condo march 2012

March 2012 • Vol. 27 #1Canada’s Most Widely Read Condominium MagazinePM

#400

6305

6

Raising the roofThe benefi ts of solar panels

Avoiding condo fraud

Are iPads the future of leasing?

11237_Condo_March_2012_regig.indd 1 12-03-22 3:29 PM

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“We chose Yardi Voyager to streamline our business with an end-to-end solution that extends

beyond simple property management. With Voyager, we can automate

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our clients.”

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Brookfield Residential Services Ltd. is the largest condominium management company

in Canada, with 54,000 units in Ontario. Yardi Voyager™ is a complete condo solution that

utilizes the latest in Web technology to enable first rate services to Brookfield’s clients,

increase operational efficiency and reduce costs.

For more information, call 1- 888- 569-2734 or visit www.yardi.com/cb11

“We chose Yardi Voyager to streamline our business with an end-to-end solution that extends

beyond simple property management. With Voyager, we can automate

our processes and offer extended services to

our clients.”

Tracy GregorySenior VP, Finance

Brookfield Residential Services

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Contentsfeatures

Legal Condo fraud By Ray Mikkola

Management The benefits of CMMS By Ryan Gallimore

Legal Selective bylaw enforcement: Discrimination or not? By Jeff Morris

Technology Are iPads the future of leasing? By Richard Roos

focus: Maintenance

Small spaces, big challenges for healthy indoor air

Asbestos? Now What! By Tammy Evans

Sunny returns for solar panel installations By Christopher Seepe

The changing rules for fuel storage and diesel generators By Bassem Sukkar

Publisher’s Letter

Smart ideas42

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10

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38

6

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departMents

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The importance of being involved

publisher's letter

6 CONDOBUSINESS | www.condobusiness.ca

We all live busy lives and sometimes taking part in the management of your condominium takes a back seat to more pressing matters.

In this issue of CondoBusiness, Ray Mikkola puts forth some key points when selecting board representatives and the importance of getting involved yourself. We trust that when you hire or elect personnel for your building that your interests as a condominium owner will be a priority.

For most, owning a condominium is a big investment. Protect your investment and get involved. Ensure you ask the right questions when choosing directors, managers and board members. Attend meetings and stay informed of all board communications. Most importantly, make the effort to ensure you are fully aware of all aspects of building issues and how your elected board or management company is dealing with these issues.

In an effort to provide our readers with the most current information about the condominium sector, we continue to send out our bi-monthly e-newsletter. We have re-formatted our electronic communications to combine the latest industry news and video commentary from sector experts. If you do not currently receive our newsletters, send me an email and I will ensure you are added to the list.

As always, please feel free to send me your story suggestions.

Steve McLindenPublisherEmail: [email protected]: 416-512-8186 x239

PublisherSteve McLinden

EditorScott Anderson

Advertising SalesPaul Murphy, Melissa Farrell, Sean Foley, Ian Lederer

Senior DesignerAnnette Carlucci

Production ManagerRachel Selbie

Contributing WritersChristopher Seepe, Tammy Evans, Ray Mikkola, Richard Roos, Ryan Gallimore, Jeff Morris, Bassem Sukkar

Subscription RatesCanada: 1 year, $55*; 2 years, $100* Single Copy Sales:Canada: $10. Elsewhere: $12USA: $80 International: $105*Plus applicable taxes

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CONDOBUSINESS is published eight times a year by

PresidentKevin Brown

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5255 Yonge Street, Suite 1000Toronto, Ontario M2N 6P4(416) 512-8186 Fax: (416) 512-8344e-mail: [email protected]

CONDOBUSINESS welcomes letters but accepts no responsibility for unsolicited manuscripts or photographs.

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Maintenance

Canadian living spaces are getting smaller, posing new challenges and encouraging new innovations for ventilation and air quality.

Small spaces, big challenges for healthy indoor air


W hethe r i t ’s h i gh re a l es t a te pr ices, a desire for environmental sustainability, retiring baby boomers seeking more manageable spaces, or new Canadians for whom small spaces are more the norm, construction of condos and multi-residential spaces is expected to be on the rise.

While a smaller household footprint is good for a number of reasons, ensur ing c lean a i r is increasing ly important and a new challenge for indoor air quality professionals.

“People tend to want to do all the same things in a small space that they do in a larger one, meaning we’re getting the same IAQ impacts only crammed into a smaller space. In a


March 2012 9

Maintenance

This has created a market for smaller, qu iete r heat recover y vent i l a to rs accord ing to Chr is topher Bender, product manager, Indoor Air Quality, at Venmar Ventilation.

“We’re seeing a growing demand from both dealers and homeowners for sophisticated solutions for small spaces.” 1

result is poorer air for those living in condos.

He says the bes t bu i l de rs a re fol lowing a suite -by-suite approach by systematically addressing the IAQ impact on each suite, rather than the entire building, builders can improve IAQ for all residents, often at a lower cost.

condo, these activities are being carried out c loser to ne ighbours , fu r ther inc reas ing the I AQ impac t ,” sa id Gord Cooke, a well -known Canadian e n g i n e e r a n d i n d o o r a i r q u a l i t y consultant to the HVAC industry.

Cooke says some specif ic issues prevent single dwell ing techniques from being directly applied to condos. Multi -unit buildings place a premium on space. Traditional HVAC units take up too much room, move too much air and create too much noise. Builders must a lso consider other h ighr ise specif ic pressure issues related to stacking and wind. Combine these challenges with the traditional ‘whole bui ld ing’ approach to IAQ and the

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“There is asbestos in your building.” This is a statement that property managers don’t want to hear. Most of the fear comes from a lack of information and understanding regarding the risks. Asbestos is dangerous, but only if handled incorrectly. The main issue with asbestos particles is that they can split into thin needle like fibres along their length. These fibres are very small, light, float in the air, and can be easily inhaled and settle in your lungs. Over time and exposure, they can cause a myriad of health problems such as Asbestosis, Mesothelioma and lung cancer.

