Preparing facilities for wildfires

We’re into the season of wildfires in North America, and there are a number of measures that facility managers can take to protect their properties.

Trimming back trees, shrubs, and bushes, and creating a defensible space around your facility can help protect it from wildfires, says Pacific Gas and Electric Co.

Once the rainy season is over, facility managers should begin evaluating the property around their buildings for fire hazards. Removing flammable vegetation such as dry grass, leaves, and pine needles can help stop fires from spreading during summer’s wildfire season.

Creating a defensible space does not mean you need to keep the area around your facility free from all vegetation. Follow a general concept keeping trees farthest from the building, with shrubs closer, and lawns and bedding plants the closest.

This spring, consider preparing your property for the threat of wildfires by:

Regularly clearing your property’s roof and rain gutters by removing dead leaves and pine needles
Strategically landscaping with fire-resistant plants to keep things lean and green in the area within 30 feet of your facility
Trimming tree branches that hang over your roof.

There are around 8,000 wildfires in Canada each year, according to Red Cross. On average in Canada, wildfires burn 2.5 million hectares per year, nearly half the size of the province of Nova Scotia.

Densely forested areas are at the greatest risk, particularly during dry conditions and drought. In 2019, the vast majority of Canada’s wildfires were in Yukon, Alberta, and Northwestern Ontario. Most wildfires occur between April and September.

The Canadian Wildland Fire Information System creates daily maps tracking the behaviour of fires throughout the year. During the fire season, the Canadian Interagency Forest Fire Centre provides up-to-date reports on wildfires across the country.

FiresmartCanada.ca provides guidance on how to mitigate and prepare your home and community for wildfire risk.

ASHRAE updates healthcare facility ventilation standard

ASHRAE has released an updated edition of ANSI/ASHRAE/ASHE Standard 170, Ventilation of Health Care Facilities. The standard offers guidance, regulation, and mandates to designers of healthcare facilities.

The 2021 edition delivers critical guidance for designers and operators of these front-line facilities and incorporates 17 addenda to the 2017 edition of the standard.

Changes include:

Expanded requirements to allow airborne infectious isolation room exhaust discharge to general exhaust under certain conditions
Revised scope, with improved guidance on thermal comfort conditions provided
Extensive modifications to address the Outpatient and Residential sections
Extensive revisions to air filtration requirements
Addition of new columns in the ventilation tables to prescribe filtration requirement and designate unoccupied turndown
Expanded guidance on separation distance requirements for varied intake and exhaust arrangements, coordinating with related ASHRAE Standard 62.1 data
Improved guidance related to behavioural and mental health

To purchase ANSI/ASHRAE/ASHE Standard 170-2021, Ventilation of Health Care Facilities, visit the ASHRAE Bookstore or contact ASHRAE Customer Service by phone at 1-800-527-4723 (United States and Canada), 404-636-8400 (worldwide), or fax 678-539-2129.

About ASHRAE

Founded in 1894, ASHRAE is a global professional society committed to serving humanity by advancing the arts and sciences of heating ventilation, air conditioning, refrigeration, and their allied fields. As an industry leader in research, standards writing, publishing, certification and continuing education, ASHRAE and its members are dedicated to promoting a healthy and sustainable built environment for all, through strategic partnerships with organizations in the HVAC&R community and across related industries.

Experience ValkarTech’s expertise

The cleaning industry is going through an unprecedented crisis, blown over by the pandemic, and those in charge of cleaning operations in public buildings (office towers, schools, shopping malls…) are under pressure to provide the best services to protect their clients.

Fortunately, the evolution of this industry in the last few years has already allowed for a favourable repositioning and a recognition of the importance and scope that hygiene and sanitation have when it comes to the health of employees and incidentally on the performance of a company.

ValkarTech is a consulting firm specializing in hygiene and sanitation and the assessment of janitorial services in various environments and settings.

We have come a long way since 2014 — the year the company was founded by Serge Rioux, who already had extensive experience in housekeeping, having owned and operated a housekeeping service business for many years.

The idea of offering consulting services in cleaning operations management came to him after he noticed the gaps in his clients’ knowledge of good cleaning practices, both managers and building owners. Their vision and comprehension of hygiene and sanitation was so outdated and ineffective that it was difficult to get the right equipment or operating budgets.

Changes needed to be made. This required a combination of education, inspections, and continuous feedback to involve managers.

The birth of Building Hygiene Management

Our expertise quickly met the needs of the Montreal market and we had to open an office in Quebec City in 2017. In a short period of time, the company gained the trust of more than 125 clients who allowed us to carry out more than 1,150 mandates. From the beginning, the company has emphasized working in partnership with our clients, which gives us the opportunity to develop a relationship of trust and to intervene on different projects. In doing so, we truly do make improvements to our clients’ processes and, most importantly, we have the privilege to witness the benefits and savings generated in the long run by our interventions.

With the opening of our Toronto office in the summer of 2020, the company has opted for a bilingual name, ValkarTech, to reach a broader market, consistent with its ever-growing and diversifying team. ValkarTech is the only firm that offers a full range of services, including RFP design, field crew or management training, time and motion analysis, work route design, audits, full operations management support, and IT solution development.

ValkarTech’s services

Our services are mainly aimed at building managers to provide them with the best advice and management tools to optimize their housekeeping operations and improve the performance of sanitation workers.

Our versatility is ensured by a team of professionals from various sectors, including managers, microbiologists, chemists, computer scientists, and trainers, who put their expertise to work towards a common goal: improving performance while maintaining control over operational cost.

Our expertise allows us to offer a wide range of services that distinguishes us from the competition. From employee training to work route analysis and request for proposal conception, our services apply to all stages of a hygiene management program.

Our team includes certified auditors who perform cleanliness quality audits. Our experts can further evaluate a facility by also verifying the work methods, procedures, and equipment used to clean and disinfect and even validate the chemicals and their use.

