March 2016

Alberta Assessors’ Association E-Clipboard

www.assessor.ab.ca

10555 - 172 Street Edmonton, AB T5S 1P1 Phone: 780.483.4222 Fax: 780.487.7505 Email: info@assessor.ab.ca

CONTACT US

Denise Ziegler-Handel, AMAA (Chair)

Amy Murphy, AMAA Maureen Cleary, AMAA Mike Minard, AMAA Melissa Zayac-Smith, AMAA Collin Hindman, AMAA

EDITORIAL COMMITTEE

Issue 202

Executive Committee Lawrence Buchart, AMAA, President

Nominating Committee Collin Hindman, AMAA, Past Pres.

Registration Committee Nathalie Thibeault, AMAA

Practice Review Committee Jeff McKinnon, AMAA

Examination Sub-Committee Bonnie Lantz, AMAA

Legislative Policy Committee Larry Riep AMAA

Marketing Committee Scott Powell, AMAA

Discipline Committee Hilary Argento, AMAA

2016 Conference Committee Jason Baynes, AMAA Wayne Kelly, AMAA

2015-16 Committee Chairs

1 The opinions or commentary expressed in articles submitted to the E-Clipboard by outside organizations may not reflect the views of the Alberta Assessors' Association.

Promoting QUALITY through membership excellence

Annual General Meeting The following notice was issued in Issue 201 of the eClipboard:

“The Association Bylaws state:

A written notice stating the day, hour and place of an Annual General Meeting or Special Meeting, shall be served either personally or by sending such notice to each regulated member at the last address of that member known to the Association Registrar through the post, by facsimile or by email, at least ten days before the date of a meeting.

Official notice and direction to receive your packages will follow for the planned April 28, 2016 Annual General Meeting. If you have not already done so, please update your contact information. As most of our messages are sent via email, a current email address is most critical.”

The Annual General Meeting, in addition to providing reports on activities from the previous year and the financial health of the organization, is one of the critical opportunities for the broader membership to address policy and regulatory issues.

Discussion related to revisions of the Association’s Bylaws or to possible amendments to Alberta Regulation 347/2009, Municipal Assessor Regulation, the regulation applying to the Assessment profession as governed by the Professional and Occupational Associations Registration Act (POARA) occur at the Annual General Meeting.

Additionally, input into the advocacy efforts of the Association is encouraged at the Annual General Meeting. The process for bringing issues to the floor of the Assembly is laid out in Policy 90-3, Conference Resolution. Essentially, members (or Committees) are encouraged to prepare and submit motions for the Executive Committee to review and place on the order paper.

Motions that are prepared and submitted in advance should have sufficient information in the pre-amble (the “Whereas…” statements) to give background and reasons that support the motion, or lead to the same conclusion that gave rise to the motion. They should identify the problem, advise as to urgency, pose an effect of the issue (possible outcomes of no action) and indicate whether the action supports, is contrary to, or will revise a policy.

The actual motion, or resolution (BE IT RESOLVED THAT) is what the Association (the Executive Committee) acts upon or follows. Resolutions can be directives to act. to change policy or both. They must stand alone without the accompanying “Whereas” statements which do not form part of the motion in the “official” record.

Members are encouraged to contact the Association (registrar@assessor.ab.ca) with questions or to bring an item forward.

The opinions or commentary expressed in articles submitted to the E-Clipboard by outside organizations may not reflect the views of the Alberta Assessors' Association. 2

Taking a close look at the case of Optimax: Section 299 Requests and Court Costs Reynolds Mirth Richards & Farmer LLP

Carol M. Zukiwski and Robert J. McCarty Student-at-Law In the recent case of Optimax Developments Ltd v Calgary (City) and Calgary Assessment Board the Alberta Court of Queen’s Bench made important findings on disclosure requirements for property assessments, the punitive cost consequences of narrowly reading clear statements of law by the Court of Appeal, and the role of a neutral Assessment Review Board (the “Board”).

In early January 2014, Optimax was issued with a Property Assessment Notice of $891,000 by the City of Calgary (the “City”). In late January an Amended Assessment was issued, assessing the property at $1.7 million. Optimax filed a complaint with the Board, and pursuant to sections 299 and 300 of the Municipal Government Act (“MGA”) sought information relating to the assessments. The City responded in May 2014, but did not provide an explanation with respect to the basis of the Amended Assessment.