Products that contain asbestos are broken down into two classes: friable and non-friable. Friable materials are those that are easily crumbled or loose in composition such as spray-fireproofing. Non-friable materials are ones that are more durable, held together by a binder such as cement, vinyl or asphalt making them difficult to crumble into dust. Fortunately, there are very specific provincial regulations regarding the handling of asbestos containing material (ACM) during construction.

So you have asbestos in your building. Now what?The first step is to have a complete assessment and report regarding all construction material used in the building.

Asbestos was banned from use in construction material around 1986. During its time of use, asbestos could be found in drywall compound, ceiling tiles, floor tiles, and pipe insulation. Now, when work is undertaken, a property manager must report to any tradesperson working in the building if ACMs are present. It is not the contractor’s responsibility to find out about ACMs, rather it is the property manager’s or board of directors’ responsibility to inform.

Therefore, depending on the proposed work to be done, a complete assessment and report will help categorize the project as a Type 1, 2 or 3. These types represent low, medium and high risk work. The Ministry of Labour, through the Occupational Health and Safety Act 1, set the standard for determining the classification of an asbestos operation. General classifications are:

Type 1 – small scale operations (determined by size of area affected and length of exposure time) including installing or removing materials containing non-friable ACMs, where materials will not be broken, cut or drilled. If materials will be broken, cut or drilled, non-powered hand-held tools must be used and materials must be wetted to control the spread of dust and fibres. An example of this is the removal of floor tiles without breaking, cutting or drilling them.

Asbestos? Now What!

By Tammy Evans

Maintenance



Maintenance

• Eating, smoking, drinking and gum chewing are prohibited in the work area.

• A respirator or protective clothing is not required for Type 1 operations but they may be requested by a worker. If a respirator or protective clothing is requi red , the resp i rator must be the proper type with filters for asbestos. Protective clothing must be impervious to asbestos fibres in order to prevent the transfer of waste and dust into clean areas.

the dangers and proper handling of ACMs. The training also involved the acquisition of and training in the use of appropriate respirators with filters and disposable Tyvek suits for any person who would be working within the designated space.

When undertaking a Type 1 Asbestos abatement certain controls must be instituted in order to protect the worker and anyone in the area of the work. The controls as outlined in the Occupation Health and Safety Act are:

Type 2 – small/medium scale operations (determined by size of area affected and length of exposure time) including installing or removing materials containing non-friable or friable ACMs. Some work may include breaking, cutting and drilling materials with powered tools with HEPA filter attachments. An example of this would be removing a false ceiling where ACMs are lying on the surface of the ceiling and will be easily disbursed into the air.

Type 3 – medium/large scale operations (determined by size of area affected and length of exposure time) including installing or removing materials containing friable and sometimes non-friable ACMs where breaking, cutting and drilling will release dust and fibres into the air. Examples would include major removals and/or demolition of buildings, machinery and equipment containing ACMs.

A case study - YCC 87, 60 Southport, TorontoThis past year, CPL condominium design interiors was contracted to complete a corridor refurbishment at YCC 87, 60 Southport. The assessment for this building identified ACMs throughout the building—specific to this project, the drywall compound on the walls. Asbestos was used in the drywall compound as a binding agent and to add some additional fire resistance. CPL determined that the removal of the existing wallcovering would disturb the drywall compound and potentially cause the asbestos to become airborne.

The assessment designated that this project would fall within the parameters of a Type 1 classification as outlined by the Occupational Health and Safety Act:Type 1 :• Installing or removing non-friable

containing material, other than ceiling tiles, without it being broken, cut drilled, abraded, ground, sanded or vibrated.

• Breaking, cutting, drilling, abrading, grinding or vibrating non-friable asbestos-containing material if a) you wet the material, and b) you use only non-powered hand-held toolsAs a Type 1 classification, and as

mandated by the Ministry of Labour, this abatement would require that all the tradespeople working on site that could be involved with the removal process would need to be properly trained and certified in

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• A HEPA filtered vacuum is to be used to clean the area before and after the work.

• In order to control dust in the work areas a wetting agent must be used. A wetting agent such as amended water can get into various nooks and crannies to prevent dust from entering the air.

• A minimum 6 mil plastic must be laid out as a drop sheet.In addition, the training was used not only to

certify the workers but also the supervisors and owners of CPL to ensure that everyone fully understood the proper handling of the ACMs and how to manage the project in a fully occupied building. This training now certifies CPL to handle a Type 1 & Type 2 asbestos abatement project.

After the training, the key to this project was communication. All residents were kept fully informed, not only as to the progress of the project but even more importantly the safety precautions being taken. Notices were posted in the lobby, the elevator and at each suite door. These notices outlined what was required of the residents and time frames that residents on each floor would be affected.

During the removal process air makeup units, on a floor by floor basis, were shutdown. Residents were required to remain either in or out of their suite while work was being done on their floor. Each suite and fire exit was sealed off with plastic sheeting and the carpeting was also sealed with the same plastic. Each floor had the existing vinyl wallcovering removed within this sealed space by fully trained and outfitted trades. Amended water spray was used to eliminate the possibility of any drywall compound becoming airborne.

Once the vinyl wallcovering was removed, each piece was rolled up and placed in a designated hazardous waste disposal bag. Upon completion of the removal, the hazardous waste disposal bags were double bagged to ensure there would be no spilled contaminants. The plastic sheeting used to seal the doors and floor


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Maintenance


March 2012 13

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were wiped down using damp rags, removed and double bagged in the same hazardous waste disposal bags. Trades also removed their Tyvek coveralls on a daily basis and included them with the other hazardous materials for disposal. Even though the floors were fully covered with plastic, each day the carpet was vacuumed with a specialized HEPA filter vacuum. All hazardous waste disposal bags were then transported through the building in closed containers and deposited into a special enclosed bin located outside.

Throughout the entire process of removing the vinyl wallcovering from the nine floors of the building, an independent air monitoring firm took air sample tests to ensure that the safety practices employed were sufficient in eliminating all possibility of asbestos becoming airborne. Each test was accompanied by a report that indicated that CPL had not only met provincial standards for air quality but had exceeded them.

The owners, residents, board of directors, and management company expressed that they felt safe and secure in the knowledge that this project was carried out in a timely, professional and regulated manner.

