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A PEEK INSIDE ...
October 2018
October 2018
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FROM THE EDITOR ……. The October 22 election is about our future. We are fortunate to live in one of the world’s most popular, successful and effective cities. Condo Living and Toronto - A symbiotic relationship, identifies part of what makes Toronto a resounding success. Remaining successful requires capable politicians with integrity. Toronto’s Single Election Issue - Toronto Municipal Election 2018 reports on the recent restructuring of Toronto ridings. Some believe this episode provides rare insight into the self-interest of politicians wasting time and our money opposing decisions beyond their authority and jurisdiction for political gain. See page 25 for an understanding of this issue and how your elected candidate voted. Self-serving individuals are undeserving of political office. It is at election time when we remind them of our expectations for honesty and integrity.
Why Maintain the Condo Reserve Fund Page 2 Avoid Blocked Kitchen Drains Page 8 Impact of the Information Age on Condo Living Page 9 Meeting Minutes Should Include ... Page 11 Electric Vehicle Charging Solution for Buildings Page 13 Imposing Fines in Condo Buildings Page 15 Condo Dog Population Explodes Page 16 Climate Change and Condo Fees Page 20 Strategic Planning for Condo Boards Page 21 Home-Based Businesses Page 22 Less Parking, More Bikes Page 23 Toronto’s Single Election Issue - Election 2018 Page 25
CONDO LIVING AND TORONTO A symbiotic relationship
Over the past 30 years Toronto has grown into a large world-class city. It is no coincidence that condo living has become the primary form of housing during this time. Planners describe world-class cities as those that provide safe and secure living conditions; clean, attractive public spaces and buildings; walkable city centres, safe neighbourhoods; a diverse and vibrant street culture; and access to nature. There is a high
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Your condo roof may last 20 or 30 years. When replacement of that roof is necessary, not all condo corporations have set aside sufficient funds to pay for this major expenditure along with everything else funded through the reserve fund. What happens next is a special assessment where all condo owners are required to contribute to the replacement of that roof. Some condo owners may complain about the cost and the “unfairness” of paying for a new roof others will benefit from in the future. Certain owners may lack available funds at the time they are needed. All major components and systems eventually fail and require replacement. Assessments are what occur when condo boards fail to plan by setting aside sufficient funds for this purpose. Condo boards typically view reserve funds as existing to pay for future expenses. People prefer to avoid thinking of future expenses in the hope that they become someone else’s problem. At that future point everyone pays more because of a failure to plan.
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WHY MAINTAIN THE CONDO RESERVE FUND Uses include future expenses or current deterioration
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FINANCIAL MANAGEMENT
A better approach is to view the reserve fund as addressing ongoing deterioration. Repairing deterioration on an ongoing basis eliminates the need to think about future expenses. Deferred maintenance, special assessments and lower property valuation concerns are eliminated. That roof needing replacement is a significant and costly part of the building infrastructure with a limited and predictable life. These are some of the criteria necessary for reserve fund expenditures. The same applies to elevators, windows, common areas, chillers, cooling towers, parking areas, balconies and fire safety systems. Offsetting ongoing deterioration can cost as much as 40% of a condo corporation’s total budget. Unless 40% of all condo fees are being directed to the reserve fund, that fund may be inadequate to repair ongoing deterioration. When a reserve fund has enough money to replace each component of the building at the end of its useful life that reserve fund is described as fully funded. Condo owners may oppose a fully funded reserve fund because it increases monthly condo fees. The hope of these owners is that they no longer reside
in the condo when major expenditures are necessary and a special assessment occurs. At that time delayed maintenance and ongoing deterioration costs are more expensive and a responsibility of current condo owners. Every condo owner relies on their building’s infrastructure so that their home remains livable. When parts of that infrastructure deteriorate, it becomes necessary to repair that deterioration so future owners can benefit from this same infrastructure.
