Article published in the winter 2012 issues of the CM magazine

1. COVER STORY
MANAGING
Success Stories
TO COINCIDE with ACMO’s newly launched
public awareness campaign, we asked for success
stories from ACMO 2000 companies. The fol-
lowing stories represent a cross-section of the sig-
nificant projects and huge undertakings that RCMs
and management companies take on as everyday
responsibilities.
With a broad skill set that includes successful
completion of ACMO’s courses in finance, ad-
ministration, human resources, law, and physical
building management for RCMs, and a rigourous
compliance audit for ACMO 2000 companies,
directors and owners can expect managers to be
reliable advisors in these and myriad other areas.
As you can see from these tales, managers and
management companies are a very caring group.
Let’s make 2013 – The Year of the RCM.
Photo: Katrin Ray
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2. t A Balcony View to an
End Result
Wilson-Blanchard started man-
agement of Halton Condominium
Corporation
No. 70 in 2008.
When we first
took over as
managers, the
corporation
had four active
legal situations Balcony and balustrade repair – Owners have seen a dramatic increase
and deteriorating front entrance bal- above the regular market increase in recent sale prices of units.
conies that had been patched and
ignored for years. tion had a negative impact on curb proximately $600,000 for restoration
HCC No. 70 is a 50-unit town- appeal. but not until 2016. With the ten-
house complex on Lake Ontario With the help of the manager, the dering project complete, the board
waterfront in the Bronte area of board reviewed proposals and then awarded the 3-year phased restora-
Oakville. It is a wonderful location engaged Edison Engineers Inc. to tion project to Bowie Contracting
in a beautiful area with rising real complete a conditions survey. The from Gormley, Ontario. The board
estate values. results were staggering, although not approved a special assessment of
We quickly assisted in getting le- overly surprising. Although several $16,000 per unit payable over the
gal advice and resolving the legal repair options were considered, the three years of work.
issues while also creating new op- best long-term option was to com- The board and manager met with
erating and standard unit bylaws, pletely restore the concrete balconies the contractor and engineer regular-
which had not been changed since and replace the brick balustrades. ly throughout the three-year project
registration in 1977. However, the Under the engineer’s direction, a to maintain schedules, budgets and
elephant in the room over the past trial project was completed at four to deal with any unplanned circum-
12–15 years was the major balcony units, which helped to confirm the stances. With excellent work com-
repairs that were required. Not only scope of work and finishes for plan- pleted by Bowie under the diligent
were the balconies a structural con- ning the rest of the project. management of Edison Engineers,
cern, their condition was also creat- The budget for complete restora- the third and final phase of the proj-
ing leaks and maintenance issues tion was approximately $1 million. ect was completed in August 2012,
within the units. Being the front The corporation’s previous reserve on time and slightly under budget.
entrances of the units, the condi- fund study had set a budget of ap- While all owners had to endure
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3. three full summers of living in a
construction zone and deal with the
financial impact of a large special as-
sessment, since the completion of the
project there have been many positive
EST. 1972
comments from owners, visitors and
real estate professionals alike. Own-
CANADA HYDRANT SERVICE INC. ers have seen a dramatic increase
above the regular market increase in
recent sale prices of units compared
Bill Clouston to before the project started.
117 CORSTATE AVE. # 2, Concord, Ont. L4K 4Y2 No matter how large the prob-
lems may appear, managers can help
Bus: (905) 669-2950 Fax: (905) 738-6818 board’s make good decisions by tak-
ing professional advice and a will-
ingness to press on to achieve an end
result. ■
Make the dream Brad Wells, RCM, Wilson-Blanchard
of condo living Management Inc.
come true.
