New GTA condo sales climb in October: BILD

New construction home sales climbed in the GTA in October, primarily driven by sales of multi-family homes, condo apartments in high-rise and mid-rise buildings and stacked townhomes, says the Building Industry and Land Development Association (BILD).

According to Altus Group, there were 5,377 new homes sold in October in the GTA. Of those homes sold, about 91 per cent, or 4,884 units, were multi-family homes, and nine per cent (493) were low-rise single-family homes, such as detached and semi-detached houses and townhomes. Condo sales for the month of October were 81 per cent above the 10-year average of 2,697, and the highest October levels on record, while low-rise sales fell 64 per cent below the 10-year average of 1,388.

As of the end of October, 39,476 new homes have been sold in the GTA in 2017; condo apartments in high-rise and mid-rise buildings and stacked townhomes account for 82 per cent of those sales.

“October data shows that the new homebuyer is left with very little choice when it comes to purchasing a new home,” said Bryan Tuckey, BILD president and CEO, in a press release. “Provincial intensification policy has our members building more high- and mid-rise dwellings, making housing choices a challenge. The cost of a single family home is out of reach for many consumers pushing them to buy a condo over a house. As a result, we are seeing record-breaking condo sales and higher prices this year for new low-rise homes.”

While supply of new housing increased again in October and reached 12,500 units, this number is still well below what is considered a healthy level. Supply of new housing is typically measured by the number of new homes available for purchase in builders’ inventories at the end of the month. As of the end of October, there were 9,308 multi-family homes and 3,192 single-family homes available for sale in the GTA.

“Demand for newly-built condominium apartments is being fueled by three key buyer groups – small investors who have become the de facto providers of new rental housing supply in the GTA; end user buyers who might prefer a single-family home but are seeking out more affordable options; and the more traditional end users who value the lifestyle and amenities of well-located projects,” added Patricia Arsenault, Altus Group’s executive vice president of research consulting services.

Prices of available new homes in October climbed slightly for both single-family low-rise homes and multi-family homes. The average price for available new single-family homes was $1,217,428, slightly above September levels and a 29.8 per cent increase year-over-year. The average price for available new detached homes was $1,548,888, and the average price for new available townhomes was $995,571.

Meanwhile, the average price of a new condo apartment in high-rise and mid-rise buildings and stacked townhomes was $677,456, up from $661,188 in September. The average price per square foot was $791, and the average unit size was 857 square feet.

Revamped Ontario law helps construction workers get paid on time

Construction businesses and workers in Ontario can look forward to being paid on time for the work they do under the province’s updated Construction Lien Amendment Act. The revamped legislation, which passed this week, will also set out a new adjudication process to resolve payment disputes faster, modernize the lien and holdback process and help protect creditors.

Late payment is a common problem in all sectors of the construction industry. Between 2002 and 2013, the average collection period in construction increased from about 57 to 71 days. In 2015, Bruce Reynolds and Sharon Vogel of Borden Ladner Gervais LLP undertook the first comprehensive review of Ontario’s construction laws, which hadn’t seen major updates in more than 34 years.

“I would like to thank the many organizations and individuals who lent their knowledge and expertise to this incredible effort,” said Attorney General Yasir Naqvi. “These changes will have a real impact on people’s lives, giving workers assurance they will be paid on time and in full, and help to ensure disputes are resolved quickly.”

Other amendments will ensure more time is provided for contractors and subcontractors to resolve their disputes outside of court by extending timelines to file liens and start court actions from 90 days to 150 days. Construction lien claims under $25,000 will be referred to small claims court. Contractors and subcontractors will also know when to expect full payment by requiring holdback funds to be paid as soon as the deadline to file a liens passes.

The law also protects subcontractors and workers if the general contractor files for bankruptcy by requiring surety bonding on public sector projects above a certain amount.

Another change is that condominium unit owners will be allowed to remove liens from their unit in relation to common elements, such as corridors and lobbies.

Stakeholders will have the opportunity to provide input before any changes take effect. Ontario’s next steps will be made available early in the New Year.

Report examines chemical footprint of health care products

A new report released by U.S non-profit Clean Production Action (CPA) assessed the chemical footprint – the presence of hazardous chemicals – of more than 250 products commonly found in hospital pediatric patient rooms.

Hazardous chemicals in products are prompting health care organizations to ask suppliers whether or not their products contain these chemicals. For this report, pediatrics was chosen for evaluation because children are often more sensitive to toxic chemical exposure than adults.

“This first chemical footprint of products used in pediatric patient rooms demonstrates how health care organizations can measure their chemical footprint and leads to more informed purchasing decisions,” said Mark S. Rossi, PhD, lead author and executive director of CPA.

“Having chemical footprint data reveals where CoHCs [chemicals of high concern] are in products, which in turn helps us make better purchasing decisions that advance our mission of health,” added Kyle Tafuri, director of sustainability at Hackensack-Meridian Health.

The report evaluated four categories of products commonly found or used in California-based pediatric patient rooms: medical supplies, personal care products, furniture and furnishings, and cleaning and disinfecting products. The results included:

Almost half (45 per cent) of the 253 products evaluated contained one or more CoHCs to human health and the environment, including polyvinyl chloride (PVC) plastic, phthalates, Bisphenol A (BPA), and other carcinogens and reproductive toxicants identified by California Proposition 65-an initiative to address growing concerns about exposure to toxic chemicals.
Intravenous (IV), enteral feeding and respiratory therapy products were the medical supplies with the greatest number of products containing CoHCs.
A number of products – including enteral feeding tubes and all of the personal care products – featured one or more supplier selling one product with CoHCs, while another supplier sold a comparable product without CoHCs.

