Canadian Property Management

F O R B U I L D I N G O W N E R S , A S S E T A N D P R O P E RT Y M A N A G E R S

CANADA $15.00

Publication Agreement #40063056

VOL. 33 NO. 5 • OCTOBER/NOVEMBER 2018

WEIGHING THE OPPORTUNITIES Staffing and Service Delivery in a Dynamic Market

PA R T O F T H E

P A R T

O F

T H E

3Es OF GENDER PARITY SMART URBAN INNOVATION SKILLS DEVELOPMENT PROPERTY TAX BENCHMARKING CANNABIS COMPLICATIONS ACCESSIBILITY

GB CERTIFIED

Increase the odds of outsourcing success...

Choose a CIMS-Certified Contractor!

ISSA’s Cleaning Industry Management Standard (CIMS) sets forth a business framework that is based on universally-accepted management principles that have proven to be the cornerstones of successful organizations.

A CIMS-Certified Contractor...

• Is engaged in building service contracting as its primary business; • Has undergone a comprehensive CIMS assessment conducted by an accredited, independent third-party; • Has adapted the six pillars of management excellence embodied in the Standard – Quality Systems; Service Delivery; Human Resources; Health, Safety and Environmental Stewardship; Management Commitment; Green Building & Service; • Demonstrates a commitment to the environment and green cleaning methodologies; • Supports ethical contracting practices; and • Is more efficient and proficient in cleaning procedures resulting in reduced labour costs; Additionally, a professionally cleaned facility has an immense impact on the health and performance of both the building itself and the occupants within it. Why?

✓Healthy Building Syndrome (HBS) has been proven to make people

happier, healthier and more productive.

✓Improved Indoor Air Quality (IAQ) increases employee morale and

reduces absenteeism.

✓Improved indoor environments lead to improved Employee Retention. ✓Reduced liability from law suits over issues such as mould or workplace injury. ✓A positive public image created by an improved building appearance. ✓Increased marketability and credibility commanding higher rental rates.

Find out more at www.issa-canada.com

VOL. 33 NO. 5

OCTOBER/NOVEMBER 2018

Editor-in-Chief Barbara Carss barbc@mediaedge.ca Publisher Sean Foley seanf@mediaedge.ca Editor, Greater Michelle Ervin Toronto Area & Beyond michellee@mediaedge.ca Contributing Writers CREW Network Industry Research Committee, David Maher, Kent Waddington Senior Designer Annette Carlucci Wong annettec@mediaedge.ca Web Designer Rick Evangelista rickr@mediaedge.ca Production Manager Rachel Selbie rachels@mediaedge.ca National Sales Maya Merchant mayam@mediaedge.ca

Kelly Nicholls kellyn@mediaedge.ca

Melissa Valentini melissav@mediaedge.ca Digital Media Director Steven Chester stevenc@mediaedge.ca Circulation circulation@mediaedge.ca Alberta & B.C Sales Dan Gnocato dang@mediaedge.ca

President Kevin Brown kevinb@mediaedge.ca Group Publisher Sean Foley seanf@mediaedge.ca Accounting Manager Nadia Piculik, CPA CMA nadiap@mediaedge.ca TEL: (416) 512-8186 • FAX: (416) 512-8344 Published and printed six times yearly as follows: March, April/May, June, Aug/Sept, Oct, Nov/Dec

by MediaEdge Communications Inc. 5255 Yonge St., Suite 1000, Toronto, Ontario M2N 6P4 (416) 512-8186 Fax: (416) 512-8344 e-mail: circulation@mediaedge.ca Subscription Rates: Canada: 1 year, $60*; 2 years, $110* Single Copy Sales: Canada: $12* Outside Canada: US 1 year, $85 International $110 *Plus applicable taxes Reprints: Requests for permission to reprint any portion of this magazine should be sent to info@mediaedge.ca.

Copyright 2018 Canada Post Canadian Publications Mail Sales Product Agreement No. 40063056 ISSN 0834-3357 Authors: Canadian Property Management Magazine accepts unsolicited query letters and article suggestions.

Manufacturers: Those wishing to have their products reviewed should contact the publisher or send information to the attention of the editor.

Sworn Statement of Circulation: Available from the publisher upon written request. Although Canadian Property Management makes every effort to ensure the accuracy of the information published, we cannot be held liable for any errors or omissions, however caused. Printed in Canada

editor’snote WE LIVE IN candid times. Personal revelation abounds in pop culture, social media and public spaces. Oblivious conversationalists wielding cell phones often seem particularly comfortable divulging salacious details to all within earshot. Yet, salaries and other aspects of remuneration continue to be a highly private topic for both employers and employees.

Ironically, that's one discussion that does need to happen in the open. Transparency is central to efforts to narrow the gender pay gap and support a diverse, meritocratic workforce. For example, the "comply or explain" model that regulators worldwide have adopted to nudge boardroom and C-suite doors open to entrants who are more reflective of the larger society is really a strategy to expose and embarrass publicly traded companies that aren't making progress.

CREW (Commercial Real Estate Women) Network adds context by surveying its membership — now comprising 74 local chapters in Canada, the United States and the United Kingdom — about compensation and career advancement at five-year intervals. Our lead feature story looks at some of those findings along with general insight from women working in the industry.

Indisputably, the onus is on employers to treat employees equitably, but organizations like CREW also provide solidarity for employees reporting their experiences and the validation of numbers. CREW Network's reporting reveals consistent patterns that can't be dismissed as one-offs or emotional (a favoured adjective in the dinosaur demographic) disgruntlement. It also helps frame the issue for employers.

In the 21st century, biases are less likely to be overt and deliberate. Rather, like all humans, influencers and decision-makers are instinctively drawn to their own qualities reflected in others — so they mentor and advance the careers of young men who remind them of themselves. Acknowledgement of that tendency, coupled with conscious efforts to check it, could lead somewhere that's more dynamic and profitable than their own comfort zones.

Appeals to reason and a little structured guidance do have an impact on fair-minded people. Like CREW Network, the Rick Hansen Foundation is helping commercial real estate professionals broaden their outlook.

Rick Hansen Foundation Accessibility Certification (RHFAC) is a CSA-accredited program aligned with inclusive design principles. Training for building-related practitioners is now available through community colleges in Vancouver, Calgary, Toronto and Halifax, aimed at supplying a pool of accredited assessors to serve as a resource to the industry.

The program's originators characterize RHFAC as a consistent standard for gauging accessibility that will support good design decisions and inform building users.

Demand is expected to rise steadily as the aging Canadian population experiences declining mobility, eyesight, hearing and/or cognitive ability.

Buildings that are welcoming and workable for all are fundamental to human rights — and simply good for business. "A barrier to a person with a disability is a barrier to making a profit," observes Brad McCannell, Vice President, Access and Inclusion, with the Rick Hansen Foundation.

Barbara Carss barbc@mediaedge.ca @BarbaraCarss

Canadian Property Management | October/November 2018 3

contents

Focus: Staffing & Service Delivery 6 Gender Pay Gap: Men and women begin real estate careers at roughly the same pay scale, but men soon pull ahead.

8 Equal by 30: The clean energy sector strives for women to attain equal opportunity, equal pay and an equal role in the industry's leadership structure.

10 UPPLift for Innovation: Real estate pilots smart technology applications in Toronto.

13 Accessibility Certification: Rick Hansen Foundation provides guidance on inclusive design.

14 Virtual Design Proofing: Architectural technologists are increasingly in demand as BIM and other 3D applications disrupt the design process.

20 Capacity Building: Northern Ontario health care sector benefits from the development of in-house energy management expertise.

Articles: 16 Medical Cannabis in Multi-res: Residents with medical authorization are exempt from restrictions that apply on smoking or growing recreational product within suites.

