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Nominations open for 2017 WLI Championship Team

The Toronto chapter of the Urban Land Institute (ULI)’s Women’s Leadership Initiative (WLI) was created in 2014 to help advance women in real estate, and the Championship Team was started at that time with the first 80 members.

The WLI Championship Team profiles women real estate experts and leaders and recognizes the talent that they bring to the region. Each year, some of the most influential women in the Toronto real estate community and land use sector are chosen as Champions and are formally inducted at the annual WLI reception. Last year, 23 women were selected based on their contributions to the Toronto real estate and land use sector.

The ULI’s WLI is currently accepting nominations for the 2017 Championship Team. Successful members will be chosen based on having a minimum of 10 years in the industry; exceptional leadership and skills in the real estate development and land use disciplines; dedication to, and success at, building thriving communities across the Toronto region; the capacity to inspire others in the industry; and commitment to their community as demonstrated through leadership in community organizations.

Current ULI and WLI members are encouraged to nominate a woman for the 2017 Championship Team. Each member may nominate one woman for consideration.

To be considered for the 2017 WLI Championship Team, fill out a nomination form and include a brief bio. Email the completed form to Alexandra Rybak at [email protected]. Nominations are due by March 31, 2017.

The 2017 Championship Team will be announced at the WLI June event.

Killam Apartment REIT appoints new CFO

Philip Fraser, President and CEO of Killam Apartment REIT announced an important change to Killam’s executive team. Dale Noseworthy, CPA, CA, CFA has been appointed Chief Financial Officer of Killam Apartment REIT, effective April 1, 2017. Ms. Noseworthy, currently Vice President, Investor Relations and Corporate Planning, has been with Killam since 2006.

Robert Richardson will continue to serve on the Board of Trustees and as Executive Vice President, providing senior executive leadership to Killam’s operations and capital investment strategies.

“Robert’s role as the CFO and EVP cannot be understated,” said Philip Fraser. “As one of the co-founders and original directors of Killam, and as CFO for the last 17 years, Robert has been instrumental in every milestone of Killam’s growth. This new stage of focusing on operational management and capital investment strategies will benefit all unitholders.”

“Dale is uniquely qualified to become Killam’s next CFO,” commented Richardson. “Her real estate knowledge, combined with over 20 years of accounting, finance, investor relations and strategic planning experience will be invaluable to Killam in her new role. The ability to promote from within speaks to Killam’s mandate to develop senior real estate professionals that will further enable us to achieve our strategic goals.”

Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada’s largest residential landlords, owning, operating and developing multi-family apartments and manufactured home communities. Killam’s current portfolio includes $2 billion in real estate assets.

SmartREIT partners with SmartStop to build self-storage facilities

SmartREIT and self-storage industry leader SmartStop Asset Management (SmartStop), have formed a joint venture to build and co-own rental self-storage facilities in Canada.

Typical facilities range from 75,000 to 125,000 square feet and include a mix of rental units in various sizes. With this strategic partnership, SmartREIT plans to further intensify its portfolio and generate additional funds from operations. There will also be opportunities to include leasable retail in certain locations. Two locations in the Greater Toronto Area have been confirmed and plans for multiple other locations are expected to be announced in the coming months.

“We view today’s third generation, multi-storey self-storage facilities as being a complementary use within and around our centres, requiring minimal land and parking, resulting in efficient rental income value creation,” said SmartREIT CEO Huw Thomas. “This strategic alliance is a logical step as we continue to intensify our shopping centres and unlock value in under-utilized parcels of land within our portfolio.”

“This joint venture gives SmartStop the opportunity to expand its existing 12-property portfolio in the Greater Toronto Area to other major metropolitan areas across Canada,” added SmartStop Founder and CEO H. Michael Schwartz. “By leveraging SmartStop’s existing online marketing expertise, institutional management, and revenue optimization systems, the partnership will provide growth for both SmartREIT and SmartStop.”

CAPREIT acquires Montreal luxury apartment

CAPREIT announced that it has waived conditions and will acquire a Montreal luxury apartment, comprised of 256-suites and located in the affluent Côte-Saint-Luc neighbourhood.

The property is well-located within walking distance of a high-end shopping centre, hospital, community centre and public library. The purchase price, to be initially financed in cash from the CAPREIT’s Acquisition and Operating credit facility, is $23.5 million, generating a very strong going-in capitalization rate of approximately 6.51 per cent and a price per suite of approximately $92,000, well below replacement cost. Closing of the transaction is expected on or before May 3, 2017.

The property was constructed in 1975 and is currently operating as a seniors’ residence. On closing, the vendor will deliver the property to CAPREIT substantially vacant and will deposit $2.5 million in escrow to be disbursed to CAPREIT on a monthly basis in an equal to the rents projected for any suites that remain vacant for a period of up to two years after closing. CAPREIT will invest approximately $8.6 million in capital improvements over a three-year period, including a garage restoration, fire safety systems, in-suite and common area renovations, and energy efficiency initiatives. The property also has the potential to add additional suites on the ground floor over time.

CAPREIT, working with the vendor, has initiated certain capital projects and has begun marketing the property to prospective residents for occupancy on or after closing.

“This unique and highly accretive transaction is just another example of how we are bringing our culture of innovation to our focus on enhancing long-term Unitholder value,” commented Thomas Schwartz, President and CEO. “As we invest in this new property, and apply our proven management programs to efficiently lease-up the building and reduce operating costs, we will generate a very strong return on investment with, stable, sustainable and growing cash flows over time.”

Diamond Schmitt opens Vancouver studio

Toronto-based Diamond Schmitt Architects has announced the opening of its new studio at 1500 West Georgia Street in downtown Vancouver.

Ana Maria Llanos, senior associate with the firm, will lead the Vancouver-based team. She has worked at Diamond Schmitt for 20 years and has broad expertise in institutional and commercial projects.

She is currently project architect for Emily Carr University of Art + Design, a 26,700-square-metre (290,000 sf) centre for 21st-century learning in art, design, media and applied research at the heart of a new creative cultural precinct. It opens in September 2017 at Great Northern Way in Vancouver.

