix that appeals to everyone. A good product, in turn, also helps the neighbouring communities. “When you’re developing something, you’re not just putting up a building; you’re creating a habitat for all types of people,” he says. “There may be 40 types of backgrounds in your building from nationalities to demographics. It is a habitat within the city that surrounds it.” 1 Rebecca Melnyk is the online editor of CondoBusiness and Canadian Facility Management & Design.

There When You Need Us At Crossbridge, we’re 100% committed to making your experience the best that it can be. As the leading condominium property manager in Ontario, we help to create great communities by focusing on the needs of owners and residents with a level of service that is second-tonone. Our experienced team members are just a call away and are always ready to help.

For more information, contact us today Sandro J. Zuliani | szuliani@crossbridgecs.com | 416-354-1926

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4/30/18 2:01 PM

5 www.REMInetwork.com | November 2019 19

SPONSORED CONTENT

online activity, which is not only what modern residents want, but what they are coming to expect.” Connectivity and Control Internet Protocol television (IPTV) is among the technologies that are redefining home entertainment.

The technology uses lightning-fast internet speeds to deliver 4K visuals, crystal-clear audio, and reliable streaming entertainment. Moreover, says Stokes, IPTV is being used in concept with advanced applications and systems to provide consumers with greater customization and control over their internet and entertainment services: “The advance of streaming, cloud-based platforms, and mobile technologies has opened up so many ways for customers to get content, but it can be overwhelming. Customers want those options, but they also want them to be streamlined, user-friendly, and available when and where they prefer.” To that end, Rogers has designed its services like Ignite TV provides to facilitate what it calls an “effortless TV experience.” Features that have proven popular with its customers include user-friendly search interfaces (including Netflix and YouTube); voice-activated controls; mobile streaming apps; and advanced parental controls. Part of that control also means enabling residents to enjoy their content on their terms, whether within the comfort of their condo or on the go. Herein, Stokes says mobile streaming apps; download & go functionality; and cloud PVR capabilities are also gaining in popularity: “Customers

are becoming accustomed to tailored, mobile, and on-demand service in all aspects of their lives, so it’s no surprise they expect that level of control over their home entertainment.” To each their own Multi-residential communities may share the same expectations for internet and TV, but individual unit owners’ needs will always vary. As such, it’s important to offer choices when it comes to packages and pricing. “There are no cookie-cutter solutions; it all depends on the customer’s needs,” agrees Stokes. “A family with three teenagers is going to have different needs than that of a single professional, which is why we always make sure to determine who is using the service, how often they intend to use it, how many devices they may require, and even when they plan on using it the most. That way we can advise them on what packages might work best and cater a solution – and price – for them.” It doesn’t matter where Canadians call home. Expectations for fast, reliable, and consistently exceptional internet, TV, and phone service is universal. And as those expectations evolve, it pays to align with telecommunication partners who can keep pace.

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

A MANAGER TO ELECTRIC MAINTENAN

22 CONDOBUSINESS | Part of the REMI Network

R'S GUIDE CAL SYSTEM NCE BY GERARD GRANSAULL

Canadians are lucky to enjoy a relatively robust and reliable electrical power infrastructure. Most of the time, we flick a switch and the lights turn on. The citizens of many other countries who experience frequent outages or fluctuating supply, however, are not so lucky. The stable nature of our infrastructure brings a certain predictable (yet inadvisable) complacency which quickly evaporates as soon as an emergency takes our grid off-line (not to mention, adults and kids alike break into a cold sweat over the spectre of a dead cell phone). www.REMInetwork.com | November 2019 23

COVER STORY Still, the impact of electrical power outages is considerably more profound than inconvenient in condo property management. An absence of light and power can pose health and safety risks to residents, some of whom may need to be evacuated. This can disrupt lives and force unexpected expenses. Individually, we can't do much to ensure our electrical grid remains functional. Of course, reducing our electrical demand goes a long way to reducing strain on the grid, which can significantly lower the risk of utility equipment overloads, fires, and brown- and black-outs.

Figure 1 - Interior of a transformer vault. The building owner may be responsible for maintaining the condition of the vault to protect the utility’s equipment within it

Figure 2 - High voltage switchgear with the main transformer in the background. Typically utility equipment, new buildings are increasingly including it as owner responsibility.

