Alberta hits the trifecta for GHG emissions

A newly released communiqué from the National Energy Board highlights Nova Scotia, New Brunswick and Ontario as standouts among mediocre performers aiming for Canada’s greenhouse gas (GHG) reduction target. In particular, the two Atlantic provinces are hailed for already achieving a 30 per cent drop in GHG emissions within their borders compared to 2005 levels, but accompanying federal sustainability indicators accentuate that more populous and economically productive areas of the country are well off that pace.

Nationwide, Canada’s annual GHG output fell from 738 (Mt) of carbon dioxide equivalent (CO₂e) to 722 Mt CO₂e over the first 10 years of its commitment period under the Paris Agreement. This leaves a substantial gap still to close to reach the targeted 523 Mt CO₂e by 2030.

“Canada must reduce its GHG emissions by 28 per cent within the next 14 years,” the National Energy Board release affirms.

Differing populations, economic drivers and sources of electricity generation are easily discernible in the provincial/territorial breakdown of emissions statistics. Together, New Brunswick and Nova Scotia accounted for just 4.2 per cent of national emissions in 2015. However, even before their impressive curtailment, they contributed less than 6 per cent of national emissions in 2005.

A move away from coal-fired electricity generation underpins much of the improved performance in the three provinces receiving kudos. Ontario registered the largest volumetric decline in emissions, which fell from 204.4 Mt CO₂e in 2005 to 166.2 Mt CO2e in 2015. Across Canada, emissions from coal-fired electricity generation dropped from 95 to 61 Mt CO₂e in the same period, with 21 Mt of that decrease occurring within Ontario.

Economic malaise and restructuring fill in the rest of the GHG reduction story, with “decreased manufacturing activity”, “shut-down of the Dartmouth refinery” and Ontario’s “declining emissions from heavy industry” credited.

British Columbia, Manitoba and Quebec all enjoy a low-carbon hydroelectric-based electricity supply, but had somewhat disparate emissions tallies, as Quebec registered a 10 per cent decrease, B.C. saw a 5 per cent drop and Manitoba edged slightly above its 2005 emissions output with a 0.9 per cent increase. Saskatchewan — the lone provincial/territorial holdout on the Pan-Canadian Framework on Climate Change — recorded a more significant jump, with emissions growing to 75 Mt CO₂e in 2015 from 69.5 in 2005.

Meanwhile, Alberta hits the GHG trifecta with a resource-based economy, surging population growth and a carbon-intensive electricity grid. The oil and gas sector is the single greatest national source for GHG emissions, representing 26 per cent of the 2015 national tally, and it has also become more carbon-intensive as the industry expands in Alberta’s oil sands. The provincial population rose by 26 per cent between 2005 and 2015 — surpassing the 11 per cent national average — and adding to the emissions output of both the transportation and electricity sectors. Annual GHG emissions rose nearly 18 per cent over the 10-year period, from 233.8 to 274.1 Mt CO₂e by 2015.

Pulling the lens out 25 years, the sustainability indicators report further outlines the Ontario-Alberta GHG divide. “In 1990, Ontario’s GHG emissions were higher than those from other provinces because of its large manufacturing industry. Alberta’s emissions subsequently surpassed Ontario’s, increasing 56 per cent since 1990, primarily due to the increase in the oil and gas sector for export markets,” it explains.

Nevertheless, they have simply traded places in the big-two rankings of provincial/territorial emitters. “In 2015, the combined emissions from Alberta and Ontario represented 61 per cent (38 per cent and 23 per cent, respectively) of the national total,” the report notes.

Gord Johnston named new Stantec president and CEO

Gord Johnston, executive vice president of Stantec’s Infrastructure business operating unit, has been selected by the board of directors to assume the role of president and chief executive officer, effective January 1, 2018. Bob Gomes, current Stantec president and chief executive officer, will retire at year’s end, effective December 31, 2017.

Johnston has more than 30 years of industry leadership experience, including more than 20 years with Stantec. He has also played an active role in helping guide the company’s Strategic Plan over the past nine years.

“Gord’s appointment and this transition are exciting milestones in a succession plan that the board of directors has been working on for the past three years,” says Aram Keith, chair of Stantec’s board of directors. “Gord’s people-focused leadership style, industry expertise, and market understanding will build on the success Bob has helped the Company achieve. Gord is focused on the future and helping the Company achieve its long-term strategic goals.”

During his Stantec career, Johnston has progressed in various leadership roles after joining the firm’s Edmonton-based Water practice in 1990. He later served as the regional business leader for Stantec’s Water group in Western Canada before assuming the role of business leader for Stantec’s Water business line in 2010. In 2015, he was named to his most recent post as the executive vice president for the firm’s Infrastructure business operating unit. As a company leader, Johnston served on Stantec’s Disclosure Committee, the Integrity Management Team, and the Executive Health, Safety, Security, and Environment Committee. Johnston has also been active in the firm’s acquisition sourcing and integration efforts, particularly with MWH Global, Stantec’s largest acquisition to date.

A recognized industry advocate, he has served on the board of directors for the Association of Consulting Engineering Companies (ACEC) in Canada, and as past president of the Consulting Engineers of Alberta. Johnston earned both bachelor’s and master’s degrees in civil engineering from the University of Alberta before completing the Harvard Business School’s Leading Professional Services Firms program. Additionally, he is a credentialed Envision Sustainability Professional through the Institute for Sustainable Infrastructure. In his role as CEO, Johnston will relocate to Edmonton, Alberta.

