fuel and energy pst exemptions for strata corporations ... · heidi marshall, advisor vancouver...

MARCH 2010

C o n d o M i n i u M H o M e o w n e R s ’ A s s o C i A t i o n o f bC

www.choa.bc.ca 1.877.353.2462

• FuelAndEnergyPSTExemptionsForStrataCorporations

• InformationBulletinNo.1WhatIsBuildingAssetManagement?

choa Journal | March 2010 3

7 Alteration&IndemnityAgreements

11 TheCaseOfTheReviewOfTheRentalDisclosureStatement

15 FuelAndEnergyPSTExemptionsForStrataCorporations

18 InformationBulletinNo.1WhatIsBuildingAssetManagement?

27 InformationBulletin–MinistryOfHousingAndSocialDevelopment

31 CHOABusiness Members

HowCHOAOperates

Eachyear,twelveelectedstrataownersandthreeappointedbusinessmembersfromVancouverIsland,theLowerMainlandandtheB.C.interiorrepresentourthousandsofstratacorporationmembersandassociatesthatmakeupCHOA.

Asanon-profitindependentconsumerassociation,CHOAhasdevelopedagovernancemodelofboardoperationsservedbyastaffandadministrationofsevenwhoimplementtheprogramandoperations.

Thegovernancemodelhaspermittedatransparentlevelofoperations,wheretheboardofdirectorsmeettodiscussanddecideuponpolicydirectionsfortheAssociation,andtoconducttheroutinebusinessandreportingrequiredbytheSocietiesActandCHOAbylaws.

Theuniqueperspectivethatboardmembersbringtothetablehelpstoshapeandfocusourprogramsoneducation,research,governmentrelations,advisoryservicesandpublicationsandresources.

Eachyear,anindependentauditorperformsafullauditofCHOA’sfinancialoperationsincompliancewithreportingstandardsandtheCHOAbylaws.

Thegovernancefunctionsasaboardareinsuredunderadirectors’andofficers’policy,andtheAssociationmaintainsaseparateprofessionalliabilitypolicyfortheservicesandactivitiesofstaffoperations,seminarsandpublications.IamhonouredtoservetheAssociationwithsuchdedicatedindividuals,whobringsuchadepthofknowledgeofexperienceandexcellencetotheAssociation.Inrecentyearstheboardandstaffhavedevelopedharassmentpolicies,personnelpolicies,financialpoliciestoensuretransparentreportingtoourmembership,andarecurrentlydevelopingapolicyonethics.Theboardmembers’independenceandperspectiveareamajorcontributiontoCHOA’ssuccessandimpartiality.ToBillM,Broc,Emma,Eli,Iris,Marion,Jackie,Keith,BillT,Melanie,Mary,Heinz,Allyson,Mark,Adrienne,thankyouforyourservicetoconsumersin2009.

CONDOMINIUM HOMEOWNERS’ ASSOCIATION OF BCTheCondominiumHomeOwners’AssociationofBCpromotestheunderstandingofstratapropertylivingandtheinterestsofstratapropertyownersbyproviding:advisoryservices;education;andresourcesupportforits’members.

MEMBERSHIP IN CHOANewmembersarealwayswelcome.AllmembersmayaccessCHOA’sadvisoryservices,publications,CHOAjournals,resources,seminarsandworkshops.Formoreinformationonthebenefitsofmembership,contactourheadoffice,orgotoourwebsite.

CHOA CONTACT INFOToll-Free:1-877-353-2462Website:www.choa.caEmail:[email protected]

HeadOffice(LowerMainland):Suite202–624ColumbiaStreet,NewWestminster,B.C.V3M1A5T:604.584.2462F:604.515.9643

VancouverIslandOffice:Suite222–1175CookStreetVictoria,B.C.V8V4A1T:250.381.9088F:250.381.9088

InteriorOffice:Suite101–3115SkahaLakeRoadPenticton,B.C.V2A6G5T:250.492.3552F:250.492.3552

STAFFTonyGioventu, Executive Director

HeidiMarshall,Advisor Vancouver Island, Communications Officer

SharonKelly,Advisor Vancouver Island

LynneArling,Advisor Interior

TomCarr,Advisor Lower Mainland

DeannaFerguson,Member Services Coordinator

LeoWang,Accounting & Reception

ADVERTISERS WELCOMEForadvertisinginformationandrates,pleasecontactouroffice.

Tel: 604-584-2462Fax: 604-515-9643

CHOA BOARD OF DIRECTORS

BillMiller,President–LMS1000BrocBraconnier,Vice President–KAS1884IrisMcEwen,Treasurer–LMS1965MelanieLietuvinikas–NW0429HeinzMaassen–NW955MarionMitchell,Secretary–LMS358MaryStojanovic–VR53EmmaThibodeau–VAS24EliMina–BCS1871KeithDavis–VIS2044JackieHaywood–VR1994BillThorburn–VIS5081AllysonBaker,Business Member

AdrienneMurray,Business Member

MarkWill,Business Member

DISCLAIMERThispublicationisdesignedtoprovideinformativematerialofinteresttoitsreaders.Itisdistributedwiththeunderstandingthatitdoesnotconstitutelegalorotherprofessionaladvice.Althoughthepublishedmaterialisintendedtobeaccurateneitherwenoranyotherpartywillassumeliabilityforlossordamageasaresultofrelianceonthismaterial.Appropriatelegaladviceorotherexpertassistanceshouldbesoughtfromacompetentprofessional.TheservicesorproductsoftheadvertiserscontainedintheCHOAJournalarenotnecessarilyendorsedbytheCondominiumHomeOwners’Association.

C o n t e n t sTony Gioventu / CHOA Executive Director

4 choa Journal | March 2010

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Alterations are becoming more

complex and fraught with

liability concerns resulting

in many strata corporations opting to

amend their bylaws to adopt a system for

addressing these important issues.

A simple example highlights the

importance of having properly drafted

alteration bylaws. An owner may

wish to enclose his or her balcony to

increase their habitable living area.

This may seem like a reasonable and

straightforward request. However, none

of us need to be reminded of the severe

impact the “Leaky Condo” crisis has

had on owners. If the building envelope

balcony enclosure is not done properly,

water penetration into the building

substrate could result in severe rot and

damage to the common property and

contribute to a premature building

envelope failure. The remedial costs are

gigantic. Such costs would be typically

paid by all owners, unless the strata

corporation has a properly worded

alteration and indemnity agreement that

requires costs to be paid by the owner

performing the alteration.

