CondoBusiness * October 2019

Canada’s Most Widely Read Condominium Magazine

October 2019 • Vol. 34 #5

CONDO DEMOCRACY Ensuring fairness in condo voting

PM#40063056

PA R T O F T H E

+

Ask the Expert: Electric vehicle charging stations The condo talent crunch

SHOW ’20 June 10 & 11, 2020 P A R T

O F

T H E

What makes this compactor smart?

What makes this compactor What makes this compactor smart? smart?

iSMART technology sends alerts and provides compactor diagnostics in iSMART technology sends alerts and provides compactor diagnostics in iSMART technology sendsit alerts andwe’ll provides compactor diagnostics real time.

With the data collects, reduce your service calls, limitin real time. With the data it collects, we’ll reduce your service calls, limit real time. With the downtime data it collects, we’llyou reduce your service calls, limit and save money. downtime and save you money. downtime and save you money.

If you want to optimize your waste stream, If you want to optimize your waste stream, If you want toat: optimize call us 416 743your 8484waste ext. 2stream, call us at: 416 743 8484 ext. 2 call us at: 416 743 8484 ext. 2

KITEC REPLACEMENT Complete package available including drywall and paint.

◆

◆

Replaced with uponor which provides a 25 year warranty on pipe and remedial damage.

Complete Building Replacement Recirculation Mains Replacement

◆

Distribution Mains

◆

Valve Replacement

◆

Balancing Valve Installation

We Beat Any Written Quote!

24 HOURS

416-789-7611

Contents COVER STORY

16

Condo democracy

By David S. Crawford

DEPARTMENTS

10

Management The condo talent crunch

By Armand Conant

22

Getting the message

By Sue Langlois

26

Governance Why managers should not take minutes Marko Lindhe and Noah Maislin

30

Industry Scenes from the Condo Conference

By Ashley Chiaramida and Lynn Morrovat

IN EVERY ISSUE

8

Ask the expert

34

New and notable

TRIVEST WILL MANAGE ALL THE DETAILS OF YOUR CONDOMINIUM BUILDING CUSTOMER SERVICE Make sure condo owners feel heard and supported in their living community.

For more information, call 416.449.4100 TRIVESTDEV.COM

REGULAR MANAGEMENT REPORTING Accurate and timely financial statements.

DETAILED OPERATIONAL UPDATES Daily maintenance, tender review and contractor management.

Our Business is to Make Yours Shine!

Whiterose is an Industry Leader with a long list of condos in the downtown and surrounding areas Whiterose Janitorial Services Ltd. believes in servicing its customers with professionalism, communication and appreciation. The Key to our success is service, quality and value. We clean beyond the surface!

Quality management begins behind the scenes prior to commencing a job all employees are evaluated and or training to the whiterose standard given special attention to health and safety policies.

Whiterose Janitorial Services is a full service company and a member of ACMO and CCI. Specializing in cleaning and live in & live out Superintendents for the past 30 years.

Spectrum of Cleaning Services: • Facility assessment • House keeping and general cleaning services • Customized cleaning service plan • Customized cleaning schedules • Window cleaning (Exterior high rise) • Garage cleaning • Marble restoration & Polishing • Carpet cleaning

Visit our website or call us today for your no-obligation quote!

WhiteroseJanitorial.com 1-877-253-3648 / 416-850-9676

Spectrum of Superintendent Services: • Building audit • Check Hvac • Perform generator tests • Cooling towers • Chillers • Compressors • Sprinkler system • Fire pump • Hot water tanks • Booster pump • On call 24/7 for emergencies

COMMITTED TO EXCELLENCE SINCE 1986

EDITOR'S LETTER

Stronger together Property stakeholders are endlessly

challenged to maintain fair, efficient, and impactful operations. Of course, this is easier said than done in an age where talent shortages, communication gaps, governance concerns, and tenant expectations are on the rise.

We at CondoBusiness have spent years keeping tabs on these challenges. We've also spent considerable time speaking with subject matter experts across Canada to collect insights into how property management stakeholders across the industry are adapting.

You'll find such insights in the pages ahead. David S. Crawford's Condo Democracy provides an in-depth examination of current voting rules and considerations for proxy voters, while Armand Conant takes an honest look at the shortage of property management professionals in The condo talent crunch. We've also included perspectives on overcoming tenant communication barriers in Sue Langois' Getting the message, and opinions on achieving optimal meeting results in Marko Lindhe and Noah Maislin's Why managers should not take minutes. Last (but far from least), you'll find a review of the recent Condo Conference in Toronto, which offers a glimpse of the good that happens when industry experts, trailblazers, and problemsolvers come together.

Speaking of getting together, the next time you'll see CondoBusiness is at the PM Expo from December 4 – 6 at the Metro Toronto Convention Centre. If you're making the trip, be sure to say hello. And as always, please feel free to contact me with any future story ideas or feedback.

Publisher Robert Hertzman Editor Matthew Bradford Advertising Sales Kelly Nicholls Jonathan Tosti Melissa Valentini Senior Designer Annette Carlucci Production Manager Rachel Selbie Contributing Writers Matthew Bradford, Ashley Chiaramida, Armand Conant, David S. Crawford, Sue Langlois, Marko Lindhe, Noah Maislan, Lynn Morrovat 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

Sincerely, Matthew Bradford Editor, CondoBusiness matthewb@mediaedge.ca

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.

/condomediaedge JTB_Condo_March_2017_FINAL.pdf

1

2017-02-23

11:36 AM

/condobusiness /condomediaedge

Working together – Making a difference

Residential: high-rise / low-rise ■ Residential: townhomes ■ Commercial / Industrial

■

Proudly serving Condominium Corporations since 2007

Tel: 416-663-2220 / 905-832-2220 ■ Fax: 416-663-2221 ■ www.jtbgroup.ca ■ email: info@jtbgroup.ca ■

5050 Dufferin Street, Suite 222, North York, ON M3H 5T5

The view is even better, when it’s coupled with peace of mind.