18 Smoker Fallout: Fire risks and litter concerns arise with an increase in smoking.

22 Property Tax Allocation: Commercial ratepayers in major Canadian cities carry disproportionate share of the tax burden.

4 October/November 2018 | Canadian Property Management

Departments 3 Editor’s note

readings down savings up!

Ramp up your race performance From LED upgrades to BAS, you’ve optimized all your key systems.

Now you can maximize the benefits of energy efficient operations. The Toronto Hydro OPsaver Program rewards building owners for continuous savings, year over year.

The race is on! Go for the win.

Find out more: bomavault.com/financial incentives

race A BOMA Toronto Initiative

race2reduce.bomatoronto.org

Title sponsor

Title sponsor

Media partner

Media partner

OM Official Mark of the Independent Electricity System Operator. Used under license. ®A registered trademark of Toronto Hydro Corporation used under license. “Toronto Hydro” means Toronto Hydro-Electric System Limited.

staffing

PAY PARITY PR INCHES FORW Mid-career Widens the Gap for Women in Real Estate

Recent social movements have heightened society-wide awareness about negative treatment and pay disparities women are facing in the workplace. Like other industries, commercial real estate is now under greater pressure to address these issues, as companies strive to meet equality, diversity and inclusion goals. CREW (Commercial Real Estate Women) Network is well placed to track that progress — both through the collection and analysis of data that goes into the benchmark studies the organization produces on a five-year cycle, and drawing from the knowledge and experience of a professional membership in 74 chapters in major urban regions of Canada, the United States and the United Kingdom. This year, the CREW Network Industry Research Committee has produced the whitepaper, Achieving Pay Parity in Commercial Real Estate, which looks at what the numbers reveal, delves into the underlying reasons and offers some strategies for closing the pay gap. The following is an excerpt – Editor.

THOUGH THE GENDER pay gap has decreased since the initial release of CREW Network’s benchmark study in 2005, it persists and is strongest for respondents earning less than $100,000 and above $250,000. The 2015 CREW Network benchmark study found the median total annual compensation — including bonuses, compensation, and profit sharing — was USD $150,000 for men and USD $115,000 for women, demonstrating a disparity of 23.3% between genders. The size of the gap varies by occupation, with the greatest difference in the study observed among commercial real estate brokers, at 33.8%.

Although compensation is nearly equal for men and women at the entry level, the gap widens mid-career. The benchmark study found that in addition to the pay gap, there continues to be an aspiration gap. Only 28% of women aspire to the C-suite versus 40% of men.

The majority of women (47%) indicated their aspirations topped out at the senior vice president or partner level, and they consider the lack of a mentor or sponsor within their company as the number one barrier to success. Women in the industry are 54% less likely than men to have a sponsor who can provide career advice or help advance a career path.

According to the Pew Research Center, much of the gender wage gap has been explained by measurable factors such as occupational segregation and work experience. The narrowing of the gap has been attributed to gains women have made in those areas. Other factors, which are more difficult to measure, may still contribute to the gap, including gender discrimination.

A 2017 Pew survey showed four in 10 women in the U.S. have reported experiencing discrimination on the job, with 25% reporting earning less than a

6 October/November 2018 | Canadian Property Management

man doing the same job — versus only 5% of men reporting earning less than a woman. That number increased with educational level — 20% of women with some college or less reported pay inequity, while 35% of women with postgraduate degrees experienced the same discrimination.

UNREWARDED, BUT NOT UNAWARE Commercial real estate recruitment and staffing firm RETS Associates’ 2018 Women in CRE Survey found that 65% of respondents were made aware of being paid less than a male counterpart at some point in their career. Of those, 75% noted it happened at least two times.

Sixty-one percent felt they were bypassed for a job, assignment or listing at some point in their career based on gender. Of those, 82% said it happened more than once, while 54% said it happened three or more times.

staffing

PROGRESS WARD Almost two-thirds of those women did not take action after being bypassed for a job, assignment or listing, citing fear of losing future career opportunities, fear of poor treatment from leadership and fear of reputation damage. Of those who did take action, 45% began to look for a new job; 28% had issues unresolved by human resources or management; 17% resigned; and 3% took legal action. Only 7% had the issue resolved to their satisfaction.

As past CREW Network research has shown, the pay gap widens as women in commercial real estate move up in the ranks, with the gap widening midcareer. PayScale, a software company specializing in pay data, suggests one reason this happens is because women

GLOBAL ESG METRICS Gender diversity is on the agenda of a large majority of real estate companies, funds and institutional investors participating in the GRESB global survey of the ESG (environmental, social and governance) performance of real estate portfolios. The recently released 2018 snapshot of 903 entities, collectively holding 79,000 assets valued at approximately USD $3.5 trillion, shows that 81% monitor diversity indicators and 78% specifically track gender diversity.

Nevertheless, North American participants trailed their peers in Europe and Australia/New Zealand in the practice.

"Some regions pay more attention to specific metrics than others. For example, North American companies tend to prioritize racial diversity more so than other regions — 63.18% in North America vs. 47.51% on average," the GRESB 2018 analysis states. "The region that clearly sets itself out on this topic is Australia/NZ, with more than 96% of respondents monitoring and reporting this metric. More than 75% of these respondents consider gender, age and board tenure as a priority."

For more information, see the website at www.gresb.com.

“Closing the pay gap could be determined by how employers react to women’s increased and improved negotiations for compensation and how transparent each employer’s hiring practices are.”

Canadian Property Management | October/November 2018 7

staffing ask for raises less frequently than men, which has a cumulative effect as women progress in their careers.

Despite this inequity starting midcareer, Alison Harrigan, who works in executive search for global organizational consulting firm Korn Ferry, observes that women and men on the executive level take a similar approach to negotiating their salaries. When it comes to recruiting top-level executives for the largest organizations, most candidates seem to have outside guidance on the offer process, such as an employment lawyer or mentor.

According to the 2015 CREW Network benchmark study, men in the commercial real estate C-suite earn 29.8% more than women at the same level. If executive level men and women are negotiating their salaries equally, this may indicate women are starting from lower offers and basing negotiations on salary history rather than their skills, abilities and experience.

Ha r va rd University resea rchers Hannah Riley Bowles, Linda Babcock and Lei Lai show that, for women, sometimes it does hurt to ask. In a series of exper iments, they found that evaluators penalized women more than men for initiating negotiations, and nervousness around male evaluators made females less inclined to negotiate compensation versus encountering a female evaluator.

salary transparency in some form, either full or providing a range of compensation for a given position. But by its 2018 survey, it found that only 3% of companies actually execute transparency practices, while 7% will provide information on a need-to-know basis.

CALL FOR TRANSPARENCY Closing the pay gap could be determined by how employers react to women’s increased and improved negotiations for compensation and how transparent each employer’s hiring practices are. Sixtytwo percent of respondents to a 2016 CREW Network white paper survey believe that pay would be more equitable in commercial real estate if employers were required to share compensation information.

Harrigan reports that many women are open to sharing their compensation i n for mat ion wit h ot her women, especially when they’re in similar positions or markets. “Because pay parity is coming to the forefront, I see female executives sharing notes with each other more often,” she said.

A survey conducted by Challenger, Grey & Christmas in 2014 showed that 55% of human resources executives thought companies should practice 8 October/November 2018 | Canadian Property Management

As Ha r r iga n ment ione d , more commercial real estate companies are taking notice of the lack of women on their boards and are taking steps to rectify these glaring omissions. In the U.S., real estate investment trusts (REITs) are leading the way: The Wall Street Journal reports that the sector named a record number of women to board positions in 2018, with 49 women filling the spots of 94 REIT directors.