Llanos will be speaking at the upcoming Architectural Institute of British Columbia’s Annual Conference May 8-10th in Vancouver on Integrated Project Delivery.

“Western Canada has always been well represented in our portfolio and with current projects and pursuits now is the right time to open a studio in Vancouver and be closer to our clients in the western regions of Canada and the United States,” said Donald Schmitt, principal, Diamond Schmitt Architects.

Other current projects by the firm in western Canada include the University of British Columbia Undergrad Life Sciences Teaching Laboratories; the master plan study for Vancouver General Hospital and design for the Pacific Health Innovation Exchange (PHIX); Britannia Community Centre Renewal project; the Lister 5 Student Residence for the University of Alberta in Edmonton; and preliminary design for Calgary Opera facilities. At Washington State University, redevelopment of the Advanced Plant Sciences facility is underway.

Completed projects in British Columbia include the newly opened Okanagan College Trades Centre, a net-zero-ready facility in Kelowna; four buildings at UBC – the School of Medicine, the Law School, the School of Journalism and the Chemical and Biological Engineering building.

 

Ontario enacts energy and water reporting reg

A provincial regulation has now been enacted to help large buildings cut down on greenhouse gas (GHG) emissions.

Privately owned buildings that are 50,000 square feet and larger are required to report their energy and water usage in order to improve efficiency as part of the Ontario Regulation 20/17: Ontario’s Reporting of Energy Consumption and Water Use.

Using ENERGY STAR Portfolio Manager, users must report monthly energy and water consumption, GHG emissions and intensity and building characteristics information. The types of buildings included in this mandate are commercial, multi-unit residential with more than 10 residential units, and some industrial facilities and properties. Exclusions include data centres, TV studios, public buildings and most industrial buildings that deal with manufacturing and agriculture.

Here’s a full list of building types that must report. The first reporting deadline is July 1, 2018 for 2017 consumption (starting with buildings greater than 250,000 square feet). The implementation schedule is as follows: Buildings greater or equal to 250,000 square feet (2018); Buildings greater or equal to 1000,000 square feet (2019); and buildings greater or equal to 50,000 square feet (2020).

The Energy and Water Reporting and Benchmarking (EWRB) initiative is the review of a building’s energy and water performance to determine how it is changing over time in comparison to other similar buildings. As a result, users can accurately measure improvement. The data complied will also help large buildings better manage energy and water use and costs, identify best practices and opportunities and set measurable goals.

The new rules are a game-changer in an industry where big buildings contribute nearly a fifth of Ontario’s GHG emissions through energy and water use.

CFS Corp: A Shining Standard

For much too long, the contract cleaning industry has been largely ignored despite the fact that there are more than 27,000 companies operating in this sector Canada-wide. While it’s easy to understand why most people don’t give building cleaning much thought — in many cases, it’s performed out-of-sight at night — failure to recognize its value has proven a disservice to the industry and its workforce.

“As long as the industry remains in the shadows, there are companies that will continue to cut corners to stay afloat in a highly competitive market that faces downward pressure from clients to keep bids low,” says John Tsertos, operating manager of CFS Corp., a commercial contract cleaning company that serves the Greater Toronto Area. “This typically involves skimping on services and unsavoury employment practices.”

Subcontracting labour to immigrant workers (often via a shell company, where the owner is legal but its labourers are not) is rampant in the cleaning industry, says Tsertos, as they’re willing to work under the table for a low wage. Unfortunately, in doing so, they sacrifice their rights in the workplace and are often mistreated. But so long as this practice protects the profits of unscrupulous building service contractors — labour is the biggest percentage of a business’ costs — and their clients are willing to turn a blind eye to get what they want at the cheapest possible price, it will continue, he says.

“The cleaning business has become a dirty business,” says Tsertos, frankly. “It’s frustrating because there are legitimate companies that run the risk of losing business by asking higher prices, even though these prices accurately reflect the services rendered.”

CFS, an acronym for Cleaning Facility Services, is one such company. Headquartered in Mississauga, Ont., the janitorial service provider was established in 1996, by Tsertos’s late brother George. Like most entrepreneurs, George started the business solo and then grew its workforce as he garnered more contracts. By 2009, the year of his untimely passing, George’s ‘mom-and-pop’ shop had almost tripled in size and was on the verge of exploding.

“It’s a sad story,” says Tsertos, who got involved in the company at his parents’ request to keep his brother’s legacy alive.

Thankfully, he was able to keep CFS’s momentum going but the ride hasn’t been without its bumps.

Some of the most formidable challenges the restructured company has faced presented themselves early on. Though born and raised in Toronto, Tsertos lived in Houston, where he had put down familial roots and operated a successful real estate development company. It was from here that he would manage CFS — more than 2,400 kilometres from the company’s head office and clients, which span multiple sectors and include office, retail, educational, healthcare and multi-residential properties. On top of this, Tsertos had limited knowledge of the cleaning industry at the time, beyond being a consumer of the product.

“My real estate development company has janitorial contracts in place at multiple properties so I knew the business from the client’s perspective,” he explains.

An astute professional, Tsertos quickly got up to speed on the service side of the sector and ensured the right people were in place at the company’s home base so that he could effectively manage two companies at the same time. Of course, Tsertos still likes to be hands on and travels frequently to Toronto, though the number of trips has diminished in recent years to approximately once per month thanks to its proprietary software, CFSLogix.

“I can do a lot of things remotely now because of the systems we’ve put in place,” he explains.

Shortly after taking over CFS’s reins, Tsertos searched for commercial cleaning software to help him profitably manage the company from afar. After coming up empty- handed, he decided to go the custom design route, resulting in CFSLogix. The innovative cloud-based management system is comprised of seven modules that work together to increase efficiency and ensure excellence for the company’s clients. They include production scheduling, quality control, personnel management, financial management, inventory management, program evaluation, and deficiency tracking and reporting. What’s more, the platform allows clients to track and monitor their portfolio 24-7, and provides access to the latest information on products, equipment, work processes, and codes and regulations.

“The client portal is a crucial operational tool that assists with our own internal monitoring processes and allows complete transparency of contract service delivery, which is a valued part of a successful client-contractor relationship,” says Tsertos.