CPA states that with chemical footprint data in hand, health care organizations can measure their progress in reducing their footprint. For example, if health care suppliers eliminated PVC and its associated CoHCs from the medical supplies reviewed in this survey, health care organizations would eliminate 75 per cent of the CoHCs in medical supplies.

For more information, Clean Production Action will be hosting a webinar on December 19: What is the chemical footprint of health care products?

CPA is a nonprofit organization whose mission is to design and deliver strategic solutions for green chemicals, sustainable materials and environmentally preferable products.

Proposal aims to remove roadblocks to electric vehicles in condos

The Ontario government is looking at ways to remove roadblocks to installing electric vehicle charging stations on condo properties starting next spring.

A regulatory proposal, released for public comment last week, could change rules under the Condominium Act as the province moves to make good on a key commitment under its Climate Change Action Plan. The plan aims to boost the purchase of electric and hydrogen passenger vehicles in Ontario to five per cent of sales by 2020. In particular, it commits to paving the way for existing condo properties to introduce charging stations.

The Ministry of Government and Consumer Services said it’s considering adopting “one or more” of the changes detailed in the regulatory proposal.

One proposed change would remove some of the red tape involved in installing electric vehicle charging stations by waiving the requirements under the Condominium Act for condo corporations and owners to notify owners and seek approval to make changes to the common elements for this type of change.

Another proposed change would make it easier for owners to swap parking spaces for access to electrical charging stations by requiring only 50 per cent of owners to consent to declaration amendments to enable this versus the standard threshold for declaration amendments of 80 to 90 per cent.

If adopted, one proposed change would prevent condo corporations from blocking requests from owners to install electric vehicle charging stations, although corporations could prescribe what type of equipment is to be used. As long as a request satisfied certain conditions, which could include the owner taking responsibility for the installation and related electrical costs, the corporation would be required to approve it, unless the installation met grounds for exemption, such as compromising the structural integrity of the property or sticking the corporation with a “substantial” expense.

Under yet another proposed change, condo corporations would be able to dip into their reserve funds to cover the cost of electrical capacity upgrades to support the installation of charging stations for electric vehicles. All condo properties with parking facilities would be required to equip them with electrical subpanels by 2022, which would also have to be accounted for in reserve fund studies.

The last change detailed in the regulatory proposal would empower a minimum of owners of five units or five per cent of units (whichever is less) to request in writing that at least two common element parking spaces be equipped with Level 2 charging stations. The condo corporation would be obliged to fulfill requests meeting this criteria, but would be able to ask people to pay to plug into these stations, which fully charge electric vehicles over the span of roughly four to six hours using a 240-volt system.

The Ministry of Government and Consumer Services is inviting the public to comment on the regulatory proposal through to Jan. 2, 2018.

Nursing homes can curb infection risk: U.S. report

According to the Association for Professionals in Infection Control and Epidemiology, a new assessment has found that participation in a national health collaborative that promotes evidence-based infection prevention and control (IPC) can curb the risk of infection by streamlining how IPC practices are shared among nursing home staff.

Each year, 150,000 U.S. nursing home residents will receive a urinary catheter—half of whom will develop a catheter-associated urinary tract infection (CAUTI). While 70 per cent of nursing home facilities report having an infection preventionist (IP) on staff, many IPs often have limited time to advance their training on infection control.

The paper, published in the December issue of the American Journal of Infection Control (AJIC), the journal of the Association for Professionals in Infection Control and Epidemiology (APIC), reviewed the benefits and challenges of the Agency for Healthcare Research and Quality (AHRQ)’s Safety Program for Long-Term Care, a national preventive program that was implemented from 2013 to 2016 and aimed at reducing CAUTI and other hospital-acquired infections.

As reported in JAMA Internal Medicine, community-based nursing homes that participated in this project lowered CAUTI rates by 54 per cent. The AHRQ project has developed a toolkit that reflects participant experiences.

“A national collaborative can empower IPs to play an active role in supporting infection-related practice changes, while instilling a more robust resident-safety culture across U.S. nursing homes,” said Sarah L. Krein, PhD, RN, the paper’s lead author and a professor at the University of Michigan’s Department of Internal Medicine. “With ample benefits and challenges identified, our research lays out how collaborative efforts, such as the AHRQ Safety Program can be strengthened, and thus more powerfully used to promote change in the nursing home setting.”

From March 2014 through September 2016, the AHRQ safety program provided more than 400 participating nursing homes with streamlined CAUTI prevention practices centered on improving safety culture, teamwork, and communication. The program used experts to train participating nursing home staff on the proper implementation of CAUTI prevention practices and safety culture tools.

Participating facilities further engaged in peer-to-peer learning through web conferences, virtual and in-person meetings, and coaching sessions. The qualitative assessment, conducted from June through July 2016, collected program feedback from eight of the 33 organizational leads, and eight nursing home facility leads.

Alberta overhauls workplace safety rules

Workers in Alberta would be able to refuse unsafe work conditions under new workplace safety legislation the provincial government is proposing.

Minister of Labour Christina Gray announced the amendments to Alberta’s Occupational Health and Safety (OHS) and Workers’ Compensation Board (WCB) would also ensure fair compensation and meaningful support to injured workers and their families.

“Every Albertan should be able to go to work and come home healthy and safe at the end of the workday,” said Gray. “When they don’t, they deserve to have access to the medical and financial supports they need to get healthy, care for their families and return to work.”

If Bill 30 is passed, the majority of changes to WCB and OHS would come into effect on January 1 and June 1, 2018, respectively.

Workers would be protected from any form of reprisal for exercising the right to refuse dangerous work, including loss of compensation or benefits. They would also be protected from financial loss on worksites subjected to stop work or stop use orders or while safety improvements are being made.

Proactively, workers would have to be informed about potential hazards, have access to basic health and safety information and have the right to participate in health and safety discussions and committees.