The basic rule of thumb is that an

alteration by an owner requires the

prior written approval of the strata

council (See Standard Bylaws 5 and 6).

However, there are some alterations

that may not be caught by these bylaws,

such as flooring replacements (other

than flooring installed by the owner

developer), hot tub installations and the

installation of window air conditioners,

to name a few. Specific bylaws may be

required to ensure that alterations may

be governed by the strata corporation.

The strata corporation should review

its bylaws to ensure that its concerns are

adequately addressed to cover matters

such as noise, vibration, nuisance,

interference with views and privacy, fire

and other hazards and building envelope

alterations.

The following is a checklist of issues

and conditions that a strata corporation

may wish to impose on an owner by way

of an alteration agreement:

1. determine the types of alterations

that require approval given the

unique character of the particular

strata corporation;

2. require written approval from

the council to ensure that the

proposed alteration complies with

the aesthetic needs of the complex

including the location, color, size

and appearance;

3. require the owner to provide valid

permits from the authority having

jurisdiction before commencing

work on the alteration;

4. require the owner to employ

proper professionals and

contractors to design, inspect and

certify that the work complies

with applicable building codes

and other laws (this is particularly

important if there are water

penetration concerns);

5. require the owner to provide

evidence that the contractors and

others are covered by WCB and are

licensed to perform the work;

6. impose appropriate standards

on the quality of the work as a

condition to the grant of approval;

7. require the owner to perform the

work within a certain period of time

and to rectify deficiencies, if any;

8. authorize the strata corporation

to perform the outstanding work

or correct the deficiencies if the

owner fails to do so after notice to

that effect;

9. require compliance with bylaws

dealing with noise, nuisance, access,

permitted hours for the work, etc.;

10. require compliance section 70(4)

of the Strata Property Act dealing

with changes in habitable area and

section 71 of the Strata Property Act

dealing with significant changes

in the use or appearance of

common property – (both of these

provisions are often overlooked

and both require owner approval

at a general meeting before

proceeding with the alterations);

11. obtain a satisfactory indemnity

agreement for the benefit of the

strata corporation and its council

members, authorized agents and

employees against any claims,

losses, damages or actions related

to the alteration, including

payment of any legal costs of

the strata corporation on a full

indemnity basis;

12. require the owner to pay all of the

expenses related to the alteration –

including past present and future

Alteration&IndemnityAgreements

CoraD.Wilson / Strata Lawyer

continued on page 8.


expenses for repair, maintenance,

replacement, insurance,

professionals, contractors and

legal costs;

13. require the owner to inform a

subsequent purchaser of the strata

lot of the terms of the alteration

agreement and to obtain the

subsequent purchaser’s agreement

to be bound by the alteration

agreement, failing which, the

alteration would have to be removed

by the owner before closing;

14. require the owner to remove

any Builder’s Lien claims which

may be filed against the common

property as a result of the

alteration;

15. address the increased costs of fire

and liability insurance payable

by the strata corporation, if

applicable;

16. address what happens in the

event of a claim against the

strata corporation related to the

alteration;

17. address whether or not to require an

owner to obtain an homeowner’s

insurance policy; and,

18. consider incorporating the

alteration agreement into a bylaw

amendment to provide notice

to the public when the bylaw is

registered in the applicable land

title office.

These agreements are complex. Strata

corporations are advised to seek legal

advice when preparing these agreements

to ensure that all relevant issues are

properly addressed.

continued from page 7.

Order YoursToday!

Name: _______________________________________________________ Strata No. __________________

Address: __________________________________________________________________________________

City: __________________________________________________ Postal Code: _______________________

Tel: ____________________________________________ Fax: _____________________________________

Email: ____________________________________________________________________________________

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Signature: _________________________________________________ Expiry Date: __________________

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A.Murray / Law Corporation

Who is exempted from a rental

restriction or prohibition

bylaw (“rental bylaw”) has

created confusion and some uncertainty for

strata corporations. A recent Court decision

has however clarified the exemption.

The Strata Property Act provides that

a rental to a family member is exempt

from a rental bylaw. Additionally, an

owner may apply for an exemption

from a rental bylaw if the bylaw causes

hardship to the owner.

Section 143 of the Strata Property Act

also creates an exemption by providing

that, if a strata lot has been designated on

a Rental Disclosure Statement, a rental

bylaw does not apply to the strata lot

until the earlier of:

• the date the strata lot is conveyed by

the first purchaser of the strata lot, or

• the date the rental period expires as

disclosed in the Rental Disclosure

Statement.

Section 143 operates to create an

exemption for developers and purchasers

who purchase from the developer

provided that the rental period as

disclosed in the Rental Disclosure

Statement has not expired.

The ability of first purchasers to rent

their strata lot was impacted by the 2000

decision of Abbas v. The Owners, Strata

Plan LMS 1921. In Abbas, the developer

had provided that the Rental Disclosure

Statement was valid for an “indefinite

period” rather than providing a specific

date for the Rental Disclosure Statement

to expire. The Judge in Abbas found that

by providing for an indefinite period

the developer had failed to comply with

the requirements of the Condominium

Act, which was the legislation in force

at the time that the Rental Disclosure

Statement was prepared. The result

was that the Judge found the Rental

Disclosure Statement to be invalid.

Many strata corporations have since

applied the Abbas decision and refused

to permit purchasers from developers to

rent their strata lot in cases where the

developer used expressions such as

“indefinite” or “unlimited” for expiry

periods in the Rental Disclosure Statement.

The recent decision of Spagnuolo v.

The Owners, Strata Plan BCS 879

overturned the Abbas decision. The

Spagnuolo decision held that a Rental

Disclosure Statement that referenced

an “unlimited period” is a valid Rental

Disclosure Statement.

The Spagnuolo decision now makes it

clear that the developer and purchasers

from the developer are entitled to rent

their strata lot until the sale of the

strata lot by the first purchaser unless

the Rental Disclosure Statement has

expired. A Rental Disclosure Statement

that contains a reference to “unlimited,”

“indefinite” or any other such phrase as

the expiry date for the Rental Disclosure

Statement is valid and developers and

first purchasers are permitted to rent their

strata lots until the sale of the strata lot by

the first purchaser from the developer.