24 CONDOBUSINESS | Part of the REMI Network

Electrical maintenance 101 At the building level, managers and board members have an essential role to play in keeping the system operating safely and the current flowing. Paramount to this is ensuring your electrical system is well maintained. To plan for electrical system maintenance, it's helpful to understand how power is delivered to - - and distributed around - - the building. Main transformer The utility’s power supply grid operates at high voltage, which reduces cost and improves efficiency. This could be 25,0 0 0V or more. Before power can be sent to the user, the vo lt a g e must b e lowere d to useful levels. Transformers are used to reduce the high voltage down to safer levels. Transformers are everywhere; you probably have several in your pocket or purse as the cube of a cell phone charger is one. Newer buildings are typically supplied with power at 600V. This is useful for supplying larg e e quipment such as chillers or elevators but is still high enough to be a significant safet y risk. Much of a building's needs will be handled by 120/ 20 8V (or 240V). For an individual suite or home, usable voltage is 120/240V (or 208V). The main transformer for a building is often either in a below- ground vault or on- grade outside on a concrete pad. It is most often owned and maintained by the utility. In these cases, the condominium will not have access to the vault. It is imp or t ant to note that if a vault is within the c o n d o m i niu m's p ro p e r t y li n e s , t h e c o n d i t i o n of t h e vault is likely the condominium's responsibility, even if the equipment in the vault belongs to the utilit y. It is important to be aware, then, that leakage into a vault or structural deterioration of a vault can damage the utility's transformer, which can shut down power to the building or cause a fire. The condominium should arrange for access to the vault with the utility and their engineer at least once a year to check its condition. Look for water leakage, structural damage, flooding, overheating, or vermin. For an ex terior pad - mounted unit, the cor poration t ypically owns the concrete pad upon which the transformer sits and the cables which travel underground to the building. Staff should check the pad for settlement or deterioration as the severe movement of the pad could stress cable connections, leading to loss of power, arcing, and/or fire. It is becoming increasingly common for new condominiums to house and even own the high-voltage switchgear and the main transformer within the building. As a benefit, the utility will typically discount the hydro rate charged to the corporation. Main distribution Power from the main transformer is delivered to the main switchgear, which is a large building's equivalent of the main breaker panel for a house. The switchgear consists of metal cabinets with internal power bars carrying

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electricity, and it breaks down the main service into smaller chunks for use by the building. Fuses or breakers act as safety switches. The main switchgear fo r a c o n d o m i n i u m b u i l d i n g o f te n i n c lu d e s sw i tc h e s fo r su i te p owe r risers, main mechanic al equipment, Contact our Condo Service Team Today! (800) 838-8183 elevators, g enerators, lighting , and motor starter centers. If the main switchgear operates at 6 0 0V, the condominium will include CondoBusiness_Pretium_1/3squaread_2019.indd 1 additional transformers to reduce the power down to 120/208V for general use such as lights, plugs, etc. These are typically located in main and sub electrical rooms, as well as in-service areas such as the elevator machine room and a mechanical penthouse. From the main switchgear, electricity 2300 Yonge Street, Suite 2900 for common area (“house”) loads is Box 2384 Toronto Ontario sent to split ter boxes, disconnects, Canada M4P 1E4 and panelboards which contain circuit breakers (or fuses) supplying discrete loads such as lighting, receptacles, electric water heaters, and the like. In a condominium tower, power from the switchgear is often split into risers, which distribute it ver tically through s t a c ke d e l e c t r i c a l c l o s e t s o n t h e floors. A typical closet includes a main panelboard, which contains the suite breakers.

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COVER STORY

Elements of regular maintenance include the following: Visual review Regular visual inspections of all electrical rooms and electrical closets are impor tant. T his c an be done by the proper t y manager, superintendent, or another qualified person and is re c ommend e d m onthl y. C onsid er the fo llow ing w hen conducting this review:

nsure access to the area is effectively locked and E that the lock is tamper-proof.

eep storage out of electrical rooms, maintain K a t l e a s t a 1m f re e - c l e a r a n c e s p a c e i n f r o n t of distribution equipment, and keep storage off transformers.

nsure the room is not leaking or damaged; add E drip pans below pipes and drains to stop leaks from dripping onto live electrical equipment.

heck your equipment for rust, water stains, scorch C marks, overheating, dust, and dirt.

ote the room temperature, as it should not be N excessively hot. If the room has an exhaust fan, test its operation (look for a switch or thermostat on the wall).

nsure that covers on electrical panels are present, E secure, and free of gaps or openings into which fingers can be inserted or out of which fire can escape.