Women comprised 52% of this year’s slate, compared to the 41% of newly elected women in 2017, according to statistics from Ferguson Partners.

However, 32 of 192 REITs have no women on their boards, and only eight have female chief executives. zz The complete text of Achieving Pay Parity in Commercial Real Estate can be found at https:// crewnetwork.org/about/resources/industryresearch/achieving-pay-parity-in-commercialreal-estate.

PURSUING 3Es IN THE CLEAN ENERGY SECTOR Canada has joined with eight other OECD countries in a commitment to advance women's participation in the clean energy workforce. Women currently fill about 25% of Canadian positions related to renewable energy and associated innovations — an even more lacklustre rate of representation than the international average of 35% of the sector's employment — so there is plenty of room for both individual career growth and to accommodate gender diversity in the executive structure.

The Clean Energy Ministerial, a global forum that currently comprises 25 member nations and the European Commission, launched the Equal by 30 campaign in the spring of 2018 with a goal to draw more women into clean energy jobs over the next 12 years. This, in turn, is expected to help drive the burgeoning green economy.

Unsurprisingly, assurance that women will be assessed on merit and compensated and elevated equally with their male peers will be instrumental to achieving that goal. Both public and private sector organizations are urged to endorse the principles of equal opportunity, pay and leadership — commonly known as the 3Es. "We need women and men to work together, on an equal playing field, in order to deliver the best results," affirms Annette Verschuren, Chair and Chief Executive Officer of NRStor, an energy

storage company and one of the first Canadian enterprises to back the Equal by 30 campaign.

Canada and Sweden are the designated lead member nations on the initiative. Canadian based Electricity Human Resources Canada, the Energy Council of Canada and Women in Renewal Energy are partner organizations, along with the Clean Energy Ministerial and the International Energy Agency.

Thus far, 13 Canadian companies or industry associations have signed on, including the Canadian Hydropower Association, Canadian Nuclear Association and Canadian Urban Transit Research & Innovation Consortium.

They've been asked to voluntarily submit data about their workforces or membership. They will be expected to publicly state their policies for achieving gender equity and, of course, to implement those policies, report on progress and share information about their efforts with the broader industry.

Other participating nations include Italy, Finland, Japan, Germany, France, the United States and the United Kingdom. Interestingly, energy companies based in seven additional countries are among the private sector supporters.

For more information, see the website at www.equalby30.org.

“ I COULD

NEVER LIVE WITH SOMETHING HAPPENING TO MY TENANTS. Ensuring my staff and I always hire Licensed Electrical Contractors for electrical work isn’t only good for business, it’s good for my peace of mind. Hiring a ‘guy’ may seem cheaper, but doing it legally saves my tenants downtime, and saves me from sleepless nights.”

-Mark Levinson Property Manager

Mark manages nine commercial properties and is considering using ESA’s time saving Continuous Safety Services. To learn more about your legal obligations and the benefits of CSS, visit esasafe.com/propertymanagers

servicedelivery

INNOVATION GETS REAL Pilot Project Matches Smart Technologies to Urban Challenges

By David Maher TORONTO HAS long been a city open to innovation and change, whether it be culturally or technologically. It’s no surprise then that the city was chosen to take part in the Urban Pilot Program, or UPPlift, which aims to bridge the gap between emergent smart technologies and property managers to enhance a city’s liveability.

The program has enlisted a number of heavyweight companies to get involved, such as Microsoft and QuadReal Property Group, as well as start-ups and elements of the public sector, including the City of Toronto. Mikele Brack, Chief

Executive Officer of Urban Living Futures and the creator of UPPlift: Toronto, explains that, at its core, the program is about making the city a better place to live.

“We identify the issues and challenges of cities and listen to their aspirations for bringing smart technology into their assets. We then match them with innovators and tech that can address those issues and challenges,” she says.

“These can range from start-ups to large corporations. Bosch was part of the program’s latest cohort. They have innovations within their pipeline that are

10 October/November 2018 | Canadian Property Management

not yet commercial and they need proof of concept in order to commercialize them.”

It is this mutually beneficial bridging purpose that has convinced the large corporations to get on board. Focusing on data-based solutions, the use of sensors and the Internet of Things (IoT), UPPlift aims to make the most of the infrastructure and systems already in place in participating properties to allow them to cope with an increasing population.

“We’re excited to provide the technology, IoT expertise and the

> SOCIAL MEDIA COLUMN Sponsored by MediaEdge

support the government, businesses, local institutions and citizens will need as they develop new smart city solutions,” says Rodney Clark, Vice President, IoT, Microsoft. “New digital solutions will help Toronto and other cities optimize their operations, engage citizens in new ways, deliver new experiences and make the city an even better place in which to work and live.”

One of Canada’s largest commercial real estate players, QuadReal, was chosen to host a number of UPPlift “testbeds” around the city. They adopted technologies that could improve the experience of people living, working and shopping in their properties, while also promoting innovation, efficiency and productivity.

“O ne a sp e ct is t he customer experience; that could be efficiency or sustainability. It’s really about improving the overall environment and the people using those buildings are obviously a part of that,” says Cheryl Gray, Executive Vice President, Enterprise Innovation, with QuadReal. “We created several mandates when we embarked upon this program and we asked the innovators to be thinking about a variety of different things and challenges.”

“We’re excited to be able to give the innovators an opportunity to pilot in our buildings. For us, it’s a way for our teams to look at the innovation and perhaps see things differently,” she adds.

EFFICIENCIES & PRACTICAL GUIDANCE O ne such pie c e of t e ch nolog y implemented in QuadReal properties was ArgosAI, a digitized data stream used to track a variety of key data points without sensors. The information received from multiple video feeds is digitized to create a single data stream that can be used to count people, monitor space usage, assess advertising impact and automate parking space management.

Another is Eddy Home. This provides intelligent leak protection and water monitoring, implemented through smart products that protect, control and conserve water. Installed directly on the water main, Eddy Home’s IoT technology provides real-time readings of water consumption, leak detection and remote

water shutoff. When leaks are detected, the system automatically shuts off the flow of water to prevent damage.

“We want to provide them with the technology that brings them into the next century,” Brack maintains. “Toronto already has lots of historic and modern features and we’re working to bring technology into that to create efficiencies and bring smartness to create better living environments. Making systems work as well as possible, given the latest technology available.”

For property managers, some of the technologies being trialled have the potential to make their lives a lot easier.

VSETA is another system QuadReal has implemented. It helps facility managers accurately assess how many people are located in various parts of a building and how they consume services or interact with the building. Custodial teams are then able to manage facilities more efficiently and first responders are better informed in addressing emergencies.

With such an impressive array of innovation on show, Brack finds it impossible to pick a favourite.

“They’re like our children, we don’t have favourites!” she quips. “You can see from the technologies selected by the City of Toronto that they’re looking at more citywide applications that will help the population in general. They selected things like Intuitive Robotics, which uses AI to help people to place their garbage in the right bin. It’s something that people tend to get wrong, so this helps us make the most of our recycling resources. Then there’s things like the EV charging stations. That’s not new technology, but we don’t have a lot of it in Toronto.”

Through collaboration and innovation, the UPPlift project provides a glimpse into what the future could hold for property managers and tenants alike.

“I have a small company and I’m working with the likes of Microsoft and QuadReal, as well as elements of the public sector like the Independent Electricity System Operator (IESO),” Brack says. “We’re large and small firms working together and we all have an interest in making Toronto a better place to live” zz

Tips for effective B2B hashtag use, part one

By Steven Chester An effective hashtag strategy is a key component in your social media plan.

However, for those starting out on social media, hashtags tend to befuddle. Here are some quick tips to up your game.

Hashtag research Do your research. B2B social media users tend to have a very specific set of tags that they like to use so that they can converse among their peers.