Strata Corporations that have

attempted to prevent developers or first

purchasers from renting their strata lots

on the basis that the Rental Disclosure

Statement did not contain a date may

wish to obtain legal advice in view of the

Spagnuolo decision.

In addition to the Spagnuolo decision,

the amendments to the Strata Property

Act have also had an impact on the

application of rental bylaws. Although

existing strata corporations are not

affected by this change, an amendment

to the Strata Property Act Rental

Disclosure Statement form (Form J)

requires that for all Rental Disclosure

Statements filed after January 1, 2010,

the Rental Disclosure Statement must

have a date.

Additionally, the amendment to

the Strata Property Act provides that

a Rental Disclosure Statement is valid

until the expiry date set out in the

form. The effect of this amendment is

that it permits all purchasers, not just

purchasers from the developer, to be able

to rent their strata lot until the Rental

Disclosure Statement expires.

For existing strata corporations

however, the Spagnuolo case applies.

TheCaseOfTheReviewOfTheRentalDisclosureStatement


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Condominium Home Owners’ Association of British Columbia Serving B.C.’s Strata Property Owners since 1976

www.choa.bc.ca

Bill 8 Amendments to the Strata Property Act "Public Forum"

Depreciation Reports and Reserve Fund Studies

1. What is a reserve fund study/depreciation report? 2. How will the standards of creating a study be created? 3. What is the purpose of a reserve fund study? 4. Who is a "qualified person" to conduct the reserve fund study? 5. Who may be exempt from the requirements as a "prescribed class"? 6. How much will the study cost? How long is it valid? 7. How will a study affect an existing building that is 5, 10, or 25 years old? 8. Who will access the study? 9. Will it affect our property value? 10. Will the study have an impact on our strata fees? How is it funded? 11. Are there legal implications to commissioning a study or exempting a study? 12. What will our strata corporation have to disclose to buyers?

As the provincial government develop the regulations to enact the amendments to section 94 of the Act, there are many unanswered questions for consumers and the industry that relate to the impact of the amendments. The government will be consulting with strata owners and other in the strata community on these questions. This forum will open with a presentation of a Reserve Fund Study and the purpose of a study, address liability issues and long-term cost implications, and include discussion on the potential impact of the amendments. The forum is open to the public at no charge on 3 dates and locations across the province.

Saturday April 17 ~ 10:30am-12noon (following the CHOA AGM) Douglas College, 700 Royal Avenue, New Westminster, Large Lecture Theatre

Saturday May 15 ~ 2:30-4:30 pm (following the Penticton Seminar)

Days Inn, 152 Riverside Drive, Penticton

Saturday May 29 ~ 2:30-4:30 pm (following the Victoria Seminar) Comfort Hotel, 3020 Blanshard St, Victoria

Registration in advance is required as space is limited. Only 2 per strata plan please.

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Provincial Sales Tax (PST) is imposed

in British Columbia under the

Social Service Tax Act. PST applies

to sales and leases of goods and some

services and is paid by the end user of

such or consumer, unless the item is

exempt from tax under the Act.

When purchased for a residential

dwelling, electricity and natural gas is

exempt from PST. This means that for

residential units in a Strata Corporation,

there should be no PST assessed on

their hydro or gas bills. However, there

are situations where PST is assessed

incorrectly on residential hydro and

gas accounts. This usually happens

when the developer initially registers

the building for hydro and gas accounts

in their own name. The units would

therefore be commercial accounts. Then

when the units are subsequently sold

to residential owners, the accounts are

not changed to residential accounts and

thus PST is assessed on accounts that are

actually exempt from paying PST. This

results in residential units over-paying

PST on their hydro and/or gas.

Your Strata Corporation may have been overpaying PST on gas or hydro If a Strata finds that they are being charged

PST incorrectly, they should notify their

supplier immediately to change their

account to a residential account so that

PST is no longer being assessed on their

account. They can also apply to get a

refund of the PST paid in error.

Application for Refund of Overpayment of Taxes If you have been overpaying PST on your

electricity and/or natural gas bills, you

can apply to get a refund by completing

the form FIN 413 Application for Refund

of Social Service Tax or Hotel Room Tax.

Refund applications can be made for

4 years from the time of payment.

Refund applications require that copies

of invoices to be submitted along with

the form and that the form is signed by

an authorized representative. A Council

member or a representative from the

property management company can sign

the application form.

Implementation of Harmonized Sales Tax It was proposed that, effective July 1, 2010,

all goods and services will be subject to

Harmonized Sales Tax (HST) of 12%.

This harmonization will combine PST

of 7% with the Goods and Service Tax

(GST) of 5%. Although the exemptions

previously available under the Social

Service Tax Act will not be applicable

once HST is implemented, it has been

proposed that there will be provincially

administered point of sale rebates for

the PST portion on energy purchases

for residential dwellings. Thus, Strata

Corporations will not experience the 7%

increase in hydro and gas expense that

will be applied to many of their other

expense categories.

Speak with us if you have any questions

about this topic or would like to enquire

about services to claim a refund for

overpayment of PST. Please email

Isadora Goh, Client Services Accountant

at [email protected] or call (604) 273-9338

and we would be glad to help.

IsadoraGoh / Client Services Accountant, ReidHurstNagyAccountants

FuelAndEnergyPSTExemptionsForStrataCorporations

18 choa Journal | March 2010 Page 1 of 4

Building Asset Management Bulletin No. 1 launches CHOA’s introduction of a 3-year research project for corporations and managers. The

bulletins provide a common understanding of the language and terms that relate to the best practices of the maintenance, repair and

long-term planning of renewal of your common property and common assets in your building systems. Over the next few months the

bulletins will be posted on the CHOA website for public access. The bulletins have been produced in partnership with CHOA, RDH

Building Engineering Ltd. and the Real Estate Foundation of BC.

1. Introduction

There are a variety of terms used to describe the different types

of management, including: property management, facility

management and asset management. This series of

information bulletins includes a glossary of terms to help

distinguish these concepts.

“Asset Management” is a term often associated with financial

investments. In this series of information bulletins, we use the

term “Building Asset Management” to mean the integration of

three disciplines: management, finance and engineering,

which are together applied to the stewardship of the physical

assets of a building.

Assets are the major components of buildings, such as roofs,

windows, boilers, elevators, hallway carpets and landscaping.

