CRTC decision addresses telecom access in condos

Let a fourth telecommunications service provider in, or risk losing all Internet access. That was the headline version of an Aug. 15 Canadian Radio-television and Telecommunications Commission (CRTC) decision concerning entry to a Liberty Village condominium corporation’s three buildings.

In reality, the decision was more nuanced than that. The commission set out a series of increasing restrictions for the condominium corporation’s existing telecommunications service providers — also known as TSPs — that would begin to roll out within 60 days. In effect, the restrictions put pressure on the condominium corporation to negotiate reasonable terms and conditions for the timely access of a fourth TSP to its buildings.

The CRTC’s decision echoes two earlier rulings concerning TSPs in condominiums since the commission issued a landmark decision in 2003 spelling out guidelines for access to multi-dwelling units. Designed to support competition and end-user choice, the guidelines establish that, no matter their housing type, consumers should have their selection of TSP.

“The decision makes clear that the CRTC wants to maximize consumer choice in multiple dwelling units,” said condominium lawyer Deborah Howden. “And even in circumstances where there are already three TSPs, the commission is going to order that — subject to capacity or other discrete issues, which was something we raised — a corporation cannot deny timely access to other TSPs on reasonable terms and conditions.”

Howden is a partner at Shibley Righton LLP, the firm that represented the condominium corporation in the latest case. Among other arguments, the corporation submitted that it lacked the capacity to accommodate a fourth TSP’s wiring. The corporation also submitted that it was already serviced by three TSPs and therefore offered residents their pick of competitors.

The CRTC clearly disagreed that the presence of three TSPs satisfied its goals of competition and end-user choice. The commission also accepted the prospective TSP’s contention that there was in fact some capacity to accommodate its wiring.

The CRTC largely gave the condominium corporation and the TSP the freedom to work out amongst themselves what reasonable terms and conditions of access would look like. However, the commission did establish a general framework.

Reasonable terms and conditions of access would at least include letting the TSP extend its wiring from the street into the condominium corporation’s main terminal room. But considering that immediate access to all telecommunications closets in the buildings might unnecessarily disrupt residents — one of the concerns expressed by the condominium corporation — the TSP only needed to be permitted to build out its infrastructure to each floor incrementally, as residents requested service.

Alongside this framework, the CRTC outlined deadlines that would trigger progressive restrictions on the condominium corporation’s existing TSPs.

After 60 days, the corporation’s existing TSPs would be barred from servicing new customers, whether new to the building or new to the service provider. After 90 days, the corporation’s existing TSPs would be barred from changing or upgrading the services of existing customers. And after 120 days, the commission said it would consider its regulatory options. Those options include a decision that would prevent existing TSPs from servicing the building altogether and an order that would have the effect of compelling the corporation to grant the fourth TSP access.

Robert Weinberg, president of the Association of Condominium Managers of Ontario (ACMO), expressed concern as to how infrastructure limits would be practically addressed in light of the CRTC’s latest decision.

“If the building is constructed with a specific diameter conduit to deliver telecommunications wiring throughout and it’s already jammed by three TSPs and you cannot fit in a fourth, what is the corporation to do?” he asked. “They cannot pull someone else’s wires out, and they are likely not going to want to demolish building assets or disrupt the owners’ quiet enjoyment of their units in order to run another conduit, so I don’t know how they’re planning to make this work.”

Indeed, the latest CRTC decision may have raised more questions than it answered, and at a time when new players are trying to crack into the TSP market.

“The field is getting crowded and you’re getting new telecommunications service providers popping up fairly regularly,” said Howden. “It used to be that you were dealing with Bell and Rogers; now you’re getting other players and I think there are a number of considerations that remain outstanding.”

For one, both the corporation and the Public Interest Advocacy Centre (PIAC), which intervened in the case, called on the CRTC to look at clarifying whether condominium boards could be considered the end user with respect to the goal of end-user choice. PIAC is a group that is active on issues concerning the ability of consumers to access, afford and choose important public services, including telecommunications.

Guidelines for the distribution of cable and satellite services in multi-dwelling units suggested that condominium boards could be considered the end user, since directors are elected to represent unit owners.

“Previously when the commission had decided end user choice could be determined by the board, it had assumed that the board would represent the interests of the unit owners and those unit owners were the ones that were actually living in the units,” said Alysia Lau, legal counsel, PIAC.

“A lot of these units are actually resided in by tenants, so the ability of the board in that case to determine what actual residents in the building might want might not be as clear cut anymore.”

The guidelines for the distribution of cable and satellite services were released shortly before the guidelines for TSPs and largely align with them. The two sets of guidelines are separated simply because broadcasting and telecommunications are dealt with by two different pieces of legislation.

While the latest CRTC decision implied that the condominium board may not be considered the end user, it remains a grey area in Howden’s view, because the commission didn’t explicitly say one way or the other.

Up to now, TSP access may not be an issue many condominium boards have confronted. Builders normally negotiate access to new buildings with at least one TSP during construction so Internet service is available to residents at occupancy.

“From what we’ve seen, the developer has already entered into an access agreement with Bell or Rogers, or both, and it’s usually both so as not to exclude anybody,” said Weinberg. “I am not personally aware of buildings that are initially set up with a third alternative.”

But that could change as new players enter the TSP market. The condominium buildings rising in Toronto are an attractive entry point, Lau observed.

“The cost is less risky for companies such as Beanfield and Coextro in a condo because you have negotiated with a developer and, when you build out your infrastructure, you automatically have access to 20 floors of units,” she said. “It’s different from building out to a home.”

Two earlier CRTC decisions on entry to multi-dwelling units concerned disputes between builders and a TSP. In the pair of cases from 2013 and 2015, a TSP filed applications after being unable to access two new developments in Toronto. In the earlier case, only one TSP already had an agreement in place to service the condominium. In the more recent case, two TSPs already had agreements in place.

For their part, the builders in both cases contended that the condominium board could elect to enter into agreements with additional providers after turnover. But the commission, in imposing conditions as it did in the latest case, commented that residents wouldn’t be able to access the competing TSP upon moving into their units.

These decisions might stop builders from punting questions of TSP access to condominium boards when requests come in before turnover. But for those that don’t, there is uncertainty around what would constitute a legitimate technical reason for denying access to additional TSPs.

“What is undecided is what happens when there is no capacity,” said Howden. “Are we going to have 10 and 12 and 25 telecom service providers? That remains an open question.”

Michelle Ervin is the editor of CondoBusiness.

Furor over MPAC multi-res cap rates predicted

Assessment notices for nearly 16,000 Ontario multi-residential properties will be mailed out next week, delivering valuations determined for the first time with the newly adopted direct capitalization methodology. Property owners have been promised an advance look and non-adversarial opportunities to adjust values before the assessment roll is finalized, but that has occurred on a fairly limited scale as the Municipal Property Assessment Corporation (MPAC) pushes to reassess about 5.4 million properties province-wide ahead of the next four-year assessment cycle, which begins with the 2017 tax year.

“A select few of our clients were provided a two-week window to review the top-line numbers for their portfolios, but we’re still missing some pieces of the puzzle because we’re not privy to information for comparable buildings,” says David Gibson, a property tax consultant with Yeoman & Company Paralegal Professional Corporation. “What we do know is the assessors are being very aggressive on values.”

Looking across the broader spectrum of business properties, lawyer and property tax specialist Stephen Longo concurs that jumps in value have been most pervasive in the multi-residential and retail sectors. He attributes significant spikes in multi-residential values to the new valuation approach and, more specifically, the low capitalization (cap) rates MPAC has employed.

“I anticipate a lot of appeals,” says Longo, who is a partner with Walker West Longo LLP. “I’m sure this isn’t what the sector had in mind when it talked about getting away from the gross income multiplier approach.”

Indeed, the Federation of Rental-housing Providers of Ontario (FRPO) advocated for the switch to valuations calculated on net operating income (NOI) in place of the gross income multiplier — a methodology that most other North American assessment agencies had already abandoned. Applying the approach that the real estate industry conventionally uses in appraising, buying and selling apartment buildings is considered generally more reflective of actual market values.

“It is going to modernize how they determine the value and then make it more transparent,” submits Scott Andison, FRPO’s president and chief executive officer. “It will be a great benefit in terms of catching any data errors up front and reducing the need for appeals.”

The change aligns with FRPO’s campaign for property tax reform, which also focuses on the disproportionate share of the tax burden that multi-residential ratepayers and their tenants carry. Multi-residential tax rates continue to be at least two times greater than the residential rate in most Ontario municipalities, and industry advocates acknowledge that getting local governments to narrow that ratio is a formidable and likely to be ongoing challenge.

“We said: Let’s get the assessment system fixed in the meantime,” Andison explains.

Among the improvements, he cites the promised accompanying policy and procedures manual to clearly set out how the direct capitalization methodology will be applied. This is the first time MPAC has produced such a guidance document for multi-residential properties — stating rules that can be used to gauge whether assessors have properly determined values — and Andison maintains it will be a valuable tool for property owners making a case for a revised value and for Assessment Review Board adjudicators tasked with determining the appropriateness of a value.

In contrast to some negative reviews, he tells of FRPO members’ satisfaction with the values they’ve seen through the advance disclosure process.

“We’re hearing: Yes, they are in the ballpark,” Andison recounts. “My understanding is that multi-res values have increased proportionately to the average value increases across all classes in many geographic areas, suggesting that, while values have in fact gone up, the relative tax burdens are relatively similar.”