Remember, this is a visual review. Stay a few feet back, and don’t touch anything!

Figure 3 - Main switchgear. Note the water staining on the left side cabinet.

Thermal scans In normal operation, electrical equipment may be warm but should not be hot. Periodic scans by a qualified infrared thermographer can reveal which parts of a switchgear, panelboard, and similar components are running hot. This allows the problem to be diagnosed and repairs made before they escalate into equipment damage or fire. While the costvs-benefit is easily defendable to allow this to be an annual exercise, buildings under 20 years of age can reasonably defer to every two or three years. Switchgear maintenance Most large buildings have at least one main switchgear and may have several suite power riser transformers. Some also include high-voltage gear and the main power transformer. Maintenance of this equipment, in addition to regular thermal scans, includes visual inspection for immediate problems, testing trip setpoints, exercising and lubricating switches, cleaning the interior of the gear, and tightening connections to manufacturer's specifications. The frequency of this hands-on servicing is dependent on equipment age, site history, and ownership risk tolerance, from every 3 -5 years for newer sites up to annually as the equipment ages beyond about 20 years.

Figure 4 - Infrared image of an electrical connection. Photo courtesy Boldstar Infrared Services Inc.

26 CONDOBUSINESS | Part of the REMI Network

Arc-flash studies. Arcing is the unwanted flow of electricity across air, due to damage or ground faults. Arcing is very destructive, leading to shock and fire. People working around or on live electrical equipment, especially if the equipment is at hig h vo lt a g e, are at r isk of arc - fl ashes. T he

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COVER STORY Canadian Standards Association (CSA) has implemented a new C S A Z 4 6 2 Workplace Electrical Safety Standard. CSA Z462 is based on NFPA 70E, and provides guidance on the assessment of elec tric al haz ards and design of s a fe w o r k s p a c e s a ro u n d e l e c t r i c a l p ower systems. A n arc flash stud y c ategorizes electric al equipment by risk level and allows workers to choose appropriate protective gear. The study should be reviewed every five years or when major changes are made to the system. While arguably not mandatory for condominiums to perform, having t h e s y s te m's a r c f l a s h r i s k b a s e lined reduces risk to workers and the corporation.

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Reserve fund P ro ac tive maintenance of elec tric al equipment helps maximize equipment lifespan. Eventually, the replacement of o l d e quip ment w ill b e re quire d , t ypically, after about 35 to 4 5 years of use. Smaller components can fail sooner since disconnects, breakers, or panelboards may only last 15 to 25 ye ars. O w ners should ensure their reser ve fund has ample allowances fo r re p l a c e m e nt of l a r g e, d i s c rete equipment such as transformers, s w i t c h g e a r, M C C s , a n d r e l a t e d equipment. Owners would also do well to undertake these projects proactively as planning for replacement of the main transformer, for example, will allow arranging for temporar y power and get ting c omp etitive pricing via specification and tender. The opposite approach is to wait until the equipment fails, which will guarantee much more considerable inconvenience and significantly higher costs. Have a plan Establishing a comprehensive maintenance plan with your electrical professional ensures a condominium’s p ower system o p er ates s afel y an d reliably and will maximize its lifespan. Perhaps most importantly, it will reduce the risk of sudden, catastrophic failure, a disruptive and potentially dangerous occurrence. 1 Gerard Gransaull, P. Eng. is Director, Building Science – Building Condition Assessment, for WSP in Canada.