Businesses that employ five to 19 workers would have to have a a health and safety representative in the workplace. Those with 20 or more employees would have to form a health and safety committee responsible for various tasks like inspection, developing policies and training programs and orienting new workers.

The lengthy list of amendments also requires employers to report “near miss” incidents to OHS. A “near miss” incident is one that had the potential to cause serious injury to a person, but did not.

The legislation would also remove the maximum insurable earnings cap of $98,700 per year, allowing injured workers to receive benefits in line with their expected annual earnings. Employers would be obligated to support workers who suffer injuries and illnesses in their workplaces, accommodating them as they return to their job

Other changes include enhanced coverage for psychological injuries, such a post-traumatic stress disorder, better protection from workplace violence and harassment and better retirement benefits.

Tsawwassen Mills Mall wins MAPIC Award

Tsawwassen Mills, a hybrid shopping centre including factory outlets and premium fashion, built and managed by Ivanhoé Cambridge in B.C., has been awarded “Best Outlet Centre” at this year’s annual MAPIC Awards in Cannes, France. The MAPIC Awards were created in 1996 to reward excellence, innovation and creativity in retail real estate.

The 1.2 million square foot shopping centre is fully-enclosed and is one of Canada’s largest malls. It features five distinct shopping neighbourhoods – Fashion, Outdoor Life, Coast Salish, City, and Nature. Opened in 2016, Tsawwassen Mills features 180 brands, more than half of which are outlet stores, and includes first-to-market retailers such as: Bass Pro Shops Outdoor World and Pro Hockey Life.

“We are honoured to be recognized on an international scale as an industry leader,” said Claude Sirois, president, retail, Ivanhoé Cambridge. “From the start, our objective for this development was to capture the attention of a truly global audience, which makes receiving this award a significant milestone for our community of stakeholders.”

The MAPIC Awards qualifies applicants based on tenant mix, location and architecture and finalists are selected by an esteemed jury of trade and commercial real estate professionals. Selected winners on this year’s list alongside Tsawwassen Mills included Nike, Nespresso, iFLY World and Prado.

“We’ve experienced a lot of growth in one year, which we attribute to identifying a market need in the Lower Mainland,” said Ruby Paola, vice president of leasing, Ivanhoé Cambridge.

“Tsawwassen Mills was designed to meet many shopping needs from outlets to premium brands, while providing a variety of family-friendly entertainment options. Our multiple-offer approach has enabled us to service the surrounding communities while growing as a tourist destination.”

Emilio Tesolin named Empire Communities’ new President, High-Rise

Empire Communities has appointed Emilio Tesolin as its new President, High-Rise, effective Nov. 27.

Tesolin began his career 20 years ago at Monarch Corporation, starting in October 1997, and has held several senior positions throughout the duration of his career. In 2005, he was promoted to Senior Vice President, High-Rise at Monarch until the company was acquired by Mattamy Homes in January 2015. Most recently, Tesolin served as Division President, High-Rise at Mattamy Homes.

During his time in the industry, Tesolin has been involved in both low-rise and high-rise construction and brings decades of experience to his role at Empire. He received his Bachelor of Applied Arts and Science Degree in Civil Engineering from the University of Toronto in 1983.

“As Empire grows, we have positioned ourselves with great leadership to ensure that our High-Rise developments are the upper echelon of innovation and customer satisfaction,” said Tim Royds, COO of Empire Communities, in a press release.

Ontario’s Fair Housing Plan: The Impact on Ontario Apartment Owners

On April 20, 2017, the Ontario Provincial Government released the Ontario Fair Housing Plan. The 16-point plan was introduced by the Premier of Ontario as a, “comprehensive package of measures to help more people find affordable homes, increase supply, protect buyers and renters and bring stability to the real estate market.”

In this article, coming from the point of view of an apartment owner, we highlight the major items from the Fair Housing Plan, review the details contained in Bill 124 (Rental Fairness Act 2017), and discuss the importance of apartment owners retaining the right for vacancy decontrol.

Ontario’s Fair Housing Plan

While much of the media attention focused on the ‘Non-Resident Speculation Tax’ (which is simply a foreign buyer tax), there are many implications for apartment owners.

It’s important to note that these 16 points collectively are not a single piece of legislation. They are an outline of the Government’s objectives and will be converted to law individually. To that point, the implications for regular apartment owners have now been enacted as law and are contained in Bill 124. First, however, let’s briefly review the other items contained in the Fair Housing Plan, which are predominantly geared towards new apartment development.

New property tax rules for new apartment stock. Little information has been released at this point, but the provincial government is declaring that it wants to encourage new apartment development by ensuring tax rates similar to other residential properties.

$125M development fund. Again, little information is available on how this will work, but the key component is that this $125M fund will be available for five years to rebate a portion of development charges for apartment construction in communities that are most in need.

Reliable elevators. The government will work with the Technical Standards & Safety Authority (TSSA) to establish more reliable timelines for elevator repairs. This is a minor item but impactful for those apartment owners who have waited weeks or even months to have their elevators repaired.

Bill 124, the Rental Fairness Act 2017

Bill 124, known as the Rental Fairness Act 2017, received royal assent on May 30, 2017, and is now official provincial law. The Rental Fairness Act amends the Residential Tenancies Act 2006. While this law is currently in effect, there is still much to be determined. The Lieutenant Governor has retained the power to make transition regulations in connection with amendments to the Act.

Here is a breakdown of what is currently included in the new law and how it impacts apartment owners:

The “1991 Rule” has been repealed. Previously, units built after November 1, 1991, were exempt from rental controls and had the ability to increase rents to any level. This section of the Residential Tenancies Act has been repealed and now all apartment units, regardless of the date they were built, must comply with rental increase guidelines. However, a rent increase notice that was delivered to the tenant prior to April 20^th would still fall under the old legislation. Rent increase notices delivered after April 20^th must comply with provincial rental increase guidelines – for 2017 the maximum annual rent increase is 1.5%. More can be read in section 120.1 of the Residential Tenancies Act 2006.

