GTA July 2020

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 R T Y M A N AG E R S

VOL. 27 NO. 2 • JULY 2020

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TABLE OF CONTENTS

CONTENTS 10

12

COVER STORY

05

PEAK CHASING ON PAUSE Ontario cancels 2020-21 round of Industrial Conservation Initiative for majority of eligible customers

18 IN THIS ISSUE

10

LEADING THE CHARGE

14

LANDLORD-TENANT DIVERGENCE

Health care facilities make space for zeroemissions/electric vehicles

New Ontario legislation sparks debates over each side’s rights

12

REBATE REBUFF

18

HONEY NOOK AT SUNNYBROOK

Some common area hydro accounts slated for 31.8% pre-tax price increase

Toronto health care campus is a sweet spot for beekeeping

“CONDO RESIDENTS WHO ARE PAYING DIRECTLY FOR THEIR OWN IN-SUITE CONSUMPTION ARE BEING PENALIZED, WHILE CONDO CORPORATIONS THAT CHOSE TO REMAIN BULK-METERED, MEANING THE SUITES HAVE NO INDIVIDUAL ACCOUNTABILITY FOR CONSUMPTION, WILL CONTINUE TO GET A 31.8% BREAK ON THEIR COMMON AREA BILLS.” –ROB DETTA COLLI, MANAGER, ENERGY AND SUSTAINABILITY, CROSSBRIDGE CONDOMINIUM SERVICES

PEAK CHASING ON PAUSE

Ontario cancels 2020-21 round of Industrial Conservation Initiative for majority of eligible customers

BY BARBARA CARSS

A

temporary adjustment to Ontario’s electricity pricing scheme eliminates cost-saving opportunities that many operators of large commercial buildings were anticipating this summer. Instead, an estimated 90% of customers eligible to participate in the Industrial Conservation Initiative (ICI) will be locked into the formula

that currently dictates their share of the global adjustment (GA) for an extra year, and will not realize the benefits of any recent investments they’ve made to manage peak energy demand until at least July 2022.

As announced in late June, the ICI cycle that began on May 1 has now been cancelled for the vast majority of eligible

participants. This follows earlier COVID-19related interventions, including capping the global adjustment — the envelope of fixed costs for contracted supply, nuclear facility refurbishment programs, and conservation and demand management initiatives that accounts for upwards of 80% of the commodity cost of electricity — at 11.5 cents www.REMInetwork.com

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ENERGY MANAGEMENT per kilowatt-hour (kWh) for the months of April, May and June, with the deferred amount above that threshold to be collected beginning in 2021.

Under conventional ICI program rules, commercial electricity customers with average monthly demand of at least 1 megawatt (MW) and manufacturers with average monthly demand of a least 500 kilowatts (kW) have an annual opportunity to reduce their next year’s GA costs based on how effectively they can curtail energy

loads during the five hours between May 1 and April 30 when highest overall system demand is recorded. The temporary rule change postpones that exercise until May 1, 2021 for all except prospective participants that don’t have an existing result — known as a peak demand factor — that can be applied again next year.

“Today’s announcement will allow large industrial employers to focus on getting their operations up and running and employees back to work, instead of

FLAT RATE COSTS MODEST IN OVERALL SPENDING CONTEXT Temporary suspension of Ontario’s time-of-use pricing scheme equates to about 3% of the projected provincial expenditure to underwrite electricity costs in 2020-21. Recently released calculations from the arms-length Financial Accountability Office (FAO) of Ontario peg the cost of the COVID-19-relief measure at approximately $175 million for the period from March 24 to May 31.

FAO number-crunchers further estimate the flat price of 10.1 cents per kilowatthour (kWh) that replaced the conventional three-tier rate structure saved the average residential customer about $34 over the course of the 10-week period. Farm operators and other small commercial customers that consume no more than 250,000 kWh annually would have realized an average saving of $98.

More punitive pricing of 20.8 cents/kWh in morning and evening peak times, or 14.4 cents/kWh in the afternoon, was suspended to recognize that Ontarians were largely confined to their homes in the effort to counter the spread of COVID-19 and had fewer options to curb or avoid electricity use during costlier periods. Under normal prepandemic conditions, nearly two-thirds of residential electricity consumption usually occurred during the off-peak hours of 7 p.m. to 7 a.m.

“Prior to the COVID-19 outbreak, ratepayers were paying 12.8 cents/kWh on average for electricity generation,” the FAO submits. However, with consumption now shifted more into daytime hours, it’s assumed that average would have climbed to 13.1 cents/ kWh in the absence of relief measures.

Residential customers and approximately 400,000 farm and small commercial enterprises subject to time-of-use pricing would typically receive a more modest Ontario Electricity Rebate — a nearly 32% subsidy of all pre-tax costs for electricity and regulated distribution — during the flat rate period, reflective of their lower overall bills.

Thus, the FAO factors that into the $175 million price tag for the relief measure.

“This estimate is the net cost to the Province after accounting for the interaction with the Ontario Electricity Rebate,” the FAO reports. “In total, including the suspension of TOU pricing and the Province’s existing electricity subsidy programs, the Province is projected to spend $5.8 billion in 2020-21 subsidizing electricity prices.”