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A vote for change

Opponents of electronic voting BY DENISE LASH a re s c a re d . T he y're s c a re d electronic voting is going to expose the archaic and f lawed system of proxy voting for what it is: unnecessary

and obsolete. They're also scared because they know that it is largely through proxy voting that some people have been able to maintain and secure their positions for extended periods, giving them years –

sometimes decades – of unchallenged control and all the benefits that come with it. So, while the rest of the world has already adopted electronic voting or is moving quickly to embrace it, we see self-interested pockets of resistance in Canada trying to hang on to the status quo.

30 CONDOBUSINESS | Part of the REMI Network

GOVERNANCE T he first telling obser vation is that these pockets of resistance are not condominium owners themselves. If that strikes you as strange, it should. Ask any owner who has used electronic v o t i n g , a n d t h e y w i l l te l l y o u t h e inescapable truth – they love it. They get to cast their own vote, using an encrypted email link that connects with a secure online voting site. They vote at their convenience and in private. Fur thermore, they par ticipate in the voting process and express their personal preferences, which are free from the self- interested influence or interference of others. N one of this should come as any surprise. Owners are no different than any other consumer; they expect the same seamless and easy-to-use digital experience in their condo living as they experience in all other areas of their life. So the very notion that an owner should need to use a proxy – whether electronic or paper – to give someone else the right to cast their vote in this day and age of the internet must seem like a quaint holdover from the Victorian era.

“Ask any owner who has

used electronic voting, and they will tell you the inescapable truth – they love it.” Leaving proxies in the past It’s easy to see why electronic voting is now the norm in over half the states in the U.S. and spreading rapidly. It’s also easy to see why some states, like Arizona and Florida, have passed legislation which prohibits proxy voting, and other states are in the process of doing the same (more on that in a moment). C ondominium owners are not the only ones who love electronic voting. High - per forming condo directors, boards, and managers who are motivated by the best interests of their unit owners also love it. Electronic

voting dramatically increases unit ow ner p ar tic i p ati o n , fre q u entl y, u p to levels of 90 per cent or more. Unit owners engage in the voting process and express their opinion because it's easy to do. Just one "click" and they've voted. Boards have clear mandates as a result. T h e i n c re a s e d p a r t i c i p a t i o n a l s o ensures that quorum is easily obtained weeks, and at least days, in advance of a meeting. Electronic voting translates into owner participation, which itself translates into accountabilit y. High per forming condo directors, boards,

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GOVERNANCE

and managers welcome this kind of accountability as it means affirmation and recognition of a job well done. It ’s only p oor per formers, or those taking advantage of their position for personal gain or conducting themselves inappropriately, who fear the loss of control that occurs when electronic voting makes proxies irrelevant.

elections. Lastly, New Jersey recently allowed condos to use electronic voting and, at the same time, passed a law that prohibits condos from offering proxies to owners unless they also allow owners to cast absentee ballots, effectively rendering proxies meaningless. Why are these states passing laws to prohibit or severely curtail the use of proxies? The answer is simple: experience Looking stateside has shown that proxies may entrench It's wor thwhile to look south of our incumbent directors to the detriment of border at Arizona, Florida, and the US the condominium. It concentrates power experience, where electronic voting is and decision-making in the hands of a steadily leading to the extinction of the few, resulting in low director turnover, proxy. Arizona, the sunny retirement minimal accountability, and conflicts of state with one of the highest densities of interest that favour the few at the expense condominiums in the US, prohibits proxy of the many. voting after the developer’s control of The danger lurking in proxies is such the condominium has ended (which is to that US states are now discussing say, for most of the condominium’s life). whether the ban on proxies should be Similarly, Florida, another high-density extended from the election of directors condominium state, prohibits prox y to i n c l u d e vote s of a ny t y p e t h e voting for the election of directors. Illinois condominium conducts. There’s a reason provides that once a condominium adopts proxies have been banned in political electronic voting rules and regulations, elections in most advanced democracies; DelProperty_Condo_March_2018_torevise.pdf 1 if2018-04-13 PM ensure the proxy voting is no longer allowed for board that is, the goal 2:44 is to

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32 CONDOBUSINESS | Part of the REMI Network

integrity of the electoral process, allowing someone else to vote on your behalf makes no sense. Canadian perspective Canadians have historically been slow adopters. That's not a bad thing. We are cautious by nature, we encourage consultation, and we seek consensus – all of which takes time. In the case of electronic voting, its widespread acceptance is inevitable, and for all the right reasons. It's a matter of "when" not "if". Those seeking to resist the tides of change and hang on to the antiquated and inherently flawed system of proxy voting, whether by electronic or paper means, may have their own self-interested reasons for doing so. At some point, however, they’ll be forced to concede that electronic voting is both the present and the future, and in the best interests of the unit owners they serve. 1 Denise Lash is the founder and principal of Lash Condo Law (www.lashcondolaw.com).