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DEVELOPMENT & INFRASTRUCTURE
level of connectivity when it comes to transportation, community and economic activities. Toronto fits these criteria. A world-class city is one that provides a lifestyle desired by many. Much of what Toronto has become can be attributed to condo living. Condo living provided, and continues to provide, a dramatic increase in housing throughout the city. This large number of people concentrated in one area makes it possible for economic activities coveted by those who desire an urban lifestyle. As population and tax revenues increase, Toronto has effectively utilized funds in ways that promote an active urban lifestyle that continues to attract people to the benefits of city and condo living. It’s no wonder tourists from around the world flock to Toronto each year to experience what most Torontonians take for granted. Toronto deserves the world-wide recognition it receives for the many ways it manages the city for its residents. Public Transportation Toronto offers a large, efficient, modern and clean transit system that traverses the city and outer regions. Few within the city are more than minutes from public transit. Subway cars arrive at stations every few minutes. The city is easy to reach through
regional transit systems providing easy connections to Toronto transit. Major expansion of the public transit system, late in coming, is underway throughout the region. Toronto’s transit system has growing pains. There is a need for more transit and modernization. Overcrowding can be a problem. Yet these problems are minor in comparison to most other cities. Government has done an admirable job of maintaining and expanding the region’s public transportation system. Police Toronto’s police force does an admirable job. They are approachable, polite and respectful. They work to improve their relationship with local communities through outreach programs. People feel safe in Toronto because of our police force. Toronto requires a relatively few number of officers to maintain the peace at most major events. Traffic control seems to be their most significant task in a city where people are mostly respectful and appreciative of their efforts. Entertainment Restaurants, nightclubs, museums, live theatre and cinemas are the envy of most cities. Scotiabank Arena
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(formerly Air Canada Centre), Ontario Science Centre, Ripley’s Aquarium and other large venues have few equals elsewhere. Rogers Centre and Scotiabank Arena are easily accessible to residents and tourists alike. Access to these venues via TTC, regional transit or the PATH are luxuries unavailable in many places. A People City Toronto’s efforts to remain a people city are too numerous to mention. Parks and parkettes offer a break from urban concrete. Seating where people can relax and converse is nearly everywhere. Its clean, safe and maintained public facilities include parks, swimming pools, playgrounds and libraries. Wide and clean sidewalks and regularly emptied trash receptacles make it enjoyable to walk the streets. These are the basics to a livable city. Marathons, parades and other public events bring people out of their homes. New Year’s Eve, Remembrance Day, Canada Day and Santa Claus Parade celebrations each attract many tens of thousands of people. Street closures to facilitate these celebrations and local fairs are an accepted
part of keeping Toronto a city for people. Each winter Toronto is home to more than 50 outdoor artificial rinks for recreational skating and hockey. All are free to the public from November until March. Among them Nathan Phillips Square is unique. It is in the centre of our city and a winter locale where people enjoy the winter season. Year round residents, workers and tourists stop to relax, take in the view and enjoy Nathan Phillips Square. Harbourfront, CNE, Nathan Philips Square, Mel Lastman Square, Distillery District and other major venues attract residents and visitors alike. The Danforth, China Town, Italian District and other ethnic centres allow people to enjoy or reside within ethnic cultures of their choosing. These are just some of the attractions Toronto has to offer which make people want to live in or visit this great city. Some feel the city is too crowded and congested. What many ignore is that large numbers of people are what make it viable for restaurants and entertainment venues to thrive. Few desire the old days when the city closed up after dark. There were few restaurants and even fewer choices for relaxation or entertainment. Toronto is a city that works. Let us hope that the next 30 years are as successful as the past 30 years.
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DEVELOPMENT & INFRASTRUCTURE
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Not everything that goes down the drain makes it through the pipe. Food waste, coffee grinds, cooking oil, fat drippings or kitchen grease in kitchen drains can cause blockages that are expensive to clear out. In addition to plumbing repair costs, drain blockages that cause water to back up into a home may result in insurance deductible payments and rising insurance premiums. Over time build up in pipes will block up drainage
systems causing sewage and water to back up through sinks, floor drains and toilets. Water overflows can cause damage to your home and those of your condo neighbours. While some believe that dish soap or hot water mixed with grease will break it down, these temporary measures allow grease to re-solidify in pipes. It only takes one resident to block up a single drain stack servicing dozens or hundreds of people.
AVOID BLOCKED KITCHEN DRAINS
BUILDING MANAGEMENT
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Accessibility of information over the Internet has devalued the relevance of fact. It has blurred the line between experts and others thus allowing untruths to proliferate. Any layman can present themselves as being as authoritative as an expert while espousing unsubstantiated opinion. They rely on the power that emotion can have over fact. This has made it harder for condo corporations to make good choices.