Building Asset Management is a process and decision support

framework that covers the full service life of the physical assets

from cradle to grave.

2. Building Owner Objectives

It is useful to start our discussion on Building Asset

Management by identifying the shared requirements of all

residential building owners. These requirements set the

benchmark against which Building Asset Management is to be

measured.

l Peace of Mind. This includes owners’ concerns about

issues that bear on the safety and health of the

building occupants and their guests. A loose sign

above an entrance doorway is a simple example of a

safety issue that would require immediate attention

before it falls and injures someone. Another example

is exposure to mould and other undesirable

environmental factors that will affect the long-term

health of the owners.

l Good Value for Our Money. Owners want to ensure

that their money is being spent efficiently and

effectively. The bottom line is directly affected by the

ways in which the owners’ money is being spent every

day on the operations, maintenance and repair of the

assets. In this series of bulletins we will explore

several financial principles and techniques.

l Preservation of Our Real Estate Investment. This

includes the owners’ concerns regarding the long-

term viability of their real estate investment. For

example a building that has been allowed to fall into a

state of disrepair is unsightly and leaves a poor

impression for prospective purchasers. In this series

of bulletins we will demonstrate how building asset

management contributes to the saleability and

marketability of the suites.

Information Bulletin No. 1

What is Building Asset Management..?



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20 choa Journal | March 2010 Page 2 of 4

l A Comfortable Home for our Families. This includes

the owners’ requirement for quiet and peaceful

enjoyment of their homes. As an example, a noisy

exhaust fan in a parking garage can cause much

nuisance and distress to an owner that has a suite

located near the fan. In this series of bulletins we will

demonstrate how proper maintenance and care of the

assets pays dividends to the owners in many different

ways.

l No Surprises. Sudden, unexpected problems create

tension in the community and special assessments

can result in financial hardship for owners.

Building asset management provides the means, methods and

techniques to provide for adequate planning in the best

interest of the strata corporation.

3. Building Life Cycle Stages

It is generally recognized that buildings move through a series

of life cycle stages. The figure below provides a conceptual

representation of five distinct stages associated with

residential buildings.

< 1 year

1-16 years

17-29 years

30 – 49 years

50+years

Capital Development

Capital Renewals

Routine Maintenance

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

$

While maintenance costs are generally consistent over the life a

building, capital renewals vary dramatically at different times.

In this series of information bulletins we will look at the types

of projects that arise at different stages in the lifecycle of

buildings and how some owner groups have been able to make

informed decisions about the allocation of resources to the

maintenance, repair and renewal of the assets.

The requirements for effective stewardship of the building are

similar for all types of strata corporations, whether it is a high-

rise building, low-rise buildings or townhouse complex.

4. Building Investment Costs

Over the life of every building, the owners are regularly

confronted with decisions regarding the expenditure of money

to look after their buildings. The various types of costs

associated with the assets can be distributed into three general

categories.

l “Keep-up” Costs. These are costs associated with

annual maintenance of the assets and operations of

the building. Also included in this category are the

annual allocations to the reserve fund in preparation

for major renewal projects when assets reach the end

of their useful lives.

l “Catch up” Costs. These are costs to correct any

accumulated backlog of deferred maintenance. This

category also includes special assessments to make

up for any shortfalls in the reserve account.

Unfortunately, many buildings find themselves having

to deal with catch-up costs that have accumulated

over the years either as a result of inadequate

maintenance of the assets or inadequate allocation to

the reserve fund. In later information bulletins we will

explore some of the strategies that have been

effectively used by some owner groups to avoid these

types of backlogs or to deal with them once a backlog

has occurred.

choa Journal | March 2010 21 Page 3 of 4

l “Get Ahead” Costs. These are costs associated with

adaptation of the building to counter the forces of

retirement associated with different forms of

obsolescence, such as functional obsolescence, legal

obsolescence and style obsolescence. For example,

owners are sometimes forced to replace equipment

because the original manufacturer no longer provides

replacement parts. In one of the bulletins we will

identify which assets are prone to obsolescence and

how owners can prepare for it. We will also look at

how owners have upgraded some of their assets by

carrying out energy studies and other retrofits that

improve upon the design and functionality of the

building.

Keep-up costs, catch-up costs and get-ahead costs are

explored in greater detail in subsequent information bulletins.

5. Asset Management Methodology

In order to fully develop an asset management plan owners

need to periodically ask themselves the following series of

questions about their assets. These questions help frame

many of the decisions related to the planning, management,

operations, and governance of the assets.

l What Do We Own? This question helps identify the

assets that are collectively owned by the strata

corporation. This is the starting point for any effective

management of the assets. For example, “What type

of roof do we have on our building?”

l What Are Our Asset Worth? This question helps

identify the value of the assets, which form part of

each owner’s real estate investment.

l What is the Deferred Maintenance? This question

helps identify what work has not yet been carried out

on the assets (such as maintenance and repairs),

which needs to be done in order to preserve the value

and functionality of the assets. Every building has

some level of deferred maintenance and the

challenge is to ensure that this does not jeopardize

the long-term performance and reliability of the assets.

l What is the Condition of our Assets? This question

helps identify the current physical state of each of the

assets so that the owners know how much work

needs to be done and how much money should be

spent.

l What is the Remaining Service Life of our Assets..?

This question helps identify when each asset will

eventually need to be replaced. It is an inescapable

reality that nothing lasts forever.

l What do we Fix First..? This question helps establish

priorities. With limited resources, every strata

corporation faces the challenge of having to make

decisions about the allocation of limited resources

within each fiscal year.

l How much Money do we Need..? This question helps

determine the appropriate annual reserve allocation

to ensure that the reserve fund is adequate to meet

future asset renewal requirements. This question also

helps the owners think about the annual operating

budget for maintenance and repairs.

l Do we have Enough Money..? This question helps

identify any shortfalls in available funding for the

maintenance, repairs and replacement of the assets.

l What if..? This question presents the owners with the

impact of different decisions. For example, what will

happen if we don’t replace the leaking roof this year;

what additional costs will be incurred if we split our

roof replacement projects into two phases to be

carried out over two consecutive years?

The completeness and accuracy of the answers to each of these

questions will indicate the level of sophistication of the existing

asset management program and point to areas where further

development and refinement is required. This series of

information bulletins is intended to assist in this endeavour.

