Canadian Property Management June 2010

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VOL. 25 NO.3 • May/June 2010

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VOL. 25 NO.3

editor’snote The Infrastructure Stimulus Fund is looking like one of the better government expenditures of late. Certainly, it’s an investment that enhances the asset value of the Canadian urban fabric, in contrast to – hmm… let’s see – $1 billion spent on security and ceremonial trappings for a one-week period.

Hundreds of projects now underway in cities and towns across the country also offer heartening proof that applications for government funding can be processed quickly and effectively, and that reasonable due diligence doesn’t have to be an interminable administrative gauntlet for responsible proponents. (Something that the government agency promoting rebates on the cover of this magazine might try to emulate.) We’ll be highlighting some of these infrastructure projects throughout the year, beginning with two new construction projects in Halifax and Ottawa.

Elsewhere in this issue, our Healthy Operations experts warn of negative synergistic effects when two or more substances combine to create a more threatening risk than each substance would pose on its own. Infrastructure Spending happily demonstrates the reverse scenario of actions with reverberating spinoff benefits.

Infrastructure investment begins with construction projects and job creation that infuses money into several sectors of the economy – thus the term “stimulus.” However, it almost invariably provides even greater economic and quality-of-life benefits long after the initial short-term boom has dissipated. Communities enjoy the lasting legacy of improved transportation networks; sewer and water services that safeguard public health and better protect the environment; and cultural, educational and recreational buildings that are more energy-efficient, deliver long-term operating savings and provide space for still more synergistic activities.

The Central Library in Halifax, for example, will replace the parking lot that is currently one of the dowdier sites along otherwise vibrant Spring Garden Road and create an accessible learning and gathering hub equipped to respond to changing times.

In Ottawa, the Algonquin Centre for Construction Excellence will be a somewhat circular payback on infrastructure investment as a state-of-the-art facility for training future generations of infrastructure designers and builders.

Green Investment similarly explores the theme of how Canada could capitalize on growing international demand for clean technologies or, conversely, suffer from an economy overly tied to carbon-intensive activities and products. Our contributors outline some avenues for supporting research, innovation and commercialization.

Nevertheless, some synergies should arise from the hundreds of millions of dollars in salaries that security personnel collected during the G-8 and G-20 summits. Although the economic spinoffs might have been even greater if the Home Renovation Tax Credit and ecoENERGY Retrofit for Homes programs were still applicable.

Barbara Carss barbc@mediaedge.ca

#!.!$!´3 02%-)%2 -!'!:).% &/2 "5),$).' /7.%23 !.$ -!.!'%23

VOL. 25 NO.3 s May/June 2010

Image courtesy of Diamond + Schmitt Architects & Algonquin College

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4 May/June 2010 | Canadian Property Management

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May/June 2010

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contents

Focus: Capital Projects & Operating Efficiencies 8 Algonquin Centre for Construction Excellence: Infrastructure Stimulus Fund underwrites training facility for the next generation of infrastructure designers and builders.

14 Clean-Energy Innovation and Development: Canada will have to compete in a lowcarbon economy. Public and private investment spurs required research and commercialization 18 Acoustic Performance: Design solutions to support concentration in green office space.

21 Halifax Central Library: Building Canada Fund turns the longstanding vision for a new downtown hub into reality.

Articles: 24 Cleaning with Caution: Disinfectants should be used in targeted areas, and diluted and applied safely.

28 Aroma Abatement: Neutralizing odour in garbage rooms, chutes, compactors and bins.

30 Countering Chloramines: City of Ottawa employs ultraviolet light against indoor pool irritants.

32 Funding Waste Diversion: Ontario considers shifting responsibility and costs to the producers of products entering the waste stream.

36 Tendering Template for Cleaning Contractors: Professional process makes it easier to assess bids.

37 Controlling Consulting Fees: Clients should retain decision making authority and a veto on the budget.

6 May/June 2010 | Canadian Property Management

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infrastructurespending

Infrastructure

By Barbara Carss

Image by Diamond + Schmitt Architects

Learning Space for New Generations of Trades and Designers

Infrastructure spending will translate into infrastructure capacity in the case of the new Algonquin Centre for Construction Excellence at Algonquin College in Ottawa. The $79-million, 180,000-square-foot facility will bring 20 existing apprenticeship, diploma and baccalaureate programs under one roof, and provide space to increase fulltime enrollment in construction and design related programs by 600 places.

Currently, approximately 1,900 students pursuing this training are scattered in five different buildings – some now so obsolete that they will simply be demolished once the new facility opens in 2011.

“We are trying to produce graduates who would go into the workforce and work together and yet we’ve been unable to do that at the college itself,” says Claude Brulé, Executive Dean of Technology and Trades at Algonquin College. “The new Centre supports those relationships and it creates a focal point for the industry. It will allow us to create programming that is really at the leading edge of where the

construction industry wants to be.”