Information overload is everywhere. An average supermarket contained about 9,000 products in 1976. Today there are over 40,000 products. Yet most of us require no more than 150 items. Over the past ten years we have created more “information” than in our entire history. Google, Wikipedia and the proliferation of blogs may be symptoms of the “death of expertise”; a
IMPACT OF THE INFORMATION AGE ON CONDO LIVING
CONDO BOARDS
A backed up drain creates a mess, bad odours and possibly flooding damage. The cost and inconvenience is easily avoided by following a few accepted practices. √ Use sink stoppers or sink strainers/screens to
prevent solid items from going into the drain. √ Never pour grease or oil down a drain. Grease
and oil are not water soluble. They stick to inner pipe walls, prevent proper drainage and create blockages.
√ Wipe down pans with a paper towel before
cleaning. Keep a sealable container for grease and oil. Dispose of these containers in the garbage room. Avoid disposal in the garbage chute.
√ Do not pour corrosive chemicals such as Liquid
Plumber or Drano down drains. Many
commercial cleaners that claim to dissolve grease only serve to transport if further down the pipes where it is harder to reach and more expensive to clear out.
√ Do not install a garbage disposal unit in your
kitchen. Electric sink disposal units are not compatible with high-rise building systems.
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term used by Professor Tom Nichols to describe a society where those who have developed an expertise and good track record are no better regarded than any other individual. An example of this manifestation is when people go online to diagnose themselves and value their diagnosis as equal or superior to that of an experienced doctor. The fact that accurate diagnosis and proper treatment requires more than a matching of symptoms becomes irrelevant. Another challenge is that human brains are not designed to multitask. While we can multitask, this leads to over-stimulation and lack of decisiveness. Information overload is far more extensive than it once was. A third challenge is that maintaining pre-existing beliefs is easier than accepting conflicting information from experts based on factual information and their experience. People intent on swaying others to their opinion take advantage of those who value their own beliefs over facts. It is easier to capitalize on this when there is information overload. Effective decisions in condo corporations require that directors fight back against information
overload and the preference of belief over fact. Condo owners should be electing and supporting directors who are predisposed to better information management and reliance on fact.
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Meeting minutes of condo board meetings may be one of the most important documents for condo corporations. They are a permanent record of corporation business. Meeting minutes are a record of all actions taken at a meeting. If something is not mentioned in meeting minutes there is no record of it occurring.
Meeting minutes are not a verbatim record of discussions at a board meeting. Details or background information
MEETING MINUTES SHOULD INCLUDE …
CONDO BOARDS
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CONDO BOARDS
do not belong in meeting minutes. They are intended as a record of all board votes and decisions made at the meeting. On too many occasions, meeting minutes fail to contain important information. Too much information or excessive detail can become problematic in the future and should be avoided. While it is permissible to use notes, video or audio records taken during a meeting to assist in preparation of minutes, these should be destroyed once minutes are approved by the board.
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Items that should be included in meeting minutes:
√ Written agenda; typically distributed
in advance
√ Confirmation of a quorum being
present
√ Proof of proper notice for the
meeting
√ Arguments or debates relating to
specific issues if a director requests their position be part of the official record
√ Resolutions drafted in advance by
legal counsel which pertain to legal matters or offer relevant clarification
√ The vote of every director - It is
assumed that each director assents to each action taken by the board unless documented otherwise
√ Any director who has abstained from
a vote because of a conflict of interest or who has a financial interest in the matter being voted on
√ Unfinished business
√ New business
√ Adjournment
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Few condo communities have heard of the DCC box. That may be about to change thanks to the efforts of one company that appears to have successfully addressed the challenge of electric vehicle charging in condo buildings. Electric Vehicle Charging Systems (EVCSs) are now available in office buildings, retail locations and elsewhere. The exception to this is condo and apartment buildings where EVCSs have failed to gain traction. EVCSs have been an impractical and costly solution until now. The DCC box eliminates virtually all concerns about electric vehicle charging in condo communities. It resolves the nightmare of installing EVCSs in condo and apartment buildings. Implementing an EVCS solution in condo and apartment buildings has thus far been unsuccessful because of four concerns:
1. Electric panels for each unit are generally limited to 100 amps. The building’s electrical panel, which supports common areas, requires an upgrade to support electric vehicle charging. This upgrade is expensive particularly if only a few residents desire it.
2. Approval of the condo board is necessary
because of cost and potential impact on common areas. This impact comes from large amounts of electricity needed for electric vehicle charging, particularly with numerous vehicles charging at the same time, thus reducing the amount available everywhere else in the building.