At first, however, CFSLogix was nothing more than a glorified time clock. Using biometric technology, the system allowed Tsertos to track employee movements in real-time, including attendance, working hours and time spent on specific tasks. Soon after its implementation, Tsertos happened upon some concerning anomalies. Of note, multiple workers were pretending to be someone they weren’t. On further investigation, he discovered several employees had the same social insurance number. Without hesitation, Tsertos moved away from utilizing subcontractors for janitorial services, opting to hire a bona fide cleaning staff instead — a decision influenced by a past experience that “shook him to the core.”

“In the late ‘90s, one of my concrete guy’s labourers was electrocuted on a construction project of mine and it almost cost me my entire net worth,” Tsertos divulges. “While the incident was through no fault of my company, my insurance provider almost bailed on me because although my concrete guy was legal, his people weren’t. From there on in, I decided I’d rather do it the right way and not have as much business instead of the wrong way and not be able to sleep at night.”

Tsertos’s conscientious choice has been both a curse and a blessing. Switching from the subcontractor to employee model meant CFS had to pass its higher labour costs on to its clients to remain profitable. In instances where clients were unable to understand why the company was charging more money for the same services, Tsertos had to let them go. However, this then provided CFS the opportunity to go after quality clients — those that appreciate the company’s value proposition. Today, CFS services 28 locations, totalling six million square feet of cleanable space.

“We’ve had more setbacks than success by adopting this philosophy but the clients we have now are a better fit,” notes Tsertos. “They recognize you get what you pay for.”

And with CFS, that’s quite a bit.

CFS works in close partnership with its clients to develop customized commercial cleaning programs that yield measurable results by improving quality and safety, and containing costs.

As a CITS-certified (Cleaning Industry Training Standard) company, CFS is committed to providing its clients with highly trained employees who can properly perform their jobs. CITS is an International Sanitary Supply Association (ISSA) initiative that measures the quality of a company’s existing training programs and verifies that they adhere to a strict set of standards. Those who obtain the designation have the ability to certify frontline cleaning professionals within their organization.

CFS Corp

John Tsertos, operating manager of CFS Corp.

The company is also dedicated to creating healthier, high performance facilities. This goes beyond employing environmentally preferable cleaning solutions, tools, equipment and processes to also include the regular use of adenosine triphosphate (ATP) testing to guarantee “what looks clean is actually clean.” Considered one of the most reliable methods of measuring cleanliness today, ATP testing can rapidly detect the amount of organic matter that is present after cleaning any surface. The amount of ATP detected, and where it’s detected, indicates areas and items that may need to be re-cleaned, and the possible need for improvement in the facility’s cleaning process.

“Ensuring a healthy environment has never been more important,” says Tsertos. “With recent public health threats such as H1N1 and SARS, facility managers have an increasing responsibility to ensure that they are doing everything to defend against the spread of contaminants and, resultantly, a possible outbreak.”

This is where cleaning plays a crucial, albeit all too often underrated role, he continues — one that CFS is working diligently to bring into plain sight.

Daytime cleaning, of which CFS is a strong proponent, is one way to raise awareness of and appreciation for janitorial work. Making cleaning staff visible puts a face on an often forgotten industry and serves to professionalize it. Further, it fosters mutual respect between cleaning crews and building occupants, imbues a sense of pride that is currently in short supply among workers and provides a desirable improvement in job conditions.

“We got involved in daytime cleaning because of the myriad of benefits it offers our workers and clients, both financial and non-financial,” says Tsertos. “But more importantly, it ties into what we’re trying to achieve — a higher industry standard and total transparency.”

 

Clare Tattersall is the editor of Facility Cleaning & Maintenance

Photos by Ling Wang

Network innovation delivers smarter buildings

Global technology trends have pushed a new network innovation to market, a piece of hardware that is seemingly unassuming, but expected to improve building efficiency, reduce energy use and create a better working experience for maintenance and cleaning staff, along with other facility occupants.

In an effort to make buildings smarter and operations smoother, Cisco has developed a new switch that unifies separate building systems, from HVAC and lighting to surveillance and physical security, over a secure, low-voltage IP network.

Devices like thermostats and lightbulbs are becoming more intelligent. Door locks, badge readers, along with garbage cans, toilet paper rolls and soap dispensers in smart bathrooms, increasingly want to connect to a secure network in what is now called the Internet of Things (IoT). As the number of networks grows within a facility, there needs to be some sort of convergence.

Bill MacGowan, director of digital buildings at Cisco, describes the Catalyst Digital Building Series Switch as a key element in the company’s Digital Building Strategy. He says the desire for mobility and the use of apps for personal control are motivators behind some of the product’s features. The switch not only supports convergence in digital buildings, but is the first ever Bluetooth enabled switch with an easy-to-install  iOS and Android mobile app. This means that a user could travel around a floor plate and the app would communicate to the switch. The user could then apply diagnostics and adjust temperature and lighting levels, for example.

How smart buildings benefit

The new switch has myriad benefits that extend to energy efficiency, asset utilization and employee satisfaction.

MacGowan says the network switch can potentially drive down energy costs. It can power all the lights in a building that run off Ethernet cables from switch ports, instead of AC power.

The switch, connecting to a thermostat and lightbulb, would also be connecting to a wireless access point. If an occupant turns on their Wifi within the building, the wireless network can triangulate the location of the phone and on what floor, without knowing who the user is.

“Because the wireless is on the same network as the thermostat and lightbulb, we have the ability to take that triangulation data and use it to further adjust HVAC ventilation rates, add more air to a zone, block off less air or dim lights,” says MacGowan. “That dynamic sequence is enhancing energy savings.”

One of the first properties to use the product is the Sinclair Marriott Autograph Hotel in Texas. The owners, wanting to install all digital bells and whistles for guests and also lower energy bills, found they could view real-time analytics and ended up reducing energy costs by 50 per cent from that initiative.

Another value factor for facilities is asset utilization. Network-enabled connected sensors, such as HVAC, lighting and access, offer strong connectivity to help increase building analytics.