Construction began in the fall of 2009 and is on track to meet a March 3 1 , 2 0 11 c o m p l e t i o n d e a d l i n e established as a condition of funding from the federal Infrastructure Stimulus Fund. The federal and Ontario governments are each contributing $35 million toward capital costs, while the City of Ottawa donated the land, valued at $2 million, for the project. Algonquin College is raising the remaining $7 million through a fundraising campaign and project financing.

SKILLS FOR AN EVOLVING SECTOR Program expansion responds to projected labour requirements in an industry where more than 50% of existing tradespeople are expected to retire by 2020. At the same time, steady technological innovation and the growing demand for designers and trades who understand green building techniques calls for new types of skills that workers will be expected to master.

In that vein, College officials have also proposed a new baccalaureate Canadian Property Management | May/June 2010 9

infrastructurespending Beneficiaries Tap Into a Package of Programs

Infrastructure funding announced in the 2009 federal budget is distributed through a number of different incentive programs. These include: • The Infrastructure Stimulus Fund is a $4-billion fund for provincial, territorial, municipal, community and private sector projects capable of meeting a completion deadline of March 31, 2011.

• The Green Infrastructure Fund will distribute $1 billion over a five-year period for green projects, with a particular focus on sustainable energy.

• The Recreational Infrastructure Fund provides $500 million over a two-year period to renew community recreation facilities across Canada.

• The Social Housing Renovation and Retrofit Fund provides $1 billion (with a required $850 million of matching funds from provincial and territorial governments) for repairs, modernization, redevelopment, energy-efficiency upgrades and/or modifications to support residents with disabilities.

• A $400-million fund for construction of new housing for low-income seniors and $75 million for construction of new housing for people with disabilities • $400 million for new housing and renovations on reserves, and $200 million for new housing and renovations in the north.

• The $2-billion low-cost loan fund provides municipalities with loans to support shovel-ready projects. This is aimed at reducing borrowing costs for local governments, which can use the loans to finance infrastructure projects directly or to fund a municipality’s cost-shared portion of projects receiving funding from the Infrastructure Stimulus Fund.

“The minimum standard we had set was LEED Gold and that was set in our RFP, but we left the door open for proponents to go beyond Gold.”

Image by Diamond + Schmitt Architects

10 May/June 2010 | Canadian Property Management

program – a Bachelor of Applied Technology in Building Science – to fill a market and educational niche that existing university programs haven’t addressed. “We want to make sure we have laddering opportunities for students to go from two-year diplomas to three-year diplomas to a degree,” Brulé adds.

The Algonquin Centre for Construction Excellence will be one of the teaching tools. Its highperformance attributes – which are expected to help the Centre secure LEED (Leadership in Energy and Environmental Design) Platinum certification – will demonstrate how energy savings, emissions reductions, storm water management and waste recovery and reduction can be achieved. In particular, advanced monitoring systems will deliver multilayered data that will allow students to observe, measure and compare how individual systems and the building as a whole consume resources at differing levels of occupancy, in varying climatic conditions and under other demand pressures.

“The minimum standard we had set was LEED Gold and that was set in our RFP, but we left the door open for proponents to go beyond Gold,” Brulé explains.

T h e d e s i g n - b u i l d c o n t r a c t o r, EllisDon Corporation, and architect, Diamond & Schmitt Architects, made a convincing case that a combination of elements that could qualify for LEED Platinum certification would also add significant value through long-term operating savings. These

Image by Diamond + Schmitt Architects

infrastructurespending

“Having March 31, 2011 as the deadline for substantive completion has been a factor that has likely dictated some of the construction processes and choices of materials.” include: a five-storey biowall of plants for enhanced ventilation and indoor air quality; a closed loop heating and cooling system; solar panels to augment the power supply; highefficiency building envelope, windows, roof and insulation; and rainwater harvesting to supply the toilets.

CAMPUS AND COMMUNITY CONNECTIONS The centre additionally secures LEED points for facilitating pedestrian movement and proximity to public transit – an outcome that addresses safety concerns on a campus alongside two of Ottawa’s busiest arterial roads, Woodroffe Avenue and Baseline Road.

College officials had long been nervous about impatient jaywalkers crossing several lanes of speeding 12 May/June 2010 | Canadian Property Management

traffic as they made their way between the OC Transpo bus station on one side of the road and the campus on the other.

The new Centre is now under construction on that bus station site (while the station operates out of a temporary location) and will be connected to a rebuilt OC Transpo facility. In future, it will be a transfer hub between Ottawa’s existing rapidtransit busway and an envisioned light rail transit system now in the planning stages.