“Bob’s leadership has paved an excellent path for us to follow and grow,” says Johnston. “We will continue to grow and strengthen our global footprint while maintaining our position as a top-tier service provider dedicated to bringing world-class expertise to our clients in local communities around the globe.”

To ensure a smooth transition, Gomes will work with Johnston until his retirement in December. Executive vice president and chief financial officer, Dan Lefaivre; executive vice president and chief operating officer, Scott Murray; and executive vice president and chief business officer, Tino DiManno will continue in their roles.

GTA home sales plunge 37.3 per cent annually

In June 2017, Greater Toronto Area realtors reported 7,974 home sales through the Toronto Real Estate Board (TREB)’s MLS System, a drop of 37.3 per cent compared to June 2016 levels.

The number of new residential listings entered into TREB’s MLS System decelerated to 15.9 per cent year-over-year to 19,614. Although this annual rate of growth is significant, it represents a more moderate level of growth compared to May 2017, when new listings climbed 48.9 per cent year-over-year.

“We are in a period of flux that often follows major government policy announcements pointed at the housing market,” said Tim Syrianos, new TREB president, in a press release. “On one hand, consumer survey results tell us many households are very interested in purchasing a home in the near future, but some of these would-be buyers seem to be temporarily on the sidelines waiting to see the real impact of the Ontario Fair Housing plan. On the other hand, we have existing home owners who are listing their home because they feel price growth may have peaked. The end result has been a better supplied market and a moderating annual pace of price growth.”

In June, the average selling price for all home types in the GTA was $793,915, a 6.3 per cent increase compared to June 2016. During the first six months of 2017, the average selling price was up by 20.9 per cent to $870,016. A better supplied market has helped influence the moderation in price growth. However, the average selling price has also been impacted by the fact that the most sizable home sale declines were seen for more expensive home types, especially detached houses. This means the change in the mix of homes sold in June 2017 compared to one year earlier has also had a substantial impact on the overall average selling price.

Annual growth rates for MLS HPI benchmark prices have eased over the past two months, yet they remain strong. The MLS HPI composite benchmark price climbed 25.3 per cent year-over-year in June 2017. However, on a month-over-month basis, benchmark prices fell for detached homes (-1.3 per cent), attached houses (-1.4 per cent) and townhomes (-0.04 per cent). Meanwhile, benchmark prices continued to climb on a monthly basis for apartments (1 per cent).

York Recreation Centre revitalizes brownfield

With the development of the York Recreation Centre, the City of Toronto is serving a previously underserved community by using a previously underused site.

The 70,000-square-foot facility houses a fitness centre, dance studios, running and walking track, swimming pools and teaching kitchen, among other amenities. Produced by Perkins+Will, its park pavilion-inspired design responds to its surrounds of the Black Creek and Keelesdale North Park with a façade featuring composite metal panels and forest green-coloured glazing.

The project, recently completed at a construction cost of $27 million, dates back just before amalgamation of the municipalities that now make up Toronto. It was championed by Ward 11 York South-Weston Councillor Frances Nunziata, who was mayor of the City of York at the time, and Ward 12 York South-Weston Councillor Frank Di Giorgio.

The City of Toronto evaluated three sites for the York Recreation Centre, eventually selecting a brownfield owned by Ontario’s Ministry of Transportation.

“We [the City of Toronto] don’t have money to be buying land, so we were looking at some land that we could acquire relatively inexpensively,” said Doug Giles, senior project coordinator for the City’s Parks, Forestry and Recreation division.

A consultant identified the site where the facility would ultimately be built as the preferred option, despite some challenges. For one, it was a forgotten playing field-turned-repository for dumping fill, old concrete and telephone poles, so it required remediation. For another, portions of the site overlapped with the Black Creek flood plain, so the plans required approval from the Toronto and Region Conservation (TRCA) to proceed.

“It’s kind of a picturesque site being so close to the Black Creek,” said Giles. “And because that site was governed by TRCA control and approval, everyone was trying to create something that was sympathetic to its natural environment.”

He pointed to the way the architects camouflaged the rooftop mechanical systems by recessing the equipment below the plane of the inclined green roof as an example of this effort.

The TRCA-approved plans involved fortifying the creek bank to prevent erosion and siting the facility outside the flood plain anticipated in the event of a worst-case-scenario storm.

The community had an important hand in shaping the design and programming of the recreation centre, actively participating in focus groups and town halls. Public input prompted the architects to add further program elements, including a running track and a mezzanine viewing gallery for the pool, and customize existing program elements.

“The youth groups were very clear about a gym that didn’t feel like a high school gym that was much more open to the spaces around it,” recalled architect Duff Balmer, design principal, Perkins+Will. “There were issues around safety and visibility — both around the building and within the centre — that were of concern to this community and to these neighbourhoods.”

Sweeping glazing, both interior and exterior, creates transparency between different spaces.

This gives the gym, pool and track visibility from outside as well as opportunities for daylighting. In the case of the pool, motorized blinds and coloured clerestory glazing counteract glare, which could otherwise obscure the views of lifeguards, Balmer explained.