“As organizations are trying to lease less space or optimize the number of heads per desk, our network is allowing people to increase the number of bodies per square foot,” MacGowan adds.

The switch can also provide the occupant with the mobile app that allows them to adjust lighting levels and temperature values as they move through space, which results in happier people and lower absenteeism rates.

On the maintenance and cleaning end, as staff move through a facility, the temperature and lighting levels are reacting on a zone-by-zone basis to give them the proper illumination to clean, instead of lighting up an entire floor plate.

Smart devices become interactive with the task at hand, notes MacGowan. In a restroom, for example, such devices could indicate when maintenance is required or when items need to be stocked. A smart toilet paper roll, for instance, could specify when it needs replenishing.

“All these systems are starting to become mobile, so if I’m a cleaning crew on a floor plate, the technology can triangulate where the cleaning crew is and have historical patterns and maybe, based on history, indicate where they missed a spot or what spots have already been cleaned,” he says. “Also, if I’m an occupant putting in a service request, that’s another data point that informs the cleaning staff. You get integration on that reporting side of the house, too.”

The switch also powers security cameras. These devices are also growing more intelligent and can work with other systems to create more secure facilities. For instance, they can stream video data that can be analyzed to make some type of decision. If someone walks within the field view of a camera, it may trigger a lighting sequence or lock the room.

What may seem quite technical is, in fact, easy to use and install. And with a ten-year life expectancy, the switch has the ability to provide uninterrupted power during upgrades and reboots or restore power within five seconds after a failure.

If there isn’t IT staff on board, an operator can always enter into a manage service agreement that will help staff understand and learn. Some facilities, such as hospitals or universities, might designate an IT department to be responsible for monitoring the network that connects to the devices. MacGowan says with other users that manage multiple commercial tenants, facility managers are taking on the responsibility and looking to hire IT expertise. He says it really boils down to schools that are now looking for ways to incorporate technical knowledge into their facility management curriculum so operators graduate with some solid understanding.

Selecting lighting for hazardous locations

Atmospheric testing is a recommended first step when selecting explosion-proof lighting for hazardous locations, while basic knowledge of IP ratings can help facilities managers choose appropriate waterproof and submersible equipment. Guidance from Larson Electronics outlines the National Fire Protection Agency’s (NFPA) class/division/group categories for electrical safety around combustible materials, and explains how IP codes rank perviousness to particles and liquid.

Explosion-proof fixtures are a safety requirement in industrial and storage facilities where flammable gases and vapours, combustible dust or ignitable fibres may be present in the atmosphere. The NFPA’s three-part label indicates: the substance’s state of matter; the likelihood of its presence; and the temperature that will trigger ignition.

“Understanding the ratings that dictate their applications is a salient step in setting up industrial lighting systems,” advises Andrew Holland of Larson Electronics. “Skipping this step could result in devastating accidents on the site, as well as an increase in spending when purchasing the lights — equipment with higher levels of explosion-proof protection are usually more expensive.”

Seven basic groupings of materials of concern include: acetylene; hydrogen, butadiene, ethylene oxide and propylene oxide; ethylene; propane; metal dusts; coal dust; and flour, plastics and chemical dusts. Safety measures are premised on the dual principles of preventing or controlling the accumulation of explosives in the atmosphere (primary prevention) and removing or restricting heat sources that could trigger ignition (secondary prevention).

Explosion-proof lighting is part of the latter. It is tightly sealed to ensure the electrical current and any spark will be contained. It must also meet stringent standards for maximum surface temperature, which are prorated to the hazard level of the material likely to be present in the atmosphere.

“Using luminaries with incorrect groupings can be both extremely dangerous and expensive,” Holland warns. “This practice is comparable to buying car insurance when you own a bicycle — you’ll end up paying more for something that isn’t entirely useful or applicable to your needs.”

Meanwhile, misinterpreting waterproof ratings is unlikely to be such a critical life-safety risk, but it could result in costly damages. IP (ingress protection) ratings denote the equipment’s resistance to infiltration of both solids and liquids. For water, that covers a 9-digit gradient. The particle scale tops out at number 6 for dust-tight.

“Waterproof protection is subject to specific tiers, including IP55, 1P67 and IP69K. These IP ratings dictate the level of waterproof protection in terms of depth of immersion, exposure to water jets and temperature,” Holland explains. “Next time you see the term ‘waterproof’ on a label, it might be worth digging a bit deeper into the IP rating — typically found in the manual or on the equipment itself — to understand how much exposure to water or dust the unit can take. This precautionary step could extend the lifespan of your lighting equipment and improve safety during operation.”

Ergonomic considerations for the design stage

Workspaces are changing quickly as yesterday’s cube farms become today’s open concepts. It’s important to evolve and keep current, but to also ensure that technology and aesthetics still provide function and reflect basic ergonomic principles.

In fact, ergonomics can optimize both human performance and the use of technology for improved efficiencies and reduced costs. That is, costs associated with injuries, lost time, insurance claims and generally wasteful work layouts and methods.

When designing a workplace, it’s important to consider all aspects of ergonomics, productivity and accessibility. Don’t miss a step; remember the A, E, I, O, U’s:

Assess

It’s ill-advised to jump into the new without understanding what is functioning or broken of the old. Perform a basic ergonomic hazard assessment to quickly ascertain what element(s) of a job are causing productivity, quality or comfort issues.

Ergonomic issues are often a byproduct of poor layout, wasteful processes, improper or inappropriate equipment and bad worker habits. Progressing into any design without understanding these basic elements can be costly and often breeds non-confidence and frustration among staff.

Assessment tools can take various forms, including checklists and reviews of past workplace inspection documents. However, bear in mind that a comprehensive ergonomic assessment captures multiple elements of information concisely and cost-effectively to highlight the design flaws in any current workspace.

Evaluate

After completing the assessment, determine which of the identified hazards are problematic and diminish the human ability to perform effectively. Anthropometrics, a study of measurements and proportions of the human body, should be a first line of defense when looking at design.