Applications for above guideline rent increases. The original legislation allowed apartment owners to apply for above guideline increases as a result of an extraordinary increase in the cost of municipal taxes or utilities. The new legislation no longer allows utilities to be a reason for above guideline increase applications. Applications for above guideline rent increases as a result of capital expenditures remain intact however the legislation makes a point of emphasizing that future changes may be coming. There is also additional legislation added that includes the review of outstanding municipal work orders by the tenant and landlord board when contemplating applications for above guideline increases as a result of capital expenditures. More can be read in section 126 of the Residential Tenancies Act 2006.

Standard tenant-landlord lease. While the new legislation refers to standard leases (or potentially standard lease conditions), the province has yet to release any further details. The province is currently in consultation on what these new leases should contain and defining the different classes of tenancy that will be impacted. First National will continue to monitor and release more information as it is available. More can be read in section 12.1 of the Residential Tenancies Act 2006.

Lease termination by a tenant. Tenants now have the right to terminate annual or fixed term leases by giving 60 days notice. As well, an existing tenant on an old form of a lease can request that the Landlord provide a new form of lease that complies with the new rules. If the landlord does not provide a conforming Lease within 21 days, the tenant may withhold up to one month’s rent until the new Lease is provided. If the new lease is not provided, the tenant has the right to terminate the existing lease and is permitted to vacate. If the landlord does offer the new form of lease, but the tenant chooses not to sign, the tenant can provide 30 days notice termination of the existing lease.

Lease termination by the landlord. Landlords still retain the ability to vacate tenants if the landlord needs the unit for occupancy by the landlord or the landlord’s family. However, the new legislation requires the landlord to compensate the tenant with an amount equal to one month’s rent or to offer another unit acceptable to the tenant. Landlords may also still vacate tenants for the purpose of demolition, conversion to non-residential space or major renovations/repairs. That said, the landlord and tenant board will require compensation paid to the tenant prior to granting the eviction notice. More can be read in section 48.1, 52, 54 and 55 of the Residential Tenancies Act, 2006.

Exemptions for specific programs. A new exemption is added for apartment units that provide living accommodations to a person as part of a program that meets specified requirements. The program must consist of living accommodation and accompanying services which must include rehabilitative or therapeutic services or services intended to support employment or life skills development. More can be read in section 5.1 of the Residential Tenancies Act, 2006.

Additional charges prohibited. Current legislation prohibits landlords from, “collecting, requiring or attempting to require or collect from a tenant or prospective tenant of a rental unit a fee, premium, commission, bonus, penalty, key deposit or other like amount of money in respect of the unit.” The new legislation further clarifies that this applies to existing tenants and previous tenants who have since vacated the unit.

Vacancy Decontrol

Vacancy decontrol has been retained. Vacancy decontrol is the ability for a landlord to increase rents to any level once a tenant has vacated a unit. There was much discussion in the legislation about vacancy decontrol, and a motion was forwarded to have it removed, but the motion was defeated. Vacancy decontrol is important because it allows market forces to dictate new rents. The ability to charge rents at market when a unit vacates allows landlords to ensure that they are generating the revenue to invest back in the property through capital expenditures, repairs and maintenance and general property improvements. Without vacancy decontrol, the quality of apartments in Ontario would deteriorate significantly.

First National is committed to keeping an eye on any incoming developments. Learn more on our Resources and Insights section of firstnational.ca.

Aaron Cameron is Senior Manager of Commercial Operations for First National.

New Tru by Hilton properties planned for Canada

Hilton has announced three Tru by Hilton properties are under development in Canada, which marks the brand’s first non-U.S. locations. Located in Alberta, Tru by Hilton Edmonton-Windermere is the first of these properties expected to open in 2018. It will be followed by two additional Tru by Hilton properties in Ontario in 2019.

“Tru by Hilton is an innovator and industry-leader in the midscale segment – the very first to meet the needs of a previously underserved group of travellers who seek simplicity and value without compromising quality and design,” said Alexandra Jaritz, global head, Tru by Hilton.

“We’re incredibly excited to bring Tru by Hilton to the Canadian market. This marks a new chapter for this brand, and we know it will have broad appeal to travellers who span generations, but have a similar ‘zest for life’ mindset.”

The three properties in development are:

the 92-room Tru by Hilton Edmonton-Windermere, located in Alberta, developed by Rohan Investments Inc. and expected to open in 2018
The 120-room Tru by Hilton Markham, located in Ontario, developed by Hanisha Incorporated & Lodson Investments Corporation and expected to open in 2019. This property is a dual-brand project with Home2 Suites, Hilton’s all-suite accommodations option for travellers seeking a longer stay.
The 95-room Tru by Hilton Kingston, also located in Ontario, developed by Canada Ltd., and expected to open in 2019.

When completed, the new hotels will provide guests with smart and efficiently-designed guest rooms and public spaces. Property features include: a reimagined, enlarged lobby with 268 square meters (2,880 square feet) of public space with areas to work, play games, eat or lounge; and modern rooms designed with natural light from oversized windows, 55” TV with a robust programming offer and bright all-shower bathrooms with premium bath amenities.

Sectors compare and contrast operating pressures

While commercial property managers grapple with the opportunities of big data and the risks of cyber-adversaries, the rowdy partier, courtesy of Airbnb, may be the most prevalent and unnerving face of digital disruption in the multifamily environment. Senior real estate executives participating in a panel discussion at last week’s PM Expo in Toronto rated emerging and age-old operating pressures differently depending on their business focus and their tenants’ key demands.