3. Additional enhancements are necessary to
measure and charge for electricity used by an EVCS.
4. Any condo building solution needs to be equally
available to all units. Implementing a building-
ELECTRIC VEHICLE CHARGING SOLUTION FOR CONDO BUILDINGS
URBAN TRANSPORTATION
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wide solution that will not exceed the capacity of the building’s electrical panel is a significant and expensive undertaking.
DCC stands for Demand Charge Controller. It is a small box installed between a condo unit’s meter and the electrical panel. Its purpose is to divert some of the electrical power to an EVCS or plug. It monitors electricity consumption of the panel and ensures its limit is not exceeded. Once power exceeds 80 percent of the limit power is cut to the charging station. This solution allows any condo owner to have an EVCS regardless of electrical capacity of the building. The installation does not impact common areas or other units. A small space, in the electrical room where meters are located, is required to install the DCC box which is wired to a plug or EVCS at a parking space. This solution can support any plug, EVCS or vehicle model. The DCC box sells for about $1,100. Hundreds have been installed in Quebec. Installation cost depends on distance to the parking space and what is required at the space. We may be years away from seeing the average
parking garage filled by electric vehicles. For those wanting an electric vehicle today, DCC is the solution. Condo communities can now allow an individual unit owner to install an EVCS without incurring overhead costs and impacting on common areas or other units in the building.
URBAN TRANSPORTATION ELECTRIC VEHICLE CHARGING SOLUTION… CONTINUED FROM PAGE 13
Electric meters for individual suites in a condo building.
Each meter could have a DCC
between the meter and the electrical panel.
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It is not uncommon for condo corporations to impose monetary fines against condo owners and residents who repeatedly ignore condo rules and continue actions damaging to condo property or disruptive to residents. Fines are a recognized way to make people responsible for prohibited actions. Toronto imposes fines for traffic violations and other conduct deemed improper. Courts have long had the authority to impose “fines” against parties for their conduct. In condo buildings fines may be imposed against owners of dogs not kept under control or which urinate or defecate on condo property. Other situations may include improper disposal of waste or repeated violations of noise rules that necessitate written notices. The Condo Act is silent about a condo corporation’s authority to impose fines. Some condo declarations limit this authority to the charging back of actual costs. Perhaps this is because costs can be independently quantified while fines can be random and imposed in a biased manner. Fines are a recognized and accepted way of helping to enforce acceptable behaviour in our society.
IMPOSING FINES IN CONDO
BUILDINGS
GOVERNANCE
Condo residents may complain about neighbours but are unlikely to collect evidence nor will they sign an affidavit about misery they are subjected too. People can be afraid to be identified as complainants. Condo residents may prefer the condominium manager or board to fix problems without their having to get involved. This approach, desirable for some, leads to more problems and should be avoided. When many live together in one building there are bound to be conflicts. Noise and odours are two of the more common complaints. Assuming that a complaint is valid, there is little a condo corporation can do unless someone provides factual evidence – dates, times, location and particulars of the incident. It is best when someone can attest that they saw someone do something inappropriate. Such details are important to ensure there is proof a particular condo rule or bylaw was breached.
CONDO CONCERNS REQUIRE EVIDENCE
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Toronto’s dog population, along with its condo population, is exploding. This is creating new challenges for condo corporations and city planners. Some spaces have become so “contaminated” with dog urine that dogs have gotten sick and others avoid these areas. The smell of urine is strong enough to be noticeable. An informal study of dog registrations near CityPlace suggests condo buildings can have an average of 7 dogs per floor; that is 168 dogs for a 24-storey condo building or 280 dogs for a 40-storey condo building. According to Toronto Parks, Forestry and Recreation that translates to 1.4 dump trucks of dog poop per year for some condo buildings! As green space becomes more limited dogs can be a source of conflict among condo residents. Dog owners require space for themselves and their pets. They compete for this limited space with non-dog owners and children who desire clean pet-free spaces devoid of dog poop and urine. In 2015 Animal Services Enforcement responded to nearly 1,000 calls relating to excrement and unsanitary calls. The problem is so severe that CityPlace has banned any more pets from residing in two of its buildings. Condo buildings lack outdoor space for dogs. It is not uncommon for dogs to be prohibited in the front of a building, on green spaces or fountain areas.