When used effectively, anthropometrics can reduce or completely engineer many hazards out of work space designs, layouts and equipment use. It’s the only way to ensure that the design will fit the workforce, the space and the task.
Anthropometrics can also allow an organization to design for demographics without guessing. For example: In a multicultural city, using solely standard North American anthropometric data may result in furnishings, equipment and tools that are at higher or lower-than-ideal working heights, thus increasing the number of injuries and claims.

Consult other standards and guidelines to fine-tune work methods and work expectations. The International Organization for Standardization (ISO), Canadian Standards Association (CSA), Accessibility for Ontarians with Disabilities Act (AODA) and American National Standards Institute (ANSI) guide organizations on how to better configure their programs, processes and overall design for improved safety and quality.

Investigate

Look at what other companies are doing to mitigate their design concerns. It’s possible to avoid many unforeseen pitfalls by networking and collaborating with organizations and professionals that have gone through similar processes.

The PDCA (Plan-Do-Check-Act) management method has been proven effective through various work models. However, this process can be costly at the design stage as the “Check” phase can extend timelines and delay progress.

Consult with safety associations such as the Canadian Society of Safety Engineering to learn how hazards have been controlled and whether the controls were effective or raised other concerns. It’s important to thoroughly investigate when ideas are still on paper and thus relatively easy to modify, which can save time and money and prevent potential injuries from occurring.

Optimize

Advances in technology can help reduce some of the frustrating disconnects that arise when addressing the limits of the human body. Employees can only work so fast, lift so much and adjust their posture within a specific range of motion; outside of that, programs, equipment and furnishings can bridge the gap. For example, the use of electric or pneumatic lift tables, carts and manual handling devices allows 100 per cent of employees to complete tasks comfortably, at their precise ergonomic working height, without compromising safety and comfort.

It is possible to combat aging, fatigue and injuries through effective optimization. Look at not only the physical environment but also the processes, tasks and procedures workers will be expected to perform. Networks, cloud-based technology and mobile systems enable employees to work anywhere. Injured employees can start the return to work process sooner by incorporating Skype or Any Meeting-type systems to attend meetings and collaborate on projects from home.

Proactively assess hazards and inefficiencies to deploy controls that will improve ergonomic principles, work flows and productivity before the design negatively impacts staff. For example, a work flow that requires employees to repeatedly handle a product could be streamlined to a single touch point to reduce handling and create a leaner, more efficient use of a worker’s time. Search the market for products and furnishings, as well as “out-of-the box” modernization such as voice/text recognition programs, custom tooling, automation and work methods to make updates that have a positive design impact.

Utilize

Reach out to those who can help. It’s prudent to use internal and external resources during the design phase, so as to avoid repeating errors and incurring unnecessary costs.

Involve key stakeholders, including employees, to understand issues that only an expert at the task would know to be able to provide effective solutions. This low-cost step has the additional benefit of promoting corporate buy-in and improved management-staff relations.

Experts such as engineers, ergonomists and/or architects can help guide the design process and provide an unbiased professional opinion, which can be crucial when attempting to “change” an environment or workspace.

By keeping this five-step process in mind during the design stage, it’s possible to avoid ergonomic errors that cost more to fix after the fact.

Alexandra Stinson is a Canadian Certified Professional Ergonomist (CCPE), Registered Kinesiologist (R.Kin.) and co-founder of PROergonomics. She has assisted in providing cost-effective ergonomic solutions to her clients for more than 15 years. She can be reached at [email protected].

Mainstreet Q1 results hint at Alberta market recovery

Calgary-based Mainstreet Equity Corp. released favourable Q1 results yesterday, indicating a market recovery in Western Canada may be on the horizon.

The corporation, which specializes in add-value, mid-market apartment properties, attributes its Q1 financial success to improved conditions in B.C. and the implementation of the strategic plan it created more than a year ago to deal with economic challenges in Alberta and Saskatchewan.

Early 2017 macroeconomic statistics also point to healthier market conditions in Western Canada. Increased housing sales in Alberta, the approval of three pipelines for Canada’s oil and gas industry, and climbing oil prices in January are all indications of a favourable turn.

“We have certainly faced financial challenges over the past 18 months due to ongoing economic uncertainty,” says Bob Dhillon, Founder and Chief Executive Officer of Mainstreet. “However, as we enter into 2017, Mainstreet management is cautiously optimistic that we could be seeing early indications of gradual market recovery.”

With 3,725 units in Edmonton, Mainstreet Equity is the largest landholder in the burgeoning Edmonton Arena District, in which $6.5 billion in revitalization development projects are currently underway.

But despite these encouraging market recovery signs, Mainstreet continued to face challenges in Q1 2017 due to broader economic forces. Net operating income (“NOI”) from operations was down six per cent year-to-date, while funds from operations was down 20 per cent (excluding one-time pay-out penalties of $1.9 million). This was due to slower economic activity in the Alberta and Saskatchewan markets, resulting in increased vacancies, lower rental rates and increased concessions to tenants.

Moving into 2017, Mainstreet will continue to pursue the strategic plans it created over 12 months ago in response to macroeconomic challenges. These include: acquiring assets at low cost; refinancing significant portions of its pre-maturity debts at low interest rates; and continuing to buy back its own shares under normal course issuer bid.

Mainstreet financial highlights for Q1 2017:

• For the first time since Q2 2015, Mainstreet saw an uptick in same-asset revenues in Q1 2017, rising to $23.2 million from $22.8 million in Q4 2016. This occurred despite Q1 typically being a season of low activity in the rental market.

• Mainstreet continued to demonstrate the effectiveness its non-dilutive growth model by growing its portfolio without increasing share capital. Since its inception, Mainstreet’s portfolio has surpassed 10,000 units (it now has a total 10,181 units) while its total number of shares has remained at 8.8 million – the same as when Mainstreet began trading on the TSX in 2000.

• Refinanced $50.1 million in pre-maturity debt with an average interest rate of 5.24 per cent into mostly 10-year long-term CMHC-insured mortgage loans for $101.5 million at an average interest rate of 2.44 per cent and financed four clear title assets with a 10-year long-term CMHC-insured mortgage loans for $39.8 million at an interest rate of 2.34 per cent. These financings resulted in an annualized interest savings of $1.5 million, totalling $15 million for 10 years and raised $89 million in additional funds after payout penalties.