t A Small But Significant
Success
On being assigned to a 35-year-old
residential highrise condominium
last year, one of the first problems
I was advised of was that the two
elevators were
constantly run-
ning together
– If anyone
Get Pro-House to look after the reality. called the el-
evator from
any floor in the
building, both
cars arrived together. This problem
had been reported to the elevator
contractor many times, and had not
been resolved. The board decided
to ask the contractor to attend a
meeting with them to review this
Finance, regulations, maintenance and the unexpected... and other issues. At the meeting, we
we care about the details so you can live worry-free were told that our elevators needed
while the value of your real estate increases. to be modernized and also that the
contractor did not have technicians
Caring for buildings continuously for over 30 years. on staff who were really trained
Our record is proven.
or knowledgeable on older eleva-
tors (which are basically mechanical
BRIAN MANN - Vice President and don’t run on computer chips!).
416.783.7676 x226 However, we were assured that ev-
bmann@pro - house.ca ery effort would be made to bring
pro - house.ca
in the one or two people who knew
PRO HOUSE older elevators, and the problem
would be solved. The problem con-
Managing condominiums with care
tinued and complaints were coming
in. This is why we have property
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4. managers (!) because I knew who
could fix this problem in a jiffy, an
elevator contractor who resolved
many problems for me over the years
in older buildings – I called him in,
and within 2 hours got a call back
that the problem was fixed. It has
never arisen again and apparently
was a simple adjustment.
It is a shame that most elevator
contractors today insist on expensive
modernizations of equipment, which
many buildings are not prepared to
do owing to the cost, and that they
are not willing to work with what we
have. Many boards in older build-
ings feel that they are being more or Building envelope – Original single pane slider window system and dated
less pushed into spending big money red brick replaced with energy efficient windows and enhanced exterior.
in order to accommodate the con- uisition meeting caused by the levy are promoted as vertical villages
tractor. ■ of a special assessment, a genuine with a variety of amenities, smaller
commitment to restore one’s home, suite sizes and exorbitant mainte-
Lena Valdes, RCM, Wilson-Blanchard perseverance from the board of di- nance fees often attract more buyers
Management Inc. rectors along with the efforts of a ca- while the older, modest condos with
pable project management team, has much larger suite sizes and cheaper
successfully turned the tides around maintenance fees fail to get the buy-
for this corporation. ers’ attention. ■
The original single pane (curtain
t Dilemma of a New wall like) slider window system with Venu Kalidoss, RCM, DEL Property
Manager in an Old a dated red brick façade is now re- Management Inc.
Building placed with new energy efficient,
The key to profitability of any argon filled, awning windows and
property is a well maintained and an enhanced two-tone exterior insu-
managed building. As a condomin- lating finishing system (EIFS). These
ium manager for a 37-year-old resi- improvements in addition to the bal-
dential highrise cony restoration have significantly t Condominium
for over two improved the overall appearance of Landscaping: Making an
years, I have the building. A water saturated front Asset out of a Liability
experienced elevation is now an energy efficient Or How to Turn a Sow’s
a sequence of façade, which is both functional and Ear into a Silk Purse!
events that aesthetically pleasing. Significant Our large four-tower complex is
have made me reductions are being recorded in typical of many downtown condo-
a proponent of consumption of utilities while the miniums: we are bounded by roads,
this industry. prices of the suites are appreciating there are few parks nearby and our
My architectural background along with improved marketability. own landscap-
with the practical knowledge gained In the past 10 years, numerous ing opportuni-
from attending ACMO courses has projects including boiler and chiller ties are very
enabled me to become an integral retrofits, mould abatement, corridors limited.
part of a project management team and common area renovations led Suffice to
comprised of engineers, building en- to the depletion of the reserve fund. say, there is lit-
velope consultants, contractors and Therefore, it is critical to understand tle greenery in
specialty trades who have helped and incorporate the recommenda- our lives or, as
transform this mundane 70s style tions underlined in the reserve fund one Director put it: we’re suffering
building into a modern enclave with study, especially in an older building from a nature deficit disorder!
refined look. dealing with multiple priorities. We later discovered that our
This transformation involving My mentor, also my district man- problems could be traced back to
a series of projects when initially ager, always quotes “a known devil two very basic deficiencies: the soil
proposed created quite a stir in the is better than the unknown.” Which in our beds was poor and the choice
community. However, after several brings me to a dilemma: why do of plants was not appropriate for the
meetings of the owners and a req- abundant new condominiums that location.