The blinds and coloured glazing also support the passive dehumidification strategies employed in the pool area by lowering the load on the dehumidification system. Sized for four air changes per hour, the system helps pre-heat the pool with recovered heat, which cuts operating costs. Balmer said other considerations included selecting durable finishes and materials capable of withstanding the extra strain that comes with the energy-efficient conditioning of the space.

The pool is served by two universal (non-gender-specific) change rooms with fully enclosed changing stalls, which allowed for the application of glazing to the walls separating the change room area from the corridor. This visibility discourages incidents such as theft of personal belongings by improving passive supervision, Giles explained, and the visibility of the showers from the pool deck signals that bathing suits are to be worn when rinsing off, Balmer added. Plus, they said, the universal change rooms are easier to maintain, because staff of either gender can enter, and having two makes it possible to close one for cleaning or other upkeep.

Balmer said Toronto is leading the way with this model, which the city first introduced at the Regent Park Aquatic Centre, but other municipalities appear poised to follow suit. Universal change rooms are the logical progression of the trend toward increasingly large family change rooms, he suggested.

“It’s more inclusive for a lot of the ethnic groups that are using this facility,” Balmer observed. “It addresses a lot of the modesty concerns that have been coming up.”

Not only was the York Recreation Centre designed with the community it now serves in mind, but the revitalization of the brownfield coincided with broader transformation occurring in the area.

Serendipitously, the staging of the tunneling for the close-by Eglinton Crosstown light rapid transit (LRT) tunnel brought with it a bridge, said Balmer. Constructed across Black Creek by Metrolinx partway through the project, it connects Keelesdale South Park/Chris Tonks Arena to the recreation centre site, allowing improved vehicle access as well as the sharing of parking capacity.

With this important link in place, York Recreation Centre has opened its doors after many years in the making.

“It’s always very busy and well-used,” reported Giles. “I have to think the community is embracing it after such a long wait.”

Michelle Ervin is the editor of Canadian Facility Management & Design.

Anvil Centre receives LEED Gold certification

The Anvil Centre and the Anvil Centre Office Tower in New Westminster, B.C. have officially received LEED Gold certification by the Canada Green Building Council. Anvil Centre, which opened in 2014, was built with a number of sustainable design features that align with the city’s commitment to environmental sustainability.

The 95,000-square-foot, four storey civic centre occupies the entire lower building podium which supports the 135,000-square-foot, nine storey office tower above. Anvil Centre is the largest office building in New Westminster.

“Throughout the planning and constructing phase, our team worked hard to ensure that Anvil Centre was built to the current sustainable building practices,” said Mayor Jonathan X. Coté. “It’s great that our staff can be recognized for their efforts and that our community can be proud to call Anvil their own.”

Some of the sustainable design features of Anvil Centre include the use of high efficiency heat recovery systems and radiant flooring, increased use of natural light to reduce energy consumption, roof thermal insulation, the use of low volatile organic compounds (VOC) materials, electric vehicle charging stations, bike storage and changing facilities, and the purchase of renewable power.

Moreover, 88 per cent of construction and demolition waste was diverted from the landfill and 68 per cent of all wood based materials are FSC certified. PCL Constructors Westcoast was the general contractor.

Anvil Centre is located at 777 Columbia Street in New Westminster and features conference spaces, including a theatre; the New Media Gallery; New Westminster Museum and Archives; and the Lacrosse Hall of Fame. It also hosts arts, dance, and heritage programs.

Ontario releases foreign buyer data ahead of housing forum

Foreign buyers were involved in roughly 4.7 per cent of the 18,282 residential and agricultural real estate purchases recorded in the Greater Golden Horseshoe between April 24 and May 26, the province reported yesterday in a news release. The Ontario government began tracking the data through the land transfer tax system following the introduction of its Fair Housing Plan, a package of 16 measures aimed at addressing affordability challenges, including a non-resident speculation tax.

“Through the Fair Housing Plan, our government sought to stabilize the market and give more individuals and young families an opportunity to buy a home,” said Minister of Finance Charles Sousa. “Early indicators show that the plan is working.”

The newly released data reflect real estate purchases to which the non-resident speculation tax may apply. Effective April 21, the tax applies to transactions involving properties acquired or purchased by foreign corporations or individuals without citizenship or permanent residency.

Some individuals, including refugees and nominees of Ontario’s economic immigration program, may be eligible for an exemption from the tax. Other individuals, including international students and individuals who have become permanent residents or have been working in Ontario, may be able to claim a tax rebate.

Tim Hudak, CEO of the Ontario Real Estate Association, who welcomed the gathering and sharing of foreign buyer data, pointed out that the Toronto Real Estate Board (TREB) had previously arrived at a similar statistic. Through a survey last fall, TREB, which opposed a foreign buyer tax, found that foreign buyers were involved in 4.9 per cent of GTA home sales.

“The ultimate solution to addressing the barriers facing Ontario home buyers is to increase housing supply,” Hudak said in a statement.

The release of foreign buyer data, which will be updated in the fall, comes ahead of the first meeting today of an expert forum formed by the government to consider how to improve housing affordability. The forum of academics, community groups, developers, economists and the real estate sector will provide advice to the province.