In early June 2015, relying on information which had been provided by the City in May, Optimax disclosed the evidence it relied upon for its valuation. In late June, the City disclosed that when the property was annexed to the City from a local county, it was valued as a Calgary property and, as such, subject to higher taxes. The City advised that the increased tax level should have been reflected in the 2013 tax year as the land had been re-designated in a 2012 City by-law.

The Board determined that this information was admissible notwithstanding section 9(4) of the Matters Relating to Assessment Complaints Regulation and the 2014 Alberta Court of Appeal decision in Canadian Natural Resources Limited v Wood Buffalo (“CNRL”).

Optimax sought leave to appeal this decision to the Court of Queens Bench, and the matter was set down for late April 2015. The matter was adjourned until September 2015, where counsel for the City conceded that Optimax should be permitted to appeal and consented to an order remitting the matter back to the Board for a new hearing. Counsel further agreed that a new hearing may not include evidence disclosed in late June, 2014. Optimax sought enhanced costs from the City and costs from the Board.

In Canada, costs are usually awarded to the successful party. Their purpose is to ensure that a party’s victory is not hollow. Party to Party costs are the most common type of costs awarded and represent a small percentage of the true cost of mounting or defending litigation. Solicitor-client costs are reserved for rare and exceptional circumstances as they more fully indemnify a party for the true costs of litigation. Those rare and exceptional situations include circumstances that constitute blameworthiness in the conduct of the litigation of a party, where justice requires it to be done, where there is evidence that the party did something to hinder, delay or confuse the litigation, or where there was no serious issue of fact or law which required lengthy and/or expensive proceedings.

The Court awarded 50% solicitor client costs against the City for creating an unnecessary burden on Optimax to file and argue an application for leave to appeal. Furthermore, the Court took into account that while the common law is continually evolving in light of differing factual scenarios, it was improper for the City to parse and narrowly read the Court of Appeal’s “clear statement of principle” set out in CNRL regarding the disclosure obligations under section 299 of the MGA. The court found that the City’s attempts between April 2015 and September 2015 to try and resolve the matter without having to go back to court were mitigating, as were its concessions in September. However, the court did not appreciate that the City’s proposed resolution: (1) came after oral arguments in April: (2) that it continued to insist that CNRL did not apply in the circumstances; and (3) that it required Optimax to agree to party-to-party costs and forgo an opportunity to seek anything greater.

The Board’s submissions at the Court also attracted the Court’s displeasure.

As a general rule, costs are not awarded to or against administrative tribunals. Courts have reasoned that tribunals are required to make submissions and that they do not take a position on the outcome of an appeal.

Continued p. 3

Taking a close look (continued from page 2)

Their submissions are very often restricted to jurisdiction, standard of , and explaining the record and proceedings that were before it. It is to be a neutral party. Accordingly, one of the exceptions to that rule occurs when the tribunal takes the position of an advocate in its submissions.

Upon carefully reviewing the submissions, the Court determined that while the majority of the submission was content neutral, particular submissions relating to statutory right of appeal was questionable. The Board does not exercise any type of appellate function relative to its own position and this was an area that would not arise from its normal course of the work. By arguing that the appropriate standard of for the Board’s decision was reasonableness, not correctness as stated by the 2015 Alberta Court of Appeal in the Edmonton (Capilano Shopping Centres Limited) v Edmonton (“Capilano”) decision, the Board had taken on an adversarial role. Moreover, the Board had failed to attend the hearing in April 2015, which had prolonged the process and added legal costs. It was assessed a costs award of $1,500.

This decision is important for a number of reasons. First, the court has clarified that the Court of Appeal’s decision in CNRL provides clear statements on the disclosure requirements under the MGA. Second, narrowly construing those clear statements can have important cost consequences for a party if the court believes that the proceedings were unnecessary. Third, when making submissions for an appeal, an assessment review board must maintain its neutrality otherwise costs will be awarded against it.