We place great importance on data collection, interpretation, and reporting. To this end, we use in-house computer applications developed by our own programmers and adapted to our industry to generate meaningful charts and graphs that provide an accurate snapshot of a situation. For the follow-up of work routes (HBscan), to conduct cleanliness audits (flash control), for complaint management (HBdesk), and most recently, in response to the new constraints of the pandemic, a virtual concierge solution (HBlogin) that remotely controls access to the premises (statutory occupancy rates) and is linked to the housekeeping teams to ensure cleaning and disinfection either in preparation for a visit or after an area or workspace has been used.

Our mission statement

Housekeeping is an industry in itself. It is not out of ignorance that a client asks us for help or entrusts us with the complete management of janitorial operations, but rather because of the importance of environmental hygiene for the building’s users. Calling on our services is not an expense but rather an investment. Because our interventions are always customized, our clients benefit from a significant return on investment that is quickly measurable and appreciated by all our clients.

ValkarTech is all about freeing up valuable time for managers so they can focus on what they do best: managing their business successfully.

Derek Oliveira is the Senior Director of ValkarTech, a Canadian consulting firm who guides, supports, and advises their clients on ways to optimize the operational performance of their organizations in terms of building hygiene and sanitation. For more information, please email [email protected], visit https://en.valkartech.com/ or call 514 316 6723.

Stantec selected for Prince Albert Victoria Hospital

Stantec has been selected as the design team for redevelopment of the Prince Albert Victoria Hospital in Prince Albert, Sask. The firm will begin work immediately, which will lead to a multi-stage procurement for design and construction this fall. The construction phase is expected to begin in 2022.

“Stantec is proud to be selected as owner’s representative for the Prince Albert Victoria Hospital, which serves a vast area and population in north central Saskatchewan,” said Stantec principal senior architect Jeff Jurzyniec. “Patient-centred care and community service drives the design of Stantec’s healthcare projects. Our team of local architects and engineers have a proud history of critical infrastructure project delivery throughout Saskatchewan, and we are excited to play a role in such an important project.”

The Saskatchewan team will develop the specifications of the hospital including validating program requirements, refining cost estimates and preparing the design, construction and clinical specifications.

The project’s estimated cost is more than $300 million and will include a new acute care tower and replacement of the existing mental health space along with renovations to the current facility. Upon completion, the total number of beds available is expected to increase by approximately 40 per cent, with space to expand further as needed.

“Victoria Hospital in Prince Albert is the major hub for essential health care services across northern Saskatchewan,” said Minister of Health Paul Merriman said. “Our government is pleased to see this project moving forward, and looks forward to working with the local community and our Indigenous partners to ensure it includes all the services and amenities they require.”

The Prince Albert Victoria Hospital project is significant for the Indigenous community in Prince Albert and across the North. The Government is working closely with Prince Albert Grand Council (PAGC) to ensure appropriate input in planning and design including through the establishment of a Senior PAGC Committee with representation from PAGC, SHA and Ministry of Health leadership. This collaboration continues to support SHA’s commitment to the TRC Calls to Action.

Securities regulators scrutinize ESG investing

The Ontario Securities Commission and the British Columbia Securities Commission are currently performing desk reviews of registrants identified as participants in ESG investing. Fund managers, portfolio managers and exempt market dealers should be prepared to respond on their ESG-related portfolio and fund management, compliance and marketing and disclosure practices. Misleading practices may result in regulatory enforcement action and investor claims for misrepresentation.

As retail and institutional investors continue to incorporate ESG (environmental social governance) factors into their investing philosophies, many new products and services purporting to meet investors’ ESG needs have entered the market. The Canadian Securities Administrators (CSA) has kicked off an initiative whereby regulators such as the Ontario Securities Commission and the B.C. Securities Commission are conducting ongoing desk reviews or sweeps of the ESG practices of select investment fund managers, portfolio managers and exempt market dealers. These registrants have been identified as participants in ESG investing because they manage and/or offer ESG investment products or offer advisory services with an ESG element.

These reviews have generally focused on two areas:

whether ESG factors have been integrated into the registrant’s service offerings; and
marketing practices and materials relating to a registrant’s corporate brand, including marketing of key people and product lines.

Securities regulators wish to confirm that the representations registrants are making about the incorporation of ESG principles in their investment decision-making processes are consistent with their actual policies and procedures. Both continuous disclosure documents and marketing materials are being examined. To do this, securities regulators have contacted registrants with a questionnaire seeking information on the following topics:

Portfolio/fund management

ESG investing

Information about ESG products that the registrant offers to clients and/or ESG concepts that it integrates into its investment process.
Information on the features of ESG products that the registrant offers to clients, such as investment objectives, methods used to consider ESG issues, active ESG screens and percentage of portfolio holdings expected to adhere to ESG objectives and restrictions.

ESG principles and metrics

Information about specific ESG principles, such as the United Nations Principles of Responsible Investment, to which the registrant adheres, and whether the registrant employs any quantitative or qualitative ESG metrics.

ESG firm framework

Information about the registrant’s approach to applying ESG principles and metrics; whether a third-party vendor is used for ESG data, research or analysis; the nature of the registrant’s ESG policies and procedures (including whether policies exist on active ownership and proxy voting); and the manner in which the registrant engages with issuers and industry groups on ESG-related matters.

Compliance

ESG oversight framework

Information about how the registrant conducts ESG compliance, including the personnel involved in ESG oversight, whether the registrant’s board of directors receives reports of ESG compliance, and whether staff are trained and/or required to be accredited on ESG matters.

Marketing and disclosure

ESG marketing

Information about the types of marketing that the registrant uses to promote ESG investing, the degree of oversight applied to this marketing, and how alignment is ensured between marketing statements and the registrant’s ESG processes, policies and procedures.

ESG disclosure

Information about the type, frequency and dissemination of the registrant’s ESG disclosure, including whether educational materials about ESG investing are provided to interested investors.

In addition to this questionnaire, securities regulators are reviewing registrants’ websites and other publicly available materials and may follow up with questions, regardless of whether the registrant is part of the broader desk review.