Valuation assumptions questioned

When used to gauge expected investment returns, a cap rate expresses the net revenue a single building will generate as a percentage of its overall value — factoring in its operating costs, looming requirements for capital expenditures and untapped potential to garner higher rents. When applied to property assessment, analysts warn that a standard cap rate across larger groupings of buildings makes it more difficult to capture building-level variables that influence value.

“You may have two buildings on a street that are almost identical, yet one has rents 20 per cent higher because it has renovated units. Using the same cap rate will undervalue the lower-rent building and overvalue the higher one,” observes Lorenzo DiGianfelice, a certified appraiser and broker with Commercial Focus Realty Inc.

Gibson voices concern that not enough details were collected to adequately differentiate buildings’ expenses. Similar to the protocol for assessment using the gross income multiplier methodology, property owners were required to submit information about revenue and operating costs, but he characterizes it as a “top line” survey with no breakdown of key building performance indictors like electricity and water costs. Perhaps more problematically, he contends that MPAC multi-res cap rates aren’t realistic.

“The cap rates we’re seeing (in advance disclosure) are in the range of 3.25 to 3.5,” Gibson reports. “There’s no question cap rates are at historic lows right now, but we don’t even see them that low in the marketplace. The institutional players building new buildings are running pro formas on an 18-month lease-up at a 4.5 cap rate because that’s what they need to get a stabilized income. For MPAC to apply a 3.25 cap is way too aggressive.”

“The question is: How did MPAC create these values? Where did they get these inputs from and where did they get these cap rates from?” Longo agrees.

Multi-Residential Cap Rates, Q2, 2016
	National	Toronto	Ottawa	Waterloo	London/ Windsor
High-Rise, Class A	4.2%	3.25—4%	3.75—4.5%	4.5—5%	5—5.50%
High-Rise, Class B	4.92%	4.25—5%	4.75—5.5%	4.75—5.25%	5.25—6.5%
Low-Rise, Class A	4.7%	3.25—4%	4—4.75%	5—5.75%	5.75—6.75%
Low-Rise, Class B	5.38%	4.25—5%	4.75—5.5%	5.5—6%	6—7.25%

Source: CBRE, Q2 2016, Canadian Cap Rates & Investment Insights

This is likely to be the substance of Requests for Reconsideration should the October 18 mass mail-out of assessment notices reveal the same trends seen in the advance disclosure. Property owners will have 120 days, or until February 15, 2017, to adjust their valuations through informal discussion and negotiation with MPAC. Beyond that, they can formally appeal to Ontario’s Assessment Review Board — a scenario far from rare for landlords given that previous reassessments have spurred appeals on up to 40 per cent of multi-residential properties.

“Smaller property owners have been left out of the advance disclosure and they are the ones who tend, for the most part, to drive the appeals,” Longo notes.

Regardless, this large share of apartment owners typically already senses what to expect.

“I haven’t seen any advance notification on anything, but I am about as certain as I can be that there will be an increase in the valuations,” reflects Arun Pathak, president of the Hamilton and District Apartment Association and a property manager with Smar Holdings Ltd. “My feeling is it’s probably going to be a little bit more than in other surrounding areas. Just from what we’re hearing, the market is hot and it has been for awhile now, and there has been a lot of interest and a lot of activity in the Hamilton market.”

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

Building from the Ground Up: A Great Foundation for Investors

After a lack of new construction for many years, market conditions have set the stage for a fresh wave of apartment development, according to Canada’s largest non-bank mortgage lender.

“We’re in a position, for the first time in a very long time, where you can say that it actually makes sense to build new apartment buildings,” says Andrew Drexler, assistant vice-president, commercial financing at First National Financial. “That is because returns are starting to look more attractive when you compare them with buying older apartment buildings.”

There was a time when investors could expect a nine per cent return on an apartment building. But the low-interest-rate environment has driven up the cost of these buildings. And as buildings age, expenditures increase, further driving down return. CBRE Research has reported that 79 per cent of Canada’s existing rental stock is more than 35 years old, meaning that big repairs — and big expenditures — are on the horizon.

“What’s happening now is we’re down to a 3 or 4 per cent return on existing buildings,” Drexler says.

He says investors should be looking not only at net operating income, but also at net cash flows, which are better in new buildings because they don’t need new roofs, balconies, windows or other major repairs. A new building also comes with 25 years of depreciation, which is a big tax benefit. And new, more energy-efficient buildings help keep costs down, which further enhances returns.

Jon Bester, CFO of Shiplake Properties in Toronto, confirms this trend.Another factor, driven in part by new condo development, is that today’s urbanites have become more sophisticated in terms of what they want in an apartment rental.

Shiplake Properties is a third-generation family-owned business with deep roots in the rental business. Its newest project, Balliol Park, is a 521-unit, two-tower apartment building in the Davisville area of Toronto, available for occupancy in June. One bedrooms rent for an average of $1,600 a month, two-bedrooms for an average of $2,250.

With all the must-have bells and whistles — rooftop pool, indoor lap pool, movie screening room and two gyms — the development has attracted significant interest since the leasing office opened in February.

While new construction can be a daunting task, which requires deep pockets, the right market conditions, excellent relationships and significant building/leasing expertise, renovating older buildings can be a good alternative. “You have to know how much of a premium renters are willing to pay before you borrow money to put in new kitchens or knock down walls,” Drexler says.

His advice to landlords is to renovate several units at a time upon turnover. That way, they can keep their subcontractors busy and can gain valuable insight into how much of a rent increase the market will bear as the renovations progress.

Over the years, Shiplake Properties has had positive results upgrading its existing buildings in Toronto, Bester says. It continues to see good returns, for instance, on renovations of a 575-unit apartment building built in the 1970s just south of Yonge and Eglinton. “We complete about a dozen renovations annually in this building. Renovations include new kitchens and new countertops and we have been able to get rent increases that make the investment worthwhile”

When deciding whether to build or renovate, the first question to ask is whether you can enhance your return by bringing in new rental stock.

“It’s all about understanding the market that you’re in,” Drexler says. “Adding new rental stock is feasible now, but it’s got to be the right borrower with the right experience in the right market.”

Andrew Drexler is an Assistant VP, Commercial Financing at First National Financial. Get to know Andrew here.

Follow First National on LinkedIn for other great commercial real estate financing content from our specialists.

Safe protocols for high-rise building evacuations

In a fire emergency situation, cooler heads prevail. And in fully-sprinklered, non-combustible construction, commercial high-rise buildings with two-stage fire alarms and emergency voice paging systems, it is extremely important not to let the building time into a general alarm.

A full-building evacuation should only be initiated at the insistence of the fire department after their assessment indicates it is necessary. If there are staff members in the building, one of the first priorities upon alarm activation – aside from calling 911 – should be to press the acknowledge switch to keep the fire alarm from timing into general alarm and forcing a full evacuation of the building. If a fire is confirmed, then it is only necessary that the three floors in alarm evacuate down to the nearest cross-over floor and await further instructions from fire authorities. Exterior evacuation should only be initiated if the fire/alarm is on the bottom four floors.

In a fully-sprinklered building, it is unlikely that a fire will spread beyond the room it starts in. The arguments against a full-building evacuation, either automatically by the fire alarm (second stage time-in) or upon the initial discovery of a fire, are as follows:

Stairwells are not designed to handle the volume of a full-building evacuation. Back-up to the roof was observed in all cases during large numbers of full-building evacuation drills conducted by WPS following 9/11.
All stairwell doors open at once during full evacuation. This compromises stair pressurization, both natural (stack action) and mechanical. As well, building code pressurization design specifications assume no more than two doors into the stairwells will be open at the same time.
Stairwells will become impassable once the fire department accesses the fire floor via the stairwells and keeps the stairwell door propped open on the fire floor so their fire hoses can get from the standpipes located in the stairwells to the fire. There will not be enough time to evacuate all of the occupants of a high-rise building before stairwells are compromised by the fire department. There is ample time to clear only three floors.
Evacuating the entire building simultaneously means that the occupants on lower floors below the fire floor, who are in no danger from smoke and toxic gases, are clogging the stairwells for those on and above the fire floor, who are in greater danger from toxic gases migrating up and into the stairwells.
Evacuating all building occupants may hamper the fire department’s response, both inside the exit stairwells and outside of the building.
Evacuating all building occupants simultaneously puts all evacuees into potential debris field outside the building, especially if the fire is up against window glass.
Full evacuation exposes all evacuees to the elements in adverse weather. For example, hypothermia can be an issue in less than 20 minutes in colder months with sub-zero temperatures.
Occupants are resistant to going down 20 to 30 flights of stairs unless they are in imminent danger. Most can handle going down two to six flights (six flights would be the maximum that they would go down to reach a cross-over floor not in alarm if the acknowledge switch is activated).
Fire drills will be less disruptive and have less impact upon commerce as occupants going down a couple of floors to a cross-over floor and then back up to their original work location take far less time than evacuating down 30 flights of stairs, proceeding at least a block away to the assembly area, being accounted for, walking at least a block back to the building, and then waiting in line for the elevators. Right now, less than 20 per cent of building occupants, on average, participate in fire drills. That number will increase dramatically if there are less demands on the occupants during the fire drill process.