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5. costs and curb appeal! We achieved
attractiveness by selecting a mix of
plant materials that offer interesting
features year ‘round. Maintenance
costs were addressed by limiting the
use of annuals to entry way contain-
ers plantings, selecting perennials,
trees and shrubs that can cope with
our conditions and planting them all
in a proper growing medium.
As for curb appeal, our newly
Roof Garden Before and After. planted beds along Yonge Street are
a head-turning improvement. Our
Our solution: a long range land- themes that serve to unify the prop-
new plan of adding spring bulbs in
scape rejuvenation plan prepared erty and give us a much stronger
fall each year has started this year
by a downtown-based landscape visual identity.
and we expect a spring bloom and
company that specializes in condo- The plan was also long term. The
showy display in the years to come.
minium properties. designers identified our priorities
The result is an affordable land-
The plan addressed every aspect and phased them in over three years.
scape that residents can be proud
of our landscape from containers at This not only met our budgetary
of. And while we would all love
the main entrances to planting beds requirements, it gave us an opportu-
even more green space, at least the
at grade and above ground. This nity to make changes based on plant
green we do have is a pleasure to
comprehensive approach allowed us performance over several growing
behold. ■
to develop a set of common design seasons.
Perhaps the greatest benefit of
Grace Wang, RCM, Del Property
the long term planning approach,
Management Inc., Pinnacle Centre.
and one we had not anticipated,
was the opportunity for resident
involvement. Urban Garden spent
time canvassing the preferences of
both board members and residents.
It presented its concepts at open t From Operations to
meetings and invited input. While Reserve Fund
this may have taken longer than the One of the most important areas
typical non-consultative approach, in property management is working
the result was a plan that most had a hand-in-hand with the board of di-
say in and could buy into. rectors to manage common element
The plan focused on three objec- fee increases. An inflationary increase
Decorative Planters – the only tives: attractiveness in all seasons, is acceptable to most owners as it is
annuals on the property. manageable ongoing maintenance expected, however larger increases
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6. can result in political problems and/
or frustrated owners. Controlling
these increases
is not an easy
task with ever
increasing util-
ity costs and
reserve fund
contributions,
the two com-
ponents of any condominium bud-
get that ultimately drive increases in
common element fees.
Initiating measures to maximize
operating efficiencies and minimize
energy consumption can go a long
way for the financial health of the
corporation. For example some
forecasts predict water and sewage
rates to increase more than double
over the next decade. Similar pro-
Energy savings – Management and board completed various ‘green’
jections have been made for hydro.
projects saving close to $100k in utility costs over two years.
What can we do? As we tell our di-
rectors – doing nothing is no longer these funds from the operating side If you can answer NO to any of them,
an option. There are many prod- of the budget to the reserve the cor- then changes need to be made to the
ucts and companies that can help to poration was successful in offsetting corporation’s financial processes to
reduce consumption and therefore future reserve fund demands provid- be in compliance with the Condo-
costs of these utilities with the pay- ing an immediate benefit with future minium Act, 1998 and GAAP.
back in some cases being less than a dividends. ■ MRCM was called by a consultant
year and most typically being 2 to 5 to quote on the management services
years. Some solutions are better than Craig McMillan, RCM District of such a corporation – a corporation
others and managers should advise Manager, Maple Ridge Community that had a qualified audit and a des-
exploring the options and finding Management perate financial statement, which was
the best ones that fit your particular only the beginning. MRCM took to
condominium. the challenge to help chart the course
In keeping with MRCM’s corpo- to recovery once we were certain the
rate desire to be supportive of our board desired resolution and were
green responsibilities, at YCC 242 committed to seeing it through. It has
– 4001 Don Mills Road, we worked t Charting a Corporation’s been a long journey and not always a
with the board of directors to com- Financial Process unanimous one, but one that MRCM
plete a number of projects. We re- Is your corporation on target fi- and the board of directors are ex-
placed our old atmosphere boiler nancially? Do you have sufficient tremely proud of.