• Mainstreet continues to grow through strategic and opportunistic acquisitions in its core markets. Year-to-day, it acquired 303 residential units for a total consideration of $28.3 million, an average cost of $93,000 per unit.

• Mainstreet maintained a sizeable year-to-date estimated liquidity position of $151 million, including a cash balance of $45 million, to pursue further potential growth opportunities.

Continued challenges affecting market recovery in Western Canada

Ongoing volatility of petroleum, natural gas and other commodity prices continues to create economic uncertainty in some of Mainstreet’s core markets. This uncertainty is compounded by the introduction of the Alberta carbon tax, which was rolled out in January 2017. The economy-wide tax is structured in a way that charges the owners of buildings while offering rebates to tenants, which in turn raises heating and electrical costs. Mainstreet currently has its electricity costs in Alberta contractually locked in at a fixed rate until April 2018. However, internal research suggests that the provincial carbon tax will add additional costs in fiscal 2018 of roughly $8.8 per unit. Additionally, increase in rent concessions, tenant turnover and bad debts also created additional cost pressures in Q1 2017.

Mainstreet’s vacancy rate was above average over the quarter. This was largely a result of a high level of vacancy across the Prairie Provinces, coupled with the $78 million in acquisitions the corporation has completed over the past 15 months. While this vacancy rate is viewed as high (9.7 per cent), Mainstreet sees it as a short-term trend as it continues to undergo its stabilization process.

Negative macroeconomic forces have likewise caused significant short positions on Mainstreet stock. The corporation believes this is partly responsible for its share price trading well below NAV. As of December 31, 2016, the short position on Mainstreet totaled 752,600 shares.

Population growth: a positive indicator

According to recent Canadian census data, Alberta’s population grew 11.6 per cent between 2011 and 2016—the highest rate in the country and more than twice the national average. The population growth over the period was even higher than it was from 2006 to 2011, when Alberta’s economic situation was, on balance, healthier.

Saskatchewan’s population growth was the second highest in the country at 6.3 per cent. Overall, the 2016 census marked the first time in Canadian history that the three Prairie provinces (Alberta, Saskatchewan and Manitoba) had the highest population growth in the country.

Mainstreet views this demographic shift as a highly positive indicator for the Alberta and Saskatchewan markets in the long term. Alberta’s population is expected to grow by 1.6 per cent in 2017 and by 1.7 per cent in 2018, according to CMHC data. Saskatchewan’s population also continues to grow, and is expected to rise by 1.3 per cent in 2017 and 2018.

Steady in-migration levels come as the rental market begins to show signs of absorption. During recent years of high economic growth, there was a rapid build out of condominiums, particularly in Alberta, which began entering the market in mid-2015. We believe this led to a lot of condominium units being owned by investors with the intention for the higher-end rental market. The economic recession and the lower in-migration level, which resulted in an oversupply of condominium rental units, created a spillover effect and caused an increase in vacancy rate in the apartment rental market. However, Mainstreet believes this oversupply will continue to absorb through fiscal 2017 and 2018.

Additionally, the corporation expects the recent relaxation of Canadian immigration policies to attract a number of foreign workers, foreign students, immigrants and refugees to some of its core regions—most of whom are likely to enter the rental market. In times of economic uncertainty, renters tend to favour middle market prices, they kind offered by Mainstreet, as they delay major investments like new homes.

Winter conditions challenge facility maintenance

Powerful blizzards and record-breaking snowfalls are hitting provinces across Canada this winter. This week, a heavy winter storm hit the Maritimes, while about 30 centimetres of snow fell in the greater Montreal area.

With these seasonal elements, ice melt should be applied to key walkways around facilities as part of a complete snow removal plan. According to a report released by the Toronto Public Health Department, from 2006 to 2015, 30,000 people in Toronto went to an emergency room as a result of a slip-and-fall accident due to ice and snow on walkways, and 10 per cent were hospitalized due to these injuries, with 2,300 claims filed against the city.

Managers, as well as facility maintenance staff, can help minimize the number of accidents by having both a snow removal and ice melt application program in place.

Snow removal

Snow removal should begin once snow accumulations are one inch or more. This is important because it can help reduce the amount of ice melt used, keeping costs down and minimizing any detrimental impact that ice melt can have on vegetation and the environment.

The cleared snow should be moved to areas that are not adjacent to walkways or parking areas to prevent the flow of water if melting begins. Once temperatures dip below 0 degree Celsius, the melted water may re-freeze, creating new areas that are potentially dangerous.

In many Canadian cities, snow build-up on walkways must be cleared within 12 hours after snow ends. However, once shoveling begins, the snow cannot be shoveled into a street or roadway. In Toronto and other Canadian communities this is illegal. There may also be restrictions as to dumping snow in nearby waterways.

Once the snow has been removed, the application of ice melt can begin. Many ice melt products are made using calcium chloride. As this ingredient absorbs moisture, it releases heat, which helps melt the ice and slow the build-up of ice on the walkway. Calcium chloride also works relatively fast and may have a reduced impact on nearby vegetation.

Be wary of ice melt products that indicate they are safe for vegetation or will not track on to building floors. Most ice melt products have the potential to harm nearby vegetation (especially if too much has been applied) and can harm indoor floors once accumulated on the bottoms of shoes.

Applying ice melt to walkways around facilities

North facing walkways tend to ice up more than other areas; these areas may need more ice melt and more frequent ice melt applications than other areas. To minimize cost, protect the environment and your facility. Do not blanket all walkway areas just because north facing walkways have become icy.

Related to this, managers and custodial workers should develop an ice watch program, which refers to ongoing monitoring and documenting of ice conditions around the facility. Documenting may be necessary for verification purposes in case a slip-and-fall accident occurs and will also help managers/custodial workers become aware of ice development patterns, such as which areas become icy first or need the most attention.

Managers should ensure that workers applying ice melt are trained on how to use the product and are aware of flow settings on ice melt applicators, application speed, types of equipment to use, how to apply the ice melt, which type of ice melt works best on different surfaces and at different temperatures, etc.

Ice Melt and floor care

Depending on the amounts used, most ice melt products have the potential to remove a floor’s finish.