Case study: Cook Country high-rise building

In 2003, a fire in a Cook County high-rise office tower killed six people when an untrained, or improperly trained, security supervisor strayed away from Chicago policy and used the fire alarm/emergency voice paging system to evacuate the entire building into the stairwells where the victims succumbed to smoke inhalation while within the stairwells. The Chicago Fire Dept. policy was to relocate the occupants on the affected floors down to unaffected floors where they would then determine if further evacuation was necessary.

The property management company paid an out-of- court settlement to the victims’ families of $24 million, while the building owner paid $9 million in damages. The city of Chicago had to pay $50 million in damages to the victims’ families. Those deaths would not have occurred had the building not been put into full evacuation mode during this fire emergency.

Terry Bruns is CEO at WPS Disaster Management Solutions.

Global Furniture Group celebrates 50 years

Last month, Global Furniture Group rolled out a red carpet of sorts for a cocktail reception celebrating its 50 years in business. The leading manufacturer and distributor of office, healthcare and education furniture welcomed customers, dealers and partners into its North American headquarters in Toronto with a blue carpet in its branding hue.

Attendees got the opportunity to tour Global’s new flagship showroom, which was designed by Johnson Chou. The showroom features the furniture manufacturer and distributor’s full range of products in a variety of vignettes that highlight the latest workplace trends.

A Mad Men-style vignette displayed Global’s Corby line of wood veneer desks, tables and storage elements. The collection generated a lot of buzz at NeoCon thanks to its retro appeal, which is on trend with the resurgence of mid-century modern design.

It’s a fitting era to recall, given that Saul Feldberg founded Global with his wife, Toby, in 1966. Feldberg began the business with the simple goal of making an affordable, high-quality chair.

Saul and Toby were on hand at the event, as was their eldest son, David, who is credited with driving Global’s early growth. In remarks to the crowd, current CEO Joel Feldberg expressed excitement about the future direction of the company, now a diversified player in the contract furniture industry, while recognizing its roots.

“The entrepreneurial spirit of my father still defines the culture of our company. So does our commitment to our family of employees, our dealers, our customers, many of which reach back to the founding of our company, and to the community and environment in which we live and work,” he said. “It is these values that will define us as we continue to build our business one relationship at a time.”

Crime scene remediation standard up for review

The Institute of Inspection, Cleaning and Restoration Certification’s (IICRC) new draft BSR-IICRC S540 Standard for Trauma and Crime Scene Remediation, is open for public review from October 7 to November 21.

The IICRC S540 Standard describes the procedures to be followed and the precautions to be taken when performing trauma and crime scene remediation regardless of surface, item or location. It defines criteria and methodology used by the technician for inspecting and investigating blood and other potentially infectious material (OPIM) contamination, and for establishing work plans and procedures.

Reviewers are asked to download the draft Standard and comment form via Dropbox here. All comments must be submitted using completed comment forms to IICRC Standards Director Mili Washington at [email protected], no later than Nov. 21.

The IICRC is an international, ANSI-accredited standard-development organization that certifies individuals in more than 20 categories within the inspection, cleaning and restoration industries.

First woman in Quebec awarded LEED Fellow

Josée Lupien, LEED AP BD+C & ID+C, is now the first woman in Quebec awarded the status of LEED Fellow, a title of prestigious distinction in the sustainable building industry.

She was lauded at a gala during the Greenbuild International Conference in Los Angeles. Lupien has been part of the green building industry for more than 12 years, is a founding member of the Quebec chapter of the Canadian Green Building Council (CaGBC) and is “a tireless promoter of sustainability.” The honour recognizes her technical proficiency, leadership, commitment and dedication to the advancement of the sustainable construction industry in Quebec as well as abroad.

“Josée Lupien has been a pioneer in educating the industry on sustainable building principles, and her tireless efforts have greatly advanced the green building industry and LEED in Quebec,” said Thomas Mueller, president and chief executive officer of the CaGBC.

Lupien started out in the industry as a paint specification manager and has since launched her own company, Vertima, which manages third-party validation and certification of ecological materials for manufacturers. The company is well-known for its leading-edge expertise in green building and LEED certification.

“It is rewarding to have all these years of effort recognized with this title, but it is by moving forward and inspiring women and the young generation that it will be really useful,” she said.

Canada’s largest built shopping centre since 2009 opens

Tsawwassen Mills shopping centre in the Greater Vancouver Area, the largest built in Canada since 2009, is officially open.

Tsawwassen First Nation Chief Bryce Williams and the British Columbia Minister of Aboriginal Relations and Reconciliation John Rustad were in attendance as the centre is built on aboriginal land. Chief Williams called the mall a “reconciliation in action.”

“We are now welcoming everyone onto Tsawwassen Lands, to come to this great location and discover what Ivanhoé Cambridge has built together with our community,” Williams said during the grand opening celebration. “As you visit this terrific project, you will see that we have built community, built culture and built our Nation’s pride through this partnership.”

Tsawwassen Mills, just 30 minutes north of the Washington State border, is a fully-enclosed centre with five distinct shopping neighbourhoods: Fashion, Outdoor Life, Coast Salish, City and Nature. Each features its own custom artwork and design elements. Currently, 180 brands are confirmed, including 18 that are first-to-market, such as Bass Pro Shops Outdoor World, DSW–Designer Shoe Warehouse, Pro Hockey Life, Saks OFF 5TH, The Outlet by Harry Rosen, Michael Kors Outlet, lululemon athletica outlet, Browns Outlet and more.

Ivanhoé Cambridge invested more than $600 million into the project. Features include a 1,100-seat food hall, four traditional sit-down restaurants, a children’s play area, a sports dome, six public entrances, 14 electric vehicle charging stations and a 6,000-stall parking lot. Additionally, several stores offer unique entertainment options, including a skate park in West 49 and a themed bowling alley in Bass Pro Shops.

“Today is a day of enormous pride at Ivanhoé Cambridge. Tsawwassen Mills delivers on our promise made and more: a terrific retail mix in a state-of-the-art property”, said Daniel Fournier, chairman and chief executive officer of Ivanhoé Cambridge. “We thank our friends of Tsawwassen First Nation for the spirit of cooperation since the very beginning of this great project.”

VRCA recognizes B.C.’s top contractors

B.C’s top construction contractors were recognized at the 2016 Vancouver Regional Construction Association’s (VRCA) annual Awards of Excellence gala on October 5.

The VRCA Gold Awards went to 16 winners for their use of special techniques and procedures, new materials and additional artistic or innovative features on their projects. In this year’s competition, there were more than 150 submissions and 45 projects considered.

The total value of the submissions was in excess of $1.3 billion, a significant increase over last year’s submissions which totaled $500 million.

Project award categories are numerous and recognize General and Trade Contractors, Mechanical and Electrical Contractors, and Manufacturers and Suppliers who deliver an entire project or a component of a project according to specific financial and non-financial criteria. Covering industrial, commercial and institutional projects, this year’s submissions were a mix of new builds, renovation projects, and mixed-use construction.

Three new value tiers were added within existing Trade, Mechanical and Electrical Contractor project categories to recognize the increased number of high value projects within those categories.

The general contractor VRCA Gold Awards went to:

General Contractor over $45 Million
UBC Student Union Building (Photo Above)
Bird Construction Group

General Contractor $15 – 45 Million

Main Street Station Renovations
Graham Construction and Engineering LP

General Contractor up to $15 Million

YVR Expedited Transfer Facility – Package 2
PCL Constructors Westcoast Inc.

Look for full coverage of all the VRCA winners in the November/December issue of Construction Business.

Ontario participates in Global Ergonomics Month

Ontario will be participating in several activities during Global Ergonomics Month in October to prevent workplace hazards that could lead to musculoskeletal disorders (MSDs).

MSDs are injuries and disorders of the musculoskeletal system, including muscles, tendons, nerves and spinal discs. MSDs can develop due to prolonged exposure to repetitive work, forceful exertions such as lifting, pulling and pushing heavy objects or equipment and awkward or sustained posture.

MSDs are the number-one type of injury that causes employees to miss work, as reported to the Ontario Workplace Safety and Insurance Board. This month, Ministry of Labour inspectors will target MSD hazards while visiting health care workplaces, focusing on areas such as kitchen and food services, janitorial and housekeeping, laundry, pharmacy, laboratories and medical clinics as part of a three-year health care enforcement program.

Workplace health and safety associations will also participate in Global Ergonomics Month by publishing articles on MSDs, hosting conferences, webinars and lectures, and offering various learning and training events on the subject.

Ontario’s participation in Global Ergonomics Month is part of the government’s commitment to keep workers safe on the job by preventing MSD hazards.

“We hope to raise awareness of MSD hazards and prevent injuries in the workplace,” said George Gritziolis, chief prevention officer, in a press release. “We want to improve the health and safety of all workers, particularly those who work in the health care sector.”

In-suite laundry adds value to multi-family units

Retrofitting multi-family residential buildings for in-suite laundry can create significant value for rental building investors. The convenience and privacy of in-suite laundry versus shared laundry is a just one of the many reasons to consider this upgrade.

Given the high cost real estate environments, such as the Greater Vancouver area, in-suite laundry is not only a key value add, the return on investment has the potential to be two to three times the initial costs for the buildings that undergo this process.

When planning such a project, an adequate scope of work should be determined in advance of commencing any project. Such considerations are outlined in detail below, which will help you define what needs to be done:

• Will your existing electrical panels within the units allow for the additional load for the new appliances?