A further extension of what was originally announced as a 45-day initiative would have a greater impact on provincial spending given that summertime demand for cooling tends to push up electricity use. The FAO estimates it would have cost an additional $316 million to enable flat rates from June 1 to August 31. The cost of a oneyear respite, to March 31, 2021, is projected at $1.1 billion.

The report from Ontario’s Financial Accountability Office can be found at www.fao-on.org/en/Blog/Publications/time-of-use-pricing-2020 .

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adjusting operations in response to peak electricity demand hours,” Greg Rickford, Ontario’s Minister of Energy, Northern Development and Mines, maintained in a statement released on June 26th.

However, a larger share of commercial building owners/managers won’t be able to take advantage of a drop in energy demand resulting from COVID-19-triggered business shutdowns. With the expectation that office towers will remain partially or predominantly empty this summer, many had foreseen lower-than-usual loads relative to the five peak hours. That could have resulted in a highly favourable peak demand factor, which would be used to calculate their share of the GA for the entire year from July 1, 2021 to June 30, 2022.

“Commercial properties would have seen peak demand factors go down with low occupancy this summer,” contends Jon Douglas, Director of Sustainability with Menkes Developments. “This change provides stability to the market, but I think calling it ‘fair’ is questionable. It takes away mechanisms of the market.”

INVESTMENT AND EMPLOYMENT Beyond losing the strategic advantage of low occupancy, many owners/managers will be foregoing payback on investments they’ve made over the past year. Current peak demand factors are prorated to ICI participants’ (known as Class A for the purposes of the program) energy demand during the five peak hours of the 12 months between May 1, 2019 and April 30, 2020, all of which occurred in July 2019. Advocates for the commercial real estate sector suggest program participants could have been given a choice whether to retain that peak demand factor for an extra year or pursue a new one.

“We are not pleased that this was made mandatory for all Class A. Economic benefits from conservation measures implemented by any of our members since the last assessment period will now have to be deferred until 2022-23,” says Bala Gnanam, Vice President, Energy, Environment and Advocacy for the Building Owners and Managers Association (BOMA) of Greater Toronto. “This might also significantly slow down the advancement and adoption of energy storage and other behind-themeter curtailment technologies.”

The postponement flows through to capital budgeting priorities. For example, the near-term business case for investing in

ENERGY MANAGEMENT

“THIS MIGHT ALSO SIGNIFICANTLY SLOW DOWN THE ADVANCEMENT AND ADOPTION OF ENERGY STORAGE AND OTHER BEHIND-THE-METER CURTAILMENT TECHNOLOGIES.” demand management has lost some of its persuasive sway for the handful of buildings in Crossbridge Condominium Services’ portfolio that qualify for the ICI program.

“We were talking to all of our Class A buildings about adopting technology to reduce their peak demand factors,” reports Rob Detta Colli, Manager of Energy and Sustainability with Crossbridge. “We were looking at solutions to balance the delivery of electric heating. Instead of allowing the entire building to come ‘on’ at once, this technology cycles 50% of the building through ‘on’ and ‘off’ every 15 or 20 minutes. This cuts the demand in half with an imperceptible impact

on temperature thanks to the thermal mass of the building itself.”

There could also be challenges for energy management and clean-tech companies with service contract business models that derive their cash flow from clients’ energy-related cost savings.

“Many of these companies sold the technology fully financed to endcustomers so their banks are now expecting to get a payment every month,” observes Tomas van Stee, founder and Chief Executive Officer of the energy forecast and analytics firm, EnPowered.

Likewise, consultants who provide clients with guidance on the timing of peaks and when to curtail energy loads will face a dip in demand for their services — adding to COVID-19’s negative fallout for the energy management sector, which the public education and advocacy organization, Efficiency Canada, estimates accounted for approximately 436,000 Canadian jobs as 2020 began.

SOME WINNERS On the flipside, van Stee identifies some clear and potential winners. The first group is expected to include many of the large industrial customers Minister Rickford references in his June 26th statement. Additionally, some of commercial real estate’s most beleaguered players could be in line to catch a break.

“Anyone who did really well [responding to peak demand] last year is laughing,” van Stee says. “They’ve got an advantageous peak demand factor that’s locked in for another year without having to do any additional work to achieve that.”

Indeed, he predicts that electricity demand will soar this summer since many of the largest consumers have no reason to

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ENERGY MANAGEMENT try to shed load. Meanwhile, commercial operators are facing new COVID-19-related pressures for heightened ventilation, which will tax mechanical systems, and will still be cooling their buildings even if they aren’t fully occupied. Residential energy loads are also forecast to climb as the workforce ensconced at home cranks up the air conditioning earlier in the day.

All that actually works in the best interests of the small number of prospective Class A customers that will still be chasing the five peaks. Especially if their energy demand has dropped below last year’s levels due to low occupancy, their peak demand factor is likely to work out to a smaller portion of a higher peak and will position them

“FOR A VARIETY OF REASONS, MANY HOTELS THAT QUALIFIED AS CLASS A HAVE NEVER OPTED INTO THE ICI PROGRAM. THEY’RE POSITIONED TO DO WELL.” favourably among the greater majority of Class A customers retaining peak demand factors derived in 2019.