Ensuring open communication between unit owners and their Board of Directors is just one aspect of effectively managing condominiums. CLM’s team of professionally trained managers not only provide the highest standard of service, they ensure all aspects of accounting, site operations and physical maintenance is tailored to the needs of individual properties. If it’s time to reconsider your choice of professional management services; CLM—peace of mind, worry-free living.

For competitive management rates, or to find out how CLM can be of further assistance, please contact;

Kazi Shahnewaz

Director, Business Development Office: 1.877.81CONDO (26636) x 467 Cell: 647.887.5676 k.m.shahnewaz@condominiumliving.ca www.condominiumliving.ca

Ask the Expert: Accommodating Electric Vehicles It's an electric transportation revolution, and there's no slowing down. Yet as more and more commuters turn to electric vehicles (EVs) and hybrid alternatives, the movement is placing pressure on residential property managers to accommodate their choices. For many, the need to install electric vehicle charging stations is a matter of "when" and not "if." How are EVs changing the built environment, and why should property managers take notice? Here's Brian Millar, Manager of EV Projects with Plug'n Drive to discuss.

For the uninitiated, what are electric vehicle charging stations?

There are three main kinds of charging stations. All EVs come with a cord-set in the trunk that can be used to charge using a standard wall socket. In the industry, we call that Level 1 charging. An EV charging station, what we call Level 2, is just a box no bigger than 2 ft. by 2 ft. that is easy to install at the side of your house or in the garage. Most EV drivers will install a Level 2 charging station at home.

8 CONDOBUSINESS | Part of the REMI Network

ASK THE EXPERT

What maintenance is required for EV charging stations?

Little to none, really. Once they're installed, they pretty much take care of themselves. Most charging stations that are appropriate for an apartment or condo will have a networking fee attached to them.

Typically, this fee isn't too much – maybe $25-$30 per charging station – and it keeps the stations online while allowing the building to charge a fee-for-use. It also gives property management access to usage and maintenance reports.

Lastly, we have Level 3 (or DC-Quick charging). These are gas station replacements for EVs that are about the same size as a gas pump and will charge the vehicle's battery from empty to 80 per cent in 30-45 minutes. Level 3 stations are quite expensive to install and can cost upwards of $50,000, which is why they're only really practical for public charging applications along highways and major travel routes. By contrast, a standard Level 2 home charging station is pretty straightforward as they have roughly the same electrical requirements as a clothes dryer or stove, and any electrician can install them. They cost about $750-$1,000 to buy and an additional $500-$1,000 to install.

What are the benefits of accommodating EVs in a residential building?

The main benefit is to offer another value-added amenity, just like a gym or swimming pool. EVs are only going to increase in popularity, and a driver's choice of property is ultimately going to come down to where they can charge.

In short, EV charging stations help retain existing residents and attract new ones. Buildings also get LEED points for charging stations and, who knows, there may come a time when buildings don't have a choice but to offer charging, and it's always better to be ahead of the curve than behind it.

What are some misconceptions about EVs or EV charging stations?

Number one is that they will spike the electricity use in the building and cause a blackout. As I mentioned earlier, a charging station uses about the same electricity as a clothes dryer or stove, so it's not a significant draw on the electrical system. That said, electrical upgrades will probably be required, but these won't be over-the-top million-dollar projects.

Another misconception is that EVs cost a fortune to charge. To give some perspective, an EV in Ontario costs about $500 per year in electricity per year, which equates to around $41 per month or $1.50 per day, and there are ways that you can charge EV drivers a fee-foruse. The charging stations themselves can be set up to bill whoever is using them so that no one is getting an unfair advantage, and everyone is paying their fair share.

How prevalent are EVs in the Canadian market?

There are about 110,000 EVs on the road in Canada right now. Ever since they were introduced to the market in 2011, sales have only increased and Canada has been experiencing around a 100 per cent year-over-year EV sales growth. Worldwide, there are about 5.1 million electric cars on the road and every single global auto manufacturer has an EV on offer or is close to releasing one.

The moral of the story is that EVs are not going away. They are, quite literally, the future of the auto industry. I suspect automakers aren't researching internal combustion engines anymore and there will eventually come a time when you'll only be able to buy an electric car. That's a good thing since they offer better performance, they're cheaper to drive and maintain, and they reduce greenhouse gas emissions, which makes them considerable assets in the fight against climate change. 1 Brian Millar, Manager of EV Projects with Plug'n Drive (plugndrive.ca).

www.REMInetwork.com | October 2019 9

The condo talent crunch In the past few years, we have all seen the growing shortage of

BY ARMAND CONANT

condominium property managers. And as mentioned at the October 5th session of the annual Condominium Conference,

many believe we are already at the crisis stage. But how did this shortage arise? Will it get better or worse? There are several reasons this has arisen, all of which have come to a head at the same time.

10 CONDOBUSINESS | Part of the REMI Network

MANAGEMENT

By the numbers Ontario has more than 11,700 condominium corporations. While a good number are self-managed – which, of course, is a very acceptable way of managing a building – most are managed by professional management.

That said, there are currently about 2,500 licensed managers, 1,500 of which are General Licensees, and an estimated 300 of these which are in upper management and do not manage specific buildings. This then means that there are only about 1,200 General Licensees for thousands of existing corporations. And with more condos coming on stream at a fast pace – the talent crunch is only intensifying.

Industry barriers Historically, experienced managers have not been considered “professionals” when, in fact, they have provided high quality, experienced, professional management services. In other words, they often were not given the respect they deserved.

After pushing hard by the industry, the Condominium Management Services Act came into force on November 1, 2017, mandating the licensing of condominium property managers. At the same time, the Condominium Management Regulatory Authorit y of Ontario (CMR AO) was created to deal with all aspects of the licensing, training, governance, and discipline of property managers.

As a result of these initiatives, all condominium proper t y managers, or anyone who derives income from providing management services, must be licensed. Someone new to the industry would be a "Limited Licensee," and once the four mandatory courses have been completed and the manager acquired two years of experience, they would become a General Licensee.

Seasoned managers who did not have the required educational courses as of November 1, 2017, became “Transitional General Licensees” and were required to complete the courses by November 1, 2022. Those that do not become Limited Licensees, who are super vised by a General Licensee. Because of this, it's

not uncommon for managers to not take these courses and retire from the industry.