Regulatory standards for disclosure

In the absence of a standardized framework for ESG disclosure or even a standardized glossary of ESG terms, securities regulators are concerned about greenwashing — a term for when investors are misled or deceived about the environmentally responsible nature of a registrant’s products, aims and policies. Securities regulators want to ensure that a registrant’s marketing claims regarding ESG practices align with the registrant’s actual portfolio management practices or fund investment objectives.

Although there is no specific standard regulating ESG disclosure, the CSA has existing tools to address this issue. In addition to the requirement in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations that all registrants must deal fairly, honestly and in good faith with their clients, there are specific rules that apply to marketing prospectus-qualified mutual funds:

Paragraph 15.2(1)(a) of National Instrument 81-102 Investment Funds (NI 81-102) states that sales communications must not be untrue or misleading.

Section 13.1 of the Companion Policy to NI 81-102 lists some of the circumstances in which, in the view of the CSA, a sales communication would be misleading. An example of a misleading statement is one that lacks the explanations, qualifications, limitations or other statements that are necessary or appropriate to make the statement not misleading.

OSC Staff Notice 81-720 Report on Staff’s Continuous Disclosure Review of Sales Communications by Investment Funds states that sales communications should not contain statements that are vague, exaggerated or that cannot be verified.

In addition to the risk of regulatory enforcement action from misleading marketing materials, ESG claims in fund disclosure documents (such as prospectuses and offering memoranda) that do not correspond with actual portfolio management activities may expose a fund manager to investor claims for misrepresentation. Disclosure documents should be closely reviewed to confirm the manager has accurately described the ESG philosophy and process used by the fund. Further, managers may wish to consider ESG risk disclosure, explaining that the manager’s view of ESG may not align with the view of all investors and that the manager’s ESG screens may eliminate investments that could outperform investments that satisfy the screening requirements.

A U.S. reference point: SEC’s review of ESG disclosure

South of the border, the U.S. Securities and Exchange Commission (SEC) has conducted a similar green sweep. The SEC has examined whether U.S.-based investment firms are accurately disclosing their ESG investing approaches and whether they have implemented policies, procedures and practices that align with their ESG-related disclosure. SEC staff observed instances in which investment advisers, registered investment companies and private funds, among other entities, provided potentially misleading statements regarding ESG investing processes, lacked ESG policies and procedures despite claiming to have such policies, and failed to have compliance programs that were reasonably designed to guard against inaccurate ESG disclosures and marketing.

The SEC also noted a number of practices it considered to be particularly effective and reasonably designed. These included having simple and clear disclosure regarding the registrant’s approach to ESG investing; explanations regarding how investments were evaluated using global ESG frameworks; policies and procedures that addressed ESG investing and covered key aspects of the registrant’s relevant practices; and compliance personnel that were knowledgeable about the registrant’s specific ESG-related practices. These findings of the SEC are a helpful indicator of what Canadian securities regulators may find favourable or unfavourable in their ESG reviews.

ESG disclosure rules come into effect in Europe

The European Union took a step closer to harmonizing its framework for ESG disclosure when Level 1 of the Sustainable Finance Disclosure Regulation (SFDR) came into effect on March 10, 2021. Level 1 SFDR requires certain financial market participants, such as asset managers and financial advisers whose business is in the European Union, to provide mandatory ESG disclosure on their websites and pre-contractual information communications. These financial market participants must post their policies on integrating sustainability risks in their investment decision-marking processes or advice, or explain their non-compliance.

As part of the European Union’s 2030 Agenda for Sustainable Development, SFDR is intended to help investors make informed investment decisions and to prevent greenwashing. Level 2 of the SFDR will be phased in starting on January 1, 2022. Level 2 SFDR will require in-scope financial market participants to provide ESG disclosure in periodic reports and to ensure their ESG disclosure complies with regulatory technical standards. ESG disclosure mandated by SFDR may help Canadian registrants understand regulatory expectations and provide a useful reference point for developing an ESG compliance regime in Canada.

Key takeaways

Canadian securities regulators are reviewing registrants’ ESG disclosure and marketing materials to ensure that they are consistent with registrants’ actual ESG policies and practices.
Disclosure that could potentially mislead investors into believing that a registrant’s ESG policies and procedures are more stringent or effective than they actually are could expose that registrant to regulatory enforcement and potential liability for investor claims of misrepresentation.
All registrants that participate in ESG investing need to ensure that they have clearly defined ESG policies and principles and that their disclosure documents and marketing materials align with these policies and principles.

Lynn McGrade and Kathryn Fuller are partners practicing corporate law with a focus on investment management, Sienne Lau is a senior associate and John Stanley is an associate with Borden Ladner Gervais LLP.

More Quebec residents opt for country homes

More Québecois prefer a home in the country, according to new insights on residents’ changing intentions since the pandemic began.

In the third phase of the RE/MAX Real Estate Index—the result of a large regional semiannual survey on Québec residents’ plans to buy or sell their homes—one in three people choose the country compared to one in five from a spring 2020 survey.

More specifically, the survey shows that 38 per cent of future home buyers preferred the suburbs. The country came in second (33 per cent) and the city third (25 per cent). That is a 12 per cent increase for the country and an 8 per cent drop for the suburbs. Preference for the city was up only slightly, by 3 per cent.

“Clearly, the country stands out for a growing share of future real estate buyers, especially older ones. Nearly 50 per cent of respondents aged 45 and over said they want to buy their next home in the country,” said Marc Cousineau, vice-president of marketing at RE/MAX Quebec. “Contrary to commonly held belief since the beginning of the pandemic, this increase is not at the expense of the city, whose popularity increased slightly in the past year.”

Regionally, Montréal and Gatineau were the two regions where respondents expressed the greatest interest in leaving big cities to move to the suburbs or the country.

The events of the last year do not seem to have had an impact on the confidence of future home buyers and sellers: 47 per cent of respondents said they planned to buy within five years, up 7 per cent over last year, while 41per cent of respondents planned to sell, up very slightly by 4 per cent. Meanwhile, 29 per cent decided to postpone buying a home, while 6 per cent decided to buy earlier during the pandemic. Given the current market, most future sellers remain confident they will get the asking price.