If your building has asbestos and the board is contemplating refurbishment, it is important to determine the level of abatement required. The bottom-line is if:

(a) asbestos is present in an area that requires work, and

(b) that work could disturb the ACM, thena properly trained tradesperson is required

to perform the work and any waste must be disposed of in a regulated manner.

Specialized training and specialized project management means there will be additional costs incurred to complete a project like this. As long as those costs are identified and fully disclosed before the project starts, most owners can appreciate what is required to upgrade their building. 1

Maintenance

“When undertaking a Type 1 Asbestos abatement certain controls must be instituted in order to protect the worker and

anyone in the area of the work”


legal


Details of the alleged $20+ million condominium fraud affecting properties in Greater

Toronto—both mortgage fraud and construction fraud—alleged to have been perpetrated by the president of Channel Property Management, continue to emerge in the media.

Condo fraudBy Ray mikkola

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legal

The story of the alleged condominium fraud was first reported by The Toronto Star in mid-September 2011. Police are investigating.

The number of condominium corporations affected by the alleged fraud now stands at nine—and counting. The Channel Property website indicted that they managed 40 properties in Greater Toronto.

The truth is that this type of fraud and mismanagement could have taken place at almost any condominium corporation in Ontario.

The results so far have been alarming and serious for the owners of the affected condominiums. Certainly, it will be very difficult to sell any of these units, at least not for what would have passed for the “fair market price” which these units could have commanded a short time ago. Banks are likely unwilling to lend on the security of these units.

This may become the lasting legacy of this story: hundreds of unit owners struggling for many years with very high common expenses, in condominium developments which have been publicly tarnished by the story, and each proposed purchaser and lender being reminded of the burden of this misadventure by clearly set out provisions in status certificates signed by the victim condominium corporations.

How can condominium managers help unit owners to take steps to avoid this fate? Communicating proactively now to unit owners and residents can make fraud and mismanagement less likely to occur in their condominium communities.

W hi le f r aud c annot be avo ided altogether, here are f ive steps that condominium managers can encourage unit owners to take right now.

1. E x e r c i s e yo u r vo t e c a r e f u l l y. Owners must understand that for the most part, the board is in charge. This is mandated by the Condominium Act. Owners are in charge of electing d i rec tors . C ast a thought fu l and knowledgeable vote.

Get to know the candidates who are seeking your vote. Ask quest ions about their backgrounds, expertise, and abilities. Ask for resumes. Ask them if they are wil l ing to at tend courses that descr ibe the duty of d i re c to r s a n d t h e m a n a g e m e nt and governance of condomin ium corporations if they are elected. Ask them to speak for a minute or two at the meeting at which they are seeking elect ion. I f the candidates do not meet your standards, consider running yourself. You are, after all, looking out for your investment.

2. Consider paying your directors. Being a director is an important and responsib le job. I t is not rubber-stamping. Select the most qualified directors you can find. Governance and oversight are key parts of the job.

As a practical matter, it would not be possible for owners to have any direct role in managing the day-to-day operations of a condominium.

3. Ask the board to issue a regular newsletter. You may wish to stay

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Untitled-4 1 11-11-10 2:13 PM


11263_RoyalGrand_2011.indd 1 11-11-15 10:59 AM

abreast of issues by at tending board meet ings, or ask ing that non - lega l , informat ion meet ings take p lace to keep owners and residents abreast of new developments at the condominium. Talk to directors to advise them of your ideas and concerns. Stay involved. Just because you are not on the board does not mean that you have no interest in the conduc t o f you r condomin ium corporation’s affairs.

4. If you have concerns about how your condominium is being run, speak to the board. Review the condominium’s records—you are entitled to have your condominium corporation operate as an “open book,” with few exceptions. If you lose confidence in the board, you are entitled to call a meeting to remove one or more of the directors if at least 15 per cent of your fellow unit owners feel the same way. A majority of the owners may vote to remove one or more directors at that meeting. This is more power than is given to voters following most other elections.

5. Finally, review and become familiar with your condominium corporation’s documents: the declaration, by-laws and rules, and the Condominium Act. They all impact on the enjoyment of your home and the value of your investment.

Knowledgeable, involved, and engaged owners a re more l ike ly to e lec t l i ke directors. In my view, they are much less likely to become the victims of fraud and mismanagement. 1

Ray Mikkola specializes in condominium law and is a partner in the Commercial Real Estate Practice at Pallett Valo LLP, Mississauga’s largest business law firm. He can be reached at [email protected] or (905) 273-3022, ext 276.

March 2012 17

legal

“Knowledgeable, involved, and engaged owners are more likely to elect like

directors … they are much less likely to become the victims of fraud and mismanagement”



Computer ized maintenance management systems (CMMS) assist property

managers in the daily co-ordination of repair efforts. With the emergence of cloud-based “Software as a service”, online CMMS have emerged allowing residents, managers, and contractors to access the software from anywhere. With this new model, residents may submit a service request quickly and easily from their desktop computer or mobile device.

By Ryan GallimoRE

The benefits of CMMS


March 2012 19

T he CM M S p resents an on l ine form to the resident to complete, auto-assigns the work according to a pre -determined assignment list, and sends e -mail to the relevant parties: management, service provider, and resident.

B y d e l e g a t i n g m a i n t e n a n c e dispatching to the CMMS, management c o m p a n i e s re l i eve t h e p re s su re of administ rat ive tasks re lated to maintenance. The system assumes the task of collecting initial request details, job assignment and notification.

As work is performed, the CMMS maintains a database of work history, which often includes a complete record of correspondence between staff and service providers, uploaded documents, images, purchase orders and invoices.

By acting as an automated maintenance assistant, a CMMS improves maintenance

performance beyond the capacity of paper and spreadsheets.

Managing job backlog is a critical issue for management companies. A pro-active approach ensures jobs are completed as efficiently as possible before they are lost in the flood of incoming requests. Automated request assignment dispatches jobs without delay. Quick reporting on outstanding items, easy searching and prioritization permits identification of critical issues. The result is a more sophisticated triaging process that better responds to resident needs.

A building’s preventive maintenance plan works in tandem with the CMMS scheduler to guarantee key building components are maintained on a regular basis. E-mail or SMS reminders are sent out prior to scheduled work to notify trades in advance. Some solutions notify residents prior to entry into their unit.