Dog advocates argue for an improved environment for dogs. This may include condo buildings designing fountains so dogs can drink, or pet amenities such as play areas and dog washing facilities. The city could design sidewalks with gravel buffers for dogs to protect grass and flowers. Parking areas can be designed to include dog runs.
CONDO DOG POPULATION EXPLODES
CONDO PETS
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According to at least one estimate, 70 percent of condo corporations are underfunded. Owning a condo in one of these communities puts you at risk of a Special Assessment. If all goes well, your condo board has taken steps to improve the financial position of your corporation and avoid a special assessment. Does your Corporation require a Special Assessment? The only way to know is to review the Reserve Fund and operating accounts as reported in your corporation’s financial statements. Review at least the past five years of records. For each year determine if each account has been increasing or decreasing. This tells you if funds coming in are sufficient to cover current expenditures. Next, review estimated funding requirements for the next three years to determine if near-term upcoming expenditures are expected to deviate from the past few years. This is particularly important for the reserve fund where annual expenditures are more likely to dramatically increase as a condo building ages. This information should be sufficient to determine if your condo corporation may soon require a special assessment. Where it appears that anticipated expenditures are likely to exceed annual revenues and savings, your condo corporation is at risk for an increase in condo fees or, when the amount is more substantial, a
special assessment. Alternatively, the condo corporation may consider obtaining a loan when a special assessment or increase in condo fees may be viewed as too burdensome for condo owners. Communicate! Communicate! Communicate! Regardless of how a funding issue is to be resolved, condo owners are legally required to fund it. Make them aware of the situation at the earliest possible date, reasons for it and details. Anticipate that owners will be angry and upset. They deserve to be. This represents a management failure at some level. The board should be honest and forthright about the situation. Hiding the truth is, or will be assumed to be, part of the problem. Owner Responsibilities In all likelihood, the board will have done their homework and identified the best path forward. Educate yourself on what work is necessary in your building, how much money is required and how it will be obtained. Look closely at the current board and determine how well they have managed corporation funds. Decide if they are correcting a problem created by a prior board or if they are the cause of the current financial shortfall. This will help you determine if new condo board participation is warranted.
SPECIAL ASSESSMENT EDUCATION
FINANCIAL MANAGEMENT
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One of the more frustrating aspects of condo living is the lack of interest residents have in the corporation’s governing documents; declaration, by-laws, rules and the Condo Act. Every condo owner receives a copy of their corporation declaration, by-laws and rules. Few choose to read these documents until something happens that they don’t like. This may explain why condo directors and management respond to so many issues by encouraging residents to review their documents. These documents are not like the owner manual for a car or appliance; only to be reviewed when there is a specific question or problem. They are an integral part of condo living. These documents are large because they cover so many aspects of condo living. They can be hard to understand. It can be easy to become overwhelmed. So, exactly what is included in these documents? Condo Governance These documents establish a minimum level of transparency. They clarify what meetings are required, what notices must be provided, information that must be provided to owners and how the condo board operates. There is information about how condo fees are split among condo owners and how bank accounts are to be maintained. Surprising to many is the authority given to condo
directors which comprise the condo board. In-Suite Limitations These documents clarify what can and can’t be done within condo suites. Generally speaking anything that can be heard, smelled or seen outside of a condo suite may be controlled through condo documents. There may be restrictions on window coverings or when renovations can occur. Any work that can impact on other residents such as plumbing, electrical or even flooring may have controls or restrictions applied. Maintenance Expectations Condo corporation maintenance obligations are identified. Maintenance for which the corporation is not responsible becomes an individual owner responsibility. In-suite responsibilities may include caulking, internal wall and ceiling issues, plumbing and heating/cooling systems. Typically, these are routine maintenance items affecting individual condo suites. The reality is that most condo owners choose not to read these documents. Condo directors and management can help educate condo owners and residents. They can avoid problems and misunderstandings by communicating aspects of these documents at appropriate times. Condo owners that take time to read and understand these documents are the most helpful to the corporation. They are more likely to participate as directors or on committees. They are your most likely community leaders!