Lastly, managers must now pay an annual licensing fee. Although some management companies pay the licensing fee for their managers, many managers pay it themselves. As a result of this fee and the required courses, the

costs as low as reasonably possible. This can result in professional services being forced to be too low. And while condo boards rightfully expect the best quality management services, sometimes the demand is for a General Licensee when their building could be managed by a Limited Licensee (under the supervision of a General Licensee).

“Historically, experienced managers have not been

considered “professionals” when, in fact, they have provided high quality, experienced, professional management services.” general view in the industry is that there probably will be many Transitional General Licensees who will not renew their licence once the transitional period has expired, resulting in a further reduction in the number of experienced managers.

A matter of compensation Although condo property management can (and should) be a rewarding career, it is stressful. Managers are always on the front lines and dealing with day-today problems and, in the writer’s view, s alaries have historic all y not b een commensurate with the work involved.

This is not to criticize condominium boards of directors or management c o m p a ni e s . N o d o u bt , b o a rd s a re under enormous pressure from their owners to keep common expenses as low as possible; and in this sense, owner expectations can sometimes be unreasonable.

Consequently, in fulfilling their duties, boards work hard to keep the corporation’s

This expectation adds pressure on finding experienced General Licensees.

Sometimes, the situation above can be self-defeating in the sense that driving the costs artificially low or demanding a higher level of management (and thus costs) means that a corporation may have difficulty obtaining an experienced, qualified manager.

This is another contributing factor to the shortage of managers.

Same job, more work To complicate matters, the workload of managers has increased significantly with the reforms to the Condominium Act, 1998 (November 1, 2017). And, in many cases, there was not a reciprocating increase in management fees. These new duties include revised procedures for calling annual general meetings, the Periodic Information Cer tific ate, Information Certificate Update, filing requirements with the Condominium Authority of Ontario (CAO), and more. Some new management contracts reflect the increased workload

www.REMInetwork.com | October 2019 11

MANAGEMENT

and, in many cases, the board works with management to ensure they are adequately compensated. However, in other cases, they do not.

A s a result , despite signific ant work by community colleges and the Association of Condominium Managers of Ontario (ACMO) to encourage people to join the industry, there has not been a noticeable increase of people becoming managers.

An aging field Adding to the issue is the fact that the industry is somewhat weighted in the older manager category. This means there are managers who are retiring and many who soon will be doing the same, including Transitional Licensees.

Therefore, the supply of managers is reducing at both ends of the cycle.

As a result of all these forces and the shortage of qualified managers,

CONSULTING ENGINEERS

MODERN IDEAS PROFESSIONAL SOLUTIONS Mechanical Electrical

Energy Audits

LEED

Services

- Boiler Replacement Design - Domestic Piping - Chiller Design - Emergency Generator Design - Fire Protection Upgrade & Design

- Maintenance Scheduling - Capital Planning Report / RFS - Building Audits - Project Mangement - Power & Lighting Design

416.250.7222 1700 Langstaff Rd. Ste 2002 www.me-eng.com info@me-eng.com Vaughan, Ontario L4K 3S3 12 CONDOBUSINESS | Part of the REMI Network

manager poaching between companies is on the rise. While the movement of people to different companies is normal in every industry, the issue has become particularly acute in this industry given the current shortage.

Anecdotally, the author has heard that there are also significant signing bonuses and other incentives being offered to entice experienced managers to change companies.

Filling the talent pool We know this problem is here and that it is growing. So what can be done to reduce and eventually avert this problem?

Here are some preliminary suggestions: 1. Educate the condo industry of the need for qualified, licensed managers (recognizing that there will always be self-managed corporations), their role in protecting the building, enhancing the market value of units, and in helping in improving the condominium community.

2. Improve public awareness and promote the fact that property managers are, indeed, professionals.

3. Educate unit owners that managers and management companies are to be properly compensated (and some of their costs covered, such as licensing fees), which will attract people to the industry.

Owners have to remember that you get what you pay for.

4. Find additional ways to entice people to join the industry, such as younger people looking to start a career or those thinking of changing their career.

5. Find ways to slow down the retirement or withdrawal from the industry.

The property management talent shortage will grow, and the problem will become more acute in. It is not all doom and gloom, however, but rather an urgent wake-up call.

With a concerted effort by all of us in the industry, we will weather this storm and become an even stronger and more vibrant industry making for healthier condominium communities. 1 Armand Conant is a partner and head of the condominium law group at Shibley Righton LLP. He is past-president of the Canadian Condominium Institute (CCI), Toronto chapter, and chairman of the joint committee that prepared the legislative brief to the Ontario government regarding suggested amendments to the Condominium Act.

Bulk Internet for Condominiums

Ignite Internet : Deliver fast and reliable speed to your residents with fibre-powered network technology.

TM

Ignite Internet 150u

Ignite Internet 500u

Ignite Internet Gigabit

› Download speeds up to 150 Mbps1

› Download speeds up to 500 Mbps1 › Unlimited usage › WiFi modem rental included

› Download speeds up to 1 Gbps 1 › Unlimited usage › WiFi modem rental included

› Unlimited usage › WiFi modem rental included

Plus, get even more Rogers benefits: Opportunity for customers to get special pricing on higher tier internet2 5 – 10 year bulk terms available Rogers is ranked Ontario’s fastest internet3 100% unit participation required in order to be eligible Special

s for TV Packages

MajorAccountsClientS@rci.rogers.com

and Acceptable Use Policy. See rogers.com/terms for full details. 1 Ethernet/wired connection and at least one additional wired or wireless connection are required to reach maximum download speeds of up to 1 Gbps for Rogers Ignite Gigabit Internet. 2 Residents may upgrade their internet tier subscribed to by their building.

Rogers © 2019 3 Based on analysis by Ookla® of Speedtest Intelligence® average download speed data for Q2 2019 in Ontario. Ookla trademarks used under license and reprinted with permission. www.REMInetwork.com | October 2019 13

SPONSORED CONTENT

LONG-TERM FINANCIAL PLANNING Taking the Right Approach to Reserve Fund Studies

If there’s one guarantee in condo property management, it’s that nothing lasts forever. Over time, equipment will fail, assets will wear down, and vital systems will eventually need replacing.