Incomplete or inaccurate job information delays work. A contractor arrives onsite only to find the issue is much larger than anticipated. Each electronic work order in the system includes all the information required for the job to be completed. Trades need not call managers for additional information, nor are managers required to contact residents.

L eve ra g ing the d a t a c o l l e c te d from maintenance requests, CMMS generate repor ts such as average response and completion times, and service requests by unit or common area. An analysis of these reports helps to identify and eliminate inefficiencies.

W i t h a m o r e s t r e a m l i n e d maintenance workflow, management c o m p a n i e s s p e n d l e s s t i m e coordinating maintenance activities. This increases the capacity of the organization and allows staff to pursue



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business development goals, all while reducing costs.

Managers are able to do more business with existing resources. Maintenance management consumes up to 40 per cent (two full days per week) of staff time. Transferring part of this burden to a computerized system frees staff to attend to existing clients’ needs.

A C M M S re d u c e s s t a f f c o s t s by absorb ing the ro le of request taker, dispatcher and communicator. Management effectively outsources these tasks to an automated system. Staf f that used to answer phones, fo l l ow up on faxes and e - ma i l s , maintain spreadsheets, and route these requests to service providers can be used elsewhere.

Online CMMS may use e-mail, SMS or MMS messaging to communicate w i t h u s e r s . T h i s i s o f te n d o n e whenever the information in the service request changes. For example, if a new issue is raised or a comment is posted, an e-mail is sent to the submitter of the request, and the person assigned

to resolve the problem. The CMMS can often generate the e-mail content instantly from a template. This is a much cheaper and time-efficient means of informing residents than paper work orders that must be f i l led out and delivered individually. One condo saved $10 per unit per year by distributing AGM packages electronically.

Bus inesses a lso save on paper products, postage, and filing time by communicating electronically. Utilizing ser v ices that a re env i ronmenta l l y conscious also benefit an organization’s corporate image.

Operational reporting provides the board with a picture of maintenance activities and how maintenance dollars are spent. It is also an opportunity to demonstrate cost savings to the condo corporation. This is an ongoing benefi t to existing clients, who can present the savings to residents.

A CMMS increases board confidence in management’s ability to co-ordinate maintenance. A company offering a technological solution to maintenance coordination over paper and spreadsheets

has a competitive advantage when approaching new clients or reinforcing relationships with existing customers.

The property management industry has few barriers to entry. According to economist Bruce Greenwald, “Firms in this position… have a single strategic imperative: they need to focus relentlessly on being as effi cient and effective as possible in all of their business operations.”

A CMMS assists management in this goal. A technology that introduces effi ciencies will put an organization in a low-barrier market space at an advantage.

Armed with an automated maintenance assistant, the property management company is a healthier organization. It has the tool, credibility, additional time and resources to better serve existing clients, reduce costs, and pursue new avenues of business. 1

Ryan Gallimore is President of Spire Software, which makes CondoHub, a maintenance management solution for condominiums. For more information see the web site at www.spiresoftware.ca.


March 2012 21

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Can a condo corporation enforce a bylaw infraction against one owner when it has not

enforced the same infraction against others?

By JEff moRRis

This very question was addressed in the recent Ontario Court decision, Durham Standard Condominium v. Mor ton. The corporat ion’s by - laws provided that residents could have one pet weighing no more than 20 kilograms and a dog had to be on a leash at all t imes. A defaulting unit owner claimed that other residents were breaking the bylaw, including some memb ers o f t he b o a rd o f d i rec to rs . T he p roper t y manager acknowledged that other owners had more than one pet, but there were no complaints about those owners.

Can a condo corporation be selective when enforcing a by-law? The answer is surprisingly yes!

The court noted that most condo corporations act reactively, rather than proactively. In this case, the board only had complaints about the one problem unit owner. The court was satisfied that the board had not acted vindictively against the owner. Complaints were received from people who were afraid of the owner’s dog jumping up towards them. Significantly, there was a danger of injury to others.

Generally, a court will only step in when a board’s discretion is exercised improperly. The law is clear that the cour t ’s role is not to substitute its own opinion for that of the board of directors, but to ensure the board has acted in good faith.

Even when the board is c lear ly acting in good faith, unit owners have challenged the selective enforcement of bylaws due to lack of fairness. Is it not discriminatory to permit some

owners to o f fend a by l aw wh i le prosecuting others?

This issue was decided in another recent Ontario Court decision, Peel Condominium Corporation No. 108 v. Young. The judge noted that there had been other contraventions of the Declaration that have not resulted in enforcement proceedings by the board of directors. Justice Gray states: “On the one hand, unit owners as a group, and their representatives, the Board of Directors, have an interest, and indeed a duty, to enforce the Declaration. On the other hand, the individual unit holder who violates the Declaration has a legitimate cause for complaint where the Board of Directors has permitted other violations to occur without consequence. The task of the court is to balance these competing interests in a specific case.”

T he c o u r t s a c k n o w l e d g e t h a t selective enforcement can be viewed as discriminatory. However, in the court’s view, that is not sufficient grounds to deny the board’s right to take selective

enforcement ac t ion. Judges are prepared to justify this on the basis that it is in the collective’s interests in having the Declaration enforced, even if some unit owners have been allowed to violate it.

Does th is mean any degree of discrimination is legal? Probably not, as the court in the Young case states a “mass ive non - enfo rcement” is different. My view is that this begins to look like a capricious or improper use of the board’s enforcement powers.

It is clear that each case will and must be assessed on the specific fact situation at hand. But what emerges from these recent cour t decisions is a judicial view that boards are not hamstrung by their failure to enforce a bylaw when complaints are lodged against an owner, especially when a dangerous situation potentially exists. 1

Jeff Morris is a lawyer and now practices as a mediator for condominium disputes. His website is www.jeffmorrismediation.com.

Selective bylaw enforcement: Discrimination or not?