Meanwhile, the centre’s location on the opposite side of the roadway from the preponderance of Algonquin’s faculty buildings allows for a convenient addition to the aboveground pedestrian bridge system that links most campus buildings at the

second-storey level. Pedestrians will be able to walk safely above the traffic, and be protected from the outdoor elements as well. “This will be a continuation of the mode of circulation from building to building at our campus,” Brulé notes.

Classes are slated to begin in the new facility in September 2011. That provides five months after the deadline for completion to install and commission equipment, landscape the grounds and prepare for the influx of students and staff.

“Having March 31, 2011 as the deadline for substantive completion has been a factor that has likely dictated some of the construction processes and choices of materials,” Brulé acknowledges. “Everybody received their funding around the same time and all those projects are going to have the same deadlines so there’s also a lot of competition for labour and supplies.”

Competition for labour is arguably a positive circumstance, however, for an institution dedicated to turning out a skilled workforce to support the sector. Algonquin has other capital projects planned and/or underway for its satellite campuses in the eastern Ontario towns of Pembroke and Perth – projects that have also indirectly benefitted from the Infrastructure Stimulus Fund.

“We had planned to go ahead with this building with or without the additional influx of the Infrastructure Stimulus Fund, but it would certainly have complicated the financing without it,” Brulé says. “Instead, the infrastructure funding has allowed us to refinance other expansion projects we have for the campuses.” zz For more information, see the web site at www.algonquincollege.com/expansion/ acce.htm.

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greeninvestment

Clean-Tech Torpor Emissions-Intense Economy Makes Canada a G8 Underperformer The following is an excerpt from Measuring U p : B e n c h m a r k i n g C a n a d a ’s Competitiveness in a Low-Carbon World, a recent report from the National Roundtable on the Environment and the Economy – Editor.

Canada ranks sixth on the G8 low-carbon performance index, falling within a tightly grouped second tier that also includes the United States and Japan.

France, Germany and the United Kingdom make up the first tier, while Italy and Russian fall into the third tier, which significantly lags the other G8 nations.

The performance gap between the leaders and followers is reflective of the energy and emissions profile of their economies, as well as their commitment to date in investing in enabling conditions for low-carbon growth.

Overall performance is judged on five categories: emissions and energy; innovation; skills; investment; and policy and institutions.

Canada’s significant hydroelectric generation and nuclear capacity enables it to rank among the leaders in low-carbon energy, but it still has the second most emissions-intense economy in the G8.

Canada’s energy-related emissions are growing at a pace that exceeds all other G8 nations, suggesting that Canada will face a significant challenge in meeting future carbon reduction obligations.

Energy production, consumption and trade are major components of a low-carbon economy. Reducing primary energy demand and shifting production from fossil-fuel generated energy to more low-emission sources will be necessary to achieve deep emission reduction targets.

FOSSIL-FUEL vs. LOW-CARBON SUPPLY National energy emissions profiles are important indicators for determining carbon productivity, driving innovation and building competitive advantage in low-carbon goods, services and technologies.

Improvement in carbon productivity can be 14 May/June 2010 | Canadian Property Management

achieved through fuel switching, accelerated GDP growth, energy efficiency, and carbon capture and storage along with other measures. The higher a nation’s score on this indicator, the more economic wealth it will be able to produce in a carbonconstrained future.

Canada ranks seventh in this indicator with the second worse carbon productivity in the G8, marginally behind the United States. As oil sands production increases, this gap will likely increase or at least remain wide. Looking at the number of tonnes of carbon dioxide (CO2) generated in the production of electricity per $1,000 of GDP (in US$), Canada basically tied with the US in second last place at 0.44 tonnes.

France led at 0.16 tonnes.

Canadian energy producers may face new competitive burdens – so called border carbon adjustments – as a result of policy and market restrictions enacted by trade partners. Most domestic energy production cannot be relocated, and there are limits to Canada’s ability to dramatically shift to a less emissions-intensive production mix over the next two decades. Failing such a development, a 2009 study suggests that Canada could face an average 2.8% tariff on imports of goods and services if embodied carbon is taxed at $50 per tonne of CO2.

The share of low-carbon electricity is a measure of a country’s electricity generation mix and an indicator of its ability to produce energy from sources that produce fewer emissions than fossil-fuel generation. Low-carbon electricity includes solar, wind, geothermal, biomass, largeand small-scale hydroelectric and nuclear.

Power and transportation typically rank as the largest sources of CO2 emissions in developed nations so power sector decarbonization will be critical to the achievement of deep GHG emission cuts, in particular as energy demand increases over coming decades to drive future economic growth.

Canada ranks second in this indicator, largely because of its hydroelectric

generating capacity. France tops the scale due to its high percentage of nuclear power.