While there’s no avoiding the inevitable, there are tools to help condo stakeholders prepare for these big-ticket expenses.

And topping the list, says Philip Sarvinis with RJC Engineers, are reserve fund studies: “In terms of long-term planning and avoiding financial surprises, there are few things more important than taking the r i g h t a p p ro a c h to yo u r re s e r ve f u n d planning.”

Taking that right approach begins with understanding the true function of reserve fund study. By definition, these studies are long-term financial planning tools that take a snapshot of a property in present time, assess what will need repairing or replacing over the next few decades, and inform

SPONSORED CONTENT

corporations as to what funds they need to be putting aside on a monthly basis in order to cover those future capital costs.

For example, says Sarvinis, “Elevators have a certain life expectancy, assuming they are well maintained. In a reserve fund study, you take that value of what it will cost to replace your elevators at the end of that life expectancy and program it into that projected year. So, when the time comes time to address the elevators, you’ve already funded for that expenditure and there are no surprises.”

What a reserve fund study is not, however, is a yearly rundown of “to-do” purchases. Just because an item is listed in a particular year for repair or replacement doesn’t mean it needs to be addressed in that year.

“It’s not meant to be a shopping list,” says Sarvinis, explaining, “A lot of owners think that since they have all these repairs listed in year 26, that they have to go out and spend all this money in year 26. That’s not how a reserve fund study should be interpreted. Instead, it’s there to remind condo owners when those repairs might be needed and to make sure money is being carried forward for that time period so that funds are in place when that work is actually required.”

Prior to any given large expenditure, the element should be assessed to determine if repairs or replacement is warranted or if there are additional years of service available.

“It’s very important to do reserve fund studies right, because the last thing you want to do is have a reserve fund that’s underfunded and, five years from now, discover that you

have to specially assess everyone. That’s typically not a popular choice with the rest of the ownership and having special assessments can make a property hard to sell.”

AIMING FOR ACCURACY There are other common misconceptions and mistakes condo stakeholders make when it comes to reserve fund planning.

One is failing to identify the proper lifespan of the equipment, while another is underestimating the real cost of fixing or replacing it down the road. Therefore, while the law dictates that reserve fund studies must be done every three years, it is far more advantageous to conduct them on a more consistent basis to ensure anticipated prices and market conditions are as accurate as possible.

“Doing reserve fund studies, or at least the capital planning portion, more often makes the most sense,” agrees Sarvinis. “ W h e n yo u c o n s i d e r i n f l a t i o n , ye a r l y changes in labour rates, and other economic conditions, your financial commitments are going to change sooner than every three years. You want to be as accurate as possible when it is time to present the study to the rest of the ownership.”

A COORDINATED, “BIG PICTURE” APPROACH A more coordinated approach to reserve fund planning can also help save time and m o n e y. F u t u r e w o r k o n a n e x t e r i o r component of the building, for example, can b e s c h e d u l e d a l o n g s i d e u p g r a d e s to

windows or building envelope repairs so as to avoid extra expenses associated with labour and project mobilization.

Reversely, replacing exterior caulking in year 22 to only go back in year 24 later and replace the windows can result in wasted work, extra set-up expenses, and added labour costs.

“If you can think about what things actually work together and what can be done together, there’s a lot of savings to be had,” notes Sarvinis.

Certainly, reserve fund studies require a calculated, knowledgeable, and “big picture” approach. Here’s where partnering with outside professionals to bring the experience, expertise, and foresight necessary to create accurate reserve fund studies and – perhaps more importantly – do what needs to be done.

“A reserve fund study is just one part of what we do; the other part is actually implementing what is in the reserve fund.

That’s where having experience from doing 100-plus similar projects a year can bring greater accuracy and detail to the reserve fund study,” says Sarvinis.

There are no crystal balls in condo proper ty management. With the right approach to reserve fund studies, stakeholders can better predict future expenses and plan accordingly.

Philip Sarvinis is Managing Principal of Building Science and Restoration with RJC Engineers, Toronto. Learn more about RJC’s Building Science practice at rjc.ca.

“Doing reserve fund studies, or at least the capital planning portion, more often makes the most sense.”

– Philip Sarvinis, Managing Principal of Building Science and Restoration, RJC Engineers, Toronto

rjc.ca

ENSURING F IN CONDO V

16 CONDOBUSINESS | Part of the REMI Network

FAIRNESS VOTING

BY DAVID S. CRAWFORD

Although the most effective ways to increase voter turnout will vary, there is universal agreement that elections of all sizes work best if participation is both easy and secure. It has also been demonstrated that more people will vote if the process is simple, and if there are several opportunities for or methods of voting.

Countries, academic societies, neighbourhood groups, and condominium corporations differ in how they are governed and how they maximize participation in their votes.

www.REMInetwork.com | October 2019 17

COVER STORY

In some countries, voting is compulsory; many elections offer a variety of voting locations, while others offer polling weeks rather than polling days, and most offer some form of advance polls - often using postal or electronic voting. The rules for owner involvement in Ontario condominiums are laid down in the Condominium Act, and, for many years, owners had two ways to cast their votes; attending the meeting or appointing a proxy.

Completing a prox y form gives an owner two options for exercising their vote: they can give their proxy holder specific instructions on how to vote or they can delegate the decision to them. Proxies that instruct a holder how to vote are de facto a form of advance voting. The recent revisions to Section 52 of the Act ex tend the advance voting options further; that is, if their corporation makes these options available through its by-laws, an owner

c an now also vote electronic ally or submit a mail-in vote.

According to the revisions, votes may be cast by, (a) a show of hands, personally or by proxy; or (b) a recorded vote that is, (i) marked on a ballot cast personally or by a proxy, (ii) marked on an instrument appointing a proxy, or (iii) indicated by telephonic or electronic means, if the by-laws so permit. 2015, c.

28, Sched. 1, s. 48 (1).”