Listen to your audience, and you’ll find those tags and can capitalize on them. Be sure the information you’re posting relates to the tag, however, as if you’re simply adding tags to your marketing content that do not add to the conversation, you’ve lost the trust of your group.

A very common error is what’s referred to as “hashtag stuffing.” This is where a user adds hashtags to just about every word in their post, or leaves an annoying array of tags at the end of their text. (#Who #really #wants #to #read #this?)

Narrow your post down to two or three main tags, and insert them into the post in a more natural, conversational format.

Be cautious of branding Branding your hashtag is normally ineffective (not to mention cheesy). The adage “if it doesn’t add, it takes away” is a good one here. If you’re the only user posting #XYXYCompanyRules, what purpose is that tag serving?

Now you understand the basic rules.

However, each social media platform views hashtags through a different lens.

Stay tuned for the next column.

Steven Chester is the Digital Media Director of MediaEdge Communications. With 15 years’ experience in cross-platform communications, Steven helps companies expand their reach through social media and other digital initiatives. To contact him directly, email gosocial@mediaedge.ca.

YOUR PROVEN SECURITY PARTNER

commissionaires.ca

space+services

PREPARING FOR THE GREY TSUNAMI

Accessibility Certification Backstops Innovative Inclusive Design

By Barbara Carss HIGH-PERFORMANCE buildings, by definition, exceed the minimum standards set in the building code across almost every design and operating feature. Accessibility is the exception. Fear of possible liability often prompts building owners and their designers to favour the choices they know they can defend.

“The architect tends to drift back to the code where it’s nice and safe,” Brad McCannell, Vice President, Access and Inclusion, with the Rick Hansen Foundation, told seminar attendees at last year's IIDEXCanada conference and tradeshow in Toronto. “We need a LEED program (equivalent) for accessibility. We need a national scale to rate things. We need a common standard.”

Rick Hansen Foundation Accessibility Certification (RHFAC) is an initiative to create that standard, stock a pool of accredited accessibility assessors to serve as a resource to the commercial real estate industry, guide property improvements and identify and commend accessible buildings.

The program got a boost in the Rick Hansen Foundation’s home base last year when the British Columbia government pledged $9 million to sponsor free accessibility ratings of up to 1,100 of the province’s commercial, multi-residential or institutional buildings

by March 2019 and offer grants of up to $20,000 for accessibility improvements.

The majority of the current 28 certified accessibility assessors practice in B.C., but RHFAC administrators are aiming to have

about 200 assessors qualified, Canadawide, by the end of 2019. Training courses are now offered at Vancouver Community College, the Southern Alberta Institute of Technology (SAIT) in Calgary, George Brown College in Toronto and Nova Scotia Community College in Halifax. This includes a new module specifically for designers, construction trades and technologists, real estate developers and operators, and municipal planners and building officials.

The timing is fitting as Canada and countries worldwide await what’s been dubbed the silver tsunami. Already, global statistics reveal that about one in seven people report some kind of disability, but that percentage is projected to rise to one in five over the next 20 years. McCannell pointed to his own mother as a stereotypical example of the aging population, experiencing diminished mobility, eyesight and/or hearing.

PROFESSIONAL DESIGNATION Rick Hansen Foundation Accessibility Certification (RHFAC) assesses and rates how people across the entire spectrum of mobility, vision, hearing, cognitive and intellectual abilities might navigate, interact with structural and design features and/or comprehend and respond to emergency signals and evacuation procedures within a building and the surrounding property. CSA Standard B651, Accessible Design for the Built Environment, sets the baseline for determining this.

RHFAC administrators have developed specialized training to equip a broad range of building-related practitioners with the insight and skill to apply inclusive design principles to their work — whether that's devising, approving or constructing plans for new development

or maintaining and adapting existing buildings. The RHFAC professional designation will provide assurance of assessors' qualifications to employers, clients and regulators.

Training courses are open to: registered engineers and architects; holders of a diploma of technology in architecture, engineering, urban planning, interior design or a related program; certified tradespeople or journeymen in a construction-related trade; or people with a minimum of five years' experience related to building construction. After successful completing the course, candidates must score at least 75% on a CSA-administered exam and complete field experience under the supervision of an accredited assessor to earn their credentials.

Canadian Property Management | October/November 2018 13

space+services “They don’t respond to the idea of being disabled,” he said. “She doesn’t think she’s disabled. She thinks she’s normal and, when you look at the stats, she is.”

Universal design principles are grounded in the same philosophy. McCannell cited the Vancouver International Airport, where the Rick Hansen Foundation served as a consultant, as an example of a space designed to enable the broad cross-section of the public to use it with minimum need for assistance or special interventions.

“You won’t find that little wheelchair guy (icon) anywhere because everywhere is accessible,” he explained. “When you make things invisible except to people who need it, that’s a core principle of universal design.”

BENCHMARKING AND GUIDANCE Much of the existing building stock falls short of that ideal, but RHFAC can help owners/managers identify impediments to access and set priorities to address them.

The assessment scores buildings on a scale of one to five in eight different aspects, including vehicular and exterior access, interior circulation, communication systems and emergency egress. Assessors can also award bonus points in each category if they see something innovative.

Buildings achieving a score of 60 to 79% are awarded Accessibility Certification; scores of 80% or higher merit Gold Accessibility Certification. In all cases, building owners/managers receive the scorecard and have discretion to decide whether to publicize the results.

“It’s not designed as a consumer product.

It’s an industry tool,” McCannell said.

“Eight categories tell owners where they are strong and where they are weak. The scorecard will reveal the low-hanging fruit.”

Developers can similarly ask for a preliminary accessibility rating based on the building design. This could then be used for leasing and marketing purposes or it could be a quality control exercise to spot and correct potential barriers.

“Getting to new buildings is important because we have to stop making new mistakes,” McCannell asserted.

If participation grows as the program designers hope, it could help to build a more accurate inventory of accessible buildings.

“Right now, we don’t know,” he said. “We want to celebrate access. We are not the code police; we are trained to see the good as much as the bad.”

Beyond the scorecard, which McCannell defines as “a snapshot in time”, RHFAC will be a resource for building owners/ managers seeking more detailed audits and/

ENABLING TECHNOLOGY Architectural technologists are well positioned to champion accessibility and universal design. While Christian Côté Ménard recalls drafting tables from the first year of his college studies, he and his peers have long since evolved into digital craftspeople.

Their hands-on mastery of building information modelling (BIM) and 3D design applications enables pivotal translation of the architect's intent to a form that can be tested and modified. Participating in a panel discussion at The Buildings Show in Toronto last year, Côté Ménard, Project Manager, Contract Administration, with Turner Fleisher Architects, explained how programs like Revit generate a virtual building in advance of costly, often irreversible commitments at the construction stage.

"Through some of these tools, we can actually proof the designs," he said. "It may look good on paper, but when you're actually in it, it may feel different."

An emerging workforce of tech-savvy recent graduates are bringing needed skills to a profession that has been somewhat slower to embrace change.

"Architecture schools are probably not as hard core on technologies as the technologists are," acknowledged John Romanov, President of Romanov Romanov Architects and a professor in the architectural technology program at

Centennial College in Toronto. "The progress within the industry is largely behind the colleges. With the college we are always looking forward to what is the latest technology and the practice may not always be there yet."

In part, Pietro Ferrari, Professor and Program Coordinator in the School of Architectural Studies at Toronto's George Brown College, suggested that's because many architectural clients are largely unaware of today's technological possibilities and/or unwilling to pay for them.

However, paybacks on the investment can be quick and substantial.

Beyond modelling the completed building's performance, designers can model the construction process itself — building the building in accurate sequence on their computer screens — identifying potential issues or finding efficiencies.