Without significant growth in its renewable and nuclear generating capacity, Canada will be challenged to maintain its ranking in the face of projections for future growth in energy demand. Renewables currently make up a small percentage (3%) of Canada’s total supply and low-carbon electricity performance actually decreased somewhat since 1992. That said, all G8 nations may face challenges in raising their low-carbon generation penetration rates, especially as demand rises, prices increase and existing transmission grids become saturated.

INVESTMENT & VENTURE CAPITAL REQUIRED Public and private investment in lowemission or clean technology (clean-tech) development will be crucial to propelling nations ahead in a strong competitive position in a low-carbon economy. Such investment will be essential to meet domestic GHG emission reduction targets.

While market and regulatory measures such as carbon pricing and renewable portfolio standards will create market demand for, and drive investment in, clean-tech development, government stimulus and direct investment can help lay a foundation for a low-carbon economy by acting as nearterm catalysts of new clean-tech development and job creation.

Investments are required at all stages of technology and business development: angel investors, venture capitalists, banks and public funding all cater to unique funding needs. Nations with strong investment environments in low-carbon industries will generate capacity for building new firms and technologies to take full advantage of the transition.

The US has attracted nearly two-thirds of G8 clean-tech initial public offering since 2005, in terms of both dollars and deals.

Canada falls in the middle range of average IPO value, but with only 5% of the value of total funding raised, it cannot be considered a Continued on page 16.

SUPPORTING INVESTMENT

By Len Coad

The significant investments required to reduce Canada’s greenhouse gas (GHG) emissions can lead to the development and growth of homegrown clean-energy technology suppliers.

In order to succeed, however, these Canadian companies will need suf ficient financial and human resources capacity, access to world-class science and technology, and a business environment conducive to the development and commercialization of their technologies.

Other countries around the world are also looking at the development and implementation of clean-energy technologies to reduce emissions. Canada could become a leader in the development and commercialization of these technologies or it could become of a buyer of technologies from elsewhere – thus missing an important opportunity to develop globally competitive, highly innovative clean-energy technology industries.

Governments can play a major role in supporting innovation.

They can create markets for innovative products, processes and services through: strategic procurement; regulations that mandate their use; and fiscal incentives to purchase them.

They can support the attraction and development of highly qualif ied people through immigration policy and pos tsecondary education and training. They can provide research and development funding and access to risk capital for the development and commercialization of innovation They can institute effective regulations that support the development, commercialization and use of new products and technologies, while also meeting other public policy

objectives (e.g. environmental protection, public safety.)

Provincial governments across Canada recognize the need for continued investments in clean-energy technologies, and some of them have introduced innovation strategies aimed at developing and commercializing new or significantly improved technologies.

At the federal level, funds administered by Sustainable Development Technology Canada (SDTC) focus on pre implementation stages of technology development, whereas the ecoACTION and ecoENERGY programs tend to focus more on technology commercialization and/or implementation.

Many provincial programs place emphasis on applying existing technology to improve energy efficiency or support energy conservation.

Some examples of technology funds with a strong focus on technology development are: venture capital funds in British Columbia and Ontario; the Carbon Capture and Storage Fund, the Climate Change and Emissions Management Fund (CCEMF); Alberta’s Innovative Energy Technology Program (IETP); and Ontario’s Innovation Demonstration Fund (IDF). ^ Le n C o a d is t h e D i r e c to r o f En e r g y, Envi r o n m e n t a n d Technology Policy with the Conference Board of Canada. The pr ece ding is excerpte d fr om the r e se arch r epor t, T he Economic and Employment Impacts of Climate-Related Technology Investments. The complete text can be found at www.e-library.ca.

Canadian Property Management | May/June 2010 15

greeninvestment Continued from page 14. significant player in the global IPO market.

This should be of concern to Canadian based clean technology companies seeking access to global capital via domestic markets.

Other mechanisms such as public investment and regulatory developments will be needed to stimulate clean technology development and commercialization through the establishment of long-term price signals. As Deutsch Bank has recently emphasized, clean energy investors assess

country-level risk when considering where to invest and seek out climate change regimes characterized by transparency, longevity and certainty.

Clean-tech venture capital spending is an indicator of private sector energy related investments in new companies selling products and services that offer competitive returns for investors and customers while providing solutions to global challenges.

Clean-tech is a rapidly growing industry and is becoming a mainstream investment

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category. Research has shown that every $100 million of venture capital invested could result in 2,700 direct jobs as well as additional revenues and other indirect employment opportunities.

The US leads the G8 in clean-tech venture capital activity, capturing almost 80% of the total of these countries over the past five years. In 2009 alone, its investment more than doubled that of the United Kingdom and nearly tripled Canada.

ENERGY EFFICIENCY A FINANCE TOOL Stimulus spending by government has been a major public finance tool used by all industrialized economies to climb out of the recent financial crisis and economic downturn.