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Concrete plans As many condominiums built i n t he l ate 19 8 0 s ne a r or sur pass their 30th bir thday,

BY KENT FORD

managers are facing issues related to failing roof slabs and garage membranes. Forecasting for repairs or replacements is usually included in the Corporation’s

reserve fund study, but that is only the first step toward a solid strategy that will streamline costs and minimize physical disruption.

34 CONDOBUSINESS | Part of the REMI Network

MAINTENANCE

Tr a d i t i o n a l l y, d e a l i n g w i t h l e a k s i n a n u n d e r g r o u n d garage meant considering a plan for complete membrane re p l a c ement. Unfor tun atel y, su c h work woul d invo l ve removing ever y thing above the membrane which, in all cases, would require the removal of landscape elements such as asphalt paving, concrete walkways, retaining walls, and all trees and shrubs. This can be a traumatic process for residents; one day they are looking out to a leafy courtyard filled with wildlife, decades- old trees, and dappled shade, and the next they're staring into an empty and lifeless space. Moreover, any semblance of the existing hardscape might be lost due to the usable space being cordoned off for construction. Preserving landscapes More up to date methods of underground garage repair exist that can result in fewer disruptions and lower costs. For example, condo property owners/managers might consider hiring a Membrane Consultant who specializes in technology

related to repair of the expansion joints of the original garage slab rather than the entire slab and membrane. They may also benefit from working with a consultant team that includes a landscape architect to develop short and longterm repair strategies over a 10 to 15 year period. This approach could see the preservation of existing landscape a r e a s a n d a n ex t e n d e d p e r i o d o f e n j o y m e n t b e f o r e demolition is required. And then, in some cases, it's better to eliminate certain species of trees and landscapes that have been ill-maintained sooner than later. In the case of trees like Acer platanoides (Norway Maple), the root systems are notoriously bad for garage roof membranes and the garage slabs as well. Dealing with these fast-growing trees early into the process can pay off in the long run. A master plan When planning a concrete repair, it's worthwhile to consider developing a long-range master landscape plan that includes

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MAINTENANCE

Pea gravel areas on the upper roof areas, unit pavers and commercial umbrellas on the lower roof area

Market Square Condominiums, deck courtyard: Demolition included removal of 30 year old trees, shrubs, pavers, and soil. All materials were carted away through a suspended catwalk erected in St. James laneway leading to Front Street.

“When planning a concrete repair, it's

worthwhile to consider developing a long-range master landscape plan that includes replacement trees with root systems that will have less impact on the roof or garage slabs over time.” replacement trees with root systems that will have less impact on the roof or garage slabs over time, as well as those which grow at a sensible rate, are sturdier in nature, and have higher aesthetic value for residents. Popular sug g estions includ e C ercidiphyllum j a p o n i c u m ( K a t su r a t re e), Q u e rc u s palustris (Pin Oak), and Pyrus calleryana (Callery pear). Advanced planning to use hard sur face treatments such as permeable concrete unit pavers are a sensible alternative to poured i n - p l a c e c o n c rete o r a s p h a l t . U n i t p avers are m anufac ture d to a ver y strong comprehensive strength which makes them easily removed, stacked, and re-installed, and they can last for

decades. Permeable versions of these pavers are also a plus where surface runoff can be dealt with in part through vertical percolation of rainwater, rather than over whelming c atch basin and storm sewers during the new norm of torrential downpours. H aving a master plan is also the first step towards developing a set of working drawings that can be put out to tender. This can be done informally and in such a way that actual costs can be assembled for short and long b u d g et i n g . R e s e r ve Fu n d a n a l y s e s can only go so far in assembling such bud gets as the math use d to arrive at line items in the Study are usually formulaic and subject to great variances.