Technology is also enabling prefabrication of building components offsite, and Ferrari predicted 3D printing will be harnessed in the future.

"We are in the middle of a very powerful digital disruption. Digital is disrupting everything about what we do and it's going to do this more and more as we move forward," he asserted. "As older individuals, our continued learning is extremely important."

“We want to celebrate access.

We are not the code police; we are trained to see the good as much as the bad.” or guidance about implementing improvements. The standard could also support regulatory due diligence since new federal accessibility legislation is expected.

“We see RHFAC as a way of helping you get prepared for that,” McCannell said.

Under B.C .’s g r a n t p r o g r a m , municipalities and not-for-profit entities are directly eligible for funds, while private sector owners/managers must c o n t r ib u t e a m a t c h i n g a m o u n t .

Prospective proponents are urged to consider the entire scope of needs, including visual and auditory aids that ca n be added wit hout mod if ying protected design features in heritage buildings.

14 October/November 2018 | Canadian Property Management

“Hearing loss is the single biggest disability by far,” McCannell stressed.

“There’s a notion that wheelchair users equal access. Wheelchair guys are less than 20% of the disability community, yet we dominate the discussion. Just because you don’t have access for wheelchairs doesn’t mean there aren’t a lot of things you can do.”

The Vancouver International Airport is good proof that the benefits flow both ways.

Universal design doesn’t just get people efficiently to their flights, it also gives everyone equal access to services while they are waiting.

“It’s essentially a mall,” McCannell observed. “A barrier to a person with a disability is a barrier to making a profit.” zz

THANK YOU FOR READING! THIS MAGAZINE IS PART OF THE REMI NETWORK Real E s t ate M anagement I ndus t r y

CANADIAN

Canada’s Most Widely Read Condominium Magazine

MARCH/APRIL 2018

Apartment

FOR BUILDING OWNERS, ASSET AND PROPERTY MANAGERS

SERVING THE FACILIT Y CLE ANING & MAINTENANCE INDUSTRY

VOLUME 15 / NUMBER 2 / MAY 2018

JUNE 2018

LIVING LARGE

VOL. 33 NO. 3 • JULY/AUGUST 2018

HIGH RISE

ERGONOMICS

Will Toronto’s new 'ultra-high-rises' come with sky-high maintenance costs?

ELEVATED

+

HVAC EFFICIENCY

Advancing pest control, preventing potholes and securing master keys

ZERO

WASTE PA R T O F T H E

plus

PA R T O F T H E

PA R T O F T H E

PA R T O F T H E

O F

T H E

DEEP ENERGY RETROFITS VALUE RISKS & FUNDAMENTALS URBAN PRESSURES GRID INNOVATION MACHINE LEARNING DEVELOPMENT OBSTACLES

P A R T

O F

Sunshine Building Maintenance poised to continue its success under leadership of Mark Brouwers, Bill Houston

Q2 MARKET TRENDS

T H E

P A R T

PM#40063056

P A R T

PA R T O F T H E

O F

T H E

P A R T

TENANT TURNOVER

O F

T H E

P A R T

O F

T H E

PA R T O F T H E

PA R T O F T H E

A BRIGHT FUTURE

WHO’S WHO 2018

PA R T O F T H E

PA R T O F T H E

P A R T

O F

T H E

P A R T

O F

T H E

P A R T

O F

T H E

PM#40063056

PA R T O F T H E

P A R T

PM#40063056

Publication Agreement #40063056

� HOW TO STAVE OFF STINGING INSECTS

ATTRACTING INVESTORS IN A COMPETITIVE LANDSCAPE

CANADA $15.00

Algorithms Unlock Efficiencies

RICHMOND FACILITY FIRST IN MAJOR B.C. CITY TO CO-LOCATE FIRE AND AMBULANCE SERVICES

� SURFACE LOT PAVEMENT CARE

RISKS & RETURNS

PROPTECH PROSPECTS

STATION INTEGRATION

� WINDOW WASHING AND WORKPLACE SAFETY

March 2018 • Vol. 33 #1

Canadian Publications Mail Product Sales Agreement No. 40063056

O F

T H E

P A R T

O F

T H E

FOCUS ON FLOORING

CANADIAN PROPERTY MANAGEMENT

CANADIAN APARTMENT MAGAZINE

FACILITY CLEANING & MAINTENANCE

CANADIAN FACILITY MANAGEMENT & DESIGN

CONDOBUSINESS

8 ISSUES/YEAR

6 ISSUES/YEAR

5 ISSUES/YEAR

5 ISSUES/YEAR

6 ISSUES/YEAR

Join over

100,000 REAL ESTATE MANAGEMENT PROFESSIONALS

line Publishi On

l d / O r 2 017

l

ve

r/A

17

Go

Si

Canadian Property Management drills into and draws connections between each of these key functions — exploring how the buildings sector coexists with a fragile environment and its multidisciplinary workforce navigates an evolving society.”

line Publishi On

Awards g Awards ng n

“Commercial real estate drives the economy as an employer and purchaser of goods and services; it backstops the economy as an investment asset class; and it literally houses a vast portion of global economic activity.

Canadian Canadian

who enjoy our Award Winning Content

0 rg ent 2

Barbara Carss, Editor-in-Chief Canadian Property Management

Subscribe TODAY for as little as 16 cents/per day *Subscriptions cost between $20 - $60/year

Call us now (416) 512 8186 x 234 | REMINETWORK.CA

management&compliance

HOMING IN ON

CANNABIS COMPLICATIONS

Medical Users Remain Exempt from Multi-res Smoking and Growing Prohibitions

By Barbara Carss

DESPITE THE VAST new potential pool of recreational cannabis users, tenants and condominium owners with medical authorization to grow and consume cannabis may still trigger some of the most contentious debates in multiresidential buildings. Medical users will remain largely exempt from conditions that landlords and condo corporations can impose on recreational use.

Options are available to prohibit smoking or growing cannabis for recreational purposes within units. Even where allowed, Canada’s Cannabis Act limits cultivation for personal use to a maximum of four plants per household.

Rental housing industry advocates have been urging the Canadian government to review and modify rules for the quantity and/or growing locales of plants that medical users are currently allowed to cultivate. This formula is based on the number of plants deemed necessary to yield a patient’s prescribed daily dosage with few

accompanying guidelines beyond some recommended safety and security measures.

“In one case, I have seen a Health Canada registration certificate authorizing up to 49 cannabis plants in an apartment unit with no requirement for consent from the landlord,” reports Joe Hoffer, a partner and specialist in municipal and tenancy law with Cohen Highley LLP. “I have seen what amounts to a full blown grow op with high-level lighting, humidity controls, tented areas of the floor duct-taped together and the parquet flooring lifted and scattered about.”

“It can lead to absurd situations,” concurs Hans Brouillette, Director of Public Affairs with CORPIQ (Corporation des propriétaires immobiliers du Québec). “We recently heard from one of our members who had to contend with a tenant who was authorized by Health Canada to grow up to 244 cannabis plants for personal use.”

Quebec, along with Manitoba, is one of two Canadian provinces where it is prohibited to cultivate recreational cannabis in any

16 October/November 2018 | Canadian Property Management

residence. Fines for doing so have been set at $250 to $750 in Quebec and $2,542 in Manitoba, although both provincial stipulations contravene federal legislation and are vulnerable to a court challenge.

SETTING TERMS FOR CULTIVATION Regardless, Hoffer advises that landlords and condo boards should still have room to manoeuvre. In most cases, residents will have other medical cannabis supply options so a prohibition on growing it in their homes would not obstruct their access to the product. Additionally, medical users’ rights have to be balanced against those of their neighbours.