In one potential silver lining for a sector that’s suffered significantly due to COVID-19,

COVID-19 RECOVERY RATE INTRODUCED Time-of-use electricity rates remain suspended in Ontario until the end of October.

However, as of June 1, residential, small business and farm customers have paid a rate of 12.8 cents per kilowatt-hour (kWh), replacing the previous off-peak rate of 10.1 cents/kWh, which was instituted as a short-term flat rate in response to the COVID-19 outbreak.

“Since March 24, 2020, we have invested just over $175 million to deliver emergency rate relief. This investment was made to protect the people of Ontario from a marked increase in electricity rates as they did their part by staying home to prevent the further spread of the virus,” Greg Rickford, Ontario’s Minister of Energy, observed as he announced the new price, to be known as the COVID-19 recovery rate. “This fixed rate will continue to suspend time-of-use prices in a fiscally responsible manner.”

The new rate aligns with the Financial Accountability Office (FAO) of Ontario’s recent calculation of the average that residential households were paying under the time-ofuse pricing regime before COVID-19 forced a vast number of them to spend the entire day in their homes. The FAO also estimated it would cost the Ontario government a further $316 million to keep the rate at 10.1 cents/kWh until August 31.

Along with the five-month assurance of the new rate, the provincial government has earmarked $17 million to subsidize utility bills for account holders experiencing COVID-19-related financial stress. Residential customers can apply for a one-time grant through the $9-million COVID-19 Energy Assistance Program (CEAP), while $8 million will be available for struggling small business operators.

The Ontario Energy Board (OEB) has also extended its order prohibiting electricity and gas utilities from disconnecting customers until July 31.

Beginning in November, customers will be offered flexibility to opt back into a timeof-use pricing scheme or to choose tiered pricing, which will tie rates to certain levels of consumption. The OEB will devise and announce the prices for both options in the coming months.

“We recognize that businesses and families are living with a great deal of uncertainty, and they need to know what they can expect when they open their electricity bills every month,” Rickford said. “The new COVID-19 Recovery Rate will provide stability for Ontario electricity consumers, while we work to re-open our province and restart our economy.”

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GTA & BEYOND

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JULY 2020

many of the properties falling into this minority are hotels.

“For a variety of reasons, many hotels that qualified as Class A have never opted into the ICI program,” van Stee says. “They’re positioned to do well now without necessarily having to do much to respond to the peaks.”

CLASS B WARY Under the ICI program rules, newly eligible participants won’t have to make the decision to opt in until next June, after Ontario’s local distribution companies advises them of their peak demand factors.

Notably, for the July 1, 2020 to June 30, 2021 period, many Class A-eligible customers opted for Class B — joining the larger ranks of small and mid-sized commercial buildings that are charged global adjustment on a volumetric centsper-kWh basis — because peak demand factors prorated to their energy use in July 2019 could translate into an unfavourable share of the overall GA bill if provincewide energy consumption remains low.

“Once you’ve opted into Class A, your GA costs are locked,” van Stee reiterates.

Nevertheless, there is plenty of speculation that Class B is also in line for electricity price increases. Beyond the looming requirement to make up for April, May and June’s deferred GA costs in 2021, Class B consumers are wary of what the ICI program adjustments could mean for them since they are left to pay all remaining GA costs after Class A’s fixed share has been subtracted.

That could be problematic over a coming year when Class A has less incentive to try to manage demand and the cost of the vague components of the global adjustment may continue to escalate.

“I would be very surprised if the total GA does not increase,” Gnanam says. “This means that Class B will face a higher than normal rate of increase in their GA costs.” ■

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LEADING THE CHARGE Health care facilities make space for zero-emission/electric vehicles

BY KENT WADDINGTON

M

ore than 75 of the 101 hospitals that responded to the Canadian Coalition for Green Health Care’s (CCGC) 2018 Green Hospital Scorecard Survey reported that they provide charging stations for electric vehicles, while 26% of respondents offer preferred parking for low-emission vehicles. This exemplifies the Canadian health sector’s support for transition to a modern and efficient electrified transportation grid.

As the network of zero-emission/electric vehicle (ZEV/EV) charging stations steadily grows on health care campuses, many facilities managers are grappling with the benefits and the challenges inherent in electrification.

On the plus side, a sound electrification plan can reduce health care’s ecological footprint and align with commitments to address climate change, as well as bolster corporate

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“FUNDS SAVED FROM OTHER ENERGY CONSERVATION PROJECTS WERE COMMITTED TO THE EV PROJECT BECAUSE WE FELT THIS WAS A VERY EFFECTIVE WAY TO BRING DOWN GREENHOUSE GAS EMISSIONS.” sustainability plans, burnish the hospital’s image in the community and gain staff buy-in.

“Electric vehicle charging stations are a visible demonstration of an employer’s commitment to sustainable business practices,” asserts Cara Clairman, President and Chief Executive Officer of Plug’n Drive, a non-profit organization committed to accelerating the adoption of electric vehicles

in Canada. “The biggest barrier to more widespread adoption of EV technology and the associated charging grid is the lack of understanding about the significant environmental and economic benefits of using electricity instead of fossil fuels.”