with a high efficiency boiler. The monies in the corporation’s operating During this recovery process
following year we completed a wa- account to cover the day-to-day op- MRCM worked with the board to
ter conservation project, a light- erations? Does develop a solid plan that included
ing retrofit project and installed CO y o u r c o r p o - a monetary recovery as part of the
monitors to reduce the ventilation ration have a annual budget. Expenditures were
fan running costs. We are currently balance in the monitored, but not at the expense of
installing LED bulbs in the build- reserve fund ac- operational maintenance or major
ing to reduce hydro usages even count? Are you repair and replacements. We also
further. These efforts saved the con- using reserve worked together with the corpora-
dominium approximately $100,000 fund monies for tion’s sister shared facilities to en-
in utility costs per year over the last operating expenses (not yet transferred sure each was paying and billing for
2 years. The board then elected to to reserve)? Do you have one month’s all required charges.
transfer these energy savings directly common element fees as a surplus in After 27 months, the operating
into the reserve fund account to off- the operating account? Most of all, is account is no longer in a deficit posi-
set any future increases in the reserve the corporation’s auditor able to pro- tion. The reserve fund account is in
fund contributions and therefore vide your condominium corporation receipt of all its required transfers
controlling future increases in the with a clean audit? If the answer to all from the operating account. The
common element fees. By liberating of these questions is YES, that is great! cash flow is adequate in both ac-
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7. counts to continue to pay for ex- a GOOD working board of directors prominent condominium law firm
penses as they occur and we are who are fiscally responsible making informing us that they had put our
working together to undertake res- prudent but decent decisions. ■ name forward to a new condomini-
toration projects for this location um board that were looking to make
due to its age. Carrie Cowton, RCM , Property a change in management. We had a
It was unfortunate that this finan- Manager, Maple Ridge Community great working relationship with the
cial strife happened but this scenario Management law firm!
may sound all too familiar. Fortu- After interviewing with the board,
nately, the board was open to direc- we were awarded the management
tion and the corporation has a great contract for their 180-unit town-
auditor who worked with manage- home project and the developer’s
ment and the board to develop a in-house company was immediately
repayment strategy over a couple of t Success In Building relieved of their responsibilities.
years rather than special assessing Relationships What we were left with was the
each homeowner for the financial For those who recently attended security staff walking off the site (as
shortfall. the 16th Annual ACMO/CCI-T con- they had a relationship with the pre-
We know the journey is not over ference you will recall the theme vious management company) and
and we are now focusing on building for the weekend was “building re- a Performance Audit that had not
a surplus in the operating account lationships.” yet been undertaken! No problem,
for those rainy day funds. We are It need not be except the first-year anniversary was
also working collectively with the just a theme just six weeks away and the board
engineers to plan the future expen- for a confer- hadn’t even interviewed any engi-
ditures for repair and replacement ence but a neering firms!
of the building’s major components. very important We quickly hired a new security
No success story happens with- component of company who we had been build-
out a good team: the management everyday life ing relationships with over the past
company including the property for all condominium managers. year or so and who were looking to
manager and property accountant, Several years ago our company “break into” the residential condo-
auditor, engineer(s) and most of all received a telephone call from a minium market. (They are still on
Building Envelope Specialists
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aftEr
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416-252-7259 Ext. 104
greg@enerplan.net
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HAMILTON
Keith Bryant
905-318-5988 Ext. 103
keith@enerplan.net
DESign • EnginEEring • BuilDing SciEncE • ProjEct ManagEMEnt
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8. site, six years later!) dent of Times Property Manage- and it is believed that the water is
We arranged with the board to ment Inc. as well as the president of healthier for the swimmers!