“We must remember that a floor finish, while providing a shine, is actually designed to protect the floor,” says Mike Watt, territory and product manager, specialty products for Avmor, a Canadian manufacturer of cleaning solutions. “Ensuring that the finish is protected will help prevent damage to the floor.”
Selecting the right type of cleaning solution is imperative, he adds, as not all cleaning solutions are of the same caliber.

For daily care, a high quality floor cleaner with a neutral pH, in the 6.8 to 7.8 range, is a good option. An effective neutral cleaner will help remove soils and ice melt residue, while protecting the floor’s finish. The product should also be flexible, so it can be used when mopping the floor or for use with an automatic scrubber.

When salt and calcium deposits have built up on floors, select a product that neutralizes those deposits and helps suspend soil and salt residues so they can be easily removed. This usually calls for a product designed specifically to remove the haze of the ice melt product.

“This saves a step because it allows the same product to be used to clean the floor [and] some of these products can also be used to keep industrial carpets clean and prevent damage to carpet fibers,” Watt emphasizes.

As to the actual cleaning procedure to remove ice and calcium deposits from floors, he suggests that facility teams:

  • Remove mats.
  • Thoroughly sweep or vacuum all floor areas to be cleaned.
  • Dry mop the area with a microfiber flat mop to remove any remaining ice melt crystals.
  • Damp mop and scrub with an ice melt haze remover cleaning solution
  • With some products, but not all, the floor may need to be rinsed with clean water.
  • Ice melt plays a key role in preventing winter accidents and injuries, but it must be applied carefully and properly removed from indoor hard-surface floors.

 

Robert Kravitz is a frequent writer for the professional cleaning and building industries.

Proposed changes to Condominium Act regs released

A plain language summary of the first round of proposed changes to rules under the Condominium Act was posted yesterday on Ontario’s Regulatory Registry. The draft regulation will be added to the registry as soon as it’s available, according to the summary.

If adopted, new requirements for giving owners regular updates and maintaining records of owners would roll out July 1, as would mandatory director disclosures and training along with new meeting notice procedures and new prescribed proxy forms. Rules clarifying minimum retention periods for records and standardizing the records request process would take effect this fall.

The proposed changes to regulations under the Condominium Act come as part of the overhaul of Ontario’s outdated condo laws. Bill 106, the Protecting Condominium Owners Act, set out a framework for the sweeping changes based on input collected during an 18-month consultation process; the regulations will spell out the specifics. For now, the current Condominium Act remains in force.

The Ministry of Government and Consumer Services is inviting industry stakeholders and members of the public to comment on the proposed changes to regulations under the Condominium Act between now and March 30.

Bill 106 also introduced the Condominium Management Services Act, which will require condo managers and management providers to maintain a license when the new legislation takes effect. The first draft regulation under the Condominium Management Services Act, released Dec. 16, deals with the qualifications to become licensed, exemptions, restrictions and the transition period. The deadline for commenting on proposed Condominium Management Services Act rules was originally set to expire on Feb. 6 but is now open until Feb. 24.

Element receives excavation permit for OPAL project

The City of Vancouver has issued an excavation permit to Element Lifestyle Retirement Inc. (Element) for OPAL, the developer’s flagship retirement residence in Cambie Village. Construction on OPAL is completely financed and construction is scheduled to begin immediately after a ground-breaking ceremony on February 21.

The $106-million project is located in the core of Vancouver’s west side, on the Cambie Corridor. The development will span an entire city block and will feature views of downtown, the mountains to the north and Queen Elizabeth Park to the south.

OPAL will consist of about 142,000 square feet of specially designed residences, including 44 residential condominium units, 56 rental units and 30 seniors’ Complex Care units in three buildings. The project incorporates the full spectrum of retirement lifestyles including Independent Living, Assisted Living and the aging-in-place Complex Care concept.

“OPAL’s intergenerational aging-in-place model is proving to be much desired and needed. It is designed to overcome the stigma of “old folks’ homes” by encouraging multiple generations to interact in a dynamic, meaningful way on a regular basis, as families and friends do at home,” said Candy Ho, vice president of marketing and corporate relations, in a press release.

“Instead of requiring every occupant to be a “senior,” as other retirement residences do, our model requires only one occupant to be at least 55 years of age, by covenant in the rental component,” she continues. “What makes us elderly-appropriate is the service for aging-in-place such as hospitality, personal support and nursing care services so that residents can stay until the end of life. Suites are specifically designed with subtle and thoughtful details to accommodate mobility challenges over time, but aesthetically, they are elegant and modern and spatially, they can facilitate family living, not just seniors’ existence.”

Element partnered with BMO, which committed up to $84 million, to provide financing for the project, said Don Ho, president of Element. Peak Construction Group was chosen to be the construction management contractor for the project.

Pre-sales of units in OPAL have surpassed $20 million, which accounts for about 40 per cent of available inventory, in six weeks of sales. The company anticipates pre-sales will be completed by the third quarter of 2017. The current profile of condominium purchasers and occupants for the project is an average of 65 years of age, in contrast with the industry average of 87.

Construction on OPAL is expected to be completed in early 2019. There will be no phasing-in period, as all three buildings in the development will open for occupancy at the same time.

PCA names new regional director for B.C.

The Progressive Contractors Association of Canada (PCA) has appointed Rieghardt van Enter as its new regional director for British Columbia.

“We are delighted to welcome Rieghardt in this brand new role at PCA,” said PCA President Paul de Jong. “Rieghardt’s experience in B.C.’s industrial construction, labour and training sectors will be instrumental in establishing a stronger PCA presence in B.C.”

Rieghardt’s 15-year-plus career in the utility, engineering and construction sectors has focused on finance, project, program and contract management, safety, labour relations, business development and executive management.

He has served key roles in B.C.’s construction industry, such as chair of the Industry Training Authority’s Construction Sector Advisory Group, board member of the Council of Construction Associations and president of the Line Contractors Association of B.C.

Originally from Plettenberg Bay, South Africa, he now resides in Langley, B.C.