The Montréal area had the highest percentage of respondents who planned to buy or sell within five years. Home buyer confidence was lowest in Montérégie, with fewer interested sellers in Trois-Rivières/Drummondville.

Polygon Gallery earns AIA 2021 Architecture Award

The Polygon Gallery in North Vancouver by Patkau Architects has received a 2021 AIA Architecture Award. Patkau Architects is one of 10 recipients to receive an award, and the only Canadian project to win.

The 2021 Architecture Awards program celebrates the best contemporary architecture and highlights the many ways buildings and spaces can improve lives. The nine-member jury selects submissions that demonstrate design achievement, including a sense of place, purpose, history, and environmental sustainability.

The Polygon Gallery is the rebirth of an independent photography and media institution that has served North Vancouver’s creative community for nearly 40 years. Built on a former brownfield, it heralds the renewal of the city’s urban waterfront where infrastructure is reimagined and culture emerges from an industrial history.

The gallery, called Presentation House Gallery when it began in the 1970s, was initially located in a community center inside an early-1900s all-girls school. Its original facilities were already beyond restoration when it was housed there by the city. As the gallery rose in stature and mounted significant exhibitions, such as a survey of Richard Avedon’s work, visions of its future grew but never took root. Despite evolving ideas for the gallery’s future home, the idea of a space overlooking the water always remained.

The gallery launched an architectural competition following the hiring of director Reid Shier and the requisite housekeeping required to advance the project. North Vancouver’s government also provided significant support for the project.

The new gallery’s central mass floats above the ground plane, providing access to a new public space and a sweeping view of Vancouver’s skyline across the inlet. It is marked with an iconic sawtooth profile clad in mirrored stainless steel sitting beneath expanded aluminum decking. The facade’s materials play off one another, lending a sense of mass and depth that shifts with differing sunlight conditions and the evening atmosphere. The facade functions as the gallery’s uniform voice, just bold enough to define its place on the waterfront without contributing to any visual noise.

Inside, Shier asked that the exhibition spaces remain free of obstacles, creating space for creativity to reign. More studio than museum, the gallery’s backbone does double duty, lifting the gallery up and providing an open space lit by diffuse northern light. Steel purlins hosting lighting, temporary partitions, and suspended works of art support the space. The gallery’s upper level includes a flexible event space that accommodates educational, outreach, and private events. Its southern wall is an operable glazed panorama overlooking the water.

The lower level houses spaces for small retail outlets, further diversifying the waterfront development. Street-level activity at the gallery attracts a burgeoning social life at the waterfront and energizes this new cultural precinct. The gallery also provides a bold new identity for a smaller city adjacent to a better known metropolis.

Photo: Robert Stefanowicz

Light industrial set for heavy property tax hit

Spiking property tax tolls on light industrial facilities are considered a near certainty for ratepayers in Calgary and many municipalities of British Columbia’s lower mainland. Economic fallout from COVID-19 is shifting more of the tax burden to this flourishing group of assets via the mill rate, while also driving up the tax rate — presenting a double-whammy of consequences in jurisdictions that update valuations annually.

The assessed value of Calgary industrial property has risen 6 per cent, on average, against a 5.5 per cent drop in value across the entire non-residential tax base, bringing dramatic tax increases for some properties even before any tax rate adjustment comes into play. Industrial values have likewise increased in the range of 10 to 15 per cent in Vancouver and surrounding municipalities, while office and retail values have slipped about 5 per cent.

“The valuation date for the 2021 assessment roll was July 1, 2020, just a few months after the March lockdown here, but there was no real pause at all that we observed in rental rates or in valuation parameters for industrial properties,” David Howard, senior director, property tax, with Altus Group in Vancouver, reported during a recent online discussion of industrial property tax trends in three markets experiencing a boom in the warehouse/distribution and logistics sector. “So we’re in an environment now where we have one property type increasing significantly and other property types decreasing.”

Meanwhile, Ontario’s postponed reassessment will insulate property owners in the Greater Toronto Area from a similar shock in the short term. Many commercial and industrial ratepayers should actually enjoy a tax decrease this year following the Ontario government’s commitment in last fall’s 2020 provincial budget to harmonize the business education tax (BET) tax rate at 0.88 per cent for 2021, equating to an estimated $450-million tax cut province-wide. Nevertheless, property tax specialists warn of a looming spike in light industrial assessment rates with the first post-pandemic evaluations.

“We’ve seen property values increase 100 per cent from 2016 (the base date for the last assessment) to today, and with hotel, office and retail performing less strongly, this shift in tax burden is going to be real,” observed Jason George, vice president, property tax, with Altus Group in Toronto. “If you’re projecting taxes three to five years out and you’re assuming a 3 to 5 per cent annual increase, you are going to be in for a big surprise.”

New shifts come on top of Calgary’s five-year trends

Calgary’s most recent shift in apportionment is layered on previous destabilization that saw downtown office values diminish from 32 per cent of the non-residential assessment base in 2015 to just 18 per cent by 2019. In turn, the City of Calgary ratcheted up the tax rate to balance out the loss of approximately $250 million in revenue due to that drop in value, thus redistributing that tax burden to all other non-residential property classes.

“From 2016 to 2019 we saw a 56 per cent increase to the non-residential tax rate,” recounted Josh Weber, senior director, property tax, with Altus Group in Calgary. “The City had to look at how to fix this problem because there was no view in sight for increasing the assessment base or seeing downtown values come back.”

A solution — moving a larger share of the total tax burden to the residential tax base — was adopted for the 2020 tax year, resulting in a 12 per cent cut to the non-residential tax rate last year. However, a subsequent drop in most non-residential values necessitates an 7.3 per cent upward readjustment for 2021.

“Last year’s gain is close to washed out,” Weber lamented.

Compounding that are varying but generally consistent year-over-year gains in value for both A and B grade industrial assets. It’s estimated that 54 per cent of properties are in line for tax increases of up to 10 per cent solely attributable to revenue-neutral tax shifts, while another 35 per cent can expect a 10 to 20 per cent jump.