6. Asset Management Tools

Various tools are available to assist owners in establishing a

framework to effectively plan for and manage their physical

assets. In order to make informed decisions on how much

money should reasonably be spent, owners need current and

meaningful information regarding the physical condition and

financial status of their assets.

l Condition Assessment. This provides information on

the current physical state of certain assets. It helps to

estimate the remaining life of the assets based on

their current condition and estimated rate of

deterioration.

l Maintenance Plan. This tool provides checklists of

instructions on how to keep each asset of the building

in good working order. The plan ensures that the

necessary activities are carried out to achieve the full

service life of the assets.



Miller Thomson llp’s

CondominiumLaw Group

Lynn Ramsay, Q.C.

Michael Walker

Sharon MacMillan

We have extensive experience serving the legal needs of the strata community. The services we provide include:

For more information, please contact:MiChaeL WaLkeR

[email protected]

Robson Court, 1000 - 840 howe StreetVancouver, BC V6Z 2M1www.millerthomson.com

VanCouVeR ToRonTo CaLgaRy edMonTon LondonkiTCheneR-WaTeRLoo gueLph MaRkhaM MonTRéaL

Bylaw drafting and enforcement��

Strata reorganizations��

Strata fee collections��

dispute resolution and avoidance��

Strata governance and meetings��

choa Journal | March 2010 23 Page 4 of 4

l Reserve Study. This is a long-range financial planning

tool to ensure that adequate replacement funds are

available when assets reach the end of their useful

lives. Owners don’t like surprises and reserve studies

help mitigate against the financial burden that arises

when major components need to be replaced.

In this series of information bulletins, we will also explore the

different tools that are available to help building owners and

property managers.

7. The Asset Management Team

Building Asset Management requires a team effort in order to

succeed. From time-to-time the owners will require

contributions from consultants and contractors to assist with

the planning and management of the assets. To this end:

l Engineers. These professionals are primarily

concerned about the changing physical condition of

the assets over time and providing advice on large-

scale repairs and renewals.

l Accountants. These professionals are primarily

focused on tracking the expenditure of money on the

assets over time and the availability of funds for

future repairs and renewals.

l Information Management. These professionals

provide the means for storing information about the

assets in some appropriate database system so that

the assets can be monitored over time.

l Property Management. These professionals help

procure information to enable the owners to make

informed decisions about the assets over time.

l Contractors. This group provides services to maintain

the assets over their service life and to carry out

periodic repairs.

The roles of the different consultants and contractors are

addressed in detail in later information bulletins.

Information Bulletins

Listed below is a summary of some of the information bulletins

that form part of this series.

l Glossary of terms

l What are the different types of asset that we own?

l What is an asset inventory?

l What is a baseline database?

l What are the asset management tools?

l How long should our assets be expected to last?

l What causes our assets to deteriorate?

l What happens when our assets deteriorate?

l What is obsolescence and how does it affect us?

l What is a condition assessment?

l What is a warranty review?

l What is a maintenance review?

l What is a maintenance plan?

l What is a maintenance policy and how do we

establish one?

l What is a reserve study?

l What is a funding model?

l What are the different maintenance strategies?

l How do we track our maintenance & renewals

program?

l How do we bridge our maintenance plan into a

maintenance program?


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D I V I S I O N

OU

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OW

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Get the right advice, Access Gas Services can provide you with a costsaving strategy tailored to your strata to help reduce your natural gas costs.

TestimonialsAccess Gas ServicesWith today’s volatile natural gas market, the importance of closely

monitoring energy costs and adopting a cost saving strategy has

increased dramatically.

Access Gas Services Inc. (AGS) is a first class energy brokerage,

delivering a full suite of natural gas services to industrial, commercial,

and residential customers throughout British Columbia. Unlike other

marketers, we are not a gas producer nor are we owned by a utility.

We are strictly a natural gas consultant/broker and our sole focus is to

provide our clients with quality advice on energy cost saving and risk

management strategies.

Historically, strata’s were limited to purchasing their natural gas on a

variable rate plan from the utility (Terasen Gas). They now have the

option to purchase the commodity on either a variable or fixed rate

plan from an independent broker such as AGS. AGS offers several

combinations of the two, with each cost saving strategy tailored-suited

to the volume of gas your strata currently burns.

Contact us today for a free energy assessment.

We are confident that our service will have a positive impact on your

annual budget, and provide you with the opportunity to stabilize your

strata fees.

Baywest Management Corp.

“As a property management company that handles over 30, 000 units,

it is of the utmost importance to deal with a natural gas brokerage

company who can provide flexible products, competitive pricing and

quality advice. I have been a client of Access Gas Services Inc. for just

over one year. In that time frame my dedicated natural gas broker has

saved me $26,607.00 on my natural gas bill. Working with them has

been easy, without complications and extremely beneficial.”

Leo Buonassisi, Strata Manager, Baywest Management Corp, Strata Plan NW1799

Call for a free assessment.Call for a free assessment.Call for a free assessment.1.877.519.0862 ext 2231.877.519.0862 ext 2231.877.519.0862 ext [email protected]@accessgas.comw w w. a c c e s s g a s . c o mw w w. a c c e s s g a s . c o m

Martello Property Services Inc.

“Staying up to date and well informed with the happenings of the

energy markets is vital to the success of cost savings strategies. My

account manager at Access Gas Services consistently provides me

with market updates and recommendations that support my

budgeting needs. This value added service enables me to discuss

energy opportunities with strata councils in a timely manner.”

Don Dingman, Vice President Strata Division, Martello Property Services Inc.

Take advantage of this opportunityto secure your Natural Gas rateat an Unbelievably low price.


INFORMATION BULLET IN

2010HSD0024-000212

March 3, 2010

Ministry of Housing and Social Development

HOMEOWNER PROTECTION ACT RESPONSIBILITIES TRANSFERRED

VICTORIA – As part of government’s review of Crown corporations, the Province will transfer a

number of the key responsibilities under the Homeowner Protection Act effective April 1, 2010.

The transfer of responsibilities includes:

• Transferring the residential builder and building envelope renovator licensing, owner

builder authorization and the research and education responsibilities to BC Housing.

• Transferring the administration of the Reconstruction Program to the Ministry of

Finance. HPO stopped accepting new applications for this program in July 2009.