“The panel will examine the challenges faced by the Ontario housing market and use an evidence-based approach on how to make it easier for everyone in Ontario to buy or rent a home,” said Chris Ballard, Minister of Housing and Minister Responsible for the Poverty Reduction Strategy.

The forum is expected to convene on a quarterly basis going forward.

Concrete Alberta announces new executive director

The Concrete Alberta board of directors has announced that Dan Hanson is its new executive director, effective August 8, 2017. He replaces Robin Bobocel, who has accepted a new role as the CEO of the Red Deer & District Chamber of Commerce.

In just over two years at the helm, Bobocel oversaw some significant changes in how the association operates, and what its new focus will be. Some of these changes include a new identity for the association, moving away from the name and look of ARMCA, to become Concrete Alberta.

Along with this change was the development and implementation of a new strategic plan that focuses outwardly on raising awareness of the industry with a variety of stakeholders including government.

Under Bobocel’s leadership, Concrete Alberta undertook to develop a new marketing plan and the establishment of several strategic partnerships with groups such as the Canadian Homebuilders’ Association, the Industry Task Force Association and Alberta Labour, among others.

Hanson has more than 14 years of experience in government, industry, and stakeholder relations. Most recently, he was a senior consultant with IMPACT Consulting, an Alberta-based consulting firm that focuses on government relations, policy development, strategic planning, communications and advocacy services.

Hanson also has extensive public sector experience as the former senior director of the Alberta Competitiveness Council with the Alberta government, where he worked with industry to enhance partnerships with government and other stakeholders to advance Alberta’s competitive position. Prior to that, he served as Chief of Staff and political advisor to the Minister of Agriculture and Rural Development; the Minister of Infrastructure; the Minister of Finance; and, the Associate Minister of Infrastructure and Transportation. Hanson also served as a research officer with the Legislative Assembly of Alberta in the Government Members’ Research Branch.

Condo corporation facing a special assessment?

Making decisions as a condo director is part of the job. Financial decisions, especially those involving special assessments or fee increases, are tough. Making tough decisions about money will never be easy, but making the right tough decisions gets easier if directors follow these five principles.

1. Carefully review the need for a special assessment

Do not levy special assessments unless it is absolutely necessary. Owners do not like them, and their dislike often results in conflict and hard feelings between the board and the owners. Consider the following before making the decision.

Some owners might have to sell their homes if they cannot pay the special assessment. This is the hardest part of the job for a director: making decisions in the best interest of the corporation knowing that the decision may negatively affect some owners. This might not be an issue for condos whose owners have higher incomes, but for many condos this consideration is vital.

Also recognize that special assessments could cause a drop in property value, affecting sales in the short and long term. The effect is magnified if the corporation levies multiple special assessments. Interested buyers may back away completely if they think this means that the condo is poorly managed.

Can the work be delayed or modified? A large project such as a window replacement can be spread out in stages over several years. A staged project can work well if accurate building maintenance records exist. These records make it is easy to identify the oldest windows so that their replacement comes first. Another option is to modify projects, by selecting more cost-effective finish options for an update of the interiors, for example.

If the proposed work is going to be postponed, consider any negative effects on the property and owners. If the building looks old and worn out, this can affect the property value. Or if, for example, a roof replacement is delayed for several years, it could fail before it is replaced, causing damage that requires expensive repairs. This damage can include significant interior damage for the unit owners. Repairs are costly, but there is also the emotional cost to the unit owner who is inconvenienced or has to move out of their home during the repair.

Alternatively, can the condo borrow money? There are pros and cons. On the positive side, this eliminates the need for the assessment. On the negative side, interest rates for a loan like this will be higher than a personal mortgage or line of credit and could raise fees over the long term.

Avoid special assessments by starting to plan high-cost projects at least a year ahead of time. Create a draft work plan. Get quotes and review the scope of work with the quote and the available budget. If these three items do not align well, then look at reducing the scope or quality or staging of the project.

Levying a special assessment for unnecessary features will not go over well with the owners. That said, always aim for high quality; quality pays off over the long term, and this will result in lower maintenance costs and ultimately lower fees.

If moving ahead with a special assessment, explain to the owners the rationale behind it and give them enough time to make their payments.

2. Provide detailed explanations for fee increases

It is inevitable that condo fees increase every year — ideally no more than two to five per cent at a time. Sometimes an odd situation occurs that causes a larger-than-usual increase, but boards that manage and plan effectively minimize the likelihood of these situations.

Finalize the new budget well in advance of the start of the fiscal year to give owners as much notice as possible. No one ever complains about too much notice; everyone complains about not enough.

It’s a good practice to provide a detailed explanation of the line items that increase, especially if the increase is greater than five per cent or is abnormal. For example, an unexpected and significant increase in the cost of water by the service provider needs an explanation.

Do not try to be a popular board and never raise condo fees. This approach will backfire eventually when budget deficits occur.

3. Resist the temptation to play favourites

“What a great idea to hire Bill’s snow removal company. Since he lives on the property, he knows exactly when to plow. He promised the best price, so how could the board say no?”

As tempting as it might be, hiring owners or their companies is not always the best idea.

Always get other prices, even if the owner has promised to give the condo the best price possible. If other companies have not provided quotes, then it is impossible to know. Did any of the directors tell Bill the price he had to beat or did Bill get this information from the condo’s financial statements?