That’s nearly 4,800 properties out of a total of 5,300. In addition, there are 400 outliers set for tax increases greater than 20 per cent, including 119 properties that will see spikes in excess of 30 per cent.

Notably, among properties of 100,000 square feet or larger, Altus reports A grade facilities registered an average 24 per cent year-over-year surge in assessed value, while B grade facilities posted a smaller, but still sizeable 13 per cent year-over-year average uptick. Weber theorizes that’s linked to 17 transactions of light industrial properties last year, or roughly double the usual trade volume.

“Essentially, this has come down to a specific class of property that is really going to be witnessing the brunt end of this increase,” he said. “With the increase in sales, the City has gathered more market intel. Typically, sales in Calgary come in around $500 million in total value and this year we came in at $880 million.”

The city of Calgary has committed to provide some tax relief again in 2021 through its non-residential phased tax program (PTP) — a measure first invoked in 2017 to counter some of the tax shift from downtown office buildings to other types of non-residential properties. This year, a $13-million pot has been allocated to hold increases to the municipal portion of the tax levy to no more than 10 per cent above the amount calculated in 2020, excluding any PTP credit advanced at that time. Businesses defined as having experienced “the most significant property tax increases for 2021″ will be eligible.

“For the property owners who are experiencing heavy increases on the tax side, this has been a way to mitigate that when there are no other answers to be had,” Weber reflected. “The problem is, a component of it comes from the City’s rainy day fund and we just don’t know how long that’s going to last, or where it comes from. The sustainability is just really not known.”

Tax class designation a key factor for B.C. ratepayers

In B.C.’s lower mainland, David Howard notes that assessors generally applied higher rental rates and lower cap rates on warehouse/distribution facilities this year to derive year-over-year per square foot value gains in eight of nine municipalities surveyed. Only Vancouver remained on par with 2020 assessed value at $380 per square foot, while assumptions of double-digit rental rates and sub-four per cent cap rates — previously common only in Vancouver — underpinned jumps of 5.2 per cent to 16.8 per cent elsewhere.

“As you move away from the city of Vancouver and out into the Fraser Valley, this is where we’re observing increases on average of about 15 per cent,” Howard said. The average increase was below 10 per cent in Burnaby, Chilliwack and Abbotsford, and above 12 per cent in Richmond, Delta, Coquitlam, Langley and Surrey.

For ratepayers, much will depend on whether properties are categorized in Class 5, which specifically covers manufacturing and distribution uses, or in the catchall Class 6 for other business purposes. Additionally, since municipalities set two distinct tax rates for the two classes, other discrepancies can come into play separate from assessment-related tax shifts.

This year, warehouses in Class 5 will typically experience more moderate shifts since value increases have occurred more uniformly across the entire tax class, whereas warehouses grouped with other kinds of commercial properties in Class 6 are more likely to get walloped. For example, Howard cited a Surrey warehouse that sustained an 11 per cent year-over-year assessment-related tax increase due to its Class 6 status.

“The tax rate there (in Surrey) is already lower for Class 5 and we’re forecasting it to decline even further so that same warehouse, if it was in Class 5, would have taxes that are 18 per cent lower than the warehouse that is Class 6,” he advised. “It’s very important for the owner or taxpayer to know which class they are in and to audit that class to make sure it is accurate. It’s BC Assessment that establishes the tax rate classification based on use of the property or at least on what they feel the use of the property is.”

Looking ahead to 2022, he foresees more of the same when values are re-pegged to a July 1, 2021 baseline. Industrial sales prices over the past 10 months have generally surpassed properties’ assessed values, and recent leasing deals are also resulting in higher rents than assessors assumed last year.

“Again, if you’re an industrial warehouse that’s Class 6 and you’re grouped together with retail and office, I’d be concerned,” Howard cautioned. “I don’t think the same increase in value is occurring for those property types.”

Stability for the short term in the Greater Toronto Area

Jason George likewise traced an upward trajectory for light industrial sales values and rental rates in the Greater Toronto Area. Average net rent increased from $7.43 per square foot in 2018 to $10.33 in the first quarter of 2021, while average sales prices rose from $217.19 per square foot to $310.16 in the same time period. However, property tax is still apportioned according to assessed values from January 1, 2016.

“In short, there will be no swings in tax burden for the 2021 tax year,” George affirmed.

This year represents the fifth year of an originally intended four-year assessment cycle, and the 2021 Ontario budget, released in March, announced plans to stretch it still further. COVID-19-related upheaval prompted the initial postponement of the 2020 reassessment, which would have pegged assessments to values as of January 1, 2019. That reassessment has now been pushed until at least next year as the provincial government continues an ongoing review of property assessment and taxation, meaning that new evaluations for tax apportionment purposes won’t be in place before 2023.

“Shortly after the pandemic took hold here, the Province announced that it was going to postpone the reassessment to maintain stability. So stability has turned out to be a blessing for industrial properties that have seen quite significant increases in value,” George acknowledged. “Stability is probably not very good if you’re in hospitality or some retail sectors. In those cases, you’re not looking for stability or for your taxes to be based on 2016 market values.”

Looking to the future, he foresees many light industrial facilities will be taxed on par with suburban office buildings once the delayed reassessment occurs given that values for the two property types are now unprecedentedly in accord. He also suggests that the 2016 post-reassessment fallout for the high-end commercial strip along Toronto’s Bloor Street holds ominous portent for owners of warehouse/distribution and logistics facilities.

“Retail rents were increasing dramatically — $300 per square foot and even higher — and then when the assessment roll was returned, those properties saw 100 per cent increases,” George said. “This is likely going to happen to industrial properties the next time these properties get reassessed.”

Barbara Carss is editor-in-chief of Canadian Property Management.

ISSA Show Canada 2021 sponsor: Scandinavian Building Services

The annual ISSA Show Canada is going virtual on June 17, 2021, with the theme of Facing the Future TOGETHER, recognizing the cleaning industry’s position today, and where we may go from here.

The virtual show will feature keynote presentations, education sessions, supplier technology sessions, and virtual networking receptions.