As of June 30, 2010 the PST Relief Grant for owners of homes with completed building

envelope repairs will be terminated in conjunction with the introduction of the Harmonized Sales

Tax (HST). Applications for the grant will be accepted at the current HPO address until 4 p.m.

on June 30, 2010.

Requirements for licensing, owner builder authorizations and home warranty insurance

under the Homeowner Protection Act will remain unchanged.

The HPO website will continue to provide online licensing, new home registration, owner

builder authorization, Building Smart seminar registration, and research and education

information for the residential construction industry and consumers.

For the latest information about the transfer of the Homeowner Protection Act

responsibilities, visit www.hpo.bc.ca.

-30-

For more information on government services or to subscribe to the Province’s news feeds using

RSS, visit the Province’s website at www.gov.bc.ca.


The Strata Property Agents of B.C. was started in 2000 and now consists of over 90 licensed strata

management companies throughout British Columbia.

The Associations primary goals are to promote a high level of professionalism, professional

conduct and quality of service through education and member association. The members abide by

a Code of Ethics for both corporate and individual member status.

STRATA PROPERTY AGENTS OF BRITISH COLUMBIA

Visit our website or contact us via email for more information

www.spabc.org [email protected]


Janitorial and Building Maintance Services Residential - Commercial

Over 30 years of experience

Our Services Include:

Member of the B.B.B. and WorkSafe BCBonded and insured

We Provide Clean Environments

[email protected]

Contact us today for a free estimate

• Carpet cleaning• Green cleaning• Snow removal• 24-hour Emergency call-out service

• Daily, weekly, monthly • Window washing • Pressure washing• Floor maintenance


Trotter & MortonFacility Service inc. “WeMakeBuildingsWork”

Trotter&Morton’sprofessional,focused,cost-effectiveapproachtomaintainingandservicingofyourbuilding’sheatingandcoolingsystemsisbasedonpastperformanceandprovenresults.

“Have you asked your Property Manager about a Guaranteed Mechanical Quote from Trotter & Morton”

Complementary Mechanical Inspection and Assessment is included.

Who is helping you reduce your maintenance fees?Maintenance is our core business.We want to save you money through improved HVAC maintenance. It is our goal to reduce your cost and improve your comfort and the reliability of your systems. We are so confident, we will guarantee the yearly cost of maintenance, service and repairs.

Who is helping you reduce your energy costs?Our Linc Service program is designed to minimize downtime, reduce equipment repairs, and lower energy consumption costs. As your Maintenance Provider we are in the driver’s seat when it comes to how well your building is performing.

Phone:604-525-5462•Fax:604-525-4493Email:[email protected]

5151CanadaWay,Burnaby,BC,CanadaV5E3N1


CHOA Business MembersBUiLDing enveLoPe

Maintenance

Accurate Cedar Ltd.Richmond604-273-3329accuratecedar.com

Maintenance Operations Program Inc. Cloverdale604-574-6435mopinfo.ca

New City Contracting Ltd. Vancouver604-215-737 newcitycontracting.com

Pacific Building Envelope Maintenance Delta 604-940-6056 pbemltd.com

PCM Pomeroy Building Maintenance Ltd.Burnaby604-294-6700pomeroyconstruction.com

constrUction &BUiLDing enveLoPe

restoration

Coastpro Contracting Ltd.Langley604-881-7011coastpro.ca

Columbia Restoration Co. Surrey604-574-1580columbiarestorations.ca

EPS Westcoast Construction Ltd.Surrey604-538-8249epswestcoast.com

Great West ContractingBurnaby604-433-7089

JDP ConstructionVancouver604-319-9383jdpconstruction.ca

Koman Construction Ltd.VancouverT: 604 709 1818F: 604 709 1819

Sequoia Springs West Development Inc.Campbell River250-287-7272

DrYer ventcLeaning

Commercial Vent Cleaning Ltd.Langley604-251-1717

Michael A. Smith Duct CleaningSurrey604-589-2553

National Air TechnologiesSurrey604-730-9300natch.ca

engineering

Apex Building Sciences Inc. Surrey604-575-8220apexbuildingsciences.com

BC Building ScienceNew Westminster604-520-6456bcbuildingscience.com

Chatwin Engineering Burnaby 604-291-0958 Victoria 250-370-9171chatwinengineering.com

Halsall Associates North Vancouver604-924-5575halsall.com

JRS EngineeringBurnaby604-320-1999jrsengineering.com

Levelton Consultants Richmond604-278-1411levelton.com

Morrison Hershfield Vancouver604-454-0402morrisonhershfield.com

RDH Building Engineering Ltd.Vancouver 604-873-1181Victoria 250-544-0773Courtenay 250-703-4753rdhbe.com

Read Jones Christoffersen Ltd.Vancouver604-738-0048rjc.ca

Touwslager EngineeringBurnaby604-299-1906

Trimstyle Consulting Vancouver604-909-7777trimstyle.ca

Trow Associates Inc.Burnaby604-709-4630

financiaL & accoUnting

Berris ManganVancouver604-682-8492berrismangan.com

Dominion Lending Centres Lisa Fibiger – Leasing AgentVictoria 250-882-2427 lisafiniger.ca

J. Kunickey & Co.North Vancouver604 983 6632jkctax.com

Maxium Condo Finance GroupNorth Vancouver 604-985-1077maxium.net

Reid Hurst Nagy IncRichmond604-273-9338rhncga.com

Sidhu, Straker & AssociatesVancouverT: 604 685 8548T: 604 682 8441

fire & fLooDrestoration

ABK Restoration Services Penticton250-493-6623abkrestorations.com

Ace Fire Prevention Ltd.RichmondT: 604 275 0075F: 604 207 2481acefireprevention.com