Giving Bill insider information on price is not fair to the other companies providing quotes and could definitely backfire once bidding companies find out. It’s much harder be objective when an owner is involved or when the owner is a friend of one of the directors. If the quality of the service is not acceptable, who is going to tell this owner?

4. Keep looking at the end game

Condo directors have many tasks and responsibilities. It is easy to get caught up with day-to-day challenges and forget about planning for the long-term health of the corporation.

Long-term planning is equally as important as the immediate and short term. There is only one ultimate goal to keep top of mind: maintain or increase property values.

Fortunately, this is an easy goal to monitor for most condos. Data from the sale of units are publicly available and easy to track in a spreadsheet. Some condos might have too few sales to get accurate data, but larger ones will have multiple sales each year.

5. Never keep secrets

If the board automatically shares everything with the owners, then no one thinks that the board is hiding anything. A technology solution that gives the owners access to the condo’s records can help facilitate this sharing.

Finance is one of those topics that never goes away. If boards rarely levy special assessments, always provide detailed explanations for increases, never play favourites, keep an eye on the end game and never keep secrets, then tough decisions become manageable decisions.

Pat Crosscombe is the founder and CEO of BoardSpace, a company that provides software for condo boards and property managers. She is the president of her condo board for the second time after a three-year break from a first term of five years. She can be reached at 613-790-0225 or [email protected].

Condo owners invited to weigh in on proposed fees

The Condominium Authority of Ontario (CAO) is inviting condo owners to weigh in on proposed fees to support the dispute resolution and training services it will start to deliver this fall.

As anticipated, the CAO is proposing to levy a fee of $1 per month per condo unit for an annual fee of $12 to fund services including information for condo owners, mandatory training for condo directors, a public registry of condo corporations, and resources for resolving common issues. The CAO is also proposing to charge users of dispute resolution services fees that start at $25 and escalate up to $200 total if a disagreement moves through all three stages.

Under the CAO’s administration, the Condominium Authority Tribunal (CAT) is designed to deliver fast, fair and cost-effective dispute resolution services. In stage one, a $25 filing fee would give users access to an online dispute resolution system, which would give the parties a platform to come to a resolution on their own. In stage two, a $50 fee would give users access to a dedicated CAT mediator who would work with the parties to try to guide them to a resolution. And in stage three, a $125 fee would give users access to a dedicated CAT member who would formally adjudicate the disagreement and issue a binding decision.

The CAO was established by legislative reforms that are expected to start rolling out later this year, and is due to be designated on Sept. 1 as the authority described in recent updates to the Condominium Act. Dispute resolution services for disagreements over condo records and mandatory condo director training are scheduled to become available through the CAO Nov. 1.

The CAO said it will accept input on the proposed fees until July 18.

Be aware of asbestos during renovations

As buildings age, they are going to require renovations or restorations in order to maintain or even increase their property value. More specifically, kitchens and bathrooms are the two most valuable rooms in a home and coincidentally they are also the two most likely to contain asbestos. Discovering asbestos can be overwhelming for many as it is often associated with a decrease in property value or a large price tag. However, asbestos does not need to be intimidating. If removed properly, asbestos will not have a negative impact on health or the property.

Asbestos is recognized for being fire retardant, extremely durable and resistant to chemical erosion. These qualities made it a popular building material from 1950 to 1990. Asbestos fibres are microscopic (roughly 0.02 um, the diameter of a human hair), which make them difficult to detect with the naked eye. The fibrous minerals are also mixed with other materials meaning that asbestos can be present while going unnoticed. If the home was built or renovated before 1990 then it is likely that some parts of the building will contain asbestos. Some of the common uses of asbestos in kitchens and bathrooms are linoleum, floor tiles, drywall mudding compound, and the stipple coating on ceilings.

Both property managers and homeowners need to be aware of the regulations surrounding asbestos. Many individuals are still not properly educated on the hazards of asbestos and as a result they unknowingly put themselves in a dangerous situation. The Workers Compensation Board of British Columbia regulates that any material containing more than 0.5 per cent by content of asbestos fibres is a hazardous material. Once asbestos has been discovered and confirmed through an air sample analysis, it’s required that the situation be dealt with. A hazardous materials removal company can be hired to remove or encapsulate the asbestos depending on the situation. However, if the owner decides to sell the property instead of removing the asbestos, then they must still disclose this information in the property listing.

A current issue with the housing market in Vancouver is that the market is so competitive, prospective buyers are removing the home inspection terms in order to have a more attractive offer. Consequently, they’re discovering that these older homes need more repairs than expected. The Home Inspectors Association of BC says that, as of 2016, only 10 per cent of homes are being inspected before purchase. Older homes in particular have a high probability of asbestos which could become an issue for even an experienced real estate investor or property manager once they start opening up the walls. The previous homeowners may not have been aware of the asbestos which is why a consultation with a home inspector could help identify potentially affected areas in the home prior to purchase.

It’s important to note that in most instances, if asbestos is undisturbed is it not harmful. However, if building materials become uncovered and exposed during renovations the fibres can become airborne and pose the risk of being inhaled by the occupants of the building. Renovation work in the kitchen may involve removing a non-load bearing wall to create an open concept floor plan, cutting holes into the ceiling to install new recessed lighting, or ripping out linoleum tiles to lay hardwood throughout the home, all of which include the potential disturbance of asbestos containing materials. These same asbestos related hazards, and more, can be found in the bathroom and other rooms around the home.