CONDO DOCUMENTS AFFECT ALL RESIDENTS
GOVERNANCE
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In a community it is natural for residents to work together for their mutual well-being. Neighbourhood Watch, neighbours working together to identify and report concerns to the police, is a program particularly appropriate to condo communities. A community working together is to be supported. Residents should be encouraged to walk through their property at regular intervals; outside a building, through stairwells and common areas. When something out of place is noticed, a neighbourhood watch program should train residents to limit their actions. Direct confrontation is to be avoided. Taking pictures or reporting what they see to security or police is to be encouraged. It is commonly assumed that condo corporations are responsible for protecting residents from crime. The reality is that condo corporation documents may not require that condo directors take on this role. If not stated in governing documents, directors need to decide if this is a role they wish to accept along with any liability that may come with it. Directors taking on this role may feel the need to increase condo fees to provide what they deem an acceptable level of building-wide protection. Some condo directors view their responsibility only as identified in governing documents. Others may wish to go above and beyond. Establishing a neighbourhood watch program can be a no-cost way to provide this security. Neighbourhood watch works best in condo
communities where most residents reside year-round. Many absentee owners, or those who leave their home for extended periods each year, make it difficult to maintain a neighbourhood watch. Neighbourhood watch programs require a lot of time. It means knowing who lives in the community, who moves in and who moves out. It means having a coordinator obtain and maintain contact information – phone number and e-mail – for each resident so information can regularly be shared within the community. When a known crime is committed, sharing this information can help ensure that crime is not repeated. Neighbourhood watch programs allow a community to be proactive with regard to crime. Small concerns and minor crimes are identified before problems begin to grow. Everyone participating in a neighbourhood watch should understand and accept it is not intended for fighting crime. It is an organized system to observe and report so problems are resolved before they get worse. Neighbourhood watch programs can work well with local police. Police departments may be able to provide people to speak with neighbourhood watch residents about what to look for, then how and when to contact police.
NEIGHBOURHOOD WATCH
SECURITY, SAFETY & FRAUD
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Toronto experienced one of its hottest summers in 2016. By 2050 higher temperatures and related climate changes could have a significant impact on condo corporation reserve funds and condo fees. Condo fees are based on past experience and future expectations. The unpredictability of near future weather changes could require substantial increases in condo fees, starting as early as 2020, to maintain high-rise condo homes. Increased rainfall, more heavy storms and increased flooding are concerns. Below level parking garages may flood more frequently. Power outages may become more common. The importance of having a generator capable of running for longer periods of time may increase. Heavy winds can cause more damage to a building in need of repair. Use of large glass windows in condo towers, currently popular, allow spaces to get hotter in summer and colder in winter. This may exacerbate climate change concerns. Hotter temperatures are to be expected. By 2100 some experts feel that Toronto will have a climate similar to Miami. Hotter temperatures would create greater demand for electricity and air conditioning systems. Chillers in condo buildings would be under greater stress thus requiring more frequent maintenance and replacement. Increased levels of heat and sun would create more damage to outside walls and materials which can be expensive to repair.
Cold weather issues would continue. Winter is when water makes its way into a building through cracks and other forms of damage where it can freeze and thaw causing building materials to expand and contract, crack and fail. None of this is unexpected. The impact of climate change has not yet resulted in a need for condo corporations, directors and management to prepare for these changing weather patterns. In the near future it will become necessary for condo directors and management to prepare for this new weather reality if they wish to avoid unwanted and undesirable special assessments.
CLIMATE CHANGE AND CONDO FEES
BUILDING MANAGEMENT
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Is your condo corporation a good one? How do you know? How do you measure its performance now and in the future? Condo boards should have a way to determine what success means to their community. This requires that they establish specific goals or targets. Achieving established targets is a necessary part of measuring success. Condo corporations tend to avoid discussing measurable targets. It is easier to focus on details such as condo rules, amenity hours and financial controls. This approach fails to consider many aspects of the condo community, what the building should look like or how it should function in a few short years, or how the corporation can best benefit its owners and residents. Strategic planning requires a clear understanding of where the condo corporation is today, its strengths and weaknesses, and what it should look like in the future. Only then can a plan be developed for reaching this future target. When thinking of the future, a condo corporation may want to consider the following: What are the current age demographics? An aging population base may desire to attract a younger demographic. This requires consideration of current amenities and their appeal to a younger or family-oriented population.
What proportion of condo suites are owner-occupied as opposed to rented? Condo corporations desiring to restrict rentals will have different rules and restrictions than one supportive of rental properties. Rental-friendly properties are more likely to offer services to assist owners that rent out their suites. Key expenditure areas – property management services, security and concierge, utility costs, cleaning and superintendent – should be understood. What are the current expenditures in these areas? What do you want them to be? How would this impact on condo fees and services offered? Resident relations and communications are integral to resident satisfaction. Establishing specific communication and relationship targets can be helpful:
Response time for initial resident query or concern
Response time for resolution of resident issues
Frequency of information meetings and social gatherings
Frequency of newsletters and other resident communications
Only once there is a clear understanding of what the condo corporation should look like in the future and targets to be achieved can discussion proceed to what resources are needed to meet these targets.