The opinions or commentary expressed in articles submitted to the E-Clipboard by outside organizations may not reflect the views of the Alberta Assessors' Association. 3

Karac Hendriks West Band performing for delegates at the 2015 Conference Banquet

Have you registered for the 2016 Conference and Pre-Conference? April 8 is the final day to register for the 56th Annual Conference and AGM without incurring late penalties. While the extra revenue is nice, we prefer not to charge it; rather that members register in good time to have their choice of sessional workshops and not be bumped due to maximum limits. And we especially prefer not to incur the wrath of “Chef” with late changes to catering numbers. For more incentive, we offer some recollections of past events...

..honouring members, like our 2014-15 newly accredited members

..and the odd karaoke challenge

Keynote speaker, Spencer Beach, “Turning Demons into Diamonds”

It’s all about the learning...

...networking

Don’t miss out this year!

The opinions or commentary expressed in articles submitted to the E-Clipboard by outside organizations may not reflect the views of the Alberta Assessors' Association. 4

Congratulations Newly Accredited Members Having completed all the core education requirements, the Tools for Practicing Assessment in Alberta, a demonstration report on an income producing property and having been successfully examined by accredited members, the following members have been granted the use of the “Accredited Municipal Assessor of Alberta” (AMAA) designation with all the rights and obligations thereof:

Sean Barrett, AMAA of Accurate Assessment Group Brent McQuaig of the County of Grande Prairie Kris Meadows, AMAA of Accurate Assessment Group

Welcome New and Returning Candidates

Having submitted an application for membership as required by policy, including obtaining the support of an accredited member, the following individuals have been accepted as regulated Candidate members:

Ms. Danielle Brundell of Saddle Hills County, sponsored by Lynn Simard, AMAA Mr. James Ballarano of the City of Edmonton, sponsored by Renee Redekopp, AMAA Mr. Jerald Boutin of Sturgeon County, sponsored by Derek Kelly, AMAA Ms. Joyce Burrell of the City of Airdrie, sponsored by Val Cottreau, AMAA

Welcome New Student Members A student member is required to be studying at a secondary or post-secondary educational institution and not working full-time. The following applicants have been approved as Student members: Chantal Bacho, Lethbridge College Diva Mangal, Lakeland College Heather Crichton, Grande Prairie Regional College

Welcome Municipal Property Tax Administrators

A Municipal Property Tax Administrator provides professional services in property tax administration, property tax policy or related functions. This is an unregulated category and the following individual(s) have obtained the sponsorship of an accredited member in support of their application:

Joyce Brenneis of Sturgeon County, sponsored by Arla Pirtle, AMAA

Suspensions As prescribed in the Municipal Assessor Regulation, the Executive Committee has directed that the Registrar suspend the following member for cause:

Mr. John Harmon

Nominations to Executive Positions

The Nominating Committee, chaired by Past President Collin Hindman, AMAA, continues to search for members interested in running for one of the following positions:

President-Elect Vice President Urban Director Financial Director

If you have an interest, or know someone with an interest, please contact any members of the Nominating Committee directly collin.hindman@edmonton.ca lwehlage@benchmarkassessment.ca bboomer@rdcounty.ca

Assess this!

The opinions or commentary expressed in articles submitted to the E-Clipboard by outside organizations may not reflect the views of the Alberta Assessors' Association. 5

TOOLS For Practicing Assessment in Alberta Online Please contact Membership@assessor.ab.ca if you are interested in a spring/summer Tools course. Our next scheduled offering is the fall semester, beginning in late August. However, some members have expressed interest in an earlier start date. We require at least 10 candidates or members in order to run the course and have been asked to create a wait-list for an earlier offering. Tools for Practicing Assessment in Alberta is the legislative knowledge course requirement for Candidate members pursuing accreditation. It is recommended that Candidates have at least one year of experience, two is preferred, in assessment prior to taking the course.

Get Your Skates on for the Battle of Assessors Hockey Game Captain Eddie needs players. You need a white and a dark jersey, a helmet, skates (of course) and whatever else helps your game - within reason, of course. The cost is $10 and you will be playing at the River Cree Sports LP Twin Rinks (north rink)at 3:45 p.m. on April 27. A special request goes out for referees also. If you are interested, please contact membership@assessor.ab.ca.