Many trillions of dollars in global stimulus spending have been directed in the form of short-term stimulus aimed at kick-starting economic recovery and boosting GDP, rather than investing in longer-term low-carbon transition.

However, effective stimulus directed to low-carbon energy projects, energy efficiency and technology development can be useful to spur more low-carbon job creation and thus a more sustainable recovery. Canada ranks fourth in this indicator, allocating slightly more than 8% of budgets to low-carbon initiatives. France leads this indicator, with more than one-fifth of its stimulus budget directed to low-carbon energy projects and energy efficiency.

Canada’s stimulus priorities lie in the areas of low-carbon power and energy efficiency, and it is the only nation in the G8 to include nuclear in its stimulus plans. There is considerable variation across G8 countries in terms of how low-carbon stimulus dollars are being spent.

Energy efficiency accounts for nearly two-thirds of global investment in this area.

Only the US and France have undertaken significant investment in renewables, with countries such as Japan and Germany focusing almost exclusively on investment in building energy efficiency.

Energy efficiency in buildings and renewables provide the highest low-carbon stimulus potential. Canada has directed the bulk of funding toward carbon capture and storage and nuclear, as well as rail and grid upgrades. zz The complete text can be found on the National Roundtable on the Environment and the Economy web site at http://www. nr tee-trnee.com/eng/issues/programs/ climate-prosperity/benchmarking/ benchmarking-eng.pdf

POTENTIAL GREEN TAX BREAKS

By Stephen Fyfe

The two principal federal tax incentives available to taxpayers developing renewable energy projects are the accelerated capital cost allowance (CCA) deductions available on renewable energy property described in Class 43.1 or 43.2 of Schedule II to the Income Tax Regulations and the immediate write-off available for development expenses related to renewable energy projects, known as Canadian Renewable and Conservation Expenses (CRCE).

There are approximately 20 types of energy systems that qualify for these tax incentives, including systems that incorporate waste fuels, efficient use of fossil fuels, and forms of renewable energy sources used to produce electricity and/or heat. The list of eligible energy systems expands periodically as new technology is reviewed by Natural Resources Canada and approved for inclusion in this list.

CRCE is defined in section 1219 of the These excluded costs are items, such Regulations as an amount related to the as project management and administrative development of a project for which it is expenses, legal fees, insurance, financing reasonable to expect that at least 50% of the expenses and amounts payable to noncapital cost of the depreciable property of such residents and to partnerships that are not project would be included in either special Canadian partnerships. Such amounts class of renewable energy property. are potentially deductible under other The definition of CRCE is not exhaustive. provisions of the Ta x Act or can be Presumably, any non-capital expenditure allocated to the cost of equipment and which is incurred prior to the sale of electricity depreciated. ^ to the grid could potentially be considered a development expense and be eligible to be Stephen Fyfe is the Toronto Regional Leader in included inCARMA_CondoBusiness_01-19-2009_CS2--F.pdf CRCE, unless the expenditure falls Borden2/3/09 Ladner Gervais LLP’s 5:41:35 PM national tax group. within one of the specific exclusions set out in For more information, see the web site at www. blgcanada.com. the definition.

Accelerated CCA Generally, most electricity generation equipment has a useful life of more than 20 years and a CCA rate of 8% applied on a declining balance basis.

However, generation equipment that is part of a qualifying renewable energy system and is acquired before 2020 qualifies for a 50% CCA deduction applied on a declining balance basis.

The types of systems qualifying for this incentive include renewable energy systems (e.g., solar, wind, small scale hydro); systems that use waste fuels, (e.g., landfill gas); and systems that make efficient use of fossil fuels, (e.g., cogeneration and district energy).

There are also several general pre-conditions to qualify under Class 43.1, such as the property must be situated in Canada and must not have been previously used.

CRCE Under the Canadian tax system most development type expenses are either capitalized as project costs, or constitute eligible capital property, the cost of which cannot be deducted fully in the year of acquisition, but must be depreciated over several tax years in computing taxable income under a mechanism similar to CCA. In contrast, special treatment is provided for development expenses associated with a renewable energy project.

In the renewable energy context, these qualifying development expenses are described in the definition of CRCE. In addition to attracting a 100% write-off rate, CRCE amounts can be passed along to investors through the mechanism of flow-through shares. Canada does not allow investors to subscribe only for the tax attributes of an energy project and to exit at a pre-agreed price when those tax benefits are exhausted. The flow-through share financing alternative provided under the Tax Act is the closest alternative Canada offers to that arrangement.

The flow-through share mechanism allows a corporate taxpayer to renounce certain expenditures to shareholders who subscribe for flow-through shares of the corporation.

The flow-through shareholders can then deduc t ex penditures renounc ed by the corporation against other sources of income, thereby reducing the immediate cost of their investments.