“It makes it much more complex when you are actually managing someone’s home,” acknowledged Cheryl Gray, who comes to her new role as executive vice president, enterprise resources and innovation, at QuadReal Property Group with extensive grounding in residential management.

“It’s like running a small city — 120,000 people — across four time zones,” concurred Jonathan Fleischer, executive vice president, operations, at CAPREIT, in reference to the size and geographical dispersion of the portfolio he oversees. “When you’re in residential, it’s not a job, especially at the building level; it’s a lifestyle.”

Taking a somewhat inverse career path to Gray, he moved from commercial to residential management in 2015, and describes it as a challenging and invigorating new milieu. Notably, there is a greatly restricted capacity to pass costs through to tenants, but also opportunities to reposition that open up with more frequent turnover.

“Residential is more creative,” Fleischer asserted. “If you suddenly have a problem in residential, like we had in Calgary about 18 months ago, you can turn that around on a dime.”

Meanwhile, in-house and contracted “subject matter experts” can help to manage regulatory compliance. “There is just a ton of it and no one person can know everything there is to know,” he advised.

“The legislation that gets added, which makes it even more complex, is the Landlord and Tenant Act,” Gray added. “Tenants are acutely aware of their rights and, because they are voters, you’ll find that any level of government will happily support them.”

However, tenants’ sense of community and protectiveness of their homes frequently supports management. “You will be notified quite quickly when unusual activities occur,” she noted.

Other best practices for operations and customer service are consistent in the commercial and multifamily sectors.

“The simple answer would be, invest in your people first and foremost,” submitted Lachlan MacQuarrie, vice president, national programs, with Oxford Properties Group. “If we listen to our people, they are going to act differently and they are going to engage differently. If engagement goes up, customer service benefits. It’s the ability to tap into their discretionary effort.”

Stantec appoints chief practice & project officer

Stantec has appointed executive vice president, Steve Fleck, P.Eng., to the newly-created position of chief practice and project officer, effective January 1, 2018.

In the new role, Fleck will manage the strategic positioning, contractual elements, and governance of Stantec’s largest projects while overseeing alternative project delivery for the company. He has nearly 35 years of industry leadership experience, including more than 10 years with Stantec. During his Stantec career, Fleck has provided key leadership to the organization in the areas of major project financing, procurement, and delivery.

“Steve has established leadership expertise in developing the systems and organizational foundation necessary to meet the needs of our large-scale project clients,” said Bob Gomes, Stantec’s president and chief executive officer. “Both this role and his talents are a complement to our continued focus on project delivery excellence to benefit our clients.”

Fleck will join Stantec’s chief executive leadership team, alongside executive vice president and chief financial officer, Dan Lefaivre; executive vice president and chief operating officer, Scott Murray; executive vice president and chief business officer, Tino DiManno, and incoming president and chief executive officer, Gord Johnston, who will assume his new position on January 1, 2018.

After joining Stantec in 2007, Fleck served as vice president of the company’s program & project management practice and progressed into successive leadership roles before being appointed executive vice president of Stantec’s programs & business solutions group.

Prior to joining Stantec, he was the vice president of Canadian Infrastructure Operations for a globally-recognized engineering and project management company. A recognized industry advocate, Fleck has served on the board of directors for the Association of Consulting Engineering Companies (ACEC) in Canada. A resident of Vancouver, British Columbia, he received a bachelor’s degree in civil engineering from Queen’s University in Kingston, Ontario, before earning a master of business administration degree from Simon Fraser University in Burnaby.

“Our company has grown tremendously within the last few years alongside our reach and ability to support some of the world’s largest infrastructure projects,” says Fleck. “I’m inspired by our organization and the opportunity to grow our reputation for project delivery excellence in communities where our talents are needed most.”

Taking Charge in the Age of EVs

The electric vehicle (EV) revolution is here; and with it, a demand for property stakeholders to accommodate a growing volume of plugged-in commuters.

“This isn’t a passing trend – EVs are definitely here to stay,” says Brookes Shean, General Manager, Central Canada with FLO, Canada’s leading EV charging solution provider. “More and more people are realizing the benefits of driving an EV, not only from a cost-saving and environmental perspective, but also in terms of overall enjoyability and comfort. In fact, when you run the numbers, EV drivers are driving an average of 10-kilometres further per day than traditional gas drivers.”

Certainly, what may have once been dismissed as a eco-friendly fad is quickly becoming the new normal. That’s putting pressure on property managers and owners to support EV drivers with electric charging stations where they work, live, and play. Traditionally, however, the cost of installing, monitoring, and maintaining EV charging stations has made some cautious about making the investment.

And here is where FLO is taking charge.

With over 4,000 EV charging stations throughout the country, the Quebec-based company is already Canada’s largest charging network. Its goal is to foster that network by providing property managers with simple, affordable and manageable ways of bringing EV charging stations to their tenants. And just recently, FLO launched an innovative business model that provides stakeholders with one more option to get in the game.

The idea is simple. Through a single, monthly fee, FLO will install and maintain EV charging stations for their clients, as well as monitor their usage and ongoing operations remotely from its operation centre.

“Think of it like a smartphone plan or internet subscription,” offers Shean, explaining, “For a predictable monthly fee we take care of everything, and we monitor it on our end to guarantee reliability and service quality. ”

It also makes more fiscal sense for property stakeholders as the model reduces – or, in some cases, eliminates – the upfront capital expenditures, turning them into a more flexible operating expense.

“It does away with the high upfront cost of installation and it makes sure property owners aren’t stuck with something that might be outdated or in ill-repair because it is entirely up to us to keep the services and equipment running,” says Shean, adding, “Ultimately, it’s about giving property owners peace of mind by supplying the market with an easier and more cost-friendly way of staying ahead of the EV evolution.”