“Many hospitals in this country are in the dark ages when it comes to the adoption of ZEV technology,” concurs Dr. Pascal Gellrich, a

ENERGY MANAGEMENT

family and emergency care physician based in Bridgewater, Nova Scotia, who is an enthusiastic ZEV champion. “Changing the mindset in the health care community will take time, but, at the end of the day, it just makes sense. All of us in health care have a responsibility to engage senior leaders, together with our friends and colleagues, in the conversation and urge the opening of minds.”

RETROFIT EXPERIENCES Saleh Daei, Manager or Energy and Sustainability at Sunnybrook Health Sciences Centre in Toronto, is among those leading the charge. Since 2017, he has overseen a charger network that now numbers 24, with plans to add another 20 when funding is available. He stresses that organizations should first verify consumer demand and that there is adequate infrastructure to enable chargers to pull power from the grid before the installation stage.

“You might find yourself digging up pavement, and needing to install electrical infrastructure such as transformers, power panels and heavy-duty wiring,” he advises.

“The chargers themselves are only part of the total cost. And don’t forget to plan for the human behavioural element as well as an ongoing awareness campaign.”

Ten level-two dual charger units, recently installed at Sunnybrook for staff use, cost $67,000. However, that was approximately 30% of total project budget. Additionally, the hospital shelled out $24,000 in design fees and $110,000 for installation and infrastructure upgrade charges.

In downtown Toronto, University Health Network (UHN) has completed two EV charger installation projects. To begin, Tesla donated the 36 charging stations, now installed at two UHN sites, the Toronto General and Toronto Western hospitals.

The charging stations can accommodate all types of electric vehicles, and are available in both staff and visitor parking areas at no extra cost other than regular parking fees. Requests from physicians then sparked the installation of six more chargers at the Toronto Western Hospital Fell Parkade.

“We in Energy & Environment [department] covered the extras, such as painting the zones green and installing electricity sub-meters to track the energy impacts and operational costs,” recounts Lisa Vanlint, UHN’s Energy Steward, who worked closely with the parking management, business operations, security, facilities management, IT and infection prevention and control departments, and the Tesla Destination Charging Program to make the project a reality. “Funds saved from other energy conservation projects were committed to the EV project because we felt this was a very effective way to bring down greenhouse gas emissions.”

Vanlint recommends adopting a written policy that sets the ground rules for electric vehicle charging stations. That should establish: a clear articulation of fees (if any); consequences of inappropriate use by non-EVs (internal combustion vehicles, motorcycles, hybrids, and off-road/commercial vehicles); length of permitted charging time; and common charging courtesies.

NEW DEVELOPMENTS Challenges may be different in new facilities, where there is no need to retrofit chargers into spaces that weren’t designed to accommodate them, but they can still be daunting. Frank Deluca, Chief Imagineer at DCL Healthcare Properties experienced some of them while working on the development of a new green medical arts centre in Niagara Falls, Ontario. Electric car chargers were part of the project vision for a low-carbon outcome, but the developers encountered a somewhat confusing panoply of choices.

“Revelation number one was that not all public charging stations are the same,” Deluca says. “Some are free, some are not. Some charge much faster than others. And of course, most importantly, different electric cars need different types of charging ports — particularly Tesla, which uses a unique proprietary charger system.”

To encourage EV uptake, Deluca favoured offering free charging, but had to be fiscally responsible at the same time.

He considered contracting with one of the many third-party North American EV charger firms that would install/manage/ operate his network. He and his team spent weeks pondering whether to buy or lease equipment, and considering the types of chargers and the brand names to install.

“I knew there was a growing list of locations in the area featuring level-two charger installations but I wasn’t aware of any levelthree fast-charger sites,” he notes.

Ultimately, the design team opted to roughin 15 charging station locations with five for the general public and ten for tenants of the building. Service fees will not be levied for using the chargers, and tenants will have flexibility to choose the type and brand of charger they require.

Deluca suggests health care organizations determine answers to some basic questions before venturing too far down the path to EV charger installation: • How many charging stations are required?

• Who will own the charging stations and the chargers: the host organization, developer or third-party operator?

• How many will be Tesla and how many will be generic?

• Will they be level-one, two, three or four chargers, keeping in mind that costs increase in step with charging-speed capability?

• Will there be a charger fee or will it be a free service?

• Who will be responsible for repair and replacement, and how will these costs be factored into the plan?

• What controls are required for the length of time an EV occupies the charging station? ■ ___________________________________________ KENT WADDINGTON IS THE CO-FOUNDER AND COMMUNICATIONS DIRECTOR OF THE CANADIAN COALITION FOR GREEN HEALTH CARE. FOR MORE INFORMATION ABOUT THE ZERO-EMISSION VEHICLE INITIATIVE, SEE THE WEBSITE AT WWW.GREENHEALTHCARE.CA/ZEV. www.REMInetwork.com

11

ENERGY MANAGEMENT

REBATE REBUFF Some common area hydro accounts slated for 31.8% pre-tax price increase

BY BARBARA CARSS

M

any condominium corporations and owners of multi-residential rental buildings can expect higher electricity costs this fall when hydro accounts specifically tied to the common areas of larger buildings lose eligibility for the Ontario Electricity Rebate (OER). Late last year, the Ontario Energy Board (OEB) determined that the nearly 32% rebate could be applied on all common area accounts during a transitional period that is slated to end October 31, 2020. After that, only accounts reflecting less than 50 kilowatts (kW) of demand or 250,000 kilowatt-hours (kWh) of annual consumption will qualify.