“In my view, it would be an abdication of duty of care for landlords to permit grow ops in a multi-residential setting because they have to protect the property, health and safety of all residents,” he submits. “Fire and mould threats — and also security issues, in the case of 49 plants sitting there tempting miscreants — warrant imposing a rule.”

management&compliance Alternatively, landlords can employ special lease conditions for circumstances in which they must accommodate plant cultivation on a larger scale.

“They should have a set of terms and conditions in place, usually implemented via an amendment to the tenancy agreement,” Hoffer says. “For example, that would require the tenant to have proper liability insurance with coverage for damage from grow operations, and indemnify the landlord for any damage caused. It should also cover compliance with property standards and environmental regulations, permission for regulatory officials to inspect and reimbursement for the cost of any environmental compliance orders.”

In the new recreational regime, he predicts landlords and condo boards will respond with varying degrees of discretion if residents overstep limits — either the four-plant ceiling in the Cannabis Act or a total embargo imposed through lease agreements or condo bylaws — for in-suite cultivation.

“Start with a letter telling them to cease the operation,” Hoffer says. “If there is no compliance, you can issue an N5 (to notify termination of tenancy) in an apartment context or threaten a court proceeding in a condo context.”

Nevertheless, rule breakers may be difficult to detect. Property managers will be able to inspect units, after giving advance notice, if there is a lease term or condo bylaw in place to prohibit cultivation.

Otherwise, rental housing landlords would have the opportunity to check during annual or semi-annual unit inspections. Officials authorized to enforce the Cannabis Act — typically government inspectors or police — can only enter a dwelling unit with the resident’s consent or a warrant.

MOVING SMOKERS OUTDOORS Multi-residential dwellers with medical authorization to smoke cannabis could stand out from their neighbours simply by staying inside, since they will be exempt from any ban on smoking in units.

In contrast, legislation in both Quebec and Ontario effectively pushes most residents of non-smoking buildings outdoors if they want to light up — where they will have to stay at least nine metres away from any premises where smoking is prohibited.

Beginning with the October 17 legalization date, Quebec landlords have 90 days, until January 15, 2019, to invoke a cannabis smoking ban in tenants’ units. Notably, the newly elected Coalition Avenir Québec (CAQ) government is on record supporting CORPIQ’s position that tenants who claim exempt status should be required to provide their landlords with documented proof of their medical prescriptions. The former Liberal government had rejected that proposal as an invasion of privacy.

Nearly half of the respondents to a June 2018 CORPIQ survey allow tobacco smoking in their buildings, but only 14% of that group intend to be similarly lenient about cannabis. Recent communications in the September 2018 issue of the association’s publication, PROPRIO, reminds members they must consider all tenants even while accommodating medical cannabis users. That includes a legal opinion predicting the provincial tenancy regulator, la Régie du logement, will be called upon to mediate.

“In theory, even if a tenant obtains the right to smoke cannabis for medical reasons, he or she should not cause problems for the building’s other tenants,” reasons Damarys Pineda Machado, a lawyer with Gagnon & Associés Avocats. “If the owner notes that the tenant is disturbing other tenants’ peaceful enjoyment, the owner must send a formal notice to the tenant concerned. The owner could

also suggest alternatives to smoking cannabis, such as using it in edible form, which would eliminate the second-hand smoke and resolve the complaint.”

HEALTH AND SAFETY VIGILANCE Adults will be allowed to smoke cannabis in almost every area of Quebec and Ontario where tobacco cigarettes are permitted. How that translates to multi-residential living will become more apparent in the coming weeks and months.

Fire safety experts note that balconies, doors and windows will be the primary exit and entry points for smoke and/or pungent odours since smoke cannot travel through fire separations between units.

It’s plausible to expect formerly covert cannabis smokers will have an atmospheric impact, but that might happen somewhere outdoors in the prescribed range for smokers at least nine metres from any building entrance.

“Some people who were previously hiding it inside their suites might now be smoking it on their balconies,” hypothesizes Michele Farley, President and Senior Code Consultant with FCS Fire Consulting Services Ltd. “However, if you consider the experience with tobacco, it seems like fewer people are smoking in their units.”

She suggests property managers may want to step up vigilance in common areas where smoking of any kind has long been prohibited.

In particular, some buildings are already plagued with scofflaws smoking tobacco in the stairwells.

“I guess the question is, how much worse is this going to get?”

Farley muses. “It’s also a good time to remind people that butts of any kind should never be thrown from a balcony.” zz

From Boiler Room to Boardroom

A professional association focused on advancing and promoting the FM community. Join IFMA Toronto Today at ifma-toronto.org

Canadian Property Management | October/November 2018 17

management&compliance

MORE SMOKERS STOKE LITTER AND FIRE RISK Butts Out in the Open with Cannabis Legalization

By Barbara Carss

COINCIDENTAL TIMING had Canada’s new cannabis laws came into force in the middle of Waste Reduction Week, just four days after Fire Prevention Week wrapped up. That might be somewhat less momentous than the initially envisioned July 1 launch date, but it’s fittingly in sync with a potential influx of many more smokers into Canadian society.

“Smoking was one of the top-two causes (along with cooking) of residential fires for years and years. It has only been fairly recently that some other causes have surpassed it,” observes Michele Farley, President and Senior Code Consultant with FCS Fire Consulting Services Ltd. “Now there could be a pickup in smokers again,

and there’s an added fire safety concern if they’re smoking something that may make them impaired.”

The seven-point guiding purpose stated in the federal Cannabis Act emphasizes public health, safety and prudence. The underpinning goals of the legislation are to ensure that cannabis production and sales transactions occur within a regulated framework, which allows only adults to participate and operates in a utilitarian manner with limited scope for marketing.

In the health and safety context, the federal, provincial/territorial and municipal governments’ role is to police product quality, environmental standards, business practices and other longstanding rules related

18 October/November 2018 | Canadian Property Management

to controlled substances, while entrusting the citizenry to behave responsibly. Invariably, not everyone will, so a diverse range of business, professional and public interest groups are devising and deploying strategies to promote common sense and minimize risk, discord and environmental fallout.

OUTDOOR EMISSIONS AND FALLOUT Ontario’s Cannabis Statute Law Amendment Act aligns with one of the key points Fire Prevention Week promoted: Encourage smokers to smoke outside. The legislation allows people who are at least 19 years of age to smoke cannabis almost everywhere it’s permitted to smoke tobacco — greatly expanding upon the previous

management&compliance government’s efforts to confine recreational cannabis use primarily to private residences.

Property managers, building services staff, habitués of designated outdoor smoking areas or anyone crossing through public space in the vicinity of commercial or multi-residential buildings will now be seeing and smelling what that entails. Other repercussions will have to be monitored over the longer term.

“I think the Fire Marshal will be watching to see if there is an increase in fires, but it will be awhile until we get the data,” Farley says. “In the meantime, it’s also a good time to remind people that butts of any kind should never be thrown from a balcony.”

The vast range of potential venues for smoking cannabis adds some complications for litter control. Property managers adhering to sustainability programs may want to furnish their outdoor smoking areas with green bins and instructional signage for separating and discarding all types of cigarette remnants. However, leading up to October 17, even the Recycling Council of Ontario (RCO) hadn’t clarified what advice to offer.

“It will come down to the kind of filter cannabis products have,” speculates Cedric de Jager, RCO’s Communications Manager. “Tobacco cigarette butts are plastic foam. If a cannabis joint has no plastic, and the packaging and filters are composed of organic material, it could go into a green bin.”

LURING BEST FRIENDS AND UNWANTED VISITORS The Canadian Veterinary Medical Association (CVMA) warns that such material should not go into an animal’s digestive system. Human carelessness and indiscriminate canine appetites could prove a perilous mix as dog ownership climbs in many urban neighbourhoods.