The legality of mail-in ballots is confirmed by Section 56.1 c.i, which deals with the possible contents of by-laws: “(c.1) to govern the methods permitted for holding a vote by a show of hands or for holding a recorded vote under clause 52 (1) (b) and the procedure for holding the vote, including permitting a recorded vote

described in subclause 52 (1) (b) (i) or (ii) to be submitted to the corporation by mail." (emphasis added.)

Condominium owners are a very diverse group. Some live in the units they own, while some do not; some are first time property owners, some are 'down-sizers'; some are long-term owners, others are more transient; some work several jobs in the 'gig economy', while others are empty-nest retirees; and some are owners of multiple properties which they rent out. Most condominium owners do not want (or are too busy) to run for the board or even attend owner meetings, and 'absentee voting' is as much participation as they are prepared (or able) to offer.

As such, it is essential that appropriate advance voting options be made available.

Many owner meetings in condominiums are non-controversial and often have only procedural votes (to approve the minutes or adjourn the meeting). However, when there

“The rules about proxies in Ontario

condominiums have remained virtually unchanged since the province's first Condominium Act in 1967, and proxy votes have been problematic since then for several reasons.” are major voting issues (for directors, for new by-laws, for changes in services, etc.), these are important, and it should be easy for all owners to participate fully.

Making every vote count Condominium corporations themselves d i f fe r s i g n i f i c a n t l y i n t h e n u m b e r of ow ners in the mix of residents.

Therefore, if one wants to encourage maximum owner involvement, the ways and the tools to engage and involve owners will also need to vary. After all, one size will not fit all corporations – or even all meetings.

In the past, as noted above, an owner who could not attend an owners' meeting had only one way to 'participate': appointing a proxy. The laudable aim of proxies is to encourage owner participation but does this in a way that is open to fraud and which

COVER STORY

can be used by small groups of determined owners or directors to take or retain control of a corporation.

The rules about proxies in Ontario condominiums have remained virtually unchanged since the province's first Condominium Act in 1967, and proxy votes have been problematic since then for several reasons. Because proxies can be submitted up to the start of the meeting (or even during it), they are open to fraud as the signatures cannot be checked. If a proxy giver instructs their proxy how to vote, the proxy holder, if they were opposed, could simply not submit the proxy vote. If the proxy giver has allowed the proxy holder to vote in whatever way they want, a 'holder' can end up with multiple votes, which may be used in ways that do not reflect the views of their 'givers.'

Most problematic is the fact that proxy voters can only vote for candidates or motions that are known at the time they sign the proxy. They are unable to vote for directors (or replacement auditors) who are nominated at the meeting.

Call Mike or Kayla @ The recent amendments to the Act have allowed corporations to explore other advance voting options and many have started to adopt electronic voting by-laws; however, all advance votes currently suffer CBS_Condo_June_1/3squaread_2019v1.indd 1 2019-04-02 from a major problem in that one can only WE OFFER CATCH BASIN CLEANING AND PIT CLEANING! vote for a candidate or a motion that is COST EFFECTIVE AND QUICK SERVICE IN THE GTA. known at the time they cast their vote.

Though the current advance voting process is clearly flawed, the Act or the regulations could be amended to remove or minimize some of the problems. The Act T 2300 Yonge Street, Suite 2900 416 489 5677 could be amended to require that proxies F Box 2384 Toronto Ontario 416 489 7794 must be submitted in advance so that there w condolaw.to Canada M4P 1E4 is time to validate signatures; there could be amendments to prohibit 'from the floor' nomination of directors or auditors; there could be amendments so that the proxy giver can only vote or abstain and no longer be able to 'delegate' these choices to their proxy holder. If this latter course were followed, all proxies would become advance ballots that would be more 'secure' if submitted directly to the corporation and not 'filtered' through a proxy holder.

Though amending the Act and regulations to improve proxies and other forms of advance, voting would undoubtedly help ensure better and more meaningful owner participation less open to fraud, a far better option would be for the Act to be amended to altogether abolish proxies and replace

WE OFFER CATCH BASIN CLEANING AND PIT CLEANING!

COST EFFECTIVE AND QUICK SERVICE IN THE GTA.

905-565-0965

CONDOLAW.TO

www.REMInetwork.com | October 2019 19

1:41 PM

COVER STORY

mail or electronically). Regulations should also be introduced to give guidance or direction on advance voting timelines, and it may be necessary for some of the current nomination deadlines to be Proposal extended so that advance poll(s), mailThe following is a proposal to address the in ballots, or e-voting can be arranged risks that present themselves when proxy appropriately. voting occurs.

• Amend the Condominium Act to remove • Allow all owners who vote (whether they are present at the meeting or vote all mention of proxies and state that all in advance) to count towards meeting votes at owner meetings must be cast by quorum. the owner – either at the meeting or • For board - called owner meetings, in advance. boards should be required to provide • Amend the Act to remove the option in - person (at meeting) voting plus of 'at-meeting' nominations for board one or more advance voting options elections and the appointment of (e.g., advance poll(s), mail-in ballots, or new auditors. This should be done electronic voting.) One could also argue eve n i f p rox i e s re m a i n . A l l n o n that the Preliminary Notice of a boardprocedural motions and the names called owner meeting should state of all c an d i d ates b ein g vote d o n how the board proposes to provide the at a meeting should appear on the required advance voting. A percentage agenda. of owners (15%?) should then be able • Amend or clarify the Act to ensure that, to send in a requisition to demand without the need to adopt special by-laws, additional or alternate voting option(s). all Corporations, must offer some form(s) of advance voting for all owner meetings • For requisitioned owner meetings, the DelProperty_Condo_March_2018_torevise.pdf 1 2018-04-13 2:44 have PM requisitionists should the right (In-person advance polls or voting by them with several advance voting options – without the need for each corporation to pass new or amended by-laws.

50

C

M

20

Y

CM

MY

CY

CMY

K

20 CONDOBUSINESS | Part of the REMI Network

18

to select one or more advance voting options in addition to in-person (at the meeting) voting. If they do not select an advance voting method, the board must do so.