Canadian Property Management | May/June 2010 17

greenperformance

Soothing Sounds of Sustainability Green Office Space Brings Acoustical Challenges

By Niklas Moeller

18 May/June 2010 | Canadian Property Management

greenperformance The sensory environment influences the ability to concentrate.

Disruptive noises and conversations can make tasks more difficult to complete and increase the likelihood of making errors.

Such factors have been one of pitfalls of so-called green workplaces. Post occupancy evaluations conducted by the Center for the Built Environment reveal that the lack of privacy and the detrimental effect of noise on performance are among top complaints from green building occupants.

A 2004 study of several Canadian buildings pursuing LEED® credits for natural ventilation, open plan and low energy use shows that poor acoustics can make even the greenest spaces less desirable.

These facilities were found to be unacceptable, acoustically speaking, and had to be renovated at great cost.

Measures are available to address privacy and noise control after tenants have moved into the space, but it is advisable to set goals and determine how they will be achieved during the design stage. Acoustic professionals typically follow a formula known as the ABC Rule, which stands for absorb, block and cover. Although it can be challenging to apply these strategies in the context of sustainable design, their positive impact on workplace satisfaction and productivity is certainly worth the effort.

ABSORB Absorptive materials reduce the volume of noises reflected back into the space, the length of time they last and the distances over which they will travel. The ceiling is typically the most significant source of absorption in a facility. However, many green buildings feature an exposed deck to assist with temperature regulation and day lighting. This hard surface also allows sounds and conversations to echo, overlap, linger and travel greater distances.

Ideally, open spaces should feature a ceiling tile with at least a 0.75 Noise Reduction Coefficient. Tiles used in closed spaces should have a high Ceiling Attenuation Class because they will be better at containing sounds.

Adding absorptive panels to 30% of the deck can mute some of the impact. Vertical baffles are another option.

In designs featuring an open ceiling, a perforated and corrugated metal deck can be used. In such cases, absorptive material would be placed behind the perforations before the concrete is poured.

Workstation panels should also be absorptive – at least on the inside, above the work surface – in order to reduce the volume of the occupant’s voice before it is reflected

into the space. If the space is shallow to promote natural light penetration, absorptive panels should also be used on the walls to prevent sounds from ricocheting between the exterior wall and core.

Soft flooring should be used to reduce footfall noise. Designers can now choose products that contain a reduced amount of chemicals and/or recycled content, or are made from natural materials.

BLOCK Walls, windows, doors and other physical structures act to block noise, but green buildings generally feature an even larger percentage of open-plan area than traditional counterparts. Thus, the height of workstation panels becomes essential in these spaces.

Panels should extend beyond the occupant’s seated head height (150 to 165 centimetres) or they will do little more than hold up the desks. Where natural light penetration is a concern, designers can compromise by using absorptive panels to a 120-cm height and top them with 30 cm of glass or another transparent material. They should ensure that the panels have a high Sound Transmission Class and that they are well-sealed along any joints, with no significant openings between or below them.

Many green designs use movable walls to create private offices and meeting rooms, but these walls may not provide a sufficient level of sound isolation between adjoining spaces. Gaps along the ceiling, exterior walls and floor should be addressed during installation. A good septum on each side of the wall is also advisable to prevent sound leakage along any cable raceways.

COVER The final step of the ABC Rule uses background sound level to cover speech and noise. Green buildings’ use of natural ventilation and/or other advanced technologies that reduce noise associated with mechanical and forced-air also reduces the background sound level that can aid concentration in older office buildings.

Conversations and noises are easier to hear and travel over even longer distances.

Open windows for air circulation are also open to disruptive exterior sounds.

Meanwhile, green buildings with differing design and ventilation strategies between the exterior and core can suffer from variable acoustic conditions across the space.

A sound masking system can be used to replenish the background sound level and maintain it at an appropriate volume, which is typically between 42 and 48 decibels in

commercial interiors. This type of system consists of a series of loudspeakers that are usually installed in a grid-like pattern above the suspended tiles or in an open ceiling. The sound they distribute is continuous and has been specifically engineered to increase privacy. Masking mutes or reduces the impact of intermittent noises by decreasing the amount of change between the baseline and peak volumes to improve overall acoustical comfort. A networked masking system gives occupants the flexibility to adjust the set-up if the ambience changes in a specific area. Some sound masking systems provide paging and music distribution, eliminating installation and operating costs for a second system.

GREEN CONSIDERATIONS Facilities managers may want to consider some factors: • Energy consumption. Ask how much power the system will consume. Most use less than that of a typical light bulb to cover 13,500 square feet.

• Environmental programs. Find out if the manufacturer adheres to programs such as the Restriction of Hazardous Substances (RoHS) initiative, which ensures that products meet requirements for low levels of heavy metals such as lead and cadmium.