STRATEGIC PLANNING FOR CONDO BOARDS
CONDO BOARDS
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Over half of all small businesses started over the past decade are home-based according to government statistics. They are an important part of our economy. Despite their volume or importance, not all home-based businesses are suitable for condo buildings. Consulting businesses work well. These include computer-based businesses, writing and research services, and counselling or therapy services. These businesses tend not to have a significant number of clients visiting the “office”. Condo communities can choose to permit home-based businesses and home offices so long as they comply with local and corporation rules. Businesses that have clients/guests/patients waiting in condo lobbies or common areas may contravene condo rules. Ontario requires that all businesses be registered with the province. Condo corporation documents may impose certain restrictions on commercial activity in condo buildings. While commercial activity may be prohibited, businesses that do not
involve customer traffic or employees may be acceptable and viewed as comparable to working from home on behalf of an employer. It is reasonable for condo communities to allow commercial activities in condo suites while restricting what type of commercial activities are acceptable. One approach would be to restrict activities that involve client visitations, displays visible from the outside, deliveries of merchandise, resale of manufactured items, structural alterations to the suite and those that cause noise, vibration, smoke, odours, heat, humidity or glare. Condo corporation documents limiting the use of condo suites for residential purposes are generally intended to discourage nuisance behaviour; activities that utilize common areas for commercial purposes or which negatively impact on condo residents. In the end, allowable activities in a condo building are dependent on goodwill between neighbours. Businesses that do not undertake activities noticeable by management and neighbours are generally not a problem. Those that negatively affect neighbours are likely to be frowned upon.
HOME-BASED BUSINESSES
CONDO LIFE
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Parking space is no longer a necessity for condo living. With a parking space adding $30,000 or more to the purchase price of a condo, buildings with fewer or no parking spaces can be appealing to developers and condo residents. Until recently condo developments were required to provide at least one parking space for each suite plus additional spaces for guest parking. This is no longer the case. Newer developments now offer fewer parking spaces. Those that are available can be purchased separately from the condo. In some developments parking spaces are no longer available. This approach works when alternate transit is readily available and frequent destinations such as work, transit, grocery stores and entertainment are within walking distance. For those who do require parking space for their car local private parking services are available. Condo developments are looking at new approaches to parking that require less space. Vertical lifts or “parking elevators”, popular in Europe, are movable platforms which lift cars up and out of the way until needed. Valet service can help economize on space. Parking may be located in a nearby garage or in an underground area inaccessible to residents. An employee retrieves the vehicle when requested. Reducing the need for parking space may be the
best approach. In place of resident parking space buildings may incorporate on-site parking for grocery or dry cleaning delivery services. They can encourage the use of bicycles and ebikes by providing convenient space for them. Some buildings include a separate entrance for bikes and ebikes leading directly to a bike room with facilities for bike cleaning and repair. Transportation services such as Uber help ease demand for parking space. The need for automobile parking is unlikely to go away. As more people utilize alternate methods of transportation and have access to more of what they require within walking distance, the demand for space to park cars is likely to decrease. There may be a time, not too far off, when condo owners no longer have need to own a car for personal transportation.
LESS PARKING, MORE BIKES
COMMON AREAS
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October 2018
Key fobs offer a level of convenience and security that works well with condo living. Key fobs provide convenient access for authorized resident access to and within a building. A fob access system may provide access via what otherwise might have been one way exit doorways. Unlike keys, fobs provide a way to identify those who access a door without cameras or physical security. These systems include reporting features and the ability to deactivate select fobs when deemed appropriate. Key fobs offer multiple benefits. When a fob is used, there is a date and time stamp showing where it was used which can help deal with a security incident. Fobs can be deactivated when reported lost, misused or believed to be in the hands of an unauthorized individual. Time or individual restrictions on access to areas of the building, such as an exercise area, can be enforced with a fob system. The integrity of fob security has been compromised by businesses
willing and able to copy any fob. Fob Toronto, for example, can duplicate fobs in a matter of minutes. Like duplicate keys, duplicate fobs can be provided to individuals seeking unauthorized access to condo buildings. They may be provided to friends, family or Airbnb guests without knowledge or approval of condo management. These services may be advertised as fast and inexpensive. They may also be against condo corporation rules and compromise building security. Condo management should be maintaining an up-to-date inventory of all fobs issued to and used by owners. When an unauthorized individual gains access to a building using what appears to be an “authorized” key fob, condo rules may allow for deactivation of all key fobs for that suite until the security breach is resolved to the satisfaction of the corporation. Fobs not obtained through and registered by building management are a security and safety risk for condo residents.