T hough Ont ario's condominium legislation has undergone several major reviews and revisions since the first Act in 1967, there is still more to do (in addition to proclaiming the remaining 2015 amendments). Most important is to reduce the possibility of voting fraud and strengthen the voices of owners by ensuring all owners have several options for securely casting their votes.

Condominium owners deserve to have a range of voting options on all issues; that is, in-person voting if they can attend an owners' meeting and the ability to cast an advance vote if they cannot. 1 D a v i d S . C ra w fo rd i s a n 18 - y e a r resident of a Toronto condominium (MTCC 573, www.mtcc573.ca) who has served as a director, secretary, and webmaster of his corporation for 12 years.

Uplifting Designs, Custom Installation

At Premier Elevator, every detail counts. We custom design and manufacture our interiors to reflect the building’s décor, bringing harmony from floor to floor.

Visit www.premierelevator.com for inspiring ideas just for you.

1 416 773 1400 info@premierelevator.com www.premierelevator.com

MANAGEMENT

Getting the message Tena nt commun icat ion is a critica l part of directing and

BY SUE LANGLOIS

managing a condominium corporation. And while disseminating information to a diverse and (at times)

mercurial

audience can be challenging at best, many common condo management issues (e.g., noise, pets, short-term rental, etc.) can be proactively dealt with when an audience is reached regularly.

22 CONDOBUSINESS | Part of the REMI Network

MANAGEMENT

CONSULTING ENGINEERS Building Science | Structural • • • • • • •

25+ YEARS CONDO EXPERIENCE

Investigations Design, Specifications Project Management Performance Audits Reserve Fund Studies Forensic Services Litigation Support

• • • •

Roofing Glazing Systems Exterior Walls Garage/Balcony Structures • Waterproofing • Site

Contact our Condo Service Team Today! (800) 838-8183

Traditionally, condominiums have relied CondoBusiness_Pretium_1/3squaread_2019.indd on various communication tools such as bulletin boards, phone calls, and email.

As technologies evolve, however, many are also adding digital displays to their communication toolbox – especially when located in highly-trafficked areas.

T here's a reason the ex pression "content is king " is p opular in the communication space. Content is the most crucial aspect of all; it must grab and keep an audience's attention. Uploading a Word document or PDF file to a digital display is not likely to get residents' attention any more than its predecessor the cork bulletin board did. Therefore, condo communication needs a fresh approach – something that gets people's attention, buy-in, and action to achieve and maintain a healthy condo corporation.

1

Condos@PretiumEng.com PretiumEngineering.com

2019-03-11 10:20 AM

Here are five devices to use to make condo notices that pop: Drama Catching the attention of condo residents can be challenging, so a little drama can go a long way. Try to shake things up a bit from the usual. For example, a four-

www.REMInetwork.com | October 2019 23

MANAGEMENT

paragraph notice asking residents to slow down in the parking garage is not nearly as compelling as a more dramatic approach like the following: Humour Getting a message across about the importance of following the rules without sounding bossy or rude can be challenging – especially when the intended audience is only a portion of the condominium resident population. Using humour can highlight an issue without alienating a population segment.

Take dog owners, for example. In the example above, having the pet “do the talking” raises awareness … along with a smile.

Shame Usually reser ved for condos with signific ant issues, a "shame" campaign shines a light on problems that need a quick and effective resolution. Things like littering on the proper t y and tossing items from balconies are not only bad for the proper t y's curb appeal and value, they c a n b e o u t r i g ht d a n g e ro u s a n d i nju re s o m e o n e. T hi s approach requires board members who are confident in their evaluation of the issue and are willing to stand by the decision to bring it to light. The timing of the campaign run is important too. Shame campaigns are typically quite short but often produce sweet results.

Creativity Traditionally, condo residents have been subjected to notices that announce upcoming events or attempt to convey rules in a manner not designed to capture attention. Word documents or PDF files are hauled out of a file, the date is changed, and the message is slapped up on a display to share with residents.

24 CONDOBUSINESS | Part of the REMI Network

This makes sense given the fact most property managers are not trained copywriters or graphic designers. Imagine the attention, then, when a notice gets posted that's totally outside the box.

Brevity No matter the message, and regardless of the design skills of the property manager, the main way to get the audience's attention is to keep the message brief. Whether it's about window washing, heating changeovers, or other upcoming events, the date and time are often all that most residents need or care to know. Including the name of the contractor or explaining the mechanics of an HVAC system are not relevant to the average audience, and those that really want to know will likely seek it out if needed.

A visually decluttered notice on an elevator display means it can be seen and absorbed in four seconds or less, and that’s the kind of message that’s key to keeping everyone in the loop.

Making a statement Drama, humour, shame, creativity, and brevity are all useful when it comes to craf ting notices for condo residents.

Use them wisely and well, and you'll discover what great communication can do in a condominium in regards to lowering costs on utilities, tidying up the property, and even shortening AGMs and board meetings as residents become more knowledgeable. And in the end, that's just good condo business. 1 Sue Langlois is Founder and CEO of DigiNotice Inc. (diginotice.com).

TorontoDecorating_Condo_November_2016_FINAL.pdf

1

2016-11-10

588 Edward Avenue, Unit 49, Richmond Hill, ON L4C 9Y6 P 905-737-0111 F 905-737-4046 (Guelph) P 519-827-1757

PRACTICAL APPROACHES

■

SENSIBLE RESULTS C

■

Reserve Fund Studies

■

Performance Audits

■

Condition Assessments

M

Y

CM

MY

CY

■

Specifications & Tendering

■

Forensic Engineering

■

Roof Consulting

■

Construction Review

■

Contract Administration

CMY

K

www.brownbeattie.com

KITCHEN STACK PRESSURE CLEANING

over

Your plumbing & mechanical service experts 16 Four Seasons Place, Suite 206 Toronto, Ontario M9B 6E5 (416) 642-2807 • (416) 642-2810-fax

CALL 416-789-7611 www.REMInetwork.com | October 2019 25 Jermark_QP_Condo_June_2016.indd 1

2016-06-24 8:59 AM

9

GOVERNANCE

26 CONDOBUSINESS | Part of the REMI Network

GOVERNANCE

Why managers should not take minutes Property managers have challenging jobs. They are responsible for coordinating the maintenance of the

BY MARKO LINDHE AND NOAH MAISLIN

building, supervising outside contractors for any major projects, keeping in close

communication with the board of directors, and managing the daily issues that arise. With many irons in the fire, monthly board meetings can be an extensive amount of work to prepare for.