• Lifecycle and maintenance. Most masking systems have a long lifespan and can easily be expanded or relocated. Networked sound masking systems can be reconfigured using a control panel or software, reducing churn costs.

• Recycling program. Check if the manufacturer offers a recycling program for end-of-life products.

Sound masking offers a solution that will allow building owners, managers and occupants to take advantage of the positive aspects of green buildings, such as improved indoor air quality, without detracting from the quality of the working environment. In open areas, masking increases the external-internal noise isolation, as well as that between workplaces. Masking can also reduce material costs by influencing wall construction standards and making movable walls feasible, contributing to the overall flexibility of the space and reducing waste generated from future renovations. zz Niklas Moeller is Vice President of K.R. Moeller Associates Ltd., a global developer and manufacturer of the sound masking system, LogiSon Acoustic Network. For more information, see the web site at www. logison.com.

Canadian Property Management | May/June 2010 19

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Halifax Central LibraryJoins the 21st Century Cultural Infrastructure Supports Downtown Dynamism

By Barbara Carss Need was long established, studies conducted and an overarching vision in place, but capital funding for a new central library in the Halifax Regional Municipality (HRM) remained elusive until the 2009 federal budget pledged increased support for infrastructure construction and renewal via a package of different incentive programs.

“We have been proposing a new central library since before the amalgamation of the Halifax Regional Municipality in 1996 and the sticking point has always been funding,” notes Judith Hare, Chief Executive Officer of the Halifax Regional Library Board.

“The infrastructure money was very, very important because often other infrastructure programs didn’t include libraries. Building Canada grants include a category for cultural institutions.”

Even so, proponents had to make a convincing case for their project among many eager applicants. Regional Council was firmly on side, having already approved the plan for a new Central Library in

principle, and endorsed it as one of two nominated projects forwarded to federal decision makers disbursing the HRM’s share of the funds. (See related information on page 22) Today, with the commitment of $18.3 million from the federal government and $13 million from the Nova Scotia government, public consultations to inform the design process are underway for a modern facility on a prominent downtown site. The architectural team, led by the Halifax-based firm of Fowler Bauld & Mitchell, expects plans to be essentially finalized when the last of five public meetings occurs in November 2010.

Construction will then have to proceed relatively quickly to meet the Building Canada Fund program’s deadline for completion by December 31, 2013.

FROM OBSOLETE TO CONTEMPORARY SPACE Earlier consultation and studies have already identified some of the key components to be incorporated into the

110,000-square-foot facility, including accessible design, a 250-seat auditorium, space for community programs and room for the library’s collection to grow. Designers are also aiming for LEED (Leadership in Energy and Environmental Design) Gold status.

“The current building, per square foot, costs a whole lot of money to operate,” observes George Cotaras, Vice President and General Manager with Fowler Bauld & Mitchell. “The new building will be less expensive to operate over many, many years.”

Engineering consultants long ago concluded that it would be less costly to build a new library than to try to retrofit and expand the existing 38,000-square-foot facility to meet today’s standards. It is showing its age as it nears the 60-year mark.

Lack of air conditioning and a front entrance that only the physically able can negotiate are two of the most obvious signs of dated design. Staff and patrons have also been frustrated with the limited capacity for IT services and technology and insufficient Canadian Property Management | May/June 2010 21

infrastructurespending space for community activities, while many of the building components require repair, replacement or – given that it contains asbestos and lead paint – remediation. “ P h y s i c a l l y, t h e b u i l d i n g i s deteriorating very badly around us,” Hare says. “It was built a long time before computers and technology came along so it is very, very difficult to rewire or even find space for technology in the building. It’s just a very old model of use dominated by book stacks. We want the central library to act as a kind of hub for the downtown and to be a place for people to gather,

and we can’t accommodate many of these things in the current building.”

ICONIC SITE, COMMUNITY CATALYST Outdoors, however, the grounds surrounding the current library are a favoured place for Haligonians to congregate, relax and enjoy the sights on Spring Garden Road – one of the city’s most historic and dynamic thoroughfares, which traverses the shopping district and leads to Halifax Public Gardens, the oldest Victorian style civic gardens in North America. The new library will be located across the street from its predecessor, providing a very similar view, and an

Significant Project Status The Building Canada Fund pledges $8.8 billion over seven years. The program is divided into two components geared to larger and smaller communities.

1) The Major Infrastructure Component is for strategic projects deemed of national or regional significance.

2 The Communities Component is earmarked for projects in communities with populations less than 100,000.

Funding is allocated for projects in the provinces and territories based on their populations. Major projects are selected through federal-provincial/territorial negotiations.

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opportunity to enhance the streetscape and green space on a site that’s currently a parking lot.

“The existing building is an iconic building, at least from the outside perspective. It’s a focal point for the community as a location and I think the new site is iconic in the same way,” Cotaras reflects. “The public garden anchors one end of Spring Garden Road and we see the new library as a winter garden anchoring the other end.”