Future Proofing

The demand for electric charging stations is only growing. This is not only presenting opportunities for residential property stakeholders to differentiate themselves from the competition, but for commercial and office building managers to accomodate EV drivers where they spend most of their days: in the workplace. And as more and more consumers in the workforce adopt EV-driving habits, having EV charging stations available where they work will become an increasingly important factor in attracting and retaining talent.

Yet while FLO’s EV charging model was designed to meet growing market demands, it was also created to ensure its clients are prepared for EV advancements to come. Surely, as more tenants and employees make the EV leap, the need for electric charging stations at offices, homes, retail outlets, and along travel routes will only increase. And as EV technologies advance to meet those needs, property owners will be challenged to not only provide EV charging stations, but make sure they are up-to-date and working at full potential.

FLO addresses that concern in multiple ways. First, its EV charging stations are built to withstand all Canadian climates thanks to their aluminum enclosures which are designed to be far more resilient to changing weather conditions than existing alternatives.

Secondly, explains Shean, FLO’s business model is supported by a team of technical experts who are on call for clients whenever repairs, updates, or all-out replacements are needed: “It’s an ongoing, turn key operation that gives property owners the flexibility to add more units down the line or replace the units they have when it comes time to upgrade.”

Certainly, as the EV revolution continues to build, it’s not a question of ‘if’ property owners need to catch up, but ‘when’. And with FLO as a partner, Shean says the time is now: “EVs are here to stay, so for us, it’s about making sure our locations are being provided with the best equipment, the best service, and the most options they can over the lifetime of this growing market.”

Brookes Shean is General Manager of Central Canada with Flo Inc. For more information, visit Flo.ca.

Minimum wage hike to follow new condo fees

The minimum wage hike may sting more in condo communities than other types of households as they face new costs and fees associated with recent changes to Ontario’s condo laws.

The province recently passed the Fair Workplaces, Better Jobs Act, which will raise the minimum wage $3.40 per hour over the span of a year. At $11.60, the current minimum wage was up 20 cents as of Oct. 1, 2017, and will climb to $14 in the New Year before reaching $15 on Jan. 1, 2019.

The minimum wage hike of $2.40 per hour on Jan. 1, 2018, will land the day after the first payment to the newly established Condominium Authority of Ontario (CAO) comes due on Dec. 31, 2017.

Cost pressures converge on condos concurrently

Created under the recent changes to Ontario’s condo laws, the CAO has been tasked with providing services including director education and dispute resolution on an operating budget based on a fee of roughly $1 per unit per month, to be remitted by condo corporations on behalf of owners. Corporations may see savings elsewhere as, for example, the new path for dispute resolution is designed to divert common condo conflicts from more expensive court proceedings.

The recent changes to Ontario’s condo laws also introduced requirements for condo corporations to communicate more frequently with owners, which comes with increased costs that clients are expected to shoulder as condo management companies look to recover these expenses. Management companies and their managers are simultaneously staring down new licensing fees as related legislation brings the profession under regulation.

“It’s unfortunate that it all is kind of coming together at the same time,” said Jeff Lack, director of internal operations at Wilson Blanchard.

Lack said it’s hard to predict the precise impact of the minimum wage hike on condo communities. Its impact may be felt directly in communities where third-party contractors, such as cleaning service providers, pay their employees minimum wage or just a few dollars more. Its impact may also be felt indirectly in households of all types, as employers who rely on minimum-wage workers, such as grocers, adjust their prices to reflect this increased expense. And price inflation could put upward pressure on salaries and wages across income brackets as they lose some of their purchasing power, said Lack.

With the impact of the minimum wage hike murky, it’s difficult to account for any increase in costs in condo corporation budgets for the coming fiscal year, he said.

Changes in fiscal outlook affect status certificates

However, as the impact of the minimum wage hike becomes clearer, boards may have to update their status certificates, condo lawyer Denise Lash confirmed via email. Status certificates, which help prospective unit purchasers evaluate the financial health of a community, speak to the accuracy of a condo corporation’s budget, she said. They must reflect any projected budget shortfalls as soon as they materialize, whether caused by the minimum wage hike or other events.

“There is also a requirement to indicate whether or not common expenses have gone up since the date of the budget for the current fiscal year if, for example, the board decides to do a revised budget to take into account additional costs,” said Lash. “This could be minimum wage impact on various contracts and may also include the Condo Authority fees and increased management fees.”

In the absence of a budget revision, the condo corporation would need to alert prospective unit purchasers to foreseeable common expense increases and special assessments via the status certificate.

“This is where I think that condo managers/board members who are preparing their status certificates need to be careful and determine what, if any, impact the recent changes will have on common expenses,” said Lash.

For his part, Lack suggested that cash-flow challenges and special assessments are unlikely as he anticipates several months will pass before the impact of the minimum wage hike is felt. He said he didn’t expect to see these additional expenses reflected in corporation budgets until the following fiscal year at least.

Contracts to influence community-specific impact

The impact of the minimum wage hike will vary from condo corporation to condo corporation, depending largely on their service agreements, Lack added. He said he foresees low-rise and townhouse communities being somewhat insulated from the impact compared to high-rise communities, where security — one of the services that stands to be most affected by the minimum wage hike — represents a major budget line item.

Security consultant David Hyde echoed Lack, predicting that rising hourly rates will have a sizeable impact on security service providers in condo communities. Hyde said guards working in this industry are generally compensated at a rate a little bit above minimum wage, so the hike could play out in one of two ways, both with their downsides.

“There’s pressure on the condo security companies to either bring the rates up accordingly, and the condo boards have to swallow that additional cost, or if they leave the rates right at the new minimum wage, then they’re risking a much higher turnover and lower service levels,” he said.

Not surprisingly, the risk of maintaining low pay rates outweighs the additional cost in Hyde’s assessment. He pointed to the importance of the role guards have in protecting people and property.