KEY FOB SECURITY THUMBPRINT
SCANS Thumbprint scans are an evolving technology that could simplify security concerns in condo communities. If your condo building had a thumbprint scanner on each door to access the building and to amenities security would be enhanced. Elimination of keys and fobs could simplify access for building residents and owners. Tracking of visitors and contractors within the building would be virtually effortless. Reporting systems could identify where an individual is by which door was last accessed. Residents would be unable to grant building access to guests by providing them with a spare fob or key. Access could only be granted by security. Privacy could be a concern for those who prefer their actions within a building be unmonitored.
SECURITY, SAFETY & FRAUD
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Premier Ford has provided Toronto with a single issue that may determine the outcome of local elections later this month. When Toronto goes to the polls on October 22 each of 25 wards will elect a local councillor. Last election Toronto had 47 wards each with a local councillor. This change aligns city wards with those of federal
elections. According to legal experts the provincial government has the right to determine the size of city councils in Ontario. Toronto City Council voted 27-15 to direct city lawyers to fight this change. A majority also
TORONTO’S SINGLE ELECTION ISSUE Toronto Municipal Election 2018
FOCUS ON CONDOS - ELECTIONS
Reducing Toronto wards from 47 to 25 How Toronto City Council voted
“Yes” denotes those voting to launch a legal challenge against legal advice
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October 2018
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supported postponing the municipal election if necessary to complete the legal challenge. Their legal filing claimed that reducing the size of Toronto council after the election date was announced is "discriminatory and arbitrary", and violates the Constitution and democratic rights of city residents. Toronto City Council, in choosing to challenge this decision in a self-indulgent waste of time and taxpayer money, displayed shockingly poor judgement. The province has the right to realign wards for municipal elections as initially stated by legal experts. Toronto Condo News undertook an informal and unscientific survey of about 30 individuals on their opinion of this change. Every single individual supported the change although some disagree with the way it has been done. If this result is indicative of majority electorate opinion, politicians voting to oppose this change may have already lost the election. Proponents of this change believe Toronto City Council is dysfunctional and its size is a detriment to effective decision making. They view reducing the number of elected politicians as necessary to improving the way our municipal government functions. It is neither unconstitutional or discriminatory. They see no drawback to reducing Toronto City Council to a number consistent with representation on a provincial and federal level. Their view is that opposition to this change, supported by a final legal ruling allowing the change, is an attempt to protect political jobs and careers. The expected $25 million saved with this change, while meaningful, is less relevant. For proponents of this change, politicians supporting the legal challenge can be viewed as self-serving and undeserving of political office. Concurrent with this change, elections for the head
of council position in the regional municipalities of Muskoka, Peel, York and Niagara have been cancelled. The position in each region will be appointed.
FOCUS ON CONDOS - ELECTIONS TORONTO’S SINGLE ELECTION ISSUE… CONTINUED FROM PAGE 25
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Toronto Condo News received comments on Condominium Authority of Ontario Year One Report Card. “I generally agree with your 'grade' for the CAO but would point out that the design of the Forms is NOT their responsibility. The Forms are official government ones designed by the Ministry of Government and Community Services. The original release of Forms - both their content/layout and how one could access them - was, without doubt, terrible. Though some changes and improvements have been made there are still many that need to be done. As the CAO (while an arms-length government body) is paid for by condominium owners it would have been good if they had taken
the lead (or even participated) in the efforts to get the forms clarified and improved. I would give the initial form design and release an "F" and give the CAO a grade of "Absent" on their involvement.”
David Crawford Condominium Director
Editor’s Comment: The author states CAO is an “arms-length government body” but not operating at arms-length with the government. This assertion, apparently correct, suggests CAO may have a different relationship with government than is generally understood.
OUR READERS COMMENT …..
LETTERS TO THE EDITOR