One of the speakers at the show will be Michael Carne, co-founder and former CEO of Lighthouse, in a session presented by Scandinavian Building Services, a Platinum sponsor of the 2021 show.

Michael will host a Scandinavian Building Services session called Janitorial Quality Assurance which will focus on informing attendees on how to utilize a Quality Assurance Program to meet and exceed customer expectations and how to provide transparency and accountability to your customers through this innovative technology.

About Michael Carne

Michael Carne

Michael Carne was a co-founder and former CEO of Lighthouse, a mobile workforce management application acquired by TEAM Software in 2019. Since joining the TEAM family, Carne oversees the continued growth of the Lighthouse product within the global organization. Carne was born and raised in Melbourne, Australia and has degrees in both mechanical engineering and law. When not playing and hiking with his son, Michael enjoys climbing hills on his road bike.

About Lighthouse

Lighthouse is recognized as one of the leading Quality Assurance Programs in the facilities maintenance industry. This software is utilized to ensure consistent delivery of quality assurance service and enables us to track and maintain the highest-level company standard possible.

About Scandinavian Building Services

Scandinavian Building Services was founded as a small company in Edmonton in 1956 by two Scandinavian partners with a focus on janitorial and property management.

Russell Hay

Russell Hay, current president and CEO, explains that his father, working in the property management business in Yellowknife, found a problem with consistency of cleaning services and consistently meeting satisfaction levels for customers. He moved back to Edmonton and purchased the janitorial side of Scandinavian, with a vision of revolutionizing and innovating the janitorial field.

Under Russell’s father and subsequently Russell himself, the company spread across Alberta and ultimately from coast to coast in Canada. These days, Scandinavian works heavily in the retail industry and the sports and entertainment industry, as well as the commercial space, including the fitness industry and the industrial industry. The company provides services including general cleaning services, stripping and waxing, carpet cleaning, window cleaning, concrete polishing, high dusting, parking lot sweeping, and front concrete washing across a range of industries.

The 2021 ISSA Show Canada session will focus on quality assurance and utilize Scandinavian’s history of focusing on analytics to ensuring all of its customers receive all the information they need to understand exactly the cleanliness level of a facility.

“Working with Michael Carne and Lighthouse, I believe we’re revolutionizing it again,” says Russell. “There wasn’t a company focused solely on the janitorial market, so we customized it to our needs and ultimately our customers’ needs. When we discovered Lighthouse, we identified that they would be able to develop according to industry needs so we partnered with them and it’s been fantastic. Getting that information to our customers and also internally has been so useful, we can utilize that information, so everybody understands where their pain points are and we know where to focus our time and resources.”

About the ISSA Show Canada 2021

The Show is Canada’s leading trade show and conference for property, facility, and operations managers and facility service providers. The unique trade show and conference creates a platform for informed insight on best practices, industry certifications and training, educational programming that touches upon relevant and emerging topics within the Canadian facility and cleaning markets, and peer-to-peer networking.

For more information and to register, visit canadashow.issa.com.

GTA home sales and listings down in April

Even though home sales in the Greater Toronto Area dropped 12.7 per cent in April compared to March, the Toronto Regional Real Estate Board (TRREB) still recorded a strong market.

April sales more than quadrupled compared to April 2020 when pandemic reality set in. Compared to the ten-year sales average of 10,000 for the April 2010 to April 2019 period, the April 2021 sales result was up by 36.6 per cent.

There was also a pull-back of new listings—down 8.4 per cent compared to March 2021, but more than triple the number of new listings reported in April 2020. New listings were up by 18.3 per cent compared to the ten-year average.

TRREB President Lisa Patel said the activity decline in April makes sense. “We’ve experienced a torrid pace of home sales since the summer of 2020 while seeing little in the way of population growth,” she noted. “We may be starting to exhaust the pool of potential
buyers within the existing GTA population. Over the long term, sustained growth in sales requires sustained growth in population.”

Typically, the average selling price increases between March and April, but this year it remained flat. Although, year-over-year looks different. The average price of $1,090,992 was up by 33 per cent compared to last April. Many market-observers are predicting a strong housing market will continue through 2021.

“While the pace of price growth could moderate in the coming months, home prices will likely continue on the upward trend,” predicted TRREB Chief Market Analyst Jason Mercer. “Renewed population growth over the next year coupled with a persistent lack of new inventory will underpin home price appreciation.”

Condo sales dip since rising through winter

Other data from condo listing website Strata, reveals a total of 2,477 condo sales transactions—down 17 per cent from March’s peak of 2,978. Inventory levels, meanwhile, remained relatively stable with 2,618 units on the market; just a 6 per cent increase from the month prior.

This is the first dip since a steep ascent that began in December. Prices in April flattened, with the average price-per-square foot for a Toronto condo listed at $882, just a $3 dollar decline from March.

“That sudden rise in demand over the winter had solidified people’s beliefs that we’re in a bubble… a bubble that was eventually going to burst,” said Strata.ca realtor, Francisco Hiebert. “But I don’t think we’re going to see values plummet like that. If you look at the numbers, prices per-square-foot are still lower than what they were right before the first COVID-19 lockdown.”

According to broker Cliff Lui, buyer fatigue is perhaps why the condo market cooled in April. He expects this pattern to continue for another couple of months.

“I had some listings for sale, and we did see some action, ” he said. “But it was way below our expectations. My seller clients are hoping the market will pick up again once this lockdown lifts. But my buyers are hoping prices will plummet after April’s plateau.”

Others believe the latest lockdown is the cause. Strata.ca agent Milan Mitrovic said his clients’ biggest fear is exposing other family members to COVID-19.

“That’s why some of them have avoided all contact with older relatives, so they can continue their property search,” he noted. “I’d say it’s not so much buyer fatigue that’s holding them back. It’s more like pandemic fatigue at this point.”

Anne Marie Guèvremont joins select BOMA roster

Anne Marie Guèvremont, senior property manager with Aeroterm Canadian Management based in Dorval, Quebec, has been named to the 2021 class of BOMA Fellows. A past chair of both the Building Owners and Managers Associations (BOMA) of Quebec and Canada, she joins three other inductees who will be formally recognized at the BOMA International Conference & Expo, set for October 6-9 in Boston.