Canstar RestorationsPort Coquitlam604-944-1461canstarrestorations.com

Easy Care Restoration Ltd. Richmond604-278-4646 easycarerestoration.com

Hydraclean Restoration Services Ltd.KelownaT: 250 862 8815F: 250 451 9061www.hydraclean.ca

governMent & associations

Better Business BureauVancouver604-681-0312mainlandbc.bbb.org

Better Business Bureau of Vancouver IslandVictoria250-386-6348vi.bbb.org

BC Apartment Owners & Managers Assoc.Vancouver604-733-9440bcapartmentowners.com

Homeowner Protection Office (HPO)Vancouver604-646-7050hpo.bc.ca

I. C. B. A. of BCVancouver604-298-2295icba.bc.ca

Roofing Contractors Assoc of BC (RCABC)Langley604-882-9734rcabc.org

Strata Property Agents of BCSurrey604-541-2903spabc.org

insUrance

Aon Reed Stenhouse Vancouver604-443-2483

BFL Canada Insurance Services Inc.Vancouver604-678-5403bflcanada.ca

Bridges International Insurance ServicesVancouver604-408-8695biis.ca

Capri Insurance Services Ltd. Kelowna250 869 3806capri.ca

CMW Insurance Services Burnaby604-294-3301cmwinsurance.com

Coastal Insurance Services Ltd.Port Moody604-937-1700coastalinsurance.com

Fournier AgenciesPrince George250-564-3600

Hamilton Insurance Services Inc.Vancouver604-872-6788

Normac Appraisals Vancouver604-221-8258normac.ca

Reliance West ConsultingServices Inc Vancouver604-267-7077relianceconsulting.ca

Seafirst Insurance Brokers Ltd.Sidney250-656-9886

Vancouver Island Insurance CentresCampbell Riverinsurancecentres.ca

LegaL & DisPUteresoLUtion

Adrienne Murray Law CorporationWhite Rock 604-538-8239

Alexander Holburn Beaudin & Lang LLPVancouver604-484-1700ahbl.ca

BWF Fodchuk Law CorporationVancouver604-730-9900



For an updated version of the

Strata Property Act Amendments

in effect December 10, 2009, and the Regulations

in effect January 1, 2010, go to www.choa.bc.ca,

click on “Legislation Alerts” or

call the CHOA Office.


• Pressure Washing• Tra�c Line Marking• Industrial Painting

Fax: 604-460-6582Visit us at www.titanpainting.ca

• Int. & Ext. Painting• Drywall Repairs• Texture Ceiling

Liability & WCB Insured

Building Envelope Consultantsinfo@apexbuildingsciences.comwww.apexbuildingsciences.com

• Building Envelope Condition Assessments• Building Envelope Engineering• Project Administration• Rehabilitation Design / Specifications• Maintenance Programs• Waterproofing Systems

Apex Building Sciences Inc.Tel: 604-575-8220 Fax: 604-575-8223

#233 – 18525 – 53rd Ave., Surrey, BC V3S 7A4

1109

HTG

Strata and Rental Management Specialists

Vancouver Office430 - 1200 West 73rd AveVancouver BC V6P 6G5

604.685.3828

Surrey Office302 - 7337 137th St

Surrey BC V3W 1A4604.635.0260

www.PacificQuorum.com

Superior Customer Service

Pro-Active Hands On ManagementLeadership • Regular Site Inspections

Smaller Portfolios • Operational Review

Long Term Capital Planning

20+ years experience • Free proposals

•

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Strata and Rental Management

PACIFICQuORuMPro p e r t i e s In c .

To celebrate the opening of our Surrey office, management agreements for stratas located in Surrey, awarded by March 31, 2010

receive first month’s management fee FREE.

Now Serving Surrey and the Fraser Valley

604.331.5264 / [email protected]# 1700 – 1030 West Georgia Street, Vancouver, BC, V6E 2Y3


CHOA Business MembersLegaL & DisPUteresoLUtion con’t

C.D. Wilson Law Corporation Nanaimo250-741-1400

Clark, Wilson LLPVancouver604-687-5700cwilson.com

Doak Shirreff LLPKelownaT: 250 763 4323F: 250 763 4780doakshirreff.com

Fischer & Company Kelowna250-712-0066fischerandcompany.ca

Grant Kovacs NorellVancouver604-609-6699gkn.ca

Haddock & CompanyNorth Vancouver604-983-6670haddock-co.ca

Hammerberg, Altman, Beaton & MaglioVancouver604-269-8500hammerco.net

Harper Grey LLPVancouver604-687-0411 harpergrey.com

Lesperance MendesVancouver604-685-4894lmlaw.ca

Miller Thomson LLPVancouver604-687-2242millerthomson.com

Nixon Wenger Vernon250-542-7273

Pacific Centre for Dispute Resolution604-696-1996pacificdisputeresolution.com

Pazder Law Corp. Vancouver604-682-1509pazderlaw.com

Remedios & CompanyVancouver604-688-9337remediosandcompany.com

Robert E. GrovesKelowna250-712-9393robertegroves.com

Wilson Marshall Law CorporationVictoriaT: 250 385 8741F: 250 385 0433wilsonmarshall.com

Painting

City Central PaintingSurrey778-869-5777

InspecDeltaT: 604 940 8089F: 604 952 0690www.inspec1.com

New Life Painting & Decorating Ltd.Surrey604-999-2987www.newlifepainting.ca

Pacifica Painting & Restoration Ltd.Vancouver604-709-4100pacificapainting.com

Prostar Painting & RestorationVancouver604-876-3305

Remdal Painting & Restoration Inc.Langley 604-882-5155remdal.com

Sherwood Painting & Decorating Ltd.Langley604-539-1872sherwoodpainting.com

Vanguard Painting Ltd.Vancouver604-732-4223painter.ca

Wolfgang Commercial PaintersBurnaby604-420-5552wolfgangpainters.com

PLUMBing

CuraFlo of BCBurnaby604-298-7278bc.curaflowdealer.com

Spears Sales & Service Vancouver604-872-7104spearssales.com

Trotter and Morton Facility Services Inc.Burnaby604-525-5462trotterandmorton.com

ProJectManageMent

Brewster Engineering & Management Ltd.Victoria250-213-5059

Condo AdvocateDelta 604-940-9322 thecondoadvocate.com

J. Taylor Associates Ltd. New Westminster604-524-9442jt-associates.com

roofing

Adanac Roofing & Exteriors ULCLangley604-888-1616

Burrard Roofing & DrainageNorth Vancouver604-986-1812burrardinc.com

Design Roofing Services Port Coquitlam604-944-2977designroofing.ca

On Top Roof Consulting & Inspection ServicesKelowna T: 250 826 7663F: 250 765 9155