In practical terms, energy managers advise that most common area accounts serving multi-residential buildings with more than about 70 units will no longer receive the rebate.

That will equate to a 31.8% premium on the pre-tax costs for electricity consumption and regulated transmission/distribution charges.

Common area accounts typically encompass many of the building’s most power-intensive services, including: elevators; lighting in corridors, stairwells and parking

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“IT TREATS SIMILAR BUILDINGS DIFFERENTLY, GIVING SOME AN ADVANTAGE OR OTHERS A DISADVANTAGE, BASED ON HOW THE BUILDING IS WIRED, METERED AND SUB-METERED. THAT SEEMS UNFAIR.” areas; ventilation systems; delivery of heating and cooling in buildings with centrally located boilers and chillers; and pumps for the delivery of water.

“For a 250-unit condo, it will be an extra $40,000 a year,” estimates Rob Detta Colli, Manager of Energy and Sustainability with Crossbridge Condominium Services. “This will impact about 30% of our client base.

What makes this worse is condo residents who are paying directly for their own in-suite consumption are being penalized, while condo corporations that chose to remain

bulk-metered, meaning the suites have no individual accountability for consumption, will continue to get a 31.8% break on their common area bills.”

The OER is targeted to residential households, small businesses and farms covered in the provincial Regulated Price Plan (RPP), and began showing up on hydro bills in November 2019 to replace the previous 8% Provincial Rebate. Multiresidential buildings enjoyed blanket eligibility for that rebate, but a twosentence decree in the OEB’s December

TorontoDecorating_Condo_November_2016_FINAL.pdf

1

2016-11-10

ENERGY MANAGEMENT

2019 guidance memo creates a new distinction to exclude some accounts from the OER. “There have been questions regarding the treatment of the common area account in multi-unit complexes where the distributor directly meters the individual units and the common area account has its own meter. In this case, the common area would not qualify for the OER unless it has a demand of less than 50 kW or uses less than 250,000 kWh a year,” it states.

Detta Colli and other knowledgeable observers suggest there should be further explanation of how that decision was reached.

C “It treats similar buildings differently, giving some an advantage or M others a disadvantage, based on how the building is wired, metered and Y sub-metered,” observes Andrew Pride, an Ontario-based consultant CM specializing in energy management and strategic conservation planning.

“That seems unfair, particularly since it relates to a wiring choice that was MY often made years ago.”

CY DIFFERING INTERPRETATIONS K Detta Colli argues the guidance contradicts the intent of the enabling regulation — under the Ontario Rebate for Electricity Consumers Act (ORECA) — which generally states that a common area account is eligible, provided a multi-unit complex contains at least two “qualifying” units and at least 50% of all units within the complex are also “qualifying” units.

“The wording of the regulation states that it (the rebate) is to be applied to the account that is ‘solely in respect of a multi-unit complex’ and common area accounts are absolutely in respect to a multi-unit complex. Before the OEB interpretation came out, the LDCs (local distribution companies) had actually concluded that a condo’s common area account would get the rebate,” he reasons. “However, after failing to get the ruling changed, we have moved on to explaining to our clients what will be happening.”

In addition to informing affected condo boards that they will need to budget for a jump in hydro costs, Detta Colli and his peers have reached out to Members of Provincial Parliament. Notably, although oversight of the rules generally rests with the OEB, the enabling legislation does give the Minister of Energy, Northern Development and Mines the authority to prescribe eligibility for the rebate.

“The MPPs seem confused as to why the OER won’t be applied to common area accounts in condos,” Detta Colli reports. “It might be easier to administer, but it’s clearly not equitable with the treatment of bulk-metered buildings.”

“The old rules treated multi-residential buildings as a whole property, which required more administration to apply the rebate.

This interpretation drills down to the metered account, which streamlines the process,” Pride concurs. “Now it appears common areas are being treated like businesses that are either above or below the 250,000 kWh threshold.”

He speculates that could lead to some create manoeuvring.

“What if building owners start breaking their common elements into more than one separately metered account so they can qualify for the 31.8% rebate? It’s an absurd premise, but it could have a good payback,” Pride muses.

As with other sometimes baffling billing formulas — such as for the allocation of the global adjustment to Class A and Class B consumers — using less electricity remains one certain way to lower costs.

“Regardless, this policy encourages owners and managers of large apartment buildings and condominiums to implement deep efficiency retrofits to drive down demand and consumption,” Pride says. ■ CMY

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REGULATORY UPDATE

LANDLORD-TENANT

DIVERGENCE

New Ontario legislation sparks debates over each side’s rights

BY ERIN RUDDY

O

ntario’s Protecting Tenants and Strengthening Community Housing Act — introduced in the provincial legislature as Bill 184 — has raised the ire of tenant advocacy groups in recent weeks over concerns it will drive cash-strapped renters further into debt, while making evictions easier for landlords.

Since mid-March, Ontario rental housing providers have been unable to evict non-paying tenants in an effort by the Province to protect vulnerable households impacted by COVID-related income loss.