“Overnight, the security person is the only one that’s there on duty on behalf of the condo corporation, protecting hundreds of millions of dollars in assets,” said Hyde. “If they don’t patrol properly, if they don’t go and check those rooms properly and there’s a leak or problem, it could lead to a significant damage of property.”

Mitigating factors depend on terms of agreement

Many condo communities already underinvest in security, the security consultant said, scheduling to have on hand only one person, who often gets grief from residents for leaving the concierge desk to complete their other critical duties. With existing security resources stretched, few communities can afford to shave more hours off of the security schedule in hopes of offsetting the increase in costs expected to come with the minimum wage hike, he said.

Multi-year contracts for services such as security could buffer some condo communities from seeing an impact from the minimum wage hike for a while, said Lack, depending on the terms of the contract, such as escalation clauses. However, Hyde pointed out that these contracts are usually subject to renegotiation or termination with notice, which can be initiated by either party.

It depends on the specifics of a contract, which can also include provisions for fee increases if the minimum wage rises, said Lash, giving corporations a compelling reason to review their service agreements as the hike in hourly rates looms.

In the meantime, condo communities will have to wait for the effects of the rising minimum wage to work their way through the economy to gauge its actual impact.

“It’s a bit like there was an unknown for a long time with the new legislation, and condos kind of sat in the dark,” said Lack. “Now they’re sitting in the dark with the minimum wage hike.”

Michelle Ervin is the editor of CondoBusiness.

Where is all the building information modelling?

Building information modelling (BIM), as a concept, has been around for more than 50 years. Parametric software needed to facilitate the concept has been commercially available since the release of Vectorworks in 1985. For those entrenched in the AECO industry, BIM is a term that has become ubiquitous in all phases of construction. It is touted as the solution to the industry’s productivity and waste challenges. What’s more, seemingly every design consultant and general contractor in the industry has vast BIM experience with endless capabilities and markets them accordingly. Yet, with all this experience, capacity and knowledge available, where is all the BIM? Why isn’t every project reaping the rewards of this widely available practice?

To be fair, many in the industry are accomplishing some form of BIM; although, rarely in the revolutionary, fully collaborative, productivity generating way that we have all been led to believe is so easily attainable. If we are to accept what some companies advertise, it is easy to assume that by injecting some technology into the traditional process, the benefits of BIM will simply be a consequence of using that technology. Here lies the biggest challenge to seeing real progress in the industry in terms of BIM adoption. Most companies are still under the impression that BIM is a technological adjustment in an unwavering process. When in fact, the technology is only the enabler of a different, more evolved process, which is essential to realizing the full advantages of BIM. Of course this begs the question: what is that process?

So, let’s take a step back and define what “BIM” means. Part of the problem is BIM means different things to different stakeholders. For example, a design consultant team may produce a digital 3D model of the building and use that 3D model to generate their contract documents. Is that considered BIM? Some would say yes, but one could argue that because all information from submission onward revolves around said documents, they are merely using a different drafting medium to produce the same deliverable at the same point in the same process. Any downstream value of that “BIM” is negated when contractors are forced to interpret the design intent from paper documents.

What always follows is the standard onslaught of RFI’s, site instructions, change orders, etc. Even when the digital 3D models are made available to the construction team, they are always accompanied by some form of data release agreement that stipulates the model is not to be used for… anything, the paper documents govern. Again, can that be considered executing BIM? Notwithstanding any advantages individual firms may see by using a 3D model to generate working drawings, for the purposes of this article, the definition of BIM must be expanded to include applications outside of those responsible for authoring the design models. The BIM must bring value to every stakeholder in the value chain.

The real value of BIM is in its ability to enhance collaboration by enabling robust information exchange throughout the building lifecycle. To truly increase efficiency and productivity while reducing waste and rework, BIM must be planned at the onset to be continuous, uninterrupted and holistic. For that to happen, there must be big changes in delivery process. This means modifications of some stakeholder’s scope, changes to, or additional, contracts introduced and, depending what BIM application is targeted as being valuable to the project, changes to schedule.

The disconnect between designers, contractors and operators must be mended in order to reduce wasteful redundancies in process. For instance, when BIM is to be used during mechanical design, an engineer will typically model the plumbing, HVAC and associated equipment while coordinating with architectural, structural and electrical models. Needless to say to coordinate meaningfully, one has to assume that the geometry being coordinated is complete and of sufficient accuracy. However, because of the usual segregation between engineer and contractor, two critical factors are left out of design coordination: code and constructability. Systems and equipment have strict building code and maintenance accessibility requirements which fall under the trade contractor’s scope of work to accommodate. Furthermore, the tools predominantly used for design modelling represent design intent only. The geometry of what is eventually fabricated and installed varies significantly and it’s not even close to what was initially modelled. Electrical design follows suit. Consequently, even a “clash free” design model will always be missing necessary information needed for installation, information only available from the trade contractors doing the work resulting in duplicate coordination.

In terms of BIM redundancies, two distinct mechanical and electrical models are done in separate phases. (If it is even possible with the schedule constraints, considering when a trade contractor is usually procured after the tender process.) In the end, one model will contain all the relevant data and one the relevant geometry, they will not be interoperable, and the as-built information will remain paper based. Remarkably, this convoluted process increases productivity and reduces enough rework on site to be considered valuable during the construction phase.

However, as it stands, BIM is still something detached, done in silos, and injected into a process that is flawed for the desired application. There is no continuity of BIM between design, construction and operations because the current processes and procedures do not allow for it. Integrated project delivery (IPD) could be a platform for real BIM integration, but first everyone involved needs to understand it can’t be business as usual. BIM cannot be an afterthought. Assumptions and expectations must be challenged early and the project processes must be designed to match the BIM application. Additionally, trade contractors must be procured early enough to contribute their expertise before it becomes modelling rework or redesign. Above all else, BIM needs to be first defined by everybody that is to be involved in the process.