• Are you going to vent the new dryers to the outside, or use new ventless dryer technology?

• Do you plan to install dryers that require heat pumps?

• Will the existing drainage stack allow for the addition of clothes washers, or will you need a dedicated drain stack for these new laundry?

• Does the building have sufficient hot water supply to allow for the increased hot water load for the clothes washers, or will upgrades be required?

Undertaking significant construction projects in a large building is a little different than new construction projects. There may be up to 100 or more families living in the building while works is conducted so it is very important for the consumer to have a good plan when sourcing a firm experienced in major construction work within multi-family residential and tenanted buildings.

Ensure that you select a reputable contractor with a long and unblemished track record in this specialized field. The contractor must employ journeymen and apprentice plumbers exclusively, and have their own sub-trades for the construction work. Make sure they are insured, are WorksafeBC registered, are prepared to supply bonds and stand by their work long after the warranty has expired.

Ensure the system is designed by a registered professional engineer with many years of experience in this field. Plumbing, building and electrical permits are to be obtained by the contractor which ensures that the design complies with all current codes and also ensures that the work of the contractor is constantly inspected by the city plumbing, building and electrical inspectors, in addition to the engineer.

In-suite laundry dramatically improves the desirability of the building to potential renters. The combination of larger floor plans of older buildings combined with modern amenities such as in-suite laundry will create an incredible demand for your product. Higher rents will easily be attained with this added in-suite amenity.

For strata property owners, the convenience of in-suite laundry is a significant improvement to owners that live in their suites; and financially, the value increase of in-suite laundry is 2 – 3 times the cost per unit. In addition, their suites become much more marketable and desirable in the competitive condominium market.

For rental building investors, and owners alike, adding in suite laundry can add tens of thousands of dollars to the value of each suite in a building.

Riley Denney is sales & marketing at Brighter Mechanical Ltd.

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AI is changing facility management without replacing people
September 1, 2026

Restroom cleaning: Elevating standards and protecting health
August 18, 2026

Lessons for facility managers from the Japan World Cup cleanup tradition
August 4, 2026

Optimizing productivity and customer satisfaction for your cleaning company
July 21, 2026

The hidden cost of reactive cleaning programs
July 7, 2026

Creating a circular economy for your cleaning company
June 23, 2026

The case for human-led restroom hygiene
June 9, 2026

Mastering multi-site consistency in peak season
May 26, 2026

It’s time for spring cleaning at your facility
May 12, 2026

How smart operators are reducing turnover in facility services
April 28, 2026

Reducing the risks of slip and fall accidents on your property
April 14, 2026

Strategies for cleaning crowded spaces
March 31, 2026

Clean, connected restrooms: the ultimate smart building launchpad
March 17, 2026

Cutting costs and raising revenues for your cleaning company
March 3, 2026

Annual planning for facility health
February 17, 2026

Retention is the secret weapon for cleaning excellence
February 3, 2026

Facility teams can protect air quality without driving up energy costs
January 20, 2026

2025

2026 cleaning trends: workforce supply, demand, and expectations
December 23, 2025

Why the demand for commercial disinfection is here to stay
December 9, 2025

The challenges of holiday cleaning
November 25, 2025

Recognizing the risks of harmful toxins in commercial cleaning products
November 11, 2025

The future of facility maintenance is predictive
October 28, 2025

Why inclusive hygiene must be a priority for facility leaders
October 14, 2025

Modernize your cleaning program without breaking the bank
September 30, 2025

The consequences of deferred cleaning and maintenance
September 16, 2025

Targeting new cleaning customers
September 2, 2025

Water sustainability as a corporate strategy
August 19, 2025

Gaining trust for your business by tracking and resolving service issues
August 5, 2025

Building a scalable cleaning and maintenance business model
July 22, 2025

Attracting attention to your cleaning company
July 8, 2025

Three ways manufacturers impact facility maintenance speed and success
June 24, 2025

How facility needs are changing the cleaning and maintenance industry
June 10, 2025

How janitorial companies can better value and recognize their crews
May 27, 2025

Social media and your cleaning company
May 13, 2025

How to hire, train, and maintain a top-tier cleaning team
April 29, 2025

Helping cleaners stay safe at work
April 15, 2025

Are you disinfecting effectively?
April 1, 2025

Maintainer-friendly dispenser design trends
March 18, 2025

Smart technology in commercial cleaning
March 4, 2025

Time theft in the cleaning industry
February 18, 2025

2025 restroom trends you can count on
February 4, 2025

Overcoming common barriers to handwashing
January 21, 2025

Looking ahead at the tools transforming restroom maintenance
January 7, 2025

2024

Creating a positive company culture for cleaners
December 10, 2024

A fresh take on IAQ
November 26, 2024

Maintaining your commercial floors this fall and winter
November 12, 2024

Sustainable commercial cleaning practices
October 29, 2024

FCM’s 2024 Fall/Winter issue is now available!
October 15, 2024

Creating company culture in cleaning and maintenance
October 1, 2024

Prepare for winter with your fall maintenance checklist
September 17, 2024

Keeping pests out as warm weather continues
September 3, 2024

How to hire the best for your business
August 20, 2024

Design concepts for sustainable cleaning
August 6, 2024

The impact of drones on commercial cleaning and maintenance
July 23, 2024

ESG, green cleaning, and beyond
July 9, 2024

How cleaning companies can leverage relationships to grow the business
June 25, 2024

Newmarket stays green and growing with community-focused outdoor maintenance
June 11, 2024

Managing moisture and mould in your building
May 28, 2024

Our Spring/Summer issue of FC&M magazine is now available!
May 14, 2024

Revolutionizing building maintenance with drones
April 30, 2024

Improving your cleaning practices to boost sustainability and employee satisfaction
April 16, 2024

How commercial cleaners can help businesses achieve their ESG goals
April 2, 2024

Using infrared thermography as a preventative maintenance tool
March 19, 2024

What’s on the horizon for smart restroom solutions?
March 5, 2024

A talented team keeps the ROM looking its best
February 20, 2024

The Winter 2024 edition of Facility Cleaning & Maintenance is now available!
February 6, 2024

Four habits to help grow your commercial cleaning business
January 23, 2024

Taking a proactive approach to winter maintenance
January 9, 2024

2023

Commercial cleaning and the way forward
December 12, 2023

FC&M’s Fall 2023 issue is now available!
November 28, 2023

Differentiating your customer service
November 14, 2023

How independent distributors can help with today’s challenges
October 31, 2023

Common maintenance misconceptions for concrete floors
October 17, 2023

Create a two-step process to prioritize cleaning over disinfection
October 3, 2023

Labour of love: Hallmark Housekeeping is forging ahead with positivity and purpose
September 19, 2023

Using autonomous cleaning equipment to attract younger talent
September 5, 2023

FCM’s Summer issue is now available!
August 22, 2023

Protect your employees and your facility from air pollution
August 8, 2023

Why you should be evaluating your distributors
July 25, 2023

Why sustainable cleaning matters
July 11, 2023

Ensuring front-line workers are safe and engaged
June 27, 2023

Adding consistency to commercial cleaning
June 13, 2023

Make your business pest-free this season
May 30, 2023

The City of Waterloo’s fleet management is focused on a greener future
May 16, 2023

FCM’s Spring 2023 issue is out now!
May 2, 2023

Why flooding season matters for facility maintenance managers
April 18, 2023

Three types of facility audits
April 4, 2023

Lighten the load: the value of outsourcing professional cleaning services
March 21, 2023

Why reading chemical labels has never been more important
March 7, 2023

Drought, water conservation, and water efficiency
February 21, 2023

The importance of relationships in commercial cleaning
February 7, 2023

Protect outdoor maintenance workers in the winter
January 24, 2023

Focusing on winter carpet care
January 11, 2023

2022

Commercial cleaning on a grand scale
December 13, 2022

FCM Fall/Winter issue is out now!
November 29, 2022

Evolving technologies for evolving healthcare
November 15, 2022

Plan ahead to protect against flood damage
November 1, 2022

Killing germs & UV light disinfection
October 18, 2022

Recession or inflation? Tips on navigating strained economic times
October 4, 2022

The importance of air purification
September 26, 2022

Keeping Canadian healthcare housekeeping & EVS in good hands
September 6, 2022

The FCM Summer 2022 magazine is out now
August 23, 2022

Using tech to improve washroom hygiene
August 9, 2022

What are office managers looking for in a commercial cleaning company in 2022?
July 26, 2022

Where do BSCs and PMs go from here?
July 12, 2022

Cultivating a culture of care in the cleaning industry
June 28, 2022

The future of water in buildings is smart
June 14, 2022

REMI Show 2022 promises forum on the future
May 31, 2022

Bringing family values to cleaning at Scandinavian Building Services
May 17, 2022

Protecting your facility from pandemic-hardened pests
May 3, 2022

The Spring 2022 issue of FC&M magazine is out now!
April 19, 2022

Cleaning is caring — it’s not rocket science
April 5, 2022

The importance of professional service providers
March 22, 2022

4 steps for proactive cleaning
March 8, 2022

The new commercial office takes shape
February 22, 2022

COVID-19 cleaning lessons: In with the new, stick with the old
February 8, 2022

How to manage winter cleaning in your facility
January 25, 2022

ServiceMaster Clean: Dedication to clean
January 11, 2022

2021

Flu season and cleaning — the proof is in the pudding
December 14, 2021

Check out the Fall 2021 issue of Facility Cleaning & Maintenance now!
November 30, 2021