meet with three engineering compa- the National Association of Condo- Upon careful planning and consid-
nies and within a couple of days the minium Managers and is a former eration of finances, the mortgages for
engineer was selected and the Audit member of the Board of Directors of guest suites and superintendent suites
began. The Audit was completed ACMO and a past president. were discharged and saved the cor-
and filed on time with Tarion. porations a large amount in interest
But of course there were deficien- since 1972
payments. The staff employment was
cies most notably water penetration changed. Live-out superintendent as
through the exterior walls of the opposed to a live-in was chosen since
underground garage. After several t Streamlining Shared they have a full-time concierge onsite.
meetings with the developer, his en- Facilities Rent from the superintendent suites
gineer, the board, their engineer and Malvern Condominium Prop- generates revenue to more than offset
management, we were finally suc- erty Management was awarded the the cost difference in the new model.
cessful in having the developer agree management services for One City In addition an application to MPAC
to “open up” several sections of the Centre. They are a large 700 plus considerably reduced the property
wall and concrete pad – at his ex- unit condo- taxes assessed for the superintendent
pense. The caveat was that if our en- minium with and guest suites, which resulted in
gineer was wrong in his assessment, a huge shared further savings.
then the corporation would have to facility. We did After a careful review of the en-
pay for the work. As it turned out what we do ergy efficiency of the condominiums
our engineers’ assessment was correct best: analyze, and always being aware of avail-
and the cause of the water penetra- organize and able incentives, management and
tion was located and repaired, all at “Malvernize” the board completed an application
no cost to the corporation! the community! It took a lot of work for incentives, and obtained a large
During this entire process man- by management and the two boards incentive for each of the two corpo-
agement never assumed an adver- of directors and all components in rations just days before the expiry of
sarial position with the developer. the running and maintenance of the a lucrative incentive program.
Everything was always formed in buildings and shared facility were Management also reviewed the
what would be described as being in scrutinized and addressed. telecommunications, and by stream-
the best interest of the corporation A change was made to the indoor lining services and switching provid-
and all owners. swimming pool and indoor/outdoor ers, another savings was generated
A year later we received another whirlpool. The swimming pool was for the corporations. Each penny
call from another townhome corpo- converted from a chlorine chemical- adds up to savings that the corpora-
ration, expressing similar difficulties ly balanced pool, to a salt generated tions are very proud of. The budget
with the same developer. The devel- chemically balanced pool. Though for 2011–2012 was reduced by 10%
oper’s in-house management compa- the conversion cost some money, the maintaining all services and also
ny was terminated and we were hired. savings in the everyday running and planning for more improvements.
We successfully renegotiated with the maintenance of the pool were signifi- How often does an owner receive a
developer on a number of remaining cantly lowered. Also, every resident budget that reduces the maintenance
deficiencies and to this day the board that uses the pool loves the change, fee without compromising service?
and unit owners remain pleased with
all aspects of their community.
These two vignettes clearly il-
lustrate the importance of building
strong working relationships. We re-
lied on our working relationships we
had established over the years with
the law firm, the engineer, the securi-
ty company and equally as important
the developer. I am proud to say these
relationships all continue today.
So how successful were we? Well,
we now provide management service
to all of this developer’s new sites. We
are no longer the replacement; we are
part of the overall process from the
very beginning! ■
Savings were generated for a corporation with a large shared facility and
Harold S. Cipin, RCM is the presi- two boards of directors.