Since property managers are the ones who are most aware of all of the activity that is happening in the condo, it would seem natural for them to also keep the minutes of the board meeting. However, there are many reasons that the manager may not be the best person for the job.

1

Impartiality When aspects of the property manager's job are being questioned or

challenged by board members, it can be difficult to keep impartial and professional minutes. However, it is essential for information to be conveyed without bias or emotion.

It would be nice if every board of directors got along harmoniously and worked together, but this is not always the case. Residents need to know that they are getting the impartial truth and will not have to question what they are reading.

2

Professionalism It is easy to get caught up in the “he said, she said” of board meetings.

However, minutes from board meetings are not a transcript of every word that was said.

In properly formatted minutes, things like decisions, approvals, and motions need to be included. Of course, there are things that need to be left on the cutting room floor (e.g., “he said, she said”, table fodder, personal opinions or preferences, etc.)

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

crossbridgecondominiums.com CCS119 - Crossbridge Condo Business - Half Page Horizontal (May 2018).indd 1

www.REMInetwork.com | October 2019 27 4/30/18 2:01 PM

GOVERNANCE It is also important that minutes are recorded in a proper format that makes the document easily readable, understandable, and consistent from month to month. As well, points need to be laid out clearly and succinctly to avoid reader misinterpretations.

Property managers have tremendously demanding jobs. If they are responsible for taking the minutes, it's possible that editing and formatting may take a back seat to other priorities that require more immediate attention. This, as well as other factors, can cause a delay in their completion and accuracy.

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

3

Active vs. passive participation Robert’s Rules of Order is a parliamentary model for conducting board meetings which provides procedures and rules that permit a deliberative assembly to come up with efficient decisions. It is used by many types of organizations, including the United Nations. Robert’s rules suggest that minute takers are not to be active participants in the conversation.

4

Contact Goldview Property Management and your Corporation can also realize significant financial and operational benefits.

www.goldview.ca • 416.630.1234 51 Toro Road, Suite #200 Toronto, Ontario, M3J 2A4 Fax: 416.630.3132

Minutes that will stand up in court Minutes are an official and legal record of a meeting. Having properly documented minutes is required under the Condominium Act. Unfortunately, there are times when minutes are required in the event of a lawsuit. No one wants their corporation to be liable because of minutes that were not taken properly. Clear and concise minutes will only help a corporation in the case of a potential lawsuit.

5

Goldview_Condo_July_2017.indd 1

BACK FLOW PREVENTERS

Testing • Design • Installation

Your plumbing & mechanical service experts

CALL 416-789-7611

2017-08-02

CMRAO Code of Ethics The Condominium Management Regulator y Authority of Ontario (CMR AO) is a self-funded non - profit corporation 3:38 PM is accountable to the Ontario Ministr y of Government that and C onsumer S er v ices ( M G C S ). T his c or p oration helps managers and management companies by providing protection in the increasingly popular condo market in Ontario. The Code of Ethics gives the rules that condo managers and management companies need to follow. One of the requirements covered by the Code attempts to prevent fraud, error, or conflict of interest.

Having a manager or board member take the minutes can be a conflict of interest.

Sharing the responsibility There are numerous reasons managers should avoid taking minutes. But who should take over? One option is to use a board secretar y or another board member to record the minutes. Although it is not ideal, it is a better option than having it fall to the busy property manager. Another option is to consider a third-party professional to record the minutes for your meetings. This will ensure unbiased and honest records about the decisions the board is making. Moreover, using a minute-taking professional will give residents confidence and trust in their condominium board and manager.

Whatever the decision, it's important that minute-taking is done responsibly, both to ensure the integrity of the board and to keep residents content. After all, happy residents ultimately make the job of a property manager much easier. 1 Marko Lindhe and Noah Maislin are the founders of Minutes Solutions Inc. (minutessolutions.com)

28 CONDOBUSINESS | Part of the REMI Network Jermark_QP_Condo_June_2016.indd 2

2016-06-24 8:59 AM

Transform Build Innovate

Build New Relationships.

Book Your Exhibit Space Today!

December 4 - 6, 2019 Metro Toronto Convention Centre

thebuildingsshow.com

INDUSTRY

Scenes from the 2019 Condo Conference The annual Condo Conference, BY ASHLEY CHIARAMIDA t h e l a r g e s t c o n d o m i n i u m AND LYNN MORROVAT conference and trade show in Canada, ushered in its 23rd year with a new look

and location, bringing vibrancy to the popular event for its latest edition. With the ever-growing number of condominiums being built in downtown Toronto, moving the event from its old home at the Toronto Congress Centre to the Beanfield and Enercare Centres at Exhibition Place was a natural choice for the event's organizers, the Association of Condominium Managers of Ontario (ACMO) and the Canadian Condominium Institute – Toronto and Area Chapter (CCI-T).

30 CONDOBUSINESS | Part of the REMI Network

2019's Condo Conference took place on October 4 - 5 with conference sessions housed in Beanfield Centre and a trade show floor in Enercare Centre. Attendees and exhibitors were introduced to a schedule offering dedicated session time for delegates and networking time for exhibitors on the show floor. Delegates and exhibitors were also afforded the opportunity to meet and greet at the official conference Networking Event on the evening of October 4, which was held at the Rec Room on Bremner Blvd.

The conference’s educational program offered streamed sessions catering to condominium managers, directors, condominium management students, real estate agents, owners, and more – all of which assisted delegates in determining the best offerings to select based on their level of expertise and profession. Topics ranged from the shortage of condominium managers vis a vis the number of condominium corporations in need of management to Condos in the Courts, which reviewed case law relevant to the industry.

The new McIntosh Perry increases our disciplines, expertise and services for the benefit of you - our #1 priority.

Increased Disciplines.