“Exposing pets to THC-rich cannabis products could put them in critical medical crisis that requires prompt and appropriate medical treatment,” states a cautionary alert from the CVMA. “ Sm a l le r dogs a r e p a r t icu la rly susceptible due to the lower level required to produce symptoms. Cats are not immune to toxic side effects, but are much more selective in their food intake. Cats generally avoid eating garbage, scavenging cigarette-type butts on walks around the block or table or counter surfing.”

Cannabis could likewise prove a lure for theft in scenarios where private

“I think the Fire Marshal will be watching to see if there is an increase in fires, but it will be awhile until we get the data.” residences are open to the public.

Regulations require that plants and products be kept securely in private residences and safeguarded so that minors cannot obtain easy access to them. However, in practice, prospective vendors can be reckless about what’s on display in their homes.

“A licensed registrant must be present at all showings and open houses, but, even so, common sense should always prevail,” maintains David Roman, a sales representative with Keller Williams Advantage Realty. “I have seen all manner of things that should have been hidden, left out in view: tablets; laptops; thumb drives; items of an intensely personal nature; highly valuable jewellery; cash; drugs — both legally

prescribed and illegal — and related paraphernalia. In fact, there are no established rules around this, but good agents would advise their sellers to keep all desirable items and valuables out of sight, or better, locked away.”

While cannabis plants are less likely to be pocketed, Roman doesn’t foresee them among home stagers’ preferred foliage and flowers.

“Given that there may still be a stigma around cannabis use and growing, I would currently advise my clients to move pot plants out during the listing time so as not to alienate potential buyers,” he says. “Another consideration, as I understand it, is that plants can emit a pungent odour, and an unpleasant smell in a property can turn buyers away.” zz

Building Science & Restoration Consultants Building Envelope

RJC Engineers

Assessment & Remediation Structural Restoration Due Diligence/PrePurchase Assessment Property Condition Assessment Structural Engineering Roof Consulting

rjc.ca Canadian Property Management | October/November 2018 19

professionaldevelopment

CAPACITY BUILDING IN JAMES BAY Facilities Staff Apply Enhanced Energy Management Knowledge

By Kent Waddington ENERGY CONSERVATION initiatives have reduced some of the cost premium that is an inescapable fact of living in Canada’s north, while supporting skills development that make health care operations more self-reliant in five James Bay communities. The Canadian Coalition for Green Health Care and the Weeneebayko Area Health Authority (WAHA) — providing health care services for a largely First Nations clientele in the northern Ontario communities of Attawapiskat, Kashechewan, Fort Albany, Moose Factory and Moosonee — joined forces in 2016 to assess energy use in WAHA facilities and find savings through retrofits, operational adjustments and promoting a conservation mindset.

As part of that effort, the first group of certified building operators to graduate from a training program in a remote northern community are now applying their enhanced energy management knowledge in the facilities where they work.

Their instructor, JJ Knott, who heads up HealthCare Energy Leaders Ontario (HELO), notes that other kinds of efficiencies have also been achieved through the development of in-house expertise.

“WAHA’s First Nations facility staff are now confident to tackle a much broader spectrum of building maintenance and retrofit tasks,” he reports. “Their previous reliance upon expensive fly-in technical support has been replaced by enthusiasm, competence and a newfound determination to make their buildings more energyefficient and climate-change-ready.”

Capacity building is all about enabling and embedding this kind of technical knowledge within an organization. Energy awareness 20 October/November 2018 | Canadian Property Management

supports energy-conserving behaviour. In turn, that helps to ensure energy retrofit and management projects achieve maximum payback and steady savings over time. Training facility staff to be energy champions creates role models within the organization who then influence others to become involved in improving the environmental stewardship and climate change resiliency of their health care infrastructure.

Ontario’s Independent Electricity System Operator (IESO) provided funding support for the competency-based building operator certification (BOC) training. Through the course, facilities personnel got the opportunity to improve their technical expertise and job skills in a number of core areas including: energy-efficient operation of building HVAC systems; measuring and benchmarking energy performance; efficient lighting and HVAC controls fundamentals; indoor environmental quality; common opportunities for low-cost operational improvements; facility electrical systems; and operation and maintenance practices for sustainable buildings.

As a result, WAHA staff have taken a more proactive role in project design and application. “The training has led to a new sense of pride and ownership,” Knott maintains.

Graduates’ assessments of the program were similarly positive, with comments such as: “The BOC training has helped make me more aware of possible [energy] savings to be had and helped develop better maintenance strategies.” Others credited it with refining “knowledge of HVAC systems, how to properly maintain and upkeep buildings and showed me other options to use to solve issues” and “planning and coordination of annual maintenance of building systems”.

professionaldevelopment LOVE HELPS BUREAUCRATS EMBRACE CONSERVATION

Newly minted graduates of Canada’s first remote northern First Nation’s building operator certification (BOC) training program. LEFT TO RIGHT: Mervin Weistche, Marcel Brazeau, Jean Arsenault, Sterling Trapper, Paul Corston, Wade Rickard, and BOC training instructor and HELO lead, J.J. Knott.

They’ve since applied that knowledge at the Weeneebayko Hospital where steam trap audits were completed and corrections were made to systems. Outside the hospital, condensate return lines from community housing steam distribution systems were re-designed, re-constructed, steam traced and re-insulated, contributing to a 40% gain in condensate return to the boiler systems.

Other significant energy savings have come from installation of a new summer boiler at the Weeneebayko Hospital, which has reduced fuel consumption by 5%.

Improved R values from a window and door replacement project translated into an additional annual saving of 76,000 litres of fuel oil and 41,000 kilowatt-hours (kWh) of electricity. Lighting retrofits have cut electrical consumption a further 600,000 kWh annually, with a concomitant annual savings of $90,000.

A new energy and expense tracking system is a complementary investment in monitoring and verification that will help operations staff and facility administrators spot any anomalies in consumption that require attention. Purchasing policies have also been updated to prioritize energy efficiency, with an emphasis on ENERGY STAR, for the procurement of new equipment and design services, and consideration for re-use and recycling has been added to decision-making criteria.

The Canadian Institute of Energy Training (CIET), the governing body for building operator certification, commends the initiative and foresees future collaboration with the Canadian Coalition for Green Health Care.

“We were excited when the Coalition requested our help in developing and deploying the BOC course in a remote northern First Nations community. It was a first for us,” recalls Mathieu Côte, CIET’s executive director. “We are very pleased with the results of having knowledgeable and empowered building operators now in the James Bay communities.” zz Kent Waddington is Communications Director for the Canadian Coalition for Green Health Care. For more information, see the website at www.greenhealthcare.ca.

It’s no surprise that Love would pull Canada’s energy geeks and policy wonks together. That’s Peter Love, of course — Ontario’s former chief conservation of ficer, current member of Energy Ef ficiency Alberta’s board of directors, a professor in York University’s Faculty of Environmental Studies and a respected consultant of longstanding. His latest role is textbook author.

Fundamentals of Energy Efficiency: Policy, Programs and Best Practices is a new online resource for academic instructors, students and others interested in exploring how goals and targets can be translated into energy-saving action.

Drawing on Love’s own experience and insight from his industry peers, it’s an effort to better inform current and future policy makers and provide strategies for groups making the case for funding.

“Although there are many excellent textbooks that deal with energy-efficiency technologies, the impact of energy on the environment, energy in Canada and public policy, there are no textbooks on the design, implementation and evaluation of energy-efficiency policies and programs,” he observes in the book’s preface.

Content is available in three free downloadable sections, providing a comprehensive primer of the components of energy efficiency — conservation behaviour, system operations, technology and demand response — an overview of effective supporting measures and a tally of the deliverables.