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SUNNY RETURNS FORSUNNY RETURNS FORSOLAR PANEL INSTALLATIONSSOLAR PANEL INSTALLATIONSSOLAR PANEL INSTALLATIONS


March 2012 25

SUNNY RETURNS FOR

As a condo bu i ld ing ages and maintenance fees rise, condo boards will increasingly be faced with the challenge of keeping those costs down and fi nding innovative ways to create supplemental income to mitigate large increases in their condo fees.

By chRisTophER sEEpE

cover story

SUNNY RETURNS FORSUNNY RETURNS FORSOLAR PANEL INSTALLATIONSSOLAR PANEL INSTALLATIONSSOLAR PANEL INSTALLATIONS



Some condos were fortunate enough to be in areas where insta l l ing a telecom/cell tower on the roof could generate some notable and much -needed annual revenue. However, the cell infrastructure is relatively mature now in many Canadian urban and suburban markets. So now what?

Well, the roof can offer other revenue generating opportunities, such as billboard signage perhaps, but one use that doesn’t care about frontage, retail exposure, or high traffic areas is the generation of solar energy. Any rooftop (subject to engineering concerns) can apply.

Not directly related but certainly a point to bear in mind is that there is a battle brewing between green initiative protagonists, specifically the clan that wants trees and gardens on the rooftops versus renewable energy proponents. Each addresses important environmental concerns and each have distinctive and sometimes material, pros and cons.

However, green is often a euphemism for money and condo boards faced with major capital costs are likely going to give the highest priority to the use that makes the best overall business sense, with return on investment likely being a major factor.

To this end, much has been said and written about the Ontario government’s F IT (Feed - in Tar i f f ) and microFIT incentive programs, North America's first comprehensive, guaranteed pricing structure for renewable electr ic i t y production. It offers stable prices under long-term contracts for energy generated from renewable sources, including solar photovoltaic (PV) systems.

A typical microFIT project can take up to a year from start to finish even though

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return on investment likely being a major factor”


March 2012 27

cover story

installation usually takes less than one week.

Having a profitable solar system in Ontar io is d i rect ly t ied to system per formance, and the monthly and yearly averages for solar radiation in a given location. Accurate data on solar system performance is readily available from reliable sources.

Generally, costs associated with the purchase and installation of renewable energy property is considered capital costs of depreciable property, using capital cost allowance (CCA) in Class 43.1 (30%/year) or 43.2 (50%/year). These classes provide an accelerated CCA rate for specified clean energy generation equipment.

There are a number of var iables invo lved . Th is a r t i c le spec i f i c a l l y addresses the installation of solar panels on the roof of a condominium building in southern Ontario.

The positives:• Obv iously, the major benef i t of

installing solar panels is the 20-year income stream and full payment of the investment.

• Energy/fuel costs are unlikely to ever decrease. When the utility contract expires in 20 years, the system can still be a supplemental energy source for the building, reducing operational costs.

• The solar panels act as a kind of partial second roof that can possibly lengthen the lifespan of the property’s roof.

• The personal contribution to clean sustainable energy for the community and the world, and that much less rel iance on controversia l nuclear

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“Having a profitable solar system in Ontario is directly tied to system performance, and the monthly

and yearly averages for solar radiation in a given location. Accurate data on solar system performance

is readily available from reliable sources”



power or clearly undesirable fossil fuel power.

• N o m o v i n g p a r t s a n d l o w maintenance make solar PV systems very reliable and long lasting. Some PV systems are still operating after 40 years.

• As long as there is a sun, there is sustainable, renewable energy with very little impact to the environment.

• To d a y , s o l a r p a n e l - g e n e r a t e d electricity can’t be stored. However, wel l before 20 years f rom now, when one begins piping generated e lec t r ic i t y back into a bu i ld ing , technology wil l have advanced to al low for on -site energy storage. This could have a dramatic, positive impact on condo fees.

The negatives:• The effects on the life span of solar

panels exposed to extreme weather elements in southern Ontario are not yet well understood.

• There’s no po int in obta in ing a 20 -year warranty from a company that may be gone in five years.

• Owners absolutely must determine whether the building infrastructure can carry the weight and spot loads (e.g. gusts of wind pull ing on the panels, heavy snow accumulating on a much larger surface area of panels and rooftop, etc.).

• Repairing the roof after a solar panel system has been installed can be an expensive proposition. Consider instal l ing a new roof at the same time as the solar panel installation.

• T he bu i l d ing must have a d r y, covered place, not exposed to the weather e lements, to insta l l the large inver ter dev ice, measur ing

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cover story


March 2012 29

perhaps 6’ high x 6’ long x 2’ deep.• Make cer tain the racking system

that is affixed to the roof is properly installed and doesn’t create water and stress - related (wind, storms, etc.) problems later on. Be certain, for example, that bolts that breach flat roof membranes are hermetically sealed. Proponents may say this is overki l l , however, there is not enough statistical evidence to know the full truth of it. Better still, try to find a racking system that doesn’t require it to be bolted down onto the roof; maybe it can be simply weighted down.

• Make cer tain insurance will cover a l l damages; for example, h igh -force winds tear panels off the roof and damage, not only the existing proper ty, but someone else’s (or they injure someone).

• Like all technologies, solar panels a re cons t ant l y improv ing . I t i s possible that panels in five years will be much more efficient. It would be great to know that solar panels could be replaced by more efficient ones without replacing the racking system that holds them in place (this is a tall order but still worth asking).

• I f the ent ire proper ty was to be so ld (un l ike ly wi th a res ident ia l condo building but perhaps more likely with a large commercial/office/indust r i a l condo) , a reasonab le por tion of the sale price must be allocated as proceeds of disposition of the renewable energy property and repor ted to Canada Revenue Agency (CRA), which may result in a recapture into income of any CCA claimed on the property.

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“While there are definite pros and some cons, or at least notable considerations, to the investment in solar photovoltaic systems, the overall and long-

term benefits are very attractive”



indoor air qualitycover story

The recently released report of the Commission on the Reform of Ontario’s Public Services includes several recommendations related to electricity provision and costs, including a proposal to reduce the prices now offered through Feed-in Tariff (FIT) contracts. For the broader condominium sector, however, the call for immediate cancellation of the Ontario Clean Energy Benefit (OCEB) would have a greater financial impact.