Why flu season may be forever changed for the cleaning industry
November 16, 2021

Why wait? The new office normal is up to you
November 2, 2021

Protecting building occupants from a winter flu resurgence
October 19, 2021

Prioritizing the safety of cleaning professionals
October 5, 2021

Recognizing the relevance of restoration’s role
September 21, 2021

How to provide healthy environments & meet climate goals
September 7, 2021

How facility managers can help to ensure a cleaner experience
August 24, 2021

Debunking the immunity myth around cleaning
August 10, 2021

Back to work: Keeping offices and facilities clean and safe
July 27, 2021

The future of sustainable cleaning
July 13, 2021

Reaching net zero in the age of COVID-19
June 29, 2021

The science behind surface contamination
June 15, 2021

Tackling rodent infestation in facilities
June 1, 2021

How to optimize building technology management
May 18, 2021

A year like no other for campus cleaning
May 4, 2021

The power of UV-C light
April 20, 2021

The Spring 2021 issue of FC&M magazine is out now!
April 6, 2021

Optimizing floor and carpet care in a pandemic
March 23, 2021

Three year-round steps for avoiding washroom pests
March 9, 2021

Key lessons in washroom hygiene from COVID-19
February 23, 2021

Hiring a cleaning contractor in 2021
February 11, 2021

FC&M’s Winter 2020 Issue is now available!
January 28, 2021

2020

Don’t use a whole arsenal to kill a fly
December 10, 2020

Cleaning within the NHL bubble
December 4, 2020

Protecting workplaces from a “twindemic”
November 26, 2020

Cleaning for health in the year 2020
November 12, 2020

COVID-19 is bringing common sense back to cleaning
October 29, 2020

ISSA’s GBAC STAR accreditation success is a sign of a cleaner world
October 15, 2020

Measuring the lifespan of coronavirus on surfaces
October 1, 2020

An embodied carbon primer for facility managers
September 17, 2020

Open for business with cleanliness at the forefront
September 3, 2020

Microfibre mops: A laundry list of questions
August 20, 2020

When cleaning schedules don’t work
August 6, 2020

Meat processing facilities face unique disinfection challenges
July 23, 2020

The expanded role of restrooms in spending and operations
July 9, 2020

The shift from facility cleaning to facility disinfection
June 25, 2020

Cannabis production environment key to creating healthy inventory
June 11, 2020

VIDEO: The impact of COVID-19 on real estate operations and building cleaning
May 28, 2020

Outbreak accelerates role of cobotics in cleaning
May 15, 2020

Survival prospects upbeat for living walls
April 30, 2020

Cleaning schools in the age of COVID-19
April 16, 2020

Beware the risks of cleaning chemical mishaps
April 2, 2020

ISSA standard instructs school cleaning practices
March 11, 2020

New sensor innovates water leak detection
February 20, 2020

Steps for conducting a green cleaning audit
February 6, 2020

Some disinfectants safer than others
January 23, 2020

2019

Selecting the best e-training technology
December 17, 2019

Integrating cleaning robots into the workforce
December 6, 2019

How Woodbine maintains its racing surfaces
November 21, 2019

Lessons for upgrading older schools
November 8, 2019

Value of FM services poised to soar: report
October 24, 2019

Improve safety during Fire Prevention Month
October 10, 2019

Six trends to impact retail multi-site FM industry
September 26, 2019

Making the most of “Big Data”
September 12, 2019

Saddledome demolition plan bucks transparency
August 29, 2019

Understanding Candida auris transmission
August 15, 2019

Making the most of online learning programs
August 1, 2019

Electrical code changes property managers should know
July 18, 2019

Green school cleaning 101
July 4, 2019

Improving safety programs on campus
June 20, 2019

Construction labour force recruitment critical
June 7, 2019

TSSA gives residents fuel safety tips
May 23, 2019

Ontario proposes new excess soil rules
May 9, 2019

The next frontier in infection prevention
April 25, 2019

Developing an IT roadmap in facility management
April 11, 2019

Attracting young people to skilled trades
March 28, 2019

The role of DINs in professional cleaning
March 14, 2019

Five ways to make the most of your CMMS
February 28, 2019

The role of surface disinfection in outbreak management
February 14, 2019

The importance of healthy indoor air quality
January 31, 2019

Clothing donation bins may pose liability risk
January 17, 2019

2018

MediaEdge and ISSA launch new trade show
December 20, 2018

How to make social media work for a cleaning business
December 6, 2018

The effects of tariffs on the Canadian cleaning industry
November 22, 2018

Higher winter maintenance costs anticipated
November 8, 2018

Reducing damaging noise in the workplace
October 25, 2018

More smokers stoke litter and fire risk
October 11, 2018

Cleaning products industry blasts research
September 27, 2018

Survey exposes the most germ-covered surface in airports
September 13, 2018

Renos draw unwanted critters out of woodwork
August 30, 2018

Hot weather plans get a workout in summer 2018
August 16, 2018

Environmental surfaces can be infection gateway
August 2, 2018

A smart business case for GHG reduction
July 19, 2018

Autonomous robots and the cleaning industry; How germs and bacteria thrive on school desks
July 5, 2018

Waste management tips for avoiding pests; Researches discover possible pesticide-free way to limit mosquito populations
June 21, 2018

Creating a lasting first impression for your facility; What Alberta’s health and safety changes mean for employers
June 7, 2018

More hospitals introduce antimicrobial copper; Insurance industry unprepared for extreme weather
May 24, 2018

The Cannabis Act: What employers need to know; Smart phone innovation speeds up infection testing
May 10, 2018

What China’s plastic ban means for waste management; Data-driven tech to upend restroom maintenance
April 26, 2018

Copper allays germy fitness centres; FMs in the C-suite
April 12, 2018

Is AR tech a turning point for the cleaning sector? U of Winnipeg students lead campus waste audit
March 29, 2018

Carleton U steps up health and safety response; Scientists develop therapy to combat superbugs
March 15, 2018

Options for handling forgotten waste areas; Cleaning schedules revisited in open offices
March 2, 2018

Little oversight of high-GWP anesthetic gases; Facility managers eye IoT investments; Far-UVC light can stop flu from spreading
February 16, 2018

Thinking outside the mould in facility maintenance; Ontario looks to boost elevator availability
February 1, 2018

Canadian children lack accessible play spaces; Building operators highly sought and lowly paid
January 18, 2018

2017

Reducing cleaning supply costs; Five tips for evaluating de-icing products
December 21, 2017

Benefits and limits of UV-C Disinfection systems; Alberta overhauls workplace safety rules
December 7, 2017

Urbanization turbocharging pesticide resistance; New tools to handle infectious disease outbreaks
November 23, 2017

How automation is changing in the JanSan industry; ‘No VOCs’ product claim not always what it seems
November 9, 2017

Precarious work takes toll on hotel housekeepers; New protocol for cooling towers to prevent Legionellosis
October 26, 2017

Maintenance deemed a portal to innovation; Prepping for flu season
October 12, 2017

Warmer weather to boost fall rodent activity; Greenest School in Canada located in Winnipeg
September 28, 2017

Retailers key to Hurricane Harvey recovery; Employee perceptions of workplace restrooms: survey
September 14, 2017

Getting wasps to buzz off your facility; Alberta students well placed to enjoy good IAQ
August 31, 2017

Better infection prevention needed in schools; Forest fires pose indoor air quality challenge
August 17, 2017

U of Manitoba begins largest accessibility audit; Top ten cities for bedbugs
August 10, 2017

New technology advances safety management; Sensor solutions optimize washroom maintenance
July 20, 2017

Enzyme technique may destroy biofilms; Employee well-being
July 6, 2017

Building services seen as precarious employment; Mississauga adopts greener purchasing practices
June 22, 2017

Existing asbestos stockpile raises concerns
June 8, 2017

Hidden costs of custodial injuries; Social media tips for cleaning companies
May 25, 2017

Utility savings fund Saskatoon hospital upgrades; Green hospitals awarded for environmental performance
May 11, 2017

Infection control downplayed in surface selection; Five highlights of the new ISSA Canada
April 27, 2017

Safety considerations for electrical work; Working-at-heights training deadline extended
April 13, 2017

Safeguarding vital building systems during floods; Sealed Air sells Diversey Care division
March 30, 2017

A healthy case for maintaining synthetic grass; Saskatchewan moves to privatize janitorial services
March 16, 2017

New AODA requirements underscore maintenance; WHO identifies 12 most dangerous pathogens
March 2, 2017

Selecting lighting for hazardous conditions;Network innovation delivers smarter buildings
February 16, 2017

Rogers Place scores green, sets stadium standard; Montreal ice making innovation captures award
February 2, 2017

Energy efficient tactics that reduce maintenance costs; Hospital cleaning survey reveals disturbing patterns
January 19, 2017

2016

Maintaining commercial carpets in winter; Improving hand hygiene in hospitals
December 22, 2016

Addressing Legionella risk in buildings; U of Calgary’s green cleaning program earns CIMS-GB certification
December 8, 2016

Facility fights bedbugs with creative invention; Seasonal preventative maintenance
November 24, 2016

Benefits of living walls; employees misjudge office hot spots for germs
November 10, 2016

Facilities slack in averting bird collisions; Facility managers quarterback retail transformation
October 27, 2016

Schools face risk of cockroach infestation; Report reveals what services “dark stores” prefer
October 13, 2016

Few women at top level of cleaning industry; Global FM market worth $1.12 trillion annually
September 29, 2016

Technological advances in cleaning audits; Poor indoor air quality a concern in schools
September 15, 2016

How custodians can prep before students return; Employees demand hygienic, smart workplaces
August 4, 2016

Electric landscaping project a first in Canada; How to plan for summer floods
July 21, 2016

Emerging trends in green cleaning technology; Changes loom for City of Toronto cleaning services
July 13, 2016

Treadmill desks gain traction in the workplace

Just as the height-adjustable desk rose to the challenge of fighting sitting as the new smoking, the treadmill desk is adding movement to the mix. But is it possible to walk and type at the same time?