But as the health crisis eases and the moratorium on evictions comes to an end, the enactment of Bill 184 will require anyone with rent arrears to pay back their landlords in a structured repayment plan.

Sound fair and reasonable? To some onlookers it might, but for those on either

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side of the rental transaction, the bill isn’t gaining widespread support.

COVID-19 STRESSORS Many small landlords — having been stretched too thin by the ongoing pandemic as it is — say the income loss they’ve incurred to date has already put their businesses in jeopardy.

“The net profit from a rental property is much lower than tenants, the media, and the government seem to think,” said Chris Seepe, President of the Landlords Association of Durham and owner of a mid-sized rental portfolio. “It’s these same entities who collectively believe residential landlords are playing the system and can afford to carry all the losses of COVID-19.”

Arguing that landlords shouldn’t be expected to absorb months of missed

rent payments while shouldering the heightened costs of operating a rental property safely amid a pandemic, Seepe and other landlords are defending their right to retroactively collect unpaid rent, or evict those unable to honour the terms of their lease agreements. Meanwhile, tenant advocacy groups concerned that the bill will lead to a spike in evictions and eventual homelessness are calling for better protection for renters and more restrictions on future rent increases.

Kenneth Hale, the Director of Advocacy and Legal Services at the Advocacy Centre for Tenants Ontario (ACTO), contends that government programs are available to support businesses and can be expanded to help small landlords, while vulnerable tenants cannot afford to shoulder that cost.

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WHO'S WHO 2019

June 2018 • Vol. 33 #2

Costa advised that he no longer wished to occupy his role as president. The emergency meeting took place at the defendant’s (MTCC 1292’s) premises.

At the emergency meeting, the plaintiff and Mr. Da Costa entered into a heated argument, which led Mr. Da Costa to “lose it” and strike the plaintiff on the head with a chair. Mr. Da Costa was charged by the police and received a conditional discharge for assault with a weapon. iff commen The plaintiff commenced a civil action against Mr. Da Costa fo for his use of force as well as MTCC TCC 1292 for fo failing to ensure her safety and nd failing to employ security meet measures at board meetings.

MTCC 1292 brought a motion summary judgment otion for su to dismiss the plaintiff’s plaintiff’ claim against it nly opposed by Mr. Da Costa which was only given his crossclaim MTCC 1292 ossclaim against ag on and indemnity. inde for contribution

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their premises reasonably safe for those who enter it. But what about when an individual commits assault while at one of these meetings? Should the occupier or organizer of the

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board meeting be liable for failing to ensure the safety and security of those lawfully on the premises?

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In Omotayo v. Da Costa, 2018, the defendant occupier, Metro Toronto Condominium Corporation 1292 (MTCC 1292), was successful in dismissing the plaintiff’s claim and the assailant’s crossclaim when a member in attendance at a condominium board meeting struck another meeting attendee with a chair.

Justice Nishikawa found that the duty the condominium corporation owed to the plaintiff did not include preventing an assault that occurred during their condominium board meeting.

Facts of the case T he plaintif f, J ac queline O mot ayo, was a resident and former chair of the condominium corporation. The defendant, Jose Da Costa, was also a resident and former president of the condominium corporation. An emergency board meeting was held on Oct. 4, 2011, to discuss the future organization of the board as Ms. Omotayo had recently been removed from her position as chair and Mr. Da

By Steven Chester

SERVING THE FACILIT Y CLE ANING & MAINTENANCE INDUSTRY

Let’s face it, we all want our businesses to be social media rock stars, and we know it ain’t easy.

It’s becoming more prevalent that some of the most popular social media platforms have been infiltrated by those who game the system.

This includes those that buy fake followers and “likes” in order to create the illusion that their social media profile is more popular than it is.

These fake followers are predominantly bots – accounts run by software designed to look and act like real people.

APRIL/MAY 2017

New services are also popping up that allow authentic social media accounts to become part of the bot game. By signing up for the service, the user authorizes their account to automatically like, follow and randomly comment on other users’ posts, and in turn they trade that fake engagement with other users. Sound harmless enough? The thing is you have no say in in the message your account is spreading or where it ends up.

CARING FOR FRAGILE FLOORS

Summary judgment motion udgment m positi MTCC took the position that its duty w is confined confine to the physical under the law condition of the premises premise and foreseeable e unforese risks, not the unforeseeable conduct of individuals in attendan attendance. Meanwhile, Mr. Da Costa that MTCC 1292’s a argued th s to having rules of conduct duty extends s, policies re for meetings, relating to abusive l an gu a g e, thre at s aan d intimid atin g d a duty to h behavior, and hire and supervise competent professional professionals to oversee its luding, if appropriate, ap business (including, security Cos further argued personnel). Mr. Da Costa ult was foreseeable fore that the assault given the M quarrelsome nature of MTCC 1292’s board nd a prior unrelated u meetings and incident involving the plaintiff and another member of MTCC 1292 wherein the police was 292 wherei called. ng her dec In reaching decision, Justice Nishikawa looked Coleiro v. Premier ooked to C s where summary sum Fitness Clubs judgment d in favour of the defendant was granted

MALL GERMS: TOP FIVE HOT SPOTS

Ask yourself this: What’s more important, having 50,000 cosmetic followers, or having

500 followers who are in your target market REMEDYING FOUR that actually want to hear from you?