Daniel Doherty is virtual construction manager at Clark Builders. He is a certified engineering technologist, and is the current chair of the Alberta Centre of Excellence for BIM (aceBIM).

Commissioning & recommissioning buildings

Property owners and managers are placing increased focus on the energy efficiency performance of their buildings. This is often driven by a desire to reduce energy costs, or a focus on reducing energy consumption and associated emissions to achieve organizational sustainability and social responsibility goals.

One key area that should not be overlooked when evaluating building energy efficiency performance is control system commissioning and recommissioning. Properly commissioned control systems ensure that building equipment is operating efficiently, harmoniously and as intended. Without a continued focus on commissioning, efficiencies can be lost, energy can be wasted, costs can increase, and at worst, systems or equipment can work at cross-purposes. It is surprising how frequently even new buildings are not commissioned correctly. Even when buildings have been commissioned appropriately, over time there can be changes in building operations personnel, internal processes, or the way spaces and even entire floors are used – all of which are prudent reasons to periodically review the operation of control systems.

Today, most commercial, institutional, industrial, recreational and large scale multi-residential facilities have an element of building management controls in them. Building management systems (BMS) or building automation systems (BAS) have hard-wired or radio wave direct digital control (DDC) elements that are capable of a degree of control. These can be as simple as an ambient temperature sensor for a boiler system that anticipates heating or cooling demand based on exterior temperature. Alternatively, the components can be as complex as a combined heat power (CHP) unit that needs to match power generation wave form, voltage and demand while integrating with heating system thermal requirements. In more complex BMS it is crucial to have the correct operating parameters assigned to different elements to maximize system efficiency, avoid dangerous situations and minimize energy consumption.

All the individual DDC components are Internet Protocol (IP) accessible with unique identifier addresses, allowing automated remote control of systems. The BMS can control any system that has DDC mechanisms employed and can include setback parameters or program logic that anticipates required actions based on other parameters to maximize efficiencies. The control system software and hardware platform or communications protocol can be proprietary or open source. In a proprietary system, the equipment is operated under licence and usually requires the original equipment supplier to program or make any changes. In an open source scenario, you can add extra control points that may not have to match the original supplier’s protocol or which can be programmed to match various other protocols.

Building commissioning or recommissioning (recalibration) is the process of verifying the appropriate BMS control settings, validation of design assumptions and proving system capability at all stages of integration. The validation and verification of operating procedures will result in the optimization of overall system performance. A qualified commissioning agent or professional engineer should be engaged to review the existing system. Reprogramming and associated commissioning will ensure that the systems are working in harmony with each other, maximizing operating efficiencies by matching demand or facility requirements with appropriate levels of supplied energy. This could be associated with: lighting controls, fan speed, delivery volumes, temperature setpoints, firing rates, etc.

For example, if a chiller and heating systems aren’t properly commissioned, it is quite possible to have them fighting each other 24 hours a day and consuming far too much energy. I have personally encountered control settings for an air handling unit that caused the system to bring in 100 per cent fresh air at -20 C to counteract an overactive heating system. This resulted in 35 per cent excess energy consumption but was easily corrected. It is not unusual for both older and newer buildings to have BMS systems that are not programmed correctly or have components missing. Building operators may also not know how to access the BMS software controls.

If your facility employs variable frequency drive (VFD) or variable speed drive (VSD) motors for pumps or fans, the importance of correct system settings and the potential to save energy is even greater. VFDs allow for the ultimate match of the delivered volume of air or fluid heat or chilling capacity to meet demand, and can ramp up and down based on requirements. The DDC components may be triggered by temperature or pressure sensors or even pre-programmed hours of operation. More sophisticated buildings can monitor carbon monoxide levels to adjust the fresh air intake volume to match code requirements. These features are beneficial when programmed correctly but can be highly detrimental with improperly sequenced program logic.

The Canada Green Building Council (CaGBC) utilizes a building rating system based on Leadership in Energy & Environmental Design (LEED) criteria to give new and existing facilities an associated rating. Fundamental building systems commissioning for new buildings and recommissioning for existing buildings are compulsory prerequisites when obtaining specific LEED certification levels.

The importance of having a properly commissioned building cannot be overemphasized as a low-cost, high return endeavour that maximizes occupant comfort, energy efficiency and the bottom line. The digital control world is here to stay and we need to take advantage of the associated benefits.

Jeremy Miles, CEM, LEED is a senior energy analyst with ATCO. Jeremy leads ATCO’s commercial energy management services team which has conducted more than 754 facilities audits totaling over 2.5 million square metres of commercial facility space in Alberta. Learn more at atcoenergysense.com.

Fort McMurray landlords scrutinized in 2016-17

Alberta courts ordered restitution for 12 breaches of the Residential Tenancy Act in 2016-17 and meted out an unprecedented $7,000 fine to a landlord found to have mishandled tenants’ security deposits. The Alberta government’s recently released report on consumer protection violations over past the fiscal year highlights residential tenancy complaints in Fort McMurray, but other types of malfeasance were more prevalent province-wide.

In total, the courts called for restitution of nearly $1 million in response to 77 findings of unfair practices. Another $272,445 was levied in fines to individuals and businesses. This followed 618 investigations Alberta’s consumer investigation unit conducted over the course of the fiscal year.

“Our investigations create consumer confidence and that’s good for business as Alberta’s economy continues to look up,” says Stephanie McLean, Minister of Service Alberta.

Charges levied to Fort McMurray landlords include the first-ever conviction under provincial the Emergency Management Act for increasing a tenant’s rent during the rent freeze imposed in response to the wildfires that devastated the area in the spring of 2016. The penalty included a $2,000 fine with associated $300 victim surcharge or 19-day jail sentence.