In this, Love stresses the three E’s: employment, economy and environment.

Case studies provide further examples of successes and challenges in Ontario, British Columbia, Alberta and Nova Scotia. There is also detailed guidance on drafting policy documents, business cases and regulatory submissions.

Presenting energy efficiency through the lens of policy and program development arguably reduces some of the intimidating aspects of the issue for those who do not have formal technical training in energy management. It also recognizes that bureaucrats embrace conservation in the shadow of their political masters. A practical grasp of the principles and paybacks of energy efficiency should support a higher calibre of defensible advice, which can work to any government’s benefit.

This could be particularly important if the new Ontario government follows up on its election campaign promise to transfer funding for conservation programs from the electricity rate structure to the provincial tax base — a prospect that, among other concerns, has energy management proponents wary of program administration shifting away from the local distribution companies with which they’ve established working relationships.

However, Love more optimistically zeroes in on last June's throne speech promise to Ontarians to “lower your hydro bills”.

“I find the use of the word ‘bills’, not ‘rates’, very interesting and important,” he muses. “That is because there are two ways to reduce hydro bills — reducing the hydro rates or by reducing hydro consumption. Encouraging energy conservation and efficiency has been proven to be a very cost-effective way of reducing hydro and other forms of energy consumption.”

– REMI Network

Canadian Property Management | October/November 2018 21

taxtrends

FEW FAVOURS FOR COMMERCIAL RATEPAYERS Uneven share of property tax burden a business reality VARYING PROPERTY tax rates in 11 of Canada’s largest cities reflect market trends and some government policies specific to those locales, but they are also part of a larger national picture in which commercial ratepayers consistently carry a disproportionate share of the municipal tax burden. The newly released 2018 Canadian Property Tax Rate Benchmark Report — an annual effort from Altus Group and the real estate industry association, REALPAC — finds commercial tax rates significantly more than double the residential rates in eight of the surveyed cities.

Vancouver continues to be the most glaring example of uneven distribution, with a commercial-to-residential tax rate ratio of 4.4 to 1.

However, even the narrowest tax gap, at 1.72 to 1, translates to an additional payout of $6.25 per $1,000 of assessed value for Saskatoonbased commercial property owners.

“Benchmarking commercial tax ratios provides terrific insight into the nuances of both absolute and relative property taxation,” observes Michael Brooks, REALPAC’s Chief Executive Officer. “Several cities have much work to do to get their commercial property taxes in balance with residential property taxes.”

PRESSURES IN CALGARY A prolonged economic slump has been pushing Calgary’s commercial tax rate upward to counter a decline in property values. At the same time, the City is nearing the end of a seven-year phase-out of the business occupancy tax, which is levied directly to business tenants, and consolidating it with non-residential (commercial and industrial) collection. In 2018, that transfer increased the commercial tax rate by 4.6%, while a drop in the residential tax rate stretched the gap wider in a year when City spending increased.

A commercial-to-residential ratio of 3.06 to 1 places Calgary above the national average of 2.9 to 1 — joining Quebec City, which is new to the survey this year, and the perennial charttoppers, Montreal, Toronto and Vancouver. Calgary commercial ratepayers incurred the largest jump in taxes of any of the surveyed cities — up nearly 9.5% from 2017. Tax shifts within the non-residential classes have also been notable.

“The office market, specifically downtown, has experienced the greatest impact. Downward pressure on the largest commercial assessment has the effect of driving up the tax rate,” Altus analysts note. “The net effect of these factors has been a drastic shift of liability from downtown office properties to the commercial suburbs.

Industrial and retail properties have experienced unprecedented tax increases over the last four years in Calgary.”

WINNIPEG QUIRKS Once Calgary’s business occupancy tax is phased out at the end of 2019, Winnipeg will be alone among the 11 cities in collecting this increasingly archaic levy. This, along with the arguably even quirkier frontage taxes, apportioned to commercial and residential properties fronting onto streets where sewer or water mains are located, contributes to one of the narrower commercial-to-residential ratios. In 2018, growth in the commercial tax base helped close it further.

Winnipeg commercial ratepayers have joined their peers in 22 October/November 2018 | Canadian Property Management

Saskatoon and Regina with ratios below 2-to-1. At 1.98 to 1, the City collected $24.05 per $1,000 of assessed commercial value and $12.12 per $1,000 of assessed residential value.

On the commercial side, that’s roughly equivalent to commercial property owners’ payout in Toronto. There, a commercial-toresidential ratio of 3.78 to 1 garnered about $24.04 per $1,000 of assessed commercial value, while residential ratepayers were taxed at about $6.35 per $1,000 of assessed value. (Royal LePage pegged the median house price in Toronto at $884,000 at the end of the third quarter of 2018 versus a median price of $309,000 in Winnipeg.)

VANCOUVER, TORONTO AND MONTREAL The commercial property tax rate dropped in both Toronto and Vancouver due to robust assessed values and ongoing efforts to narrow the commercial-to-residential tax ratios. On a percentage basis, Vancouver’s ratio narrowed most notably among all surveyed cities — from 4.9 to 1 in 2017 to 4.4 to 1 this year. The flux was much more subdued in Toronto, where it inched downward from 3.8 to 1 in 2017.

Despite a strengthening commercial real estate market and a spate of new development, Montreal’s tax rate rose in sync with climbing assessed values. Commercial ratepayers continue to pay the highest taxes, at $37.76 per $1,000 of assessed value, among the surveyed cities. This year’s commercial-to-residential ratio of 3.78 to 1 is slightly wider than 3.77 to 1 in 2017. This translated into taxes of about $9.99 per $1,000 of assessed value for residential property owners in 2018.

Regina was unique among the cities in recording a slightly reduced commercial tax rate alongside an increase in the residential tax rate.

Calgary presented the flipside picture. In all cities, commercial and residential rates rose or fell in tandem.

COMPETITIVENESS AND FAIRNESS “We continue to see several cities across Canada shifting the burden of property taxes to business owners. Municipalities should recognize that bringing down the commercial property tax rate is important to help make their cities more appealing to businesses, which helps create job growth and leads to sustainable revenue for the city,” maintains Terry Bishop, who heads Altus Group’s property tax division.

“Businesses are mobile, political boundaries not far away, and excessive property tax burdens are acted upon by prudent managers,” Brooks warns.

Only a handful of cities apply a distinct multi-residential tax rate for purpose-built rental housing, but it delivers a measurable hit to shelter costs in Edmonton, Ottawa and Toronto. Tenants in those cities underwrite tax inequities in their rent that range from an extra $0.93 per $1,000 of assessed value in Edmonton to an extra $6.79 per $1,000 of assessed value in Toronto. Meanwhile, multi-residential condominium buildings are taxed at the more favourable residential rate.

“The higher levels of taxation on older multi-residential buildings can pose a potential challenge for landlords needing to fund repairs and maintenance,” the benchmark report notes. zz

METER DESIGN & MANUFACTURING. METER DESIGN & MANUFACTURING. ENERGY ANALYTICS Real-time data collection allows you REPORTING. &ENERGY to monitor energy performance and ANALYTICS detect deficiencies.

Real-time data collection allows you & REPORTING. to monitor energy performance and Effectively manage your systems and TRANSPARENT detect deficiencies. benchmark future investments!

BILLING. Effectively manage your systems and TRANSPARENT benchmark future investments!

VISUALIZE. ANALYZE. MOBILIZE. BILLING. VISUALIZE. ANALYZE. MOBILIZE.

Canadian Property Management | October/November 2018 23

Achieve your professional goals in Property or Facility Management today.

Register for our industry-leading designations.

Learn more at:

bomicanada.com/noexcuses

s e s u c x e o n i m o b # 24 October/November 2018 | Canadian Property Management