Roofix Services Inc.Burnaby604-444-4342 roofixinc.com

strataManageMent &

reaL estate

Aberdeen Property ManagementRichmond604-273-1234

Accent Property Management Ltd.Vernon250-542-1533accentpm.ca

Alliance Strata PropertyParksville250-951-0851

Amos RealtyOliver 250-498-4844 amosrealty.com

Ascent Real Estate Management Corp.Burnaby604-431-1800 www.ascentpm.com

Associated Property Management Ltd.Kelowna250-712-0025

Atira Property Management Inc.Vancouver604-439-8848atira.ca

Bayside Property ServicesBurnaby604-432-7774baysideproperty.com

Baywest Management CorpSurrey604-591-6060baywest.ca

Blackbrant Management Parksville250-752-2409

Bradshaw Strata Management Ltd.Surrey604-576-2424bsmstrata.ca

Campbell Strata Management Ltd. Abbotsford604-864-0380campbellstrata.com

C & C Property GroupNorth Vancouver604-987-9040cccm.bc.ca

CA Realty Ltd.Richmond604-288-7346carealty.ca

Cascade Realty Ltd.Dawson CreekT: 250 782 5750F: 250 782 5740cascaderealtydc.com

Centre Group Real Estate Service Corp.Kelowna250-763-2300colliers.com

Century 21 – Kootenay HomesRossland250-362-2144

Century 21 Performance Realty & ManagementSquamish604-892-5954century21.ca/performancerealtymanagement

Century 21 Property Management Div.Richmond604-273-1745century21prudentialestates.com

Citybase Management Vancouver604-708-8998

CML Properties Kamloops250-372-1232cmlproperties.ca

Coldwell Banker Horizon RealtyKelowna250-860-1411 okanaganpropertymanage- ment.com

Colliers Macaulay Nicolls Vancouver604-662-2675

Columbia Property Management Ltd.Kamloops250-851-9310

Colyvan Pacific Real EstateVancouver604-683-8399colyvanpacific.com


CHOA Business MembersComplete Residential Property Management Victoria250-370-7093completeresidential.com

Cornerstone Properties Victoria250-475-2005cornerstoneproperties.bc.ca

Dodwell Strata Management Vancouver604-699-5255dodwell.ca

Dynamic Property ManagementSquamish604-815-4654 dynamicpropertymanagement.ca

ECM Strata ManagementAbbotsford604-855-9895

Fraser Property Management Realty Services Ltd.Maple Ridge604-466-7021

Gateway Property Management Corp.Delta604-635-5000 gatewaypm.com

Harbourside Property Management Ltd.Surrey 778-571-0572harboursidepm.com

Highland Property Mgmt Cranbrook250-489-3222highlandproperties.ca

Holywell PropertiesSechelt604-885-3460

Homelife Glenayre Realty Chilliwack Ltd.Chilliwack604-858-7368

Hutton Condominium ServicesVictoria250-598-5148

J.P. Property ManagementGaribaldi Highlands604-898-9118

Kelowna Condominium Services Ltd.Kelowna250-860-5445

Kyle Properties Vancouver604-732-5263

Lodging OvationsWhistler604-938-9899

MacDonald Commercial Real Estate Services Ltd.Vancouver604 736 5611macdonaldcommercial.com

Magsen Realty Inc.Vancouver604-872-3218 magsen.net

Malaspina Realty &Property ManagementSechelt604-741-0720

Martello Property Services Inc.Vancouver604-681-6544martellopropertyservices.com

Mountain Creek PropertiesInvermere250-341-6003mountiancreek.ca

Narod Properties Corp.Vancouver604-732-8081

Northwest Strata Management Ltd.North Vancouver604-980-4729

Norwich Real Estate Services Inc.Kelowna250-717-5000remaxkelowna.com

Okanagan Strata ManagementKelowna250-868-3383osm.to

Pace Property ManagementPrince George250-562-6671 pacepropertymanagement.ca

Pacific QuorumProperties IncVancouver604-685-3828pacificquorum.com

Paradise Vacation HomesVernon250-503-1506

Peak PropertyManagement Inc.Coquitlam 604-931-8666 peakpropertymanagement.ca

Proline Management Co.Victoria250-475-6440property-managers.net

Quay Pacific Property Management Ltd.New Westminster604-521-0876quaypacific.com

Rancho Management Vancouver604-684-4508ranchovan.com

Re/Max Property ManagementRichmond604-821-2999

Realty Executive Cranbrook AgenciesCranbrook250-426-3355cranbrookagencies.com

Realty Executives PentictonPenticton250-493-4372

REMI Realty Inc.LangleyT: 604 530 9944F: 604 530 9948www.remirealty.ca

Royal LePage Coast Capital RealtyVictoriaT: 250 384 7663F: 250 384 6614royallepagecoastcapitalrealty.com

Royal Property Management Ltd.Salt Spring Island250-537-2583royalproperty.ca

Schoenne Property Services Ltd.Vernon250-542-2222schoenneassociates.com

Strata Choice Property Management Ltd. Abbotsford604-864-6400strataschoice.com

Stratawest Management North Vancouver604-904-9595stratawest.com

Tazmeen Woodall –Re/Max Crest RealtyNorth Vancouver604-988-2449 tazmeenwoodall.com

The Wynford GroupVancouver604-261-0285wynford.com

Total Concept Management & Realty Campbell River250-287-4427

TML Management Group Richmond604-207-9001tmlgroup.ca

Warrington Management Vancouver604-602-1887warringtonpci.com

Whistler Premier Resort Accommodations Whistler604-935-5708whistlerpremier.com

Whistler Resort Management Ltd.Whistler604-932-2972

Waste DisPosaL

Metro Compactor West Burnaby604-291-8485metrogroupcan.com

otHer

Access Gas Services Inc.Delta604-519-0862

Action Glass Inc.Burnaby604-525-5365

Coinamatic Pacific Ltd.Richmond604-270-8441coinamatic.com

D. W. Optimum Hvac ServicesRichmond604-273-2200dwoptimum.com

EPG Equity Protection GroupSurrey604-542-9697epg-bc.com

Enviromental Biotech Canada Inc.North VancouverT: 604 980 9998F: 778 340 8111enviromentalbiotech.ca bpotholefree.ca

Mountainside Enterprises Kamloops250-573-0010mountainsideenterprises.shaw.ca

Pigeon Patrol Products Surrey604-585-9279

Terra Nova LandscapingPort Coquitlam604-786-9797

ROOFING CONTRACTORS ASSOCIATION OF BRITISH COLUMBIA

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