In December 2015, WorkSafeBC implemented new regulations stating that landfills could no longer accept asbestos containing drywall or untested drywall at risk for asbestos. These new regulations have resulted in an increase in “fly-tipping” or the illegal dumping of asbestos containing materials in B.C. Both Global News and CTV News have reported on the issue calling it a multi-million dollar problem in the Lower Mainland. Not all abatement contractors can dispose of hazardous materials and many homeowners do not know how or where to dispose of it. As a result, even when the renovation process may seem complete, property managers should look for abatement companies that are licensed by the Ministry of Environment to transport and store hazardous waste.

In the event that asbestos is discovered, the most important thing is to get the right information. A little bit of knowledge can go a long way. Do research by searching the internet and asking questions or even call more than one company if still uncertain. As a property manager, this can help provide peace of mind to the homeowners and as a homeowner this can help connect you with the professional contact needed. Either way, don’t start tearing open walls until what is behind them is known – investigate before renovating.

Dan Reading is a director and project manager at Phoenix Enterprises Ltd, a leading hazardous materials removal company with over 30 years of experience in B.C. Dan plays an active role in the company’s safety standards ensuring that they not only meet but exceed all regulatory procedures. He is also very involved in managing the marketing and communications of the company in order to better educate individuals on the hazards of asbestos.

Vancouver REIT buys U.S. portfolio of hotels

American Hotel Income Properties REIT LP (AHIP), a Vancouver-based real estate investment trust, has acquired a portfolio of hotels in the Northeastern U.S., totaling 2,187 units.

The portfolio of 18 premium branded Marriott and Hilton hotels is located in Maryland, New Jersey, New York, Connecticut and Pennsylvania for approximately US$407.4 million or approximately US$186,000 per guestroom.

The acquisition consists of 10 Marriott branded hotels totaling 1,206 guestrooms (five Residence Inns, two SpringHill Suites, one Courtyard, one Fairfield Inn and Suites and one TownePlace Suites) and eight Hilton branded hotels totaling 981 guestrooms (four Homewood Suites, two Hampton Inns and two Hilton Garden Inns

This acquisition follows the purchase of 23 hotels earlier this year, bringing AHIP’s entire portfolio to 113 properties with 11,570 guest rooms.

“We have continued to add value through the ongoing growth of our diversified hotel portfolio, which has delivered reliable and consistent cash flows to our unitholders,” said Ian McAuley, president of AHIP. “Since AHIP’s public listing in 2013, we have delivered consistent yields for investors of approximately 8.0 per cent, while significantly improving the quality of the portfolio.”

The hotel properties comprising the Eastern Seaboard Portfolio will be managed for AHIP by its exclusive hotel manager, ONE Lodging Management Inc., a wholly owned subsidiary of O’Neill Hotels & Resorts Ltd.

CAPREIT adds 19 properties to Netherlands portfolio

CAPREIT announced it will be acquiring 19 properties, totaling 849 residential suites, in eight cities and towns throughout The Netherlands. Included in the purchase are 102 single-family homes, 747 apartment suites and two commercial units.

Approximately 29 per cent of the suites are located in Amsterdam, 30 per cent in Utrecht, 17 per cent in The Hague, with the remaining 24 per cent in five towns in the central and northern parts of the country. The purchase price of EUR170.4 million will be financed with new mortgage financing of approximately EUR100.8 million with a weighted average term of approximately 7.5 years bearing a weighted average interest rate of approximately 1.9 per cent and the remaining with a euro-based loan under CAPREIT’s credit facility, which currently has a two-year hedged fixed interest rate of approximately 1.2 per cent. Occupancy for the acquired properties is currently 97 per cent. Closing of the transaction is expected on or about July 12, 2017.

CAPREIT will be responsible for providing property management services for the new properties, exporting its proven programs to The Netherlands. CAPREIT has partnered with Rubens Capital Partners, its partner on its first acquisition in The Netherlands, a highly experienced local real estate investment and asset management firm, which will own a nominal interest in the portfolio and will provide ongoing acquisition and asset management services to assist in growing CAPREIT’s portfolio in the country.

With this acquisition, CAPREIT’s Netherlands portfolio more than doubles, increasing to 1,417 rental suites well-located in most major population centres in the country. With this increase in size and scale, CAPREIT will be establishing its own regional office in The Netherlands to manage the portfolio. A senior CAPREIT employee has been located in The Netherlands since April 2017, and he will oversee the set-up and staffing of the new regional office. The new office will generate additional operating efficiencies and help to facilitate further growth in the region.

“We are very pleased with the contribution our initial Netherlands properties have made, and look for this significant increase in size and scale to make a strong and sustainable contribution to our performance going forward,” commented Thomas Schwartz, President and CEO.

As one of Canada’s largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 49,074 residential units, comprising 42,622 residential suites and 31 manufactured home communities comprising 6,452 land lease sites located in and near major urban centres across Canada and the Netherlands. For more information about CAPREIT, its business and its investment highlights, visit www.caprent.com.