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Residential customers participating in Ontario’s Regulated Price Plan (RPP) have been promised the 10 per cent reduction on their electricity bills until the end of 2015. The Drummond Commission – thus named for the commission’s chairman, Don Drummond – notes this will cost the provincial government approximately $1.1 billion in the 2011-12 budget year alone.

“The commission strongly believes there are more effective uses for the over $1 billion per year spent on this initiative,” the report suggested. “The commission would be satisfied with a gradual phase-out of the OCEB. However, a more aggressive timeline or an immediate cease to the program would be welcomed.”

The commission also calls for a review of four other energy tax credits/rebates for low-income ratepayers and residential and industrial ratepayers in northern Ontario. “Each of these initiatives may offer relief to consumers in terms of energy costs (electricity, gas, oil, diesel etc.), but over time could discourage conservation, leading to higher costs, and should periodically be revisited to ensure they are meeting policy goals and represent value for money,” the report stated.

Meanwhile, conservation proponents concur with the commission that a wider variance is needed between peak and off-peak electricity prices, including the introduction of a “critical peak” rate. Yet, many observers question how such critical peak pricing could effectively be implemented through the proposed opt-in approach.

“As it is not elaborated on, I am left to wonder who would choose to opt in?” said Mike McGee, managing director of consulting firm, Energy Profiles Limited. “The recommendation is somewhat simplistic.”

The preceding article is excerpted from Canadian Property Management, March 2012. The complete text of Public Services for Ontarians: A Path to Sustainability and Excellence, the report of the Commission on the Reform of Ontario’s Public Services can be found at www.fin.gov.on.ca/en/reformcommission.

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March 2012 31

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SummaryIn southern Ontar io, for a mid - s ize condo building with southern exposure, a solar PV system requires a $75,000 to $90,000 capital outlay (plus interest/leasing costs) and will generate about $11,000 in income per year, assuming 80.2 cents per kilowatt hour of electricity generated from rooftop systems with a rated capacity of 10 kW AC or less with a 20 -year contract. An $80,000 capital investment will take 7.3 years to recover, after which the income is arguably 90 per cent or more bottom line profit.

Higher ROI claims have been realized such as a 10 kW roof - mounted PV system installed for $65,000 with an average system production in southern Onta r io of about 1, 20 0 kW h / year, creating approximately $9,624 annually for a 6.7 year return of investment.

While there are definite pros and some cons, or at least notable considerations, to the investment in solar photovoltaic systems, the overa l l and long - term benefits are very attractive. 1

Christopher Seepe is a commerc ia l realtor at The Behar Group Realty and maintains www.multiresidentialexpert.com, a website dedicated to providing expert advice and sharing his personal investment and ownership experiences to those investing, or looking to invest, in multi -unit residential properties in southern Ontario. You can contact him at [email protected]

cover story

“Obviously, the major benefit of installing solar panels is the 20-year income stream and full

payment of the investment”


March 2012 33

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In our initial examination of the use of tablets we identified a number of benefits that we felt warranted a test pilot:• WOW! Factor – there is a certain

myst ic assoc ia ted w i th t ab lets and first mover advantage as few companies have taken this to market.

• Overcoming objections in real-time – use of a tablet with the Internet opens the door to many too ls such as Skype (www.skype.com), fu rn i ture a r rangers and Goog le Maps which are all very helpful for immediate ly overcoming leasing objections during a tour.

• Leasing process ef f ic iency – our leas ing consu l tants would have the ab i l i t y to access a l l c r i t ica l information such as unit availability and pricing at any time during the leasing tour.

• Remote tours – the abil ity to use Skype allows us to show a unit to prospects that cannot physically tour the property.We decided to move forward with

a pilot project using iPads which was the tablet option we determined to be the most appropriate for our needs. Prior to kicking off the pilot project we formed an internal focus group that met

During 2011 we were looking for ways add some “WOW” factor to our leasing process. We have always prided ourselves on being very customer service oriented but felt we could do more to differentiate ourselves in this area. With tablets being such an en vogue topic in today’s society, we quickly honed in on this as a potential opportunity.

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the proper amount of direction and support to realize the benefits.

• You will want to acquire a Leasing App (a faster and more ef f ic ient version of the leasing part of your operating system) for your operations systems to maximize your Leasing Consultant’s efficiency and provide a seamless leasing process to the applicant.

Whi le we have not commit ted to expanding our iPad test pilot at this point, the early returns have been very positive and we feel that our experience w i l l o n l y im p rove a s we b e t te r understand the potential tools and how to integrate tablets into the leasing process. Technology advancements will only expand the benefits from tablets and I believe the use of tablets will one day become table stakes in the Apartment Industry – both in the U.S. and Canada. 1

operate using Safari to surf the web. You also may want your website host to alter the way a tablet accesses your website. We changed iPads to default from our mobile website to use our full website.

• You wil l need a 3G data p lan to properly enable the tablet. Many of the tools that enhance the leasing experience on a tablet such as Skype (www.skype.com) and Walk Score (www.walkscore.com) require the internet.

• Typing on a tablet (with your finger) is much different than typing on a keyboard or handwrit ing a guest card. You may want to reconsider the amount of data you collect in a guest card to improve the efficiency of the tour.

• It is easy underestimate the need for training and support for an initiative to deploy these. You must ensure your on-site teams have been given

several times to brainstorm on how best to use the iPad in the leasing process and to develop a general guidance document for the on-site teams. Over the first few weeks of the pilot we kept in constant communication with the properties. We expected that it would be difficult to foresee all of the opportunities and challenges and we would have to make many changes on the fly. This proved to be very true.

To date the prospect and employee feedback has been great and we have seen benefits that warrant continued investment in this area. While much of our feedback to date is anecdotal, we have closed five out of town leases through the use of Skype.

If you are thinking about using a tablet in your leasing process you should consider the following:• You need to analyze the structure of

your website in relation to the tablet you select. IPads for example, only

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March 2012 37

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In addition to browsing (or posting) real estate on Homazooma’s search engine or crunching numbers with superior mortgage calculation and credit management tools, members can solicit the advice and opinions of as many real estate and financial professionals as they wish without having to reveal their own identity.