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9. mized the purchasing power of the Schedule “C” of the condominium
fees, and created a better environ- corporation Declaration). One of the
ment. Most of all, we have helped to most important
create satisfied residents and a sense components of
of belonging within the community. the building
Residents are calling the corporations envelope is the
“HOME” and management is proud roofing system.
of “a job well done.” ■ Depending on
the wording of
Claudia Moisa, RCM, Senior Prop- any Declara-
erty Manager, Malvern Condomini- tion and description drawings some
um Property Management roof attic repairs are the responsi-
One City Centre
bility of owners and others of the
Management also uses monitors corporation. Townhouse roofs are
placed throughout the buildings (in greatly affected by their close en-
lobbies and elevators) to post daily vironment such as wind direction,
communications, such as notices and heavy moisture, etc., which all come
building updates as well as newslet- t Townhouse Roof together in different ways to lend to
ters. This helps management connect and Attic Preventive the deterioration of the roof system.
with all residents easily and without Maintenance It is hard to believe that roofing
the use of thousands of printed pages. Every townhouse site and/or con- systems will last the duration of the
What is more important than saving dominium corporation is unique. warranty period without some form
money in a condominium commu- In general, however, the exterior of preventive maintenance.
nity? Continuous communication, envelope and supporting townhouse It is important to note that proper
communication, communication! structures are the responsibility of the attic ventilation is crucial to ensure
Why are we all proud of these ac- corporation to repair and/or replace. that the roof plywood maintains
complishments? We have improved Owners are generally responsible for its structure and is not affected by
the level of service to the residents, the repair and/or replacement of the moisture build-up and rot. In the
created healthy reserve funds, maxi- interior of their unit attic (based on same way flat roofs must be peri-
CONDOLAW.TO
2300 Yonge Street, Suite 2900 T 416 489 5677
P.O. Box 2384 Toronto Ontario F 416 489 7794
Canada M4P 1E4 w condolaw.to
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10. odically checked for ridging and come worse if there is a long period will be reduced by tens of thousands
cracking, and shingle roofs must be of unceasing rain and roofing com- of dollars (this depends on the num-
replaced in areas that wear away panies cannot attend the site because ber of units). Moreover, it saves the
faster than the normal wear and tear of these unsuitable conditions. hassle of disrupted enjoyment of
trajectory. After investigation, it was discov- one’s home.
One property I have managed ered that some leaks were resultant I am very proud to work with
since I started as a young property from rotting plywood caused by a board that took proactive action
manager was a group of townhouse condensation due to poor attic ven- even though the property is rela-
corporations very close to the lake tilation and not adequate insulation. tively young (about 10 years old).
that must deal with constant high While this is not necessarily a com- Management and board informed
moisture, which seems to add higher mon issue, it could be true for some unit owners about the work immedi-
than average ice and snow in the units in a corporation and may be ately. Subsequently detailed owners’
winter and much more rain in the especially true for older corpora- information meetings (that included
spring and fall than properties in- tions built when ventilation technol- Power Point presentations and pro-
land. After assessing a few leaks in ogy was less advanced. fessionals) took place to ensure that
some units it was noted that one unit In this instance management and everyone had a good understanding
alone affected by a small roof leak the board worked with reputable of the issues and to support the fund-
could lead to thousands of dollars envelope specialists and roofing ing plan for such unplanned project.
spent in trying to repair the leak and companies to put together a preven- Preventive maintenance projects
bringing the unit back to its original tive maintenance plan to repair any can save tens of thousands of dollars
condition. problem areas in all attics. All the per unit in repairs and/or mould re-
Water penetration is very difficult units’ roof attics are at the pres- mediation years down the road with
to trace as water moves along the ent time inspected and adequate only a couple of thousand of dollars
path of least resistance and a failing ventilation and insulation is pro- per unit investment. ■
point on one side of the unit’s roof vided to eliminate the possibility
could lead to a leak point inside the of moisture build-up that can lead Andreea Dolnicianu is vice-presi-
unit at the other end. This would to expensive repairs and/or mould dent of business development and
mean added costs for calling back remediations. In a year the budgeted client retention at Comfort Property
the roofing company. Damages be- amount allocated for such repairs Management Inc.
MEMBER
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