36 CONDOBUSINESS | Part of the REMI Network

Lastly, employing new membrane and roof slab waterproofing and drainage techniques will create new structures that will have a 30 to 40-year lifespan. Preserving the view S i g n i f i c a n t p r o p e r t y r e p a i r s d o n' t always have to come at the cost of a nice view. Putting some forethought into the repairs and considering alternate approaches can ensure longterm value for your landscape and, in turn, your asset. 1 Ke nt F o rd i s fo u n d e r a n d p ri n c i p a l o f Ke nt F o rd D e s i g n G ro u p I n c ., a To r o n t o - b a s e d l a n d s c a p e d e s i g n and project management firm (www.kentforddesign.com).

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OPERATIONS

Signed, sealed and delivered An explosion in online deliveries has led to some unique challenges in the multi-residential space.

Whether it’s dealing with resident complaints about missing or damaged items, fire code infractions, or a lack of resources to cope with the daily onslaught, the e-commerce boom hasn’t made life easy for frontline building staff.

38 CONDOBUSINESS | Part of the REMI Network

OPERATIONS

A c c o rd i n g to P i t n ey B owe s , t h e p o p u l a r i t y of o n li n e purchasing has been rising gradually since 2014, only to increase sharply by 20 per cent between 2017 and 2018. Why is this happening? Because millennials make up the largest share of the Canadian population, and this cohort likes to online-shop. Canadian Internet Business says 67 per cent of millennials prefer making purchases over the internet, while Forbes predicts that e-commerce in Canada will be the largest retail channel by 2020, surpassing the choice to shop in actual brick-and-mortar stores. The problem, of course, is that not all multi-residential buildings are equipped with a concierge, and those that are, aren't necessarily set up to manage and stow these deliveries effectively. A recent survey conducted by Canada's leading p arcel lo cker c omp any, Snaile, found that , on average, building employees are spending just under ten minutes on each parcel delivery. From accepting and signing on behalf of residents, to logging and storing items, there are many steps to the exchange. Adding another hitch: these days, there are thousands of courier companies, many of which don't always follow commercial delivery protocol. Tendencies include "buzzer bomb" when a resident isn't at home — the random pressing of intercom buttons in order to gain access to the building. Subsequently, parcels are being left in the lobby where they can be stolen, damaged, or create tripping hazards, violating health and safety codes, and creating liability for the property owner.

So, what are the solutions? Short of banning parcel deliveries altogether, which wouldn’t be a popular option among residents, Patrick Armstrong, CEO of Snaile, says property managers should consider the following: Hire more front-end staff to deal with parcel management: Assuming the lobby is set up to handle the deliveries, this option would require hiring and training new reception staff to focus on the receipt and distribution of packages. Install Canada Post parcel lockers: Property managers should keep in mind that these lockers only service Canada Post deliveries, meaning there would still be a huge number of parcels to accept, albeit at a slightly reduced rate. Install smart lockers: The latest smart parcel management systems are accessible by all carriers and come in oversized lockers, meaning recipients can receive groceries and other large deliveries without difficulty. Automated parcel lockers are secure and convenient, with residents receiving a notification on their mobile phones when a delivery has been made. Aside from reducing the drain on manpower, these systems also reduce liability for building owners and administrators. The era of "one-click" 24/7 online shopping has no doubt created a strain on the parcel shipping community, not to mention the properties at the receiving end. Promisingly, "smart" technologies and enhanced services are helping to stem the tide. 1

www.REMInetwork.com | November 2019 39

LEGAL

Resident vehicle damages: Are you liable? Condominium corporations often

face claims for damages that have occurred when an owner or

BY AUDREY LOEB

resident's car is damaged either upon entry into the underground parking from the garage door, when the vehicle is vandalized, or when items are stolen. The common response by the car owner is that the condominium corporation should be responsible for the damage to the vehicle. People seem to think that if a loss occurs to someone's goods or a motor vehicle while on condominium property that the condominium corporation is "strictly liable" for the loss suffered and must pay for the damages. This is not the case. The law in Ontario is that the condominium corporation will only be responsible for the damage that may have occurred from a garage door hitting a vehicle, theft, or vandalism if the owner/resident can show that the condominium failed to exercise reasonable care. When claims have been brought against condominiums in Ontario on the grounds mentioned above, the courts have found that if the condominium has regularly serviced its garage door and is not aware of any failures in its operations, then the owner/ resident must seek recovery from his or her