For licensed real estate agents, financial planners and mortgage professionals, Homazooma represents the opportunity to connect with – and impress - potential clients in a neutral, permission-based context.

“The whole idea behind Homazooma is that you can go about your business and get the information you need, when you need it, anonymously and with no strings attached. Your identity remains confidential until you decide to reveal it to the professionals of your choice,” said co-founder Tracy Thomas.

Donat Plenter, also co-founder, adds that Homazooma’s level of privacy has advantages most consumers don’t even realize. For example: every time homeowners shop a mortgage in the hopes of finding a better rate, they lose points on their credit rating and must spend time completing forms and dealing with multiple agents or lenders. At Homazooma, applicants are provided the opportunity to pull their own credit without penalty and encouraged to submit their score, anonymously.

Following almost two years of research and development by parent company, DataAbacus Inc, Homazooma offers tools and features not available anywhere else including: • The most advanced mortgage calculation tools on the internet today • A robust and detailed alternative to MLS • Anonymous home market evaluation • Home match system• Anonymous applications • Client reviews •

Anonymous 24/7 live chat.“The real estate and mortgage industry

has lagged behind how consumers get their information. Homazooma was created to help Canadians get their business done, on their own terms, and in the medium they are accustomed to using,” Thomas said.

Real Estate Investment: Here’s an app for thatIf you have an iPad or an IPhone, you know that there is an ever increasing number of fun, interesting, entertaining and inexpensive apps you can download.

The Real Estate Investor Formulator app created by veteran Apple developer Marc Schulman at Multieducator, Inc. New Rochelle, N.Y. allows you to make an incredible number of important real estate, financial, and property management calculations. It’s a powerhouse in your pocket.

This handy little program can calculate the market value property, vacancy loss, rent multiple, total net operating income and much more. Real Estate Investor includes 45 important formulas. Sections include capitalization, debt ratios, depreciation, interest, investment returns, mortgages, rent multipliers, valuation and a variety of formulas for calculating rental income on various types of properties.

You just finger touch an item on a menu screen, enter the data required to do the calculation, and click to calculate the results. All the formulas are programmed and each key formula element is defined.

All formulas can be saved and printed. You can also quickly access recent formulas and tag formulas as favorites. Results can also be e-mailed.

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Congratulations! Berkley Property Management on all of your success. We feel fortunate and privileged to be working and associated with

the professionals of the Berkley Property Management team. All the staff of C.H.A.M.P. Engineering Limited wish Berkley

Property Management many years of continued success.

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Maintenance

The rules for fuel storage and diesel generators have changed and there is no grandfather clause to allow existing installation to remain.

Fuel delivery can be stopped if you do not comply with these new code requirements.

By BassEm sukkaR

Many residential and commercial bu i ld ings have emergency power supplied mainly by diesel powered generators. These are used as a back-up for life and safety systems such as fire alarm panels, sump pumps, exit lights, emergency lights, and in many building’s fire fighters’ elevators.

Diesel powered generators account for more than 85 per cent of buildings. The installation of diesel generators, l ike many other major equipment , are governed by bylaws, codes, and regulat ions as wel l as author i t ies hav ing jur isdict ion over inspect ing these equipment. Technical Standard & Safet y Author i t y ( TSSA ) is the Ontario authority that regulates fuel suppliers, distributors, storage facilities, contractors, and equipment. In Ontario, all diesel fuel installations must comply

w i th C S A B13 9 O N 0 6 ‘Onta r io Insta l l a t ion Code for O i l Burn ing Equipment’, which is based on the national standard CSA B139 but with Ontario amendments.

I n M arc h 2 0 0 2 an A l te r n a t i ve Inspection Program was established bet ween T S S A and the Fue l O i l Industry Associations calling on the fuel delivery supplier to perform an initial basic inspection of the diesel fuel system installation and identify any safety or code related deficiency. By May 2004, all diesel fuel installation sh o u l d h ave un d e rg o ne a b as i c inspection by a certified/ licensed Oil Burning Technician (OBT1).

Following this basic inspection, a comprehensive inspection should have been completed by May 1, 2007 by the Oil Burning Technicians that deliver

The changing rules for fuel storage and diesel generators


March 2012 39

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the fuel to clients. If a technician found deficiencies with the fuel systems they were to notify their clients that they are not able to deliver fuel to the building until the issues are corrected. Some of these deficiencies are classified as immediate hazard while others are classified as non-immediate hazard.

A significant number of building owners, operators, and proper ty managers are unaware of code compliance issues with the diesel fuel systems installed at their buildings as the existing generators have been running for a long period of time without any problems. Due to several incidents of diesel spills and fires, TSSA started to enforce CSA B139 ON to ensure that all diesel installation are safe and code compliant, as failure to do so, will have severe implications for the health and safety of the general public and to the environment. Most buildings have not had a proper comprehensive inspection completed.

“We are finding that most diesel fuel installations do not comply with the required codes and regulations and building owners and property managers are not aware of this. This leads to interruptions of fuel delivery when fuel tanks could be critically low, causing concerns for the safety of the building and their occupants,” said Ed Porasz, president, M & E Engineering.

Upgrading a diesel fuel systemUpgrad ing the sys tem goes beyond replacing single wall tanks with double wall ones or adding fire valves or alarm panels. To incorporate a proper upgrade of the diesel fuel system a comprehensive engineering study and design is required to ensure that all items are viewed, designed, and variances applied. Some of the most basic and common items found in almost all diesel installations in Ontario, which do not meet code requirements, are as follows:

Day tank ventingThe venting of the day tank (for elevated installations i.e. main tank in on the ground floor or P1 Level and the generator is in the penthouse mechanical room) should be via the return line or overflow pipe back to the main tank. The problem is that the majority of the day tanks are vented to the atmosphere without any redundant systems. As a result, there is a chance of a diesel spill to the exterior if the day tank overfills and the return line is not of sufficient size.

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Maintenance



Loc a t ion and c a pac i t y o f ma in storage tanksThe location of the main diesel storage tank should be installed close to an ex ter io r wa l l where the d is tance between the bottom of the tank to top of vent is less than 13’ 6”. If the distance exceeds the limit then certain safety measures must be taken. In addition, diesel storage tanks should be located in the lowest level of the building or else the capacity of the main storage tank will be limited.