New apartment complex planned for London

A new apartment complex is coming to the vibrant, growing market of London, Ontario, where apartment vacancy fell to 2.1 per cent last fall, the lowest it’s been since 2003.

According to the recently released development plans, the new Old Oaks Properties complex will include a 14-storey tower, a 12-storey tower and 14 townhouse units on Morgan Avenue near the intersection of Wonderland and Southdale roads. Both towers will offer apartment rentals, with 161 units and 113 units respectively.

The Morgan Avenue project, which is still unnamed, is located in a strong growth area close to the amenities of the Wonderland Road commercial corridor.

Old Oaks Properties President, Greg Bierbaum, commented that many empty nesters are selling their homes in order to take advantage of the hot real estate market, which has seen record sales set every month this year. The demographic for the apartment complex will likely be a mix of empty nesters and young residents.

About Old Oaks Properties

Old Oak Properties is a developer, builder and manager of luxury apartments in select communities in London, Ontario. The company offers a wide range of apartment styles and suite layouts, with buildings located close to major amenities, including shopping, medical, healthcare and educational facilities

Old Oak Properties recently finished the Mosaik luxury apartment building on Sugarcreek Trail and is completing the second tower of its Hyde Park Place apartment project in the Fox Hollow area. A third tower for that site is also planned.

Construction on the new Morgan Avenue project is expected to begin within 18 months.

Cleaning baby changing stations

Baby changing tables in public restrooms across Canada continue to be sporadic. While Canada has taken steps to eradicate this inconvenience, not enough is being done. All establishments built in 2015 and onwards must offer a change table in family washrooms, but they are still hard to find in older facilities and in most men’s restrooms.

Today, regulations that do exist most often apply to the construction and installation of stations—not their care and maintenance.

Cleaning and Care Against Germs

Not many germ and bacteria tests or studies have been conducted on baby-changing stations; however, the little research that exists shows bacteria and germs can be found on these products in varying amounts. The following is a changing-station maintenance plan that should work in most facilities:

Schedule maintenance. In most public facilities, the stations should be cleaned at least once per day, but in a busy location, such as an airport, they may need to be cleaned every hour or every couple of hours.

Apply cleaning solutions: All areas of the baby changing station, inside and out, should be wiped clean using a microfiber cloth and a pH-neutral cleaner. Microfiber is designed to be more absorbent and can help remove pathogens from surfaces more effectively than a terry cloth towel. Extra attention should be paid to high-touch points such as handles, security straps, and all interior compartments.

Apply disinfectant. Once all areas have been wiped clean, a disinfectant can be applied to all surfaces. After five to ten minutes, allowing the disinfectant to become most effective, the surfaces should be wiped clean with a microfiber cleaning cloth. If the disinfectant dries, it must be reapplied.

Rinse. Many disinfectants will leave a chemical residue, which can attract new soils. Because of this, the interior and exterior should be wiped again using pure tap water and a clean microfiber cloth.

Record. Facility managers should have cleaning workers note when they have cleaned the stations. This is for their own protection as well as for the baby and parents.

We likely can expect two things to happen with baby-changing stations in the future. First, we will see more of them. Although they are still not a universal requirement across North America, most building owners and managers believe they should be included in restrooms. Second, as more changing stations are installed, the professional cleaning industry is likely to be called upon to learn more about their cleaning needs. A changing-station maintenance program will help ensure cleaning is consistent and effective.

Amy Seretsky is product manager of washroom products for Impact-Products, manufacturers of jansan, safety and restroom products. She can be contacted at www.impact-products.com.

CPPIB to acquire Parkway REIT portfolio

Canada Pension Plan Investment Board (CPPIB) has entered into an agreement to acquire the entire portfolio of a Houston-based real estate investment trust. The US $1.2 billion (CAD $1.56 billion) deal for Parkway REIT equates to US $23.05 (CAD $29.97) per share and will add 19 properties encompassing approximately 8.7 million square feet to CPPIB’s real estate holdings.

“Through this investment, CPPIB gains additional scale in Houston. Parkway fits with CPPIB’s long-term real estate strategy to hold stable, high-quality assets in large U.S. markets,” says Hillary Spann, managing director and head of U.S. real estate investments with CPPIB.

This includes Greenway Plaza, an 11-building, mixed-use developed on a 52-acre site boasting nearly 5 million square feet of office space. Other properties are located in Houston’s Westchase district and neighbouring Galleria, both which are popular business, retail and residential areas. As of March 31, the Parkway REIT portfolio was nearly 88 per cent leased.

“We believe there are still some near-term headwinds in the office sector for Houston, but the implied asset valuation of this transaction shows CPPIB’s appreciation for the high-quality portfolio we have assembled and the near-term stability it provides during the current downturn in the market,” observes James Heistand, Parkway’s president and chief executive officer.

The transaction is not subject to financing conditions and is expected to close, subject to stockholders’ approval, in the fourth quarter of 2017.

Input needed for food, organic waste framework

Ontario is asking for input on a new discussion paper that examines a proposed Food and Organic Waste Action Plan, which may include banning food waste from disposal.

In Canada, food waste represents more greenhouse gas emissions than any country besides China and the United States. In Ontario, 3.6 million tonnes of food and organic waste is generated annually and more than 60 per cent of it is lost to disposal

As part of its strategy for Waste-Free Ontario: Building a Circular Economy, the province proposes that the first policy statement under the Resource Recovery and Circular Economy Act, 2016 focus on food and organic waste.