“The individuals honoured as BOMA Fellows have displayed exemplary and sustained contributions to the industry, their profession, the community and BOMA at all levels, and have continually answered the call to leadership and service throughout their careers,” advises BOMA International’s announcement of this year’s recipients.

Along with Guèvremont, George Denise, retired from Oracle Corp. in Saratoga, California, Scott Jones, a vice president with Jacobs Engineering in San Francisco, and Robert Six, chief executive officer of Zeller in Chicago, have been tapped for the accolade, which will add them to the select roster of BOMA members throughout North America who hold the credential. As such, they will be looked to as mentors and influencers within BOMA, the commercial real estate industry and wider society.

Just 58 honourees have attained the credential since it was inaugurated in 2011, including three other Canadians: Kim Saunders of BOMA Newfoundland and Labrador; Don Fairgrieve-Park of BOMA British Columbia; and Randal Froebelius of BOMA Toronto.

“Anne Marie is an incredibly worthy recipient of this high honour,” affirms Benjamin Shinewald, president and chief executive officer of BOMA Canada. “I’ve had the pleasure of working with Anne Marie since I joined BOMA Canada, and I consider her to be a mentor and a friend. She has incredible energy for BOMA and approaches everything she does with gusto and good cheer.”

Dream Office portfolio largest to achieve WELL Health-Safety Rating

Dream Office is now Canada’s largest commercial portfolio to earn the WELL Health-Safety Rating for 25 buildings across the country totalling 4.6 million square feet.

To ensure a healthy and safe return to work, its office spaces across Toronto, Mississauga and Calgary have implemented a wide range of solutions, such as developing Better Together plans tailored for each building and detailing new “return-to-the-office” features. Infrastructure improvements include: an upgrade of all air filtration systems with the highest efficiency MERV filters wherever possible; installation of UV light technologies; treatment of high-contact surfaces with anti-microbial solutions; and consistent measurement and monitoring of air and water quality, among others. Contact minimization strategies have also been implemented, such as social distancing markers, wayfinding signage, and separation of pedestrian entry and exits.

The International WELL Building Institute launched the WELL Health-Safety Rating in June 2020 to address the post-COVID-19 environment and guide users in preparing their spaces for a healthy re-entry.

“Over the pandemic, this has never been more important – we have proactively made investments in new technologies and put in place extensive measures to ensure a healthy and safe return to our buildings,” said Gordon Wadley, COO of Dream Office REIT.

Through the Dream+ app, tenants can access real-time updates about their building, learn about the enhanced protocols and features, as well as communicate any questions or requests.

Photo: 350 Bay Street, Toronto, Well Rating, Dream Office REIT

How to optimize building technology management

Building technologies are commonly used industry networks that consist of equipment, systems, and software needed to power and operate buildings and homes. The ongoing maintenance of building technology keeps offices, shops, and houses safe and operational as they are utilized day to day.

The building technologies ecosystem is comprised of companies that manufacture, distribute, inspect, maintain, and repair crucial systems and technologies. By leveraging the appropriate service technology and integrated service tools, building technology operators can help maintain seamless and efficient field service so they can rest assured that buildings are safe and being properly maintained.

The impact of efficient building technology management

Many individuals do not realize the number of systems that contribute to a properly functioning building, be it an office, hotel, or school. Everything from HVAC/R, energy management, and security systems to electronics and major appliances need regular upkeep and routine inspections to ensure proper utility, not to mention repairs. Building managers must often deal with various original equipment manufacturers (OEMs), energy and service providers, and their siloed systems for addressing maintenance in the same building.

Juggling all these different parties can lead to miscommunication and over-complicated scheduling, the effects of which could cause building systems to fail when they are needed most. Schedule mishaps like missed repairs or servicing multiple systems simultaneously can be disruptive to building tenants and homeowners. By working with providers and leveraging integrated service solutions, building managers can properly coordinate the delivery, repair, and maintenance of their appliances and keep their industrial setups continuously operational.

Routine maintenance of building technologies is necessary to fulfill safety precautions and regulatory compliance measures, but it is also beneficial for improving our homes and businesses. More than 80 per cent of the country’s buildings are 20 years or older and waste 20 per cent of the energy they use. Service technicians, supported by schedule optimization technology, can ensure that equipment and systems are upgraded with newer, more efficient models before they reach the end of their lifecycle, saving future appliance and energy costs while reducing downtime between system installations.

Additionally, mobile field service tools equip service technicians with real-time access to the tools, processes, and information they need to complete their service jobs on the first try, as well as the ability to share automated updates with customers about upcoming installations, repairs, or inspections. This increased communication allows both property owners and service technicians to plan ahead and execute efficiently while leaving building and home functions undisrupted.

The benefit of digital tools for building technology organizations

Companies using building technologies in both residential and commercial properties can seize the opportunity to quickly boost job quality and workforce productivity of the technicians that inspect and repair equipment by leveraging cloud-based mobility tools to reduce unnecessary downtime and scheduling gaps. A properly managed workforce will ensure that critical systems are not serviced simultaneously, repairs are handled proactively, and property managers and homeowners are immediately notified of service appointments or routinely scheduled maintenance. Automatically integrating building technology maintenance into property management makes it easier to manage building systems and avoid risky and costly system failures.

Many organizations that install and service building technologies need to rely on contracted workforces in addition to their in-house employees to reach all their customers. Using both employees and contractors is known as a blended workforce, and it’s proven to be highly effective in field service. In fact, 73 per cent of companies with a blended workforce outperform those with employed-only staff.

However, managing a blended workforce without automated tools can often impede service and increase costs due to manual dispatching and scheduling. For example, HD Supply, one of the largest industrial distributors of HVAC equipment, appliances, and electrical items to owners of multi-family, hospitality, healthcare, and institutional facilities in North America, was able to implement field service management software solutions to do away with its manual processes and improve contractor onboarding, streamline technician dispatching, automate payments, and enable a more proactive customer experience.