own insurance company. A condominium corporation would only be responsible for damage to the motor vehicle it if was aware of a problem, did not address its correction, and a loss was suffered as a result. Case in point The previously described outcome recently occurred when a unit owner claimed against the condominium corporation for the loss he suffered due to vandalism to his vehicle, which was parked in the underground garage. The owner was unsuccessful at trial and on appeal. The corporation had made a business decision to switch its entry system to the parking garage from a phone entry system to a monitored CCTV system with 24hour licensed security, including rounds by concierge/security staff every two hours.

The c o u r t f o u n d t h e r e w a s n o evidence presented by the owner that the corporation's decision to change the entry system was unreasonable. In keeping with the case law in Ontario, t h e c o u r t s g a ve d e fe re n c e to t h e business decision made by directors. T he fac t that vand alism o ccurred d o es not in and of it self est a b lish t h e u ni t ow n e r 's c a s e a g a i n s t t h e corporation. In addition, the fact that the securit y did not devote full -time a t te nt i o n to t h e s e c u r i t y c a m e r a s d o es not me an that they bre ache d the standard of care. To prove this, the owner would have had to provide evidence that there was a failure on security's part that was unreasonable and that resulted in his loss. 1

Audrey Loeb is a senior partner in the Condominium Law Group at Shibley Righton LLP.

40 CONDOBUSINESS | Part of the REMI Network

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Individuals and businesses need a licence to provide condo management services in Ontario. The Condominium Management Regulatory Authority of Ontario (CMRAO) is the licensing authority that regulates Ontario’s rapidly growing condominium market. The CMRAO began operations in November 2017 to protect condo owners/residents and support high standards in condominium management. Regulation by the CMRAO means condo management professionals are licensed, meet education and experience requirements, and comply with a code of ethics. Handling complaints is an important part of public protection and promoting ethical and competent condo management services. The CMRAO also maintains an online public registry on its website, making it possible to search for individuals and companies that are licensed in Ontario. The CMRAO works in the public interest to build trust in condo management services and protect condominium communities.

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2016-06-24 8:59 AM

NEW AND NOTABLE

Alberta to review condominium property regulation The Alberta government has prioritized funds to review what it considers “ongoing dysfunction” in the province’s real estate industry, as announced in its recently released budget. Operating expenses of $300,000 will help Service Alberta, the ministry overseeing consumer protection and other services including registries and land titles, conduct a comprehensive analysis of the Condominium Property Regulation. The investment provides opportunities to reduce red tape, while promoting an efficient, fair and open marketplace. The ministry will also receive $450,000 to review the Real Estate Act to make sure the Real Estate Council of Alberta is a wellgoverned and trusted organization, able to deliver necessary functions, duties and powers while protecting consumers. Minister of Service Alberta Nate Glubish announced proposed changes to the Real Estate Act, earlier last month. Bill 15, known as the Real Estate Amendment Act, would allow the province to fire all 12 council members of the Real Estate Council of Alberta (RECA) and hire a new board of regulators. An official administrator would be appointed to lead RECA in the interim. 42 CONDOBUSINESS | Part of the REMI Network

“Our government is taking action to stabilize the Real Estate Council of Alberta,” he said in a prior press release. “For too long, serious concerns and complaints from industry and from council officials themselves have been ignored. That stops now. The council needs to stop focusing on trivial things like advertising guidelines and start focusing on protecting Albertans and addressing the actual issues facing the industry.” A third-party review by KPMG had pointed out significant concerns with the governance of RECA as well as its performance and regulatory effect. Some council members have already resigned as a result of the inquiry. “We welcome the amendments and look forward to working with the Minister and the Administrator to ensure compliance,” Rob Telford, RECA’s chair of council, said in a press release after Bill 51 was tabled. “As the independent governing authority for Alberta’s real estate industry, consumer protection is at the core of our mandate, and RECA will continue to operate under that mandate moving forward. Core operations at RECA are not affected by these amendments.”

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