The paper, Addressing Food and Organic Waste in Ontario, serves as the basis for preliminary discussions with stakeholders to inform the development of the Food and Organic Waste Framework. The paper is posted for review. The Ministry of the Environment and Climate Change is gathering feedback, which must be received before July 30, 2017, to be considered in the decision-making process.

The framework aims to:

Reduce the amount of food that becomes waste;
Remove food and organic waste from the disposal stream;
Reduce greenhouse gas emissions that result from food and organic waste;
Support and stimulate end markets that recover the value from food and organic wastes;
Increase accountability of responsible parties;
Improve data on food and organic waste;
Enhance promotion and education regarding food and organic waste

A working group will develop both the action plan and policy statement concurrently. The Ministry invited municipalities, the waste management industry, producers, non-governmental organizations, the agri-food industry (e.g. farmers, food processors) and generators of organic waste in the IC&I sectors (e.g., food retailers, restaurants, offices, hospitals) to participate in this process.

Restoring power to electrical systems post flood

The owner of a college facility in Mississauga, Ontario, was recently convicted and fined almost $20,000 for hiring an unlicensed contractor to complete electrical work on site. The worker died on the job after being electrocuted while working on wiring that carried 347 volts of electricity, which had not been disconnected from power.

“This is a tragedy for all concerned,” says Scott Saint, chief public safety officer for the Electrical Safety Authority (ESA). Two people have paid the price – one with his life and the other with this conviction and the knowledge of this incident for the rest of his life.”

Occupational electrical-related fatalities and injuries are a significant and ongoing problem, according to the ESA. This risk of shock is heightened when water comes into contact with electricity. That said, as vulnerable communities across Canada continue to experience bouts of flooding, facility owners and operators are being urged to understand the proper steps to restore power after a flood, and legal requirements when hiring contractors to do electrical work.

Every year, a fatality or critical injury is reported among electrical workers. Research shows that these incidents are preventable, and the cause is usually from working on energized equipment.

“Electricity is unforgiving and lethal and rarely gives a second chance,” says Saint. “If a facility undergoes flooding, you can’t assume it’s safe to go in. If water has risen above outlets you don’t want to go near that water, as electricity can move through it. Make sure the power is cut off because if water is energized, you may get electrocuted.”

Safe steps for restoring power after flooding

When electrical rooms are located in a basement, water could rise into the components. Power must be shut off, and once the water recedes, a licensed electrical contractor, with a license number, should assess and repair damage. There is a chance wet equipment may need to be replaced. Not only will electrical systems and breaker panels need examining, but also machinery and appliances, which could cause a fire later on.

Facility occupants should not plug in or use electrical appliances that have come into contact with flood waters until the appliances have been checked or serviced by the licensed electrical contractor or appliance service provider.

Rough weather events, such as flooding, which sometimes comes with heavy rain and wind, can cause downed power lines. In the past decade, 37 per cent of all electrical-related deaths were from power line contact. Some of these incidents occurred when cleaning out debris from eavestroughs or trimming hedges, bushes and branches.

Compliance is key. In Ontario, a contractor is required to take out an electrical permit with ESA so there is a record of the work completed. Having the ESA issue a certificate of inspection provides due diligence. It ensures that work has been done according to the Ontario Electrical Safety Code, and is good mitigation for liability because a third party is validating the hired contractor’s work.

ESA will inform the utility that it is safe to reconnect power and the utility will restore power when it is able to do so. After the work is done, facility staff should ask the contractor for a copy of the ESA certificate of inspection for their records and insurance.

Electricians who are already employed at a facility will still need to take out permits to complete work. Whether it’s an expansion or replacement, ESA inspection rules need to be followed.

“Sometimes, something as simple as changing a ballast on a lighting fixture leads to death or injury,” says Saint. “All workers should de-energize the power of a system, even if it’s lighting. It’s better to leave tenants in darkness for a short period of time than risk a life.”

Enforcing safety

Licensing enforcement has been in effect for the past 10 years; however, ESA continues to receive complaints and implement process stemming from prosecution. Often, this enforcement deals with people who operate an electrical contracting business or who claim they are master electricians without holding a valid license (ECRA/ESA in Ontario).

Acoording to ESA, an electrical contractor needs to “prominently display” her/his ECRA/ESA Electrical Contractor Licence number in all correspondence, contracts and advertisements, on business vehicles and, generally, in all situations where they are communicating with the public. This also includes yellow page ads and websites.

ESA regularly conducts enforcement inspections and investigations, and issues administrative fees, laying of charges and prosecutions for those who choose to violate the regulations.

“Sometimes, unqualified individuals try to do work themselves to save money in the short term,” says Saint. “What they don’t realize is they are leaving a hazard for later. They could get hurt or cause a fire and shut down the facility.”

Hazards can include hooking up systems incorrectly and leaving the metal box energized when it shouldn’t be.

“The next person who enters a building to change a light fixture or another repair doesn’t realize the previous person wired it wrong. If they touch the metal box and then touch another metal piece, they could be electrocuted,” adds Saint. “We’ve seen deaths occur because of incorrect wiring, which wasn’t the fault of the person who died.”