By leveraging digital service tools, the building technologies ecosystem can improve workforce management, adhere to regulatory compliance, cut costs and energy waste, and foster a better customer relationship with building supervisors and homeowners. A fully integrated suite of service solutions provides an end-to-end experience that not only helps providers service their equipment, but also facilitates the process for property managers who need to keep buildings and homes operational.

Samir Gulati was appointed Chief Marketing and Product Officer at ServicePower in 2017, where he is responsible for all aspects of marketing and product management, including market strategy, product roadmaps, demand generation, product marketing, and corporate marketing. Samir brings over 25 years of experience in global product and marketing leadership roles in technology companies. He holds an MS degree in Computer and Information Science from the University of Pennsylvania and an MBA from the University of Chicago’s Booth School of Business.

Registration now open for 2021 ISSA Show Canada

Registration is now open for the 2021 ISSA Show Canada Virtual Experience.

The annual Canada show is going virtual on June 17, 2021 with the theme of Facing the Future TOGETHER recognizing the cleaning industry’s position today, and where we may go from here. The virtual show will feature keynote presentations, education sessions, supplier technology sessions, and virtual networking receptions.

A large and well-represented selection of industry manufacturers, service providers and professional services organizations are represented at the show.

Key decision-makers involved in the commercial, retail, industrial, educational, healthcare, government, multi-unit residential and hospitality sectors will find the show relevant.

For more information and to register, visit canadashow.issa.com. View the show schedule here.

In conjunction with the 2021 ISSA Show Canada Virtual Experience, REMI Network and MediaEdge Communications will be hosting the 2021 REMI Show on June 16, the day before the ISSA Show.

While the Canada show will be going virtual in June, ISSA is currently planning to hold the ISSA Show North America as a live, in-person event once again from November 15-18 at the new Las Vegas Convention Center West Hall in Las Vegas, COVID-19 and restrictions permitting.

Guelph looks at co-locating critical services as city grows

Critical service demands are on track to increase in Guelph, Ontario, as the population rises to a projected 203,000 residents by 2051. As such, the city is looking at plans to build a centralized campus of facilities that would house snow removal, solid waste collection and transit and fleet maintenance.

The campus would also replace multiple facilities that have outgrown operations or are in need of major repair. Last year, Guelph determined its asset portfolio would cost about $4.39 billion to replace. Of that, roughly $1.41 billion will likely need replacing within the next 10 to 20 years, with many facilities reaching poor condition by five years.

In its operations campus report, the city also explored various sites and alternatives, including rehabilitation and expansion of current facilities and new decentralized facilities. A centralized campus option is said to align best with factors like social benefits and supporting the future community, said Antti Vilkko, general manager of facilities and energy management.

Co-locating services would help electrify the transit fleet to reduce greenhouse gas emissions and achieve the city’s climate change goals.

“Our community is growing and this centralized campus, implemented over 10 years, will help us deliver on community expectations from their local government—efficient services, quality programs and value for their tax dollar,” added Vilkko.

The campus is estimated to cost between $186–$228 million; $25 million less than the other alternatives. Council will decide on business case on May 31.

UBC breaks ground on renewable energy hub

A new $23 million renewable energy hub will transform an entire city block at the University of British Columbia (UBC) into a smart energy district, including the province’s first-ever hydrogen refuelling station for light and heavy-duty vehicles.

It will also include the addition of a solar array, as well as intelligent charging infrastructure for electric vehicles.

“This is an exciting moment for UBC,” said Prof. Santa J. Ono, UBC president and vice- chancellor. “In the face of a growing climate crisis, we are mobilizing even more of our institutional education, research and innovation capacity to pursue climate solutions. This renewable energy hub is an important piece, and we are truly grateful to our partners in government and industry who helped bring it to life.”

The Renewable Energy Hub will be built at the corner of Wesbrook Mall and Thunderbird Boulevard. The project is supported by the Ministry of Energy, Mines and Low Carbon Innovation, which announced $5.6 million in low-carbon fuel standard credits for the project.

The energy hub will become a city-scale, “living laboratory” that explores critical links between energy, transportation and urban design, said project lead Dr. Walter Mérida, a professor of mechanical engineering who leads MéridaLabs in the faculty of applied science.

A key feature is a water electrolyzer that uses electricity from the solar panels to split water into hydrogen and oxygen, resulting in “green hydrogen” — or 100 per cent renewable hydrogen. The process does not emit carbon emissions. The hydrogen is then sent to a hydrogen vehicle refuelling station.

“In order to realize our CleanBC climate goals, we must invest in innovative energy solutions, like UBC’s renewable energy hub,” said Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation. “B.C. is well positioned to become a world leader in clean energy, and this project demonstrates the excellent potential right here in the Lower Mainland.”

Langley emergency department opens

The expanded emergency department at B.C.’s Langley Memorial Hospital has officially opened.

“The official opening of the expanded emergency department is great news for people living in this growing and thriving region,” said Adrian Dix, Minister of Health. “The ED will be able to keep up with the increasing demand for emergency services, and health-care workers will have a modern environment with more space to provide quality care to patients and help save lives.”

The expanded emergency department increases the number of patient treatment bays from 31 to 49 and the number of trauma bays from one to two. There is also a separate pediatric waiting area for children and a new entrance that separates walk-in patients from those who arrive by ambulance.

A new dedicated, separate treatment area is also open for patients with mental health and substance use needs. To minimize the risk of infection, additional handwashing stations, utility rooms, a decontamination area and an isolation room were added.

“This much-needed expansion will help meet the needs of our community’s fast-growing population,” said Megan Dykeman, MLA for Langley East. “Our government took action quickly to get work started on the emergency department, and I am thrilled that it is now open to patients.”

The previous emergency department was built in 1986. Since that time, visits have increased from 25,000 to more than 44,000 per year.

The provincial government, through Fraser Health, provided $29.32 million towards the project. The Langley Memorial Hospital Foundation contributed $10 million, which includes a $1.5-million contribution from the Langley Memorial Hospital Auxiliary.