PCA

 

New luxury rental opening soon at 101 St. Clair

Toronto real estate developer Camrost-Felcorp announced it will be welcoming residents into 101 St. Clair as early as this summer. The 229-suite luxury rental building is part of an award-winning master-planned community called Imperial Village, located at Avenue Road & St. Clair. The proposed development includes a number of mid-rise and tall buildings, including two heritage buildings, which are being retained and incorporated into the development.

Located to the southeast of the newly retrofitted Residences of Imperial Plaza condominium tower, the 26-storey rental building and townhome development forms the east and south edge of the common courtyard.

In contrast to the heavy limestone cladding of Imperial Plaza, the exterior of 101 St. Clair is a lighter, multi-coloured metal panel system with vertical expression. The townhomes continue the use of metal panel exterior and break down the massing of the two towers along the street edge.

101 St. Clair will feature a mix of luxurious units, from one-bedroom suites to three-bedroom penthouses. All residents will enjoy luxury finishes, breathtaking views, and have access to the 20,000 square feet of fitness and lifestyle amenities.

The community at large will comprise a total of 804 residential units in 59,883 square metres of residential floor area, as well as 15,253 square metres of new non-residential uses. A total of 480 underground vehicle parking spaces, 14 underground loading spaces, and 1038 bike parking spaces are proposed on site, as well as 1150 square metres of on-site parkland.

Condo audits uncover four common issues

With few exceptions, the Condominium Act of Ontario (the act) requires an independent auditor to perform an annual audit of the financial statements of a condominium corporation. Sections 60 and 71 underline the rights and responsibilities of an independent auditor.

It’s important for unit owners to understand that an independent auditor does not prepare the financial statements, nor is he or she responsible for the daily bookkeeping and management activities. These activities are the responsibility of management and the board. The auditor’s responsibility is to provide an independent opinion as to whether the financial statements are fairly stated in accordance with the applicable accounting standards (in Ontario, these would be the Canadian accounting standards for not-for-profit organizations).

However, during an audit, an auditor may come across certain issues related to financial or operational matters that may need to be highlighted to management and the board, and in some circumstances to unit owners as well. These issues are not misrepresentations nor errors that would cause the financial statements to be false or misleading. In fact, if the statements have material errors then the auditor may have to qualify his or her report, or even worse, issue an adverse audit opinion.

This article addresses some issues that don’t necessarily cause the financial statements to be false or misleading, but quite frequently come up during an audit and would typically be brought to management, the board and unit owners’ attention.

1. Reserve fund-qualifying expenses

Section 93(2) of the act states that the reserve fund shall be used solely for the purpose of major repairs of the corporation’s common elements and assets if the corporation has the obligation to repair or replace these items. Quite often there is some ambiguity about what constitutes a replacement. Would replacing carpet flooring with ceramic flooring qualify as a replacement? Would replacing certain equipment with technologically more advanced equipment qualify? There is no simple answer here and every situation should be evaluated individually. Obviously, when evaluating each situation, one must consider the reserve fund study, technological advances, statutory requirements and the incremental cost.

Another issue that comes up frequently is whether the corporation has an obligation to repair or replace an item. One recent example that hit the news is the Kitec plumbing issue. The Toronto Star reported on this topic a year ago, stating that one condominium corporation anticipated a retrofit cost of $5,000 to $6,500 per unit. Further, the article stated that owners must pay for this retrofit directly (i.e. those expenses cannot be charged to the reserve fund). The management and board should consult with professionals, such as engineers, lawyers and auditors, before making a decision in case of an ambiguity.

2. Reserve fund study delays

This is somewhat a simple issue but commonly occurs. The act states that a reserve fund study must be conducted within three years of the preceding study. Auditors frequently find that the corporation has simply not commissioned a new study within the prescribed period. There should be no reason to delay the study past the three years. This should be considered as important as a person’s annual check-up at the doctor, except the corporation only has to do its financial check-up every three years.

3. Borrowing money “unintentionally”

This issue frequently catches boards and management by surprise and usually after the fact. Essentially, a condominium corporation may not borrow money unless it passes a special bylaw (with support from a majority of unit owners) to authorize borrowing. Boards and management may get caught in situations where the supplier provides long-term financing, which may be considered borrowing if it meets certain criteria, such as implied or explicit interest on the financing.

Thus, the board and management should always check the specifics of the financing arrangements and consult with an accountant before signing these contracts. If a borrowing bylaw is required, consult legal counsel as well.

4. Bank and investment accounts

Every condominium corporation in the province must maintain at least two bank accounts with an eligible financial institution in Ontario. One account should be used for the operating activities and the other for the reserve fund activities. Further, these two accounts must be under the corporation’s own name and must be designated as operating and reserve fund bank accounts. Thus, not meeting any of the above mentioned guidelines would be an issue that the auditor would typically highlight. Obviously, the solution is to follow these guidelines.

The one issue that auditors frequently encounter, however, is the comingling of cash. Or, more specifically, the corporation is using cash in the reserve fund bank account to finance operating activities. This commonly happens when a corporation has a large operating deficit and so uses its reserve fund assets to finance its deficit. The solution to this issue is proper cash flow management and budgeting, which includes deficit recovery budgeting.

As for investments, the act specifies what a condominium corporation may invest in — what are defined as “eligible investments.” For obvious reasons, the act allows low-risk investments, such as guaranteed investment certificates, term deposits and some bonds.

The act also requires that the corporation establish an investment plan for the reserve investments. This is essential to ensure liquidity and to safeguard the assets. Frequently, auditors find that condominium corporations don’t have a formal investment plan. This is a simple process and should be based on the reserve fund study.

To avoid these common audit issues, the board should retain the services of a reputable management company that understands the industry and the act, and is willing to work with other professionals. Upfront consultation is always cheaper than settling the legal issues that may result from not following the act.

John AbedRabbo, CPA, CA, CPA (Illinois) is a chartered public accountant and has more than 15 years of experience in accounting, audit and tax services. John is a partner at Polyzotis & Co. LLP, Chartered Accountants, a Toronto-based firm. John’s practice is focused on providing audit services to more than 90 condominium corporations. He can be reached at 416-360-4310, ext. 240 or by e-mail at: [email protected].