Increased Expertise.

Increased Services.

Visit our new website to discover how we can help your needs.

We’ve encountered almost every possible building-related issue.

Building Science | Condition Assessments | Project Management | Structural Engineering | Geotechnical Engineering | Environmental Services | Asbestos and Mould Survey | Material Testing | Roof Surveys

www.REMInetwork.com | October 2019 31

INDUSTRY

with more than 80 years of.... owning, managing, building, and adding value THE ENFIELD GROUP INC. “ADDING VALUE AND PROFILE TO PROPERTIES DETAIL BY DETAIL”

Contact: Greg Fraleigh, RCM, President Tel: 905-689-7341 Fax: 905-689-7452 Toll Free: 1-800-263-6952 Email: gfraleigh@enfield.net

www.enfield.net

Enfield_Condo_October_2015.indd 1

KITCHEN STACK PRESSURE CLEANING

Your plumbing & mechanical service experts

CALL 416-789-7611

2015-10-20

Keynote speakers Michael Landsberg and Barbara Stegemann captivated audiences with their talks during the conference. Barbara spoke to delegates about turning dreams into reality and empowering themselves to make a difference, while Michael discussed mental health, its stigma, and the importance of recognizing it as a sickness, 8:56 AM not a weakness – a topic of particular relevance as condominium managers and directors continue to face this issue on a regular basis.

With over 180 condominium industry suppliers on the show floor, those in attendance were offered an amazing opportunity to network with a wide variety of service providers offering solutions for their condominium corporations. Delegates also enjoyed a number of sponsored features; with cappuccino bars, smoothie bar, mini spas, a handwriting analyst, and an oxygen bar, there was something for everyone to enjoy.

Moreover, attendees had the opportunity to vote for the best booth on the trade show floor, which is awarded to a company whose booth design exemplified creativit y and marketing excellence. For the second year in the row, 2019's award was given to Shibley Righton LLP. Sincere appreciation goes out to all those who were involved in making this year’s Condo Conference a success on behalf of the event's organizers. This year's Condo Conference would not have been possible without the support of attendees, exhibitors, sponsors, organizing staff, and the event Partner Sponsor, Fine & Deo. Planning for Condo Conference 2020 is already underway.

Mark October 2 - 3, 2020, in your calendars and visit www. condoconference.ca for more information. 1

By Ashley Chiaramida (Association of Condominium Managers of O nta ri o) a n d Lynn M o rrovat ( C a n a d i a n C o n d o m i niu m Institute – Toronto and Area Chapter), The Condo Conference Management.

32 CONDOBUSINESS | Part of the REMI Network Jermark_QP_Condo_June_2016.indd 1

2016-06-24 8:59 AM

SHOW ’20

IMPACT OF TECHNOLOGY ON BUILDING MANAGEMENT AND OPERATIONS

June 10 & 11, 2020 Canada’s premier Real Estate Management Industry network (REMInetwork.com) presents 2nd annual forum and trade event for Building Owners, Facility & Property Managers. www.REMISHOW.com Supporting Partners

Supporting Associations (2019)

Media Partners:

SAVE THE DATE

NEW AND NOTABLE

Pharrell Williams designs condo towers for Toronto Reserve Properties and Westdale Properties have teamed up with singersongwriter Pharrell Williams on a residential development at Yonge and Eglinton.

The pair of condos, branded “untitled,” will also include architects IBI Group and Interior Designers U31. Williams has collaborated on other buildings around the world, such as the Youth Centre in Virginia Beach with Oppenheim Architecture + Design. This project, however, marks Williams’ first foray into the multi-residential sector.

“The partnership was born out of a desire to do something really unique for Toronto and architecture as a whole,” says Sheldon Fenton, president and CEO, Reserve Properties. “We believe by bringing in a cultural icon with vision and ideation from outside the realm of real estate it will allow us to break the mold in terms of what has traditionally been done. The experience has been off the charts and beyond our expectations.”

Design meetings held over the past year saw Williams collaborate on everything from the vision and architectural façade to the overall interiors and furnishings.

“The opportunity to apply my ideas and viewpoint to the new medium of physical structures has been amazing,” Williams said in a press release. “Everyone at the table had a collective willingness to be open, to be pushed, to be prodded and poked, to get to that uncomfortable place of question mark, and to find out what was on the other side. The result is untitled and I’m very grateful and appreciative to have been a part of the process.”

The brand untitled captures the idea that physical space is only a backdrop.

“To live your life untitled means not having to live up to something or perform beyond a standard. For the standard to literally just be this beautiful matrix that allows people to create their own world,” explained Williams. “How could we as designers ensure the essentials were really thought out and expertly crafted, but delivered in a way that left everything else up to the imagination of the person occupying the space.”

“Pharrell pushed us towards designing spaces that felt universal,” added Fenton.

“Instead of dictating a lifestyle onto our

34 CONDOBUSINESS | Part of the REMI Network

purchasers and residents, we aimed to create harmonious spaces that could serve as the backdrop to their lives.

That lens was applied throughout the entire building until we ended up with something that felt both timeless and singular.”

Reserve Properties and Westdale Properties have previously teamed up on Line 5. This new venture will feature 750 units, split between two towers and a joint-podium.

“Yonge and Eglinton is in the midst of a tremendous transformation that is unlike anything else happening in North America”, added Mitchell Cohen, chief operating officer, Westdale Properties.

“We were one of the first to invest in the area and to see just how far midtown has come since then has been a highlight. As developers with a long track record in this neighbourhood, collaborating with Pharrell is about pushing ourselves to do better. But it’s also an opportunity to give back to a community that has given us so much.”

The project is slated to launch in 2020.

KITEC REPLACEMENT Complete package available including drywall and paint.

◆

◆

Replaced with uponor which provides a 25 year warranty on pipe and remedial damage.

Complete Building Replacement Recirculation Mains Replacement

◆

Distribution Mains

◆

Valve Replacement

◆

Balancing Valve Installation

We Beat Any Written Quote!

24 HOURS

416-789-7611 www.REMInetwork.com | October 2019 35

36 CONDOBUSINESS | Part of the REMI Network