That’s the question Peter Schenk, president of LifeSpan, hears most often at trade shows. He would say yes, but it can take practice, which is why he recommends starting with simple tasks, such as phone calls.

Take, for example, “Cognitive and Typing Outcomes Measured Simultaneously with Slow Treadmill Walking or Sitting: Implications for Treadmill Desks” by Michael J. Laron, James D. LeCheminant, Kyle Hill, Kaylie Carbine, Travis Masterson and Ed Christenson. The study, published in 2015 in the Public Library of Science’s scientific journal PLOS ONE, reinforced earlier research that found individuals assigned to treadmill workstations typed slower and less accurately than individuals assigned to seated workstations. The study also found that the walking group performed marginally worse than the sitting group in tests designed to evaluate attention, learning, memory and processing speed.

However, the authors suggested that the health benefits of using a treadmill desk may be more important than the slight dip in learning and typing outcomes compared to using a seated desk. Plus, they added, their study was limited in that it examined only the short term.

“Additional research is especially needed to determine if adaptation to a treadmill workstation occurs and to what extent this influences cognitive and work-related performance,” the authors concluded.

Based on anecdotal evidence, including customer feedback and his own personal experience, Schenk affirmed that this does indeed occur.

“The positive thing that we’ve seen is that the research has gotten more robust, and maybe more clinically accurate in recent years,” he said. “When we first got it, it was such a novelty that very little training was given to people, and then they would do something like test productivity without anybody having gone through a learning curve, but most of the more recent studies are showing that people are in fact more productive, more creative.”

A year-long study, “Treadmill Workstations: The Effects of Walking while Working on Physical Activity and Work Performance,” published in 2014 in PLOS ONE, demonstrated just that. Authors Avner Ben-Ner, Darla J. Hamann, Gabriel Koepp, Chimnay U. Manohar and James Levine concluded that after an initial decline in work performance, using a treadmill workstation had a positive effect on both work performance and physical activity.

Alan Steele, director of the Discovery Centre for Undergraduate Research and Engagement at Carleton University, commented that working while walking puts him in a slightly different state of mind. Steele uses the treadmill desks located within the post-secondary school’s MacOdrum Library for writing. In fact, he was the person who procured the two workstations, which were introduced as part of the larger transformation project that produced the Discovery Centre.

“It’s an informal space for students to come, study, work in groups,” said Steele. “We wanted to make it a dynamic space, so in looking around at the range of furniture and thinking about the types of furniture that we were wanting for the space, we came across the treadmill desks.”

The literature on the ill effects of prolonged periods of sitting was a factor in the decision to purchase two of those workstations. Their application at Carleton University, which saw them installed side by side, facing a window overlooking the Rideau Canal, is similar to that of other organizations.

As Schenk recounted, when his company got into the treadmill desk business four years ago, roughly 70 per cent of its clients had at least a Master’s degree, such as professors, attorneys and CEOs. Since then, the highly educated, health-conscious, sedentary professionals who first adopted these workstations have typically rolled them out to their employees a few at a time in common areas.

“Within those group, in terms of how the companies are using them, we definitely get the more sedentary workers — from programmers, to technology [workers], to engineers — but there are also sectors” he said. “For instance, 911 call centres are one of our bigger customers because they have workers that are highly sedentary, that are required to stay alert, and they can use walking as a means of staying sharp.”

Schenk advised that employees should be given basic orientation before working from treadmill desks, which Carleton ensures happens by requiring users to obtain the keys from staff. Proper posture, for example, mimics a walking posture, meaning the spine needs to be aligned, any screens should be positioned so the user is looking straight ahead and the desk should be set at a height at which the arms are not reaching up or down.

Prospective buyers or users also express concerns about what level of noise the treadmill workstations will produce. Schenk observed that the motor is actually fairly quiet, but that if users don’t pay attention to their gait, the noise of their feet dragging may be disruptive. Steele echoed the sentiment that the motors on the Discovery Centre’s treadmill workstations are quiet, although he said that some users may be shy about drawing attention to themselves with the beeping that is generated when they’re adjusting the speed.

Unlike fitness treadmills, treadmill desks are engineered to sustain a slow pace for long periods of time without overheating the motor and causing premature wear and tear. Given that treadmill desks are not intended for vigourous exercise, they come with max speeds of either two or four miles per hour; an upper limit of two miles per hour is appropriate for most employees.

“As a rule of thumb, the more complicated the task, the more people slow down,” Schenk said.

As for how much time people should spend using treadmill desks, Schenk offered a few hours a day as a rough guideline. However, he added that it may be more practical to step onto treadmill desks for particular tasks than to set a timer. For example, Schenk uses his treadmill desk for phone calls (including for the interview he had with CFM&D for this article, during which time he indicated he was walking at a pace of 1.6 miles per hour).

In addition to maximum speeds, safety features can include a mechanism by which the belt automatically stops turning if a user falls or steps off the workstation while it’s moving. Other safety measures can include a marking on the belt to indicate when it’s in motion; Carleton University uses stanchions to prevent passersby from tripping on the desks.

Based on his company’s work in the fitness space, Schenk anticipated that, with proper maintenance, treadmill workstations should have a lifespan of five to seven years. His company prescribes a cleaning and inspection schedule of once every three months.

Although people aren’t exactly lining up to use the treadmill workstations in Carleton’s Discovery Centre, Steele considers their application a success.

“I’m pleased with the level of acceptance that’s gone on with this; it’s not viewed as a white elephant,” he said. “Students use them and we have had faculty and staff come in and use them.”

Some faculty members have even bought treadmill desks for their offices after taking the shared workstations out for a test run — er, walk.

When Schenk’s company checked in with a group of its customers at the three-month mark and again at the 15-month mark, customers reported reduced lethargy as an immediate benefit at the first check-in and improved health metrics as a long-term gain at the later follow-up.

In some cases, it may truly not be possible to complete a particular task on the treadmill workstation, he acknowledged.

“I might be doing a spreadsheet, graphics work, where it’s more difficult to move small distances,” Schenk said. “That’s probably the opposite extreme where you may want to pause it and just use it as a standing desk.”

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

Photo: Ottawa’s Carleton University procured two treadmill desks for its new Discovery Centre in MacOdrum Library. The space was created as part of a redesign completed in joint venture by Diamond Schmitt Architects and Edward J. Cuhaci and Associates Architects.

Bridgepoint Active Healthcare receives architecture award

Bridgepoint Active Healthcare and its architectural partners, Stantec Architecture, KPMB Architects, HDR Architecture and Diamond Schmitt Architects, were recently recognized with a Governor General’s Medal in Architecture during a ceremony at Rideau Hall. This award is considered to be the highest recognition for architecture in the country.

The award was presented to Marian Walsh, CEO of Bridgepoint during its transformation and now associate CEO of Sinai Health System, by his Excellency the Right Honourable David Johnston, Governor General of Canada.

“This recognition is very meaningful for all of us who had a vision to create a campus of wellness for our patients,” said Ms. Walsh, on behalf of the architects and the system. “From the very beginning, our architectural partners understood our patient-centred goals and I could not be more proud to share this achievement with them, our staff and our patients.”

The Governor General’s Medals in Architecture recognize outstanding achievement by Canadian architects in recently built projects. The awards are administered by the Royal Architectural Institute of Canada (RAIC) and the Canada Council for the Arts.

Some of the principles of design for Bridgepoint Active Healthcare included maximizing natural daylight and views; using natural materials and elements to support individuals during their rehabilitation process; designing social and dining spaces that encourage interaction and good nutrition and promote self-efficacy; optimizing the therapeutic benefits of access to nature and landscape; and connecting and integrating the campus with the community.

Since it partially opened in 2013, Bridgepoint Active Healthcare has been presented with more than 18 awards. The full site opened in fall 2015, including a landscaped outdoor area for patients and staff. The 10-storey, 680,000 square foot facility features 464 patient beds in rooms that accommodate the latest equipment, provide natural light and are organized to help provide the best patient care.

Sustainable tiles now quality for LEED Pilot Credit

Building designers, facility managers and others hoping to achieve LEED building certification by the U.S. Green Building Council (USGBC) can now use sustainable ceramic tiles, glass tiles and tile installation materials to earn the necessary credits. To contribute, the project’s tiles and installation materials, such as mortar or grout, must meet the strict environmental and socially responsible requirements of Green Squared, the ceramic tile industry’s multi-attribute, sustainability standard.

Green Squared certified products now qualify to contribute toward a new LEED Pilot Credit offered under the category of certified multi-attribute products and materials. The credit requires that certification details, such as which Green Squared electives were satisfied, are disclosed, and that a product lifecycle assessment (LCA) has been conducted.