COMMON CARPET As a consumer, it’s even simpler, as PROBLEMS deceptive tactics are easy to spot. If you’re using underhanded methods to promote your business, this can be viewed as a reflection of your product or service. Your integrity is at stake.

This is one of the more complex topics that can’t be fully covered in this space. As always, I invite you to stay social and continue the conversation on Twitter at @Chestergosocial where I’ll share a link to the full article.

SCENT OF

SUCCESS 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.

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“SOME INNOCENT LANDLORDS WILL LIKELY BLUNDER INTO A SITUATION WHERE THEY ARE OFFSIDE WITH THE CHANGES AND WILL BE GREATLY AND UNFAIRLY HARMED BY THE BILL. OTHER LANDLORDS ABUSING THE CURRENT RULES WARRANT THE MORE RIGOROUS LEGISLATIVE OVERSIGHT.” “Protecting public health must take priority over protecting the financial wealth of property owners,” he said in a statement. “Putting tenants in jeopardy of homelessness and increased poverty is cruel, and puts the lives of all Ontarians at risk.”

At a hearing in late June, ACTO representatives urged members of the Ontario legislature’s Social Policy Committee to scrap Bill 184 and adopt alternative recommendations it believes would better serve and protect vulnerable

tenants. Primarily, the group raised concerns over the pressure the bill will put on COVID-impacted renters to sign repayment plans they cannot afford, permitting landlords to seek eviction orders without a hearing should they falter.

The group asked for the following: • The continued restriction of evictions to urgent cases where public safety is at stake.

• Restricting rent increases to maintain current rent.

• Eliminating rent increases in newer units that are exempt from rent regulation as of November 2018.

• The limiting of “rent gouging” by landlords by restricting rent increases between tenancies.

• Assurance that the Landlord and Tenant Board’s rules make ongoing preservation of homes the object of the dispute resolution process.

ACTO’s recommendations were rejected in favour of amendments that will speed up

ONTARIO OMBUDSMAN INVESTIGATES LANDLORD AND TENANT BOARD After announcing in early January that he planned to investigate the sluggish pace of proceedings at the Landlord and Tenant Board (LTB), Ontario Ombudsman Paul Dubé received nearly 500 additional complaints before the end of March. His newly released 2019-2020 annual report flags the LTB as one of the most common sources of concern addressed during the year, and cautions that COVID-19 is likely to further encumber adjudication timing.

“We were in close contact with the Landlord and Tenant Board as our investigation into delays continued, and noted that the suspension of eviction orders and hearings as of mid-March will likely impact the board once it resumes regular operations,” Dubé’s report states. “We also fielded many complaints and questions from people affected by this suspension.”

During the Ombudsman’s reporting period from April 1, 2019 to March 31, 2020, Tribunals Ontario — the overarching administrative body for 19 special-issue tribunals under the auspices of the Ministry of the Attorney General — ranked as the fourth most prevalent topic of complaint. Fully 74%, or 779 of those 1,051 complaints were about the LTB. Tribunals Ontario also emerged as the single provincial organization that provoked the most disgruntlement since the three most common sources of concern — corrections, municipalities and children’s aid societies — related to a number of different facilities, administrators and/or public bodies in jurisdictions across Ontario. On its own, the LTB would rank as the sixth most frequently voiced topic of concern, just after the 832 complaints the Ombudsman

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received about the Family Responsibility Office and ahead of 754 complaints about the Ontario Disability Support Program.

Outlining the work of the in-progress LTB investigation, Dubé confirms his team is assessing required resources and “potential systemic factors, such as relevant legislation, training, funding and technology”. They’ll also look at the impact of the recently adopted Protecting Tenants and Strengthening Community Housing Act, which the Ontario government has promised will modernize and streamline dispute resolution.

The Executive Chair of Tribunals Ontario is underscoring the organization’s intention to cooperate. Sean Weir was appointed to the position in June, replacing the Interim Executive Chair Karen Restoule, who has now been reassigned as Acting Associate Chair of the LTB. “I welcome the update on the ongoing investigation into Landlord and Tenant Board delays. I recognize the impact that service delays have on personal lives and businesses and our organization takes this issue seriously,” Weir asserts, in response to the Ombudsman’s report.

“Under [Restoule’s] guidance the LTB has been able to respond to the ongoing COVID-19 pandemic and continue proceedings for non-eviction matters through teleconference and written formats,” he adds. “I have confidence in her leadership and our staff’s dedication to continue to transform the LTB to be responsive to the needs of landlords and tenants and to provide fair and efficient dispute resolution services.”

–REMI Network

REGULATORY UPDATE

Building Envelope Repairs Balcony Modernization

ADMINISTRATIVE COMPLICATIONS According to Joe Hoffer of Cohen Highley LLP, the legislation makes some practical changes that will benefit tenants and others that will benefit landlords, but doesn’t address the bureaucratic and procedural paralysis of the Landlord and Tenant Board/Social Justice Tribunal.

“In my view the entire adjudicative structure has abandoned its statutory mandate to deal with proceedings expeditiously and cost-effectively and there is a cohort of ‘bad tenants’ out there who cannot believe their good fortune while gloating about the fact that they can live rent-free and the landlord can do nothing,” he says.