Generator exhaust stackThe generator exhaust stack shal l be of the approved vent ing t ype ( U LC s t a in l ess s tee l ) . B ase d on my observations, 90 per cent of the generator stacks are schedule 4 0 black steel pipes. Generators used in residential buildings have exhaust flue temperature ranging from 8500F to 1,200 0F. TSSA requires a professional engineer provide a stamped and signed letter cer tifying that the installation

m e e t s N F PA 211 ( N a t i o n a l F i r e Protection section 211).

Clearance from combustibles is critical when the exhaust stack penetrates the ceiling/roof of the generator room where combustible materials may exist, depending on the type of roof (water stop PVC materials, asphalt membrane…). The clearance requirement, according to code, is 36” for non-insulated stacks and 12” for insulated stack.

In reality, installing contractors do not leave more than few inches around stack penetrations through the roof. To resolve this issue, temperature measurements of the flue gas should be taken with the generator running at full load for a minimum of two hours or until the temperature stabilizes. Temperature readings should not exceed 65 F above ambient and test results submitted to TSSA by a Professional Engineer.

RecommendationsThere are many other items that need to be addressed such as the ventilation

system, fusible links, approved flexible connections, ULC rated filters, and leak detection, etc…

In summar iz ing , i t is ex tremely important to have a safe, reliable, and code compl iant emergency power generator installed in your building as it is used for life and safety systems. Also, it is important to be proactive in ensuring that your generator system complies with code so there is no interruption of fuel supply as correcting some of these issues could take a number of months, before fuel can be delivered again. For this reason, I recommend enlisting a professional e n g i n e e r to rev i ew yo u r d i e s e l instal lat ion and advise you on the most effective and economical way to upgrade the system, and to design and obtain necessary variances from TSSA to ensure code compliance. 1

Bassem Sukkar, P.Eng., Associate, M & E Engineering

We Manage the Quality of Your Lifestyle.

Not Just Your

Building.

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www.samuelproperties.com

At Samuel Property Management Ltd., we are one of Toronto’s most respected rental, condominium, commercial, office and retail managers, providing a level of service that goes well beyond your expectations. Discover a level of personal attention, commitment and care superior to anything you have yet experienced. After all, your home deserves the best.

For information, please call Gino Sisera or John Wannamaker at (416) 398-5757

1120 Finch Ave. West, Suite 801 Toronto, ON M3J 3H7

Tel: (416) 398-5757 • Fax: (416) 398-4988

10089 Samuel march condo.indd 1 3/31/10 4:51:40 PMUntitled-4 1 12-03-13 4:35 PM

Maintenance


March 2012 41

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CONDOMINIUM LAW GROUP

The Condominium Law Group at Fogler, Rubinoff LLPis committed to providing quality legal services to

condominium corporations throughoutthe Greater Toronto Area and surrounding areas

including Hamilton, Kitchener-Waterloo, Barrie and Collingwood.

For more information or a fee quote you are welcome to contact a member of our team:

Lou Natale416.941.8804

[email protected]

Carol Dirks416.941.8820

[email protected]

David Thiel416.941.8815

[email protected]

95 Wellington Street West, Suite 1200Toronto-Dominion Centre

Toronto, Ontario M5J 2Z9Tel: 416.864.9700Fax: 416.941.8852

www.foglers.com

Professional members of CCI and ACMO

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sMart ideas

With spring here, and summer on its way,

homeowners are gearing up for summer

getaways. Here are six tips for protecting

you and your home on social media.

Six tips for protecting your home on social media

Do post updates or

“tweet” about the great new

security system or locks you

just had installed.

Don’t post photos of the new

52” TV in your living room or the vintage

Harley Davidson in your garage

Don’t update any statuses or

“tweet” the dates that you are going away.

Also, be sure to utilize the privacy settings

on social media sites correctly to ensure that

strangers are not seeing things you didn’t

intend them to see.

Do monitor what

your children are posting

i.e.: “Parents gone all

weekend! House to

myself!”

Don’t write about how frustrated you are because your

front door doesn’t shut properly, or about how you’re getting new

windows installed over the weekend.

Do be careful when using the “check-in” feature on Facebook,

and be weary of apps that share your location to others. The new

generation of apps broadcasts your location at all times to friends -- and

in many cases to people you don't even know. And unlike the previous

generations of applications that required you to check in to a venue,

these apps are persistent unless you pause them or turn them off.

Courtesy of Weiser Lock

Peace of mind included.At CLM, we know contemporary condominium living is not only about comfort, but in having confidence in the day to day management of your investment. With over twenty years of ‘hands-on’ experience, CLM’s team of professionally trained managers provide the highest standard of service. A member of CCI, ACMO and BILD, we are also ACMO 2000 certified. If it’s time to reconsider your choice of professionals, think CLM—we’ll make you feel more than just comfortable, we’ll make you feel confident.

For competitive management rates, and to find out how CLM can keep condominium living worry-free, please contact;

Stacey KurckDirector, Business DevelopmentOffice: 1.877.81.CONDO (26636) x467Cell: [email protected]

www.condominiumliving.ca



Peace of mind included.At CLM, we know contemporary condominium living is not only about comfort, but in having confidence in the day to day management of your investment. With over twenty years of ‘hands-on’ experience, CLM’s team of professionally trained managers provide the highest standard of service. A member of CCI, ACMO and BILD, we are also ACMO 2000 certified. If it’s time to reconsider your choice of professionals, think CLM—we’ll make you feel more than just comfortable, we’ll make you feel confident.

For competitive management rates, and to find out how CLM can keep condominium living worry-free, please contact;

Stacey KurckDirector, Business DevelopmentOffice: 1.877.81.CONDO (26636) x467Cell: [email protected]

www.condominiumliving.ca


Submetering and Energy SavingsA Winning Combination

866.836.3837 • [email protected] • www.prioritymeter.com

Proud contributors to the Canadian Olympic Foundation

• Quality Service • Great Pricing • Reliable Product• Energy Incentive Programs

• Canadian Made

Ahead of the competition

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condo march 2012

Documents

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