The intent of this new credit is to encourage the use of products and materials for which life-cycle information is available and that have environmentally, economically and socially preferable life-cycle impacts, says the USGBC.

To achieve a LEED point under this credit, at least 25 per cent by cost of the permanently installed building products on a project must meet a USGBC-approved product sustainability standards, like Green Squared, and have third-party validation to prove it. For Green Squared Certified products, that means a thorough assessment will be completed and certification can be achieved from any of these international sustainability leaders: UL Environment, NSF International and SCS Global.

“USGBC included Green Squared as an approved multi-attribute sustainability standard because the criteria are rigorous and fully in-line with the intent of the new credit,” says Bill Griese, the Director of Standards Development and Sustainability Initiatives for Tile Council of North America (TCNA). “It’s not easy to get on that list. The Committee looks at each standard closely to make sure products that meet them are truly sustainable. The credibility of the LEED program relies on that being a rigorous review and approval process.”

Essentially, by scrutinizing sustainability standards and recognizing only those that truly identify sustainable products, this Pilot Credit makes it simpler to build sustainably by providing the criteria from which a specifier can choose products.

“The release of this new Pilot Credit establishes an important precedent for the specification of certified multi-attribute sustainable products for the years ahead,” added Griese. “It affords architects and designers the flexibility to select product types based on design preferences and cost, and then to optimize based on sustainability within each relevant section.”

The new Pilot Credit is available for registration on current LEED v3 and v4 projects and will continue to be available once the USGBC transitions exclusively to LEED v4 this month. The amount of the Pilot Credit is determined by the amount of recycled content, closed loop manufacturing waste reclamation and/or regional raw materials are used to produce the product.

Industry sees promise in low-impact communities

Industry proponents of sustainability are looking beyond buildings and thinking more about community scale in order to help impact decarbonization goals, such as Canada’s long-term greenhouse gas (GHG) emissions reduction target of 30 per cent by 2030.

Currently, Canada is not on track to achieve this target, nor its 2020 emissions target, according to the new Pembina Institute report, Race to the Front, which ranks provinces in terms of emissions and climate change initiatives. Some provinces are behind; others are making strides. Either way, the country is clearly committed to lowering emissions as evidenced in Monday’s federal decision to impose a national carbon pricing system in all Canadian jurisdictions by 2018.

The Pembina report supports the need for this system. It also states that Canadians are in a “clean growth century” and we need to invest in infrastructure that supports a low carbon future. Addressing these solutions also means thinking about resilient communities and how they are currently designed.

Low-impact communities and their renewable energy solutions were highlighted at the recent Sustainable Built Environment Conference of the Americas in Toronto. A panel discussed how to define and inspire these innovative developments, while motivating private capital and turning vision into a market reality.

Jenny McMinn, sustainability consultant for BuildGreen Solutions, the consulting arm of Windmill Developments, which uses a triple bottom line (ecological, social and financial) approach to its projects, reiterated how buildings, along with transportation and waste, is a major contributor to GHGs. These types of developments often spur thoughts about metrics or performance goals, but industry needs to broaden its scope.

“It’s not just about driving down consumption or increasing performance; it’s really about creating an awesome place to live,” she said. “If we can get that right, financials will likely fall into play and, with focus, the other performance goals around environment and social sustainability will follow as well.”

She says to really impact “the bigger carbon story,” there is a need to think on a community scale level, while also looking at other impactors that community designs influence, such as food and transportation. Mixed-use communities are subject to uncertainty and private developers are often the ones taking the risk. McMinn outlined some available tools they can use and suggested ways to help developers get over the risk.

Third party standards

“There are a lot of standards to encourage developers to look at building mixed-use communities, but is there really much uptake?” McMinn posed. “I think there could be, and there needs to be more.”

While the Canadian Green Building Council’s LEED products continue to impact the overall industry (there are more than 3000 LEED-certified projects to date), McMinn pointed out that LEED for Neighbourhood Development (LEED-ND), a guide for sustainable communities, has not gained much traction yet. But it may see more interest once the new LEED v4 comes to market.

“One might question if it’s time to be thinking a little more holistically,” she said. “Maybe the performance, prescriptive-based programs are not having the market traction.”

Three more progressive standards include, The Living Building Challenge, One Planet Living and EcoDistricts, which is in the pilot phase. The Living Building Challenge includes seven performance categories called Petals: Place, Water, Energy, Health & Happiness, Materials, Equity and Beauty. Petals are subdivided into a total of twenty imperatives which focus on a specific range of influence. It sets strong, absolute targets like net zero energy, but McMinn added that because of its progressiveness it hasn’t seen much traction.

One Planet Living, similar to the Living Building Challenge in its “desire to move the market,” is more customizable and works to improve a community while using provisions to influence others as well. It employs ten guiding principles from health and happiness to zero carbon. Each self-sufficient community is to reduce its collective ecological footprint by 70 per cent. Windmill Developments, along with Dream Unlimted Corp., is currently pursuing Canada’s first One Planet Community designation with the Zibi development in Ottawa.

EcoDistricts has been evolving over the years. Since it is in a pilot phase, it hasn’t seen uptake yet. But McMinn said it allows for a true recognition of the time horizon of projects and setting goals that evolve.

Obstacles for developers

Some factors preventing developers from creating low-impact communities include risk and cost.

“Much of that risk is being borne by the private developers and I think that there are hurdles,” she said. “But there are lots of creative ways to get up and over these hurdles. One of the key things, I think, is to first inspire. Not just the core consultant groups you’re about to hire, but broadening stakeholder engagement and looking at it as an opportunity to attract interest from a broader community and potentially prospective buyers.”

She said this will both inform the revenue stream and “help to gather great ideas” on how to impact community design and structure partnerships. Proactive management of risk is also key.

“It’s imperative to set that aspirational vision early on, and not only to engage typical consultants, but also to start thinking about how to monetize various opportunities being set out in the project plan and engaging a broader net.”

BuildGreen has been engaging this path towards net zero and, through analysis, has found actual cost savings are available to private developers to pursue lower energy goals. McMinn highlighted two examples in Toronto, one within a building on a typical pro forma and the other, which included partnering with a Geosource provider. In both cases, the development charge rebate offered by the city is a “high contender” for savings, specifically with residential assets, and also some mechanical and envelope savings from a capital perspective.

Another study looked at what could be done on site to achieve net zero. One of the challenges was around density and the limitations of root space, which supported the idea to also seek offsite partnerships.

Windmill Developments has spent much time looking for partners with long-term interests, such as an integrated services provider or micro-utility, and getting “more players on the table.” They structured a number of business models at an early stage that set up parameters for potential revenue streams and how parties can benefit from it.

“From a community energy perspective, one key outcome we found is thinking about absorption and modularity, and how you can make structure a capital investment so the utility or service provider is making enough revenue to make sense of the initial investment,” said McMinn, adding, “thinking about how to structure the project, both in terms of eliminating capital and operating the best revenue stream possible for the utility.”

Developing a low-impact community

Two kilometres from Ottawa’s Parliament Hill, on an abandoned industrial property that once housed a pulp and paper mill, the Zibi development, a $2.1-billion sustainable, mixed-use community set on 37 acres will take about 10 to 15 years to complete.

So far, the development has involved two provinces, two cities, the National Capital Commission as a planning body, a local conservation authority, heritage buildings, remediation issues due to being a former industrial site, First Nations: Algonquins of Ontario and Algonquins of Quebec, Ottawa Hydro and Hydro Quebec, all in the heart of the nation’s capital.

“A very complex set of stakeholders that maybe would have been a deterrent for many developers,” said Alex Spiegel, partner at Windmill Development group. “We saw it as a challenge, and indeed it was a challenge.”

Zoning was accomplished within six months — quite a feat considering the number of stakeholders involved and negotiating with the First Nations who deem the Ottawa River sacred. The One Living Planet standard, which developers are using to align stakeholders for this very complex project, served as a framework to inform planning, sustainability and the way the project was communicated to those involved. According to Spiegel, the standard provided a strategy for low water and low carbon solutions.

The future mixed-use site is being organized to position a more sustainable neighbourhood, and is taking advantage of the natural features on the property to increase solar access. Streets run on an east-west pattern for maximum solar gain. He commends how the standard sets up principles and works with existing rating systems, how it’s process-driven, not outcome-driven, and how it governs not only design, but also construction and ongoing management.

One principle, for example, includes local and sustainable food to support local farming and healthy, low-impact food. This principle has informed certain features, such as green space with community gardens and buildings associated with agricultural plots, with food produced onsite. Another principle — culture and heritage — will “respect all the different layers of culture” at the site and take the form of public spaces, encouraging interaction in a walkable environment, restoring older buildings and street patterns and respecting First Nations culture.

“We saw One Planet Living as a very holistic way of looking at this community, going beyond specific requirements of individual buildings and looking at it as a complete community,” said Spiegel. “The potential for achieving a great goal, in terms of sustainability, is enhanced when you’re working at this scale.”

Potential energy sources

Scott Bentley, former military engineer and current development manager at Windmill, said the development team identified a number of potential energy sources, including geothermal.

“In terms of building a district energy system, engineering is the easy part — the big challenge is how to make it into a business and do it legally,” he said.