Adding to that, Hoffer warned that any small landlord who tries to avoid RTA rules in order to gain vacant possession to flip apartments are at risk of very harsh consequences.

“Some innocent landlords will likely blunder into a situation where they are offside with the changes and will be greatly and unfairly harmed by the bill,” he says. “Other landlords abusing the current rules warrant the more rigorous legislative oversight.”

Hoffer also sees the two-year limitation on rent repayment as a potential source of concern.

“The short timeframe by which landlords must initiate formal proceedings at the LTB could significantly and negatively affect all involved,” he says. “Until now, a landlord could go back six years when working with tenants to catch up with missed payments.

With the new legislation, the landlord will have to be rigorous in going after a tenant within the two-year time frame.”

On the positive side, the ability to recover charges such as unpaid utilities at the LTB rather than having to go to Small Claims Court, will make life easier for landlords. “However, there is a gap for the mobile home sector, where landlords will still have to go to Small Claims Court to recover unpaid property taxes and water testing charges even though the LTB is best equipped to adjudicate such changes,” Hoffer maintains. ■ ________________________________________ ERIN RUDDY IS EDITOR OF CANADIAN APARTMENT MAGAZINE. ■

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17

ENVIRONMENTAL OUTREACH

HONEY NOOK AT SUNNYBROOK

Toronto health care campus is a sweet spot for beekeeping

BY REBECCA MELNYK

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GTA & BEYOND

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Photo by Kevin Van Paassen

S

unnybrook Hospital has become the first health care facility in Toronto, and quite possibly Canada, to welcome honeybees to its property. Thirty thousand honey bees in three hives are now located on the Bayview campus, about one kilometre away from the main hospital buildings.

The goal is to support this declining pollinator population, as well as provide in-person educational sessions for staff and visitors to learn more about the bees.

“Besides providing an opportunity to learn more about the fascinating inner workings of a bee colony, and a connection to nature in the city, we think the bees will provide a great way to connect with employees and the community about broader environmental issues, and ideally spur additional sustainability initiatives,” says Michael Lithgow, Manager, Energy and Climate Action, at Sunnybrook.

As it stands, a few hospitals in the United States host hives.

Local non-hospital sites include the University of Toronto, the Royal York Hotel, rooftops of several shopping malls and some mixed-use residential properties.

Toronto became Canada’s first official Bee City in 2016. As Lithgow notes, cities are often ideal locations for beekeeping due to abundant flowering plants, fewer pesticides than rural areas and many sources of water.

Set on a 100-acre property, home to 4,600 trees and extensive gardens, Sunnybrook offers such a habitat. It is also managed on low-impact principles, including minimizing water use, pesticides and waste.

“The bees are a natural and interesting addition to the landscape,” says Lithgow. “In the early planning stages of the project, it rapidly became apparent this would be a great way to engage staff and the public on a far-reaching sustainability issue. Almost everyone we engaged with expressed an appreciation for bees and other pollinators.”

It took just over a year to bring the hives to the campus with help from internal and external stakeholders, although the thought started percolating among residents in the Veterans Centre a few years ago. Genny Ng, Performance Improvement Specialist at Sunnybrook, jump-started the idea of partnering with local beekeepers.

“As an organization with so much green space, our staff enjoy walking around the property and eating outside for their breaks,” says Ng. “We have a wonderful team that maintains our flower and

vegetable gardens for staff to enjoy, bringing bees to the property will enhance these gardens and support a greener community.”

The COVID-19 pandemic is putting even more strain on the physical and mental health of Canadians, according to Robin Edger, Executive Director and Chief Executive Officer of the Canadian Association of Physicians for the Environment (CAPE). He says “nature offers a prescription” of sorts, as there is “a growing body of evidence indicating that spending time outside in nature is one of the best things we can do for our well being.”

“Bees make excellent ambassadors for wellness and environmental health,” adds Lithgow. “We understand how important they are for our food and plants, while we’ve also heard how so many pollinators are threatened by pollution, disease and climate change.”

The three hives are expected to produce about 100 to 150 pounds of honey each year. At no direct cost to the hospital, a modest revenue is expected. Once the hives are established, honey will be available for purchase in the Sunnybrook gift shop and at the vendor tables through Fairhaven Farm — the beekeeper managing the hives in exchange for space.

As the bee colonies grow, plans call for adding more hives if and when appropriate. ■ ____________________________________________________________________ REBECCA MELNYK IS EDITOR OF CANADIAN FACILITY MANAGEMENT & DESIGN.

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Membership matters As the Commercial Real Estate Industry continues to pivot to Return to Work Plans, BOMA Toronto is laser focused on providing our members, stakeholders and the Commercial Real Estate Industry with trusted, valuable, relevant resources and guidance.

Leading our industry with collaboration, compassion and partnership is the essence of who we are and what we have done for over 100 years.

Our CRE front line hero’s continue to be the backbone and foundation of our Industry.

On behalf of our Board of Directors and the BOMA Toronto team, you all have our deepest gratitude.

For membership inquiries contact: Aaron Therrien, Director of Membership & Strategic Partnerships at atherrien@bomatoronto.org

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