Institute of Municipal Assessors (IMA) Webinar(s) Last month we published information from our sister-organization in Ontario, IMA, on planned Webinars. The IMA has just announced it will be running monthly webinars beginning April 27. The calendar of offerings is attached at the end of this month’s eClip.

Casa do Penedo, Fafe Mountains, Portugal. This house in Portugal looks like a huge rock and has become a tourist attraction. It was built in 1974. While there is no electricity, there is a pool and a fireplace.

Employment Opportunities No new postings since the last eClipboard:

Check the Current Job Postings for these and other competitions.

Random Thoughts “To each there comes in their lifetime a special moment when they are figuratively tapped on the shoulder and offered the chance to do a very special thing, unique to them and fitted to their talents. What a tragedy if that moment finds them unprepared or unqualified for that which could have been their finest hour.”

Winston S. Churchill

Institute of Municipal Assessors (IMA) andInstitute of Municipal Assessors (IMA) and

International Property Tax Institute (IPTI)International Property Tax Institute (IPTI)

WEBINAR SERIES Phase 2WEBINAR SERIES Phase 2——2016 and 20172016 and 2017

The Institute of Municipal Assessors and the International Property Tax Institute are pleased to announce

additional webinars for 2016/2017. Join us for these 1– hour sessions from 12:00 noon to 1:00 pm (EST).

FEES: (plus applicable taxes) $50.00 for IMA or IPTI Members $65.00 for Non-Members

TO REGISTER VISIT: Institute of Municipal Assessors website at:

http://www.theima.ca/home.cfm?id=1217

Date Topic Description

Wed., April 27 Valuation of Shopping Centres The application of the income approach will be covered including steps in the direct capitalization model. Emphasis will be given to determining GLA’s, esti-mating fair market rent and expense allowances, deriving cap rates from the market and the application of the direct capitalization approach in the valuation for property tax.

Tue., May 31 Building Consensus to Avoid Assess-ment Appeals & Litigation

This webinar will cover topics such as litigation realities-the true cost of appeals; importance of dialogue amongst stakeholders-negotiations and discussions; how to eliminate wasteful appeals, training and mediation programs including solutions.

Wed., June 8 Principles & Concepts of Municipal Assessment & Taxation

Basic principals and concepts of municipal assessment and taxation will be dis-cussed including introduction to property tax policy, tax rates and bills, the assessment valuation, stakeholder role, interaction and appeals.

Wed. Sept. 28 Valuation of Office Buildings Discussion will cover the application of the income approach. Emphasis will be given to determination of GLA, estimating fair market rent and expense allow-ances and the derivation of cap rates from the market. The application of the direct capitalization approach to value for property tax purpose will be covered.

Wed., Oct. 26 Property Tax Policy The webinar will cover property tax policy principals, considerations and op-tions that are generally confronted by national, provincial and municipal policy makers. The webinar focuses on the generic pros and cons as policies are not cast in stone.

Tue., Nov. 22 Identifying & Quantifying Functional & External Depreciation

The webinar will focus on functional and external (economic) depreciation which will be identified from the perspective of the application and valuation for assessment purposes. Practical examples will be discussed.

Wed., Dec. 7 Preparations for Litigation The webinar will cover the ins and outs of preparing for litigation, including the role of the expert witness and the advocate, preparation, procedures and prac-tice.

Wed., Jan. 11, 2017

Theory and Practice of the Income Approach: Valuation Challenges in Property Tax Valuations

Emphasis will be on the challenges presented by applying the income approach when dealing with ad valorem assessments. Income approach valuation meth-odologies will be discussed, including the appropriate application of the Direct Capitalization Method. Derivation of fair market rents, expenses and capitaliza-tion rates will also be covered.

Wed., Feb. 8, 2017

Valuation of Leisure Properties Categories and types of leisure properties will be discussed along with various valuation approaches. Particular emphasis will cover the application of the in-come approach, separation of the income stream and identification of the intan-gible value.

The Institute of Municipal Assessors will grant 1.0 CPD Credits (1.0

hr Learning) toward the Continuing Professional Development

program upon completion of each Webinar-

www.assessorsinstitute.ca

Completion of this program entitles Appraisal Institute of Canada’s designated

members (AACI and CRA) to 1.0 CPD credits towards their Continuing Profes-

sional Development requirements—www.aicanada.ca