Challenges include capital costs to building a system versus how to make money, and offering credibility to future residents who want to know that Windmill has a viable district energy system. Regulators also look closely to see how people are being charged for energy, along with sub-metering costs, operations and maintenance itself.

As for district energy, a neighbouring Kruger plant uses thermal energy while processing paper and cardboard. The heat is used inside Kruger for the pre-heating of process water, fresh water for showers, and heating coils on seven air handling plants. There are further potential opportunities for heat recovery from the existing Kruger plant. These include three more tissue machine exhausts and flues from the boiler plant. The potential energy available if these systems were implemented is estimated to be around 13.2 megawatts with heat at 55-60-degrees Celsius. If this waste heat is collected and piped to Zibi, it has the potential to meet many of the development’s heat loads.

Other potential energy sources include potential heating and cooling from the Ottawa River, biomass, heat recovery and sewage waste-heat recovery, which has the potential to capture a lot of energy from washing machine use, dishwater and shower water, for instance. Zibi developers say the temperature of sanitary sewer flow is often higher than outdoor air — especially in winter — due to a range of factors such as buried depth, ground conditions, duty (separate or combined) and flow rate. The best use for the heat recovered from the sewers would be to increase the temperature to a level where it can be used as an additional source to preheat the central modular heat pump plant.

Opportunity to partner with site utilities

“Hydro utilities are absolutely frightened with everything going on with technology,” said Bentley. “All of these things are coming at them so fast. So, coming in with a mandate like we did — they could either partner with us or watch us take 4000 doors away from them with them on the outside. In this case, they had an opportunity and came to us with open arms.”

For utilities, it’s a higher risk and may not make a lot of money. But Bentley noted what they will do is learn how to employ these technologies in conjunction with a developer.

In this case, Hydro Ottawa went back to its board with a list of opportunities, such as distribution, billing, a lighting and public realm program where an operator controls lighting speakers, and Wifi opportunities, to name a few.

“Infrastructure and the Internet of Things is a whole other element we discovered in the process,” Bentley noted.

With a district energy system, every unit on the site needs a sub-meter to track energy use. But in order to connect sub-meters, there needs to be a fibre optic backbone — this leads to an opportunity to provide internet to people.

In terms of grants and government subsidies, the government doesn’t always advertise their availability. Bentley noted the best money the team spent was hiring a grant writer to identify and apply for grants, such as from Enercare, which has significant funds for these types of projects that involve green technology. Another excellent program, he said, is Hydro Quebec that looks at the entire development, district energy and zero waste — its goal is to get people off the grid.

Feature photo of Zibi development courtesy of Windmill Developments

Coming back from reserve fund shortfalls

In an ideal world, condominium owners are satisfied with the way their corporation is run, fees are comparable to the condominium down the street, major repair and replacement projects are well-managed, and the reserve fund maintains a healthy balance. Then again, in a perfect world, condos never leak! The unfortunate reality is that many corporations have underfunded reserves, which can limit available options.

An underfunded reserve is one where the reserve fund contributions are not enough to cover the expenses expected to crop up over the span of the reserve fund study. This puts the long-term durability of the property at risk, will usually diminish property value, and may compromise safety.

Ontario’s legislation only loosely defines what constitutes an “adequate” reserve fund. The Condominium Act requires the board to review the reserve fund study and propose a plan for future contributions that ensures the fund will be adequate for the prescribed time period of the study. Most interpretations of the act suggest this means that contributions should be fair and uniform to present and future owners, over the life of the property.

To achieve this, the corporation should be setting aside enough money to cover annual expenses while limiting annual increases to contributions to the rate of inflation. This results in equitable payments for current and future owners.

The act further requires boards to declare what funding plan they’re following, and whether or not the reserve fund study consultant has endorsed it. Other provinces have no such requirement for “adequacy” in their respective legislation.

Why the reserve is underfunded

There may be many different reasons that a reserve account is underfunded. Common reasons include: The board adopts a funding plan not endorsed by the reserve fund planner; major projects must be completed sooner than anticipated in the reserve fund study (therefore there is less time to save for these expenses); and project costs run higher than was budgeted for in the reserve fund study.

Let’s look at each of these scenarios.

The board does not adopt recommended plan.

Outside of Ontario, there is no direct link between the funding plan(s) in the reserve fund study and the funding plan the board actually adopts. For example, in Alberta and British Columbia, the board is required to approve a plan, but not necessarily one of the plans provided in the reserve fund study. There is also no requirement to disclose whether the plan the board has adopted was endorsed by the reserve fund study planner. If the recommended plan will require an increase in contributions, the board may be pressured to generate an alternate plan which avoids or defers the increase.

Projects must be completed sooner than planned.

Restoration planning for a reserve fund is based on the average lifespan of systems and components. Of course, reality rarely complies. In some cases, major systems will last longer than normal. In cases where a major repair or replacement is required sooner than expected, the corporation loses time to build up the reserve, and so may fall short.

Project costs are higher than anticipated.

The reserve fund study is not intended to generate specification-level pricing. The analysis is based on a visual assessment, a review of the performance and repair history from board members, property management and service contractors, and a review of construction drawings and past reports.

With this high-level information, the reserve fund study consultant provides order-of-magnitude opinions of cost. These should be accurate within about 25 per cent.

The reserve fund study will identify what components require additional evaluation to prepare more accurate budgets, one to three years before the expenditure is planned. Without these detailed condition assessments, actual repair costs may vary considerably, but detailed reviews are not always done.

How to make up the shortfall

The good news is that if the reserve is underfunded, it’s possible to remedy the corporation’s position. First, analyze the cash-flow shortfall. Several variables influence the cash flow in this financial analysis. The most important variables are the critical year, the interest/inflation rates and the phase-in period.

The board sets a minimum balance that the reserve fund should remain above over the term of the study. This is an important contingency against unexpected repairs. The analysis will yield a “critical year” where the reserve fund reaches its lowest point (i.e. the minimum balance). The timing of the critical year has a big impact on cash flow.

If the critical year is close (within about 10 years), then the corporation has less time to save up for large repair projects and the recommended increase may be steep. The required contributions can be reduced if projects are moved past the critical year.

The analysis is an iterative process, so the critical year gets re-calculated and may actually be pushed out. But not all repair projects should be deferred.

What projects have tolerance?

Discretionary projects, such as those based primarily on aesthetics, can often be moved or scaled back, especially since renovation costs have risen dramatically in recent years. For example, rather than a full corridor renovation, consider only replacing the carpets, repainting the walls, or replacing lighting (which is also an opportunity to reap energy-efficiency incentives).

Similarly, major restoration of structural components (such as balconies and parking garages) or building envelope components (exterior walls, windows, doors and roofs) can sometimes be significantly deferred by completing targeted repairs. That’s provided that there is tolerance for more frequent repair intervals and a potentially patchwork appearance. Some mechanical equipment can also be maintained beyond a typical lifespan by replacing individual components.

Work with the condominium’s property manager and reserve fund study consultant to identify these projects, complete detailed evaluations where necessary, and discuss the advantages and disadvantages of targeted repairs and local replacements compared to general replacement.

The required contributions are also sensitive to the difference between the assumed interest and inflation rates used by the analysis. When the critical year is close, using the interest rate that the fund is currently achieving avoids overstating the projection for interest earnings. If the critical year is far off, using the current rates penalizes owners, as the long-term (30-year) average is normally much higher. Higher reserve fund balances can also command higher interest rates.

If annual contributions are too low, increases will be required. While in the long term the best way to make the required increase is right away, current owners rarely appreciate a large jump in contributions within a single year.

When a large increase to reserve fund contributions is required, it can often be phased in over several years while still meeting the intent of fair and uniform contributions. Limiting the phase-in period to about three to five years provides disclosure to existing unit owners and potential purchasers.

What other options are available

Sometimes tweaking variables in the funding analysis doesn’t produce a workable plan, or the shortfall is too great. Fortunately, other funding options can be employed. They include special assessments/levies and loans.

Since these options impose an additional burden on current owners, they are usually considered a last resort, but they do not have to be. Creative use of a low-interest loan can effectively reduce a corporation’s shortfall while maintaining manageable annual contributions. The property manager can help the corporation work with a condominium lender to prepare a funding plan that is fair for current and future owners.

If the pessimist would say the reserve is half empty, perhaps the optimist would ask “Is the reserve fund half full?” Increased contributions to the reserve fund could represent opportunities. If the corporation has been making lower than necessary contributions, age and wear may be showing, so chances are the corporation has a lower market value.

Increasing reserve fund contributions allows for major repair and replacement projects to be completed. This renewal adds value for those who continue to live and work at the condominium and for those planning to sell.

Leading up to repair/replacement projects, speak with the property manager and reserve fund study consultant; there are almost always opportunities — for energy savings, more durable systems, more efficient equipment, easier to maintain/repair equipment, and so on. Completing an energy audit in conjunction with the reserve fund study can help form a holistic and practical plan.

Knowing what goes into the reserve fund study allows the corporation to make the most of what comes out. Maintaining a financially healthy reserve fund requires not only technical knowledge but an understanding of the needs of the board and unit owners. When the board has a clear vision for the corporation, its reserve fund consultant can help act as a guide along that path.

Jeremy Taylor is a technical lead and project manager at WSP. A structural engineer by training, his experience includes reserve fund studies, performance audits, property condition assessments, and evaluation, specification, and construction review of structural and building envelope systems. He can be reached at [email protected].