The downtown location draws nearby residents, workers who travel into the core regularly and students from Dalhousie and St. Mary’s Universities. The new facility will also support the arts community. “We have a partnership with Symphony Nova Scotia and we foresee small ensembles playing in the auditorium,” Hare says.

Once the new library is built, the HRM will reclaim the existing library and grounds, and is now beginning the process to decide how to readapt the space. Meanwhile, as part of the land swap agreement for the new site, which was formerly owned by the Nova Scotia government, 100 underground parking spaces will be accommodated in the library’s underground parking garage to replace those lost from the former parking lot.

HRM is the most significant sponsor for the project, with a promised capital contribution of $23.7 million. Of that, the Halifax Regional Library Board itself is kicking in $3.4 million – $1.7 million generated from fundraising and $1.7 million derived from portions set aside from its operating budget.

If interest thus far is any indication, fundraisers should be able to find willing donors among the populace. Organizers are expecting at least 200 people to attend each of the five public meetings planned from June to November, based on similar sized turnouts throughout the previous rounds of public consultation on the central library concept. “The project has elicited an incredible amount of enthusiasm and we have received a massive amount of input from the public,” Hare reports.

“We are really excited about having the public consultation and getting on with the design,” Cotaras says. “It’s the most significant public building to be built in Halifax for a generation and probably will be for another generation.” zz For more information, see the web site at www.halifaxcentrallibrary.ca.

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healthyoperations

Disinfect Discriminately Thorough Cleaning is Often Enough

By Paul Goldin

24 May/June 2010 | Canadian Property Management

The terms disinfection and sanitization are often used interchangeably, but they perform different functions.

Disinfectants have a higher kill capability for pathogenic bacteria compared to sanitizers. Very few disinfectants or sanitizers can sterilize or completely eliminate all micro-organisms.

Disinfection reduces potential infection hazards by reducing the number of microorganisms present. This doesn’t necessarily eliminate all micro-organisms, but can reduce them to a level where they can no longer initiate infection. In contrast, a sanitizer must be capable of killing 99.999% (known as a 5 log reduction) of a specific bacterial test population within 30 seconds, but it may not necessarily destroy pathogenic or disease-causing bacteria.

Disinfectants should be used very carefully because they are also potentially harmful to humans and animals. As a general rule, they should never be mixed with other cleaning products because chemical reactions can occur. Some disinfectants will kill nearly all microorganisms, while others kill a smaller range of disease-causing organisms but might be preferred because they are non-corrosive, non-toxic or inexpensive.

Commonly used disinfectants include: • Quaternary ammonium compounds (or Quats), such as benzalkonium chloride, are a large group of related compounds. They are odourless, nonstaining, non-corrosive to metals and relatively non-toxic at use-dilution concentrations. As sanitizers, they exhibit wide latitude in germicidal activity when used in hard water and are effective over a wide pH range.

• Hydrogen peroxide is often used in hospitals to disinfect surfaces and in the food packaging industry to disinfect foil containers. A 3% solution can also be used as an antiseptic. This disinfectant

causes far fewer allergic reactions than alternative disinfectants. Nor does it produce residues or gases. Hydrogen peroxide is completely water soluble, thus safety depends on the applied concentration.

• Alcohol – usually ethanol or isopropanol – has wide microbiocidal effectiveness and is non-corrosive, but can constitute a fire hazard. These disinfectants evaporate quickly and have a limited activity in the presence of organic material. They are not effective against fungal or bacterial spores. Alcohols are more effective when combined with purified water – i.e.70% isopropyl alcohol or 62% ethyl alcohol is more effective than 95% alcohol.

• Bleach is a chemical that can remove or lighten colour, usually via oxidation.

• Phenolics are effective at sanitization and disinfection in the presence of biological fluids and are tolerant towards a certain level of organic presence. However, they are relatively expensive and react with certain types of plastic surfaces. They are also difficult to oxidize and therefore difficult and expensive to dispose of in an environmentally suitable manner.

TARGETED APPLICATION RECOMMENDED Facilities/maintenance managers can either select a disinfectant that works on the specific germs they are trying to eradicate, or a broad-spectrum product that works on all of the germs they might encounter.

Application instructions are critical.

Cleaning staff must know when cleaning alone is enough and/or when disinfectant is required. The use of disinfectants should be limited to high-risk touch point areas where germs and infections are easily spread. For other areas, a thorough cleaning – preferably using green cleaning products – should suffice.

As an alternative to harsh chemicals, hydrogen peroxide may serve as an effective

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healthyoperations

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natural disinfectant. A combination of 3% hydrogen peroxide (the same strength in products sold over-the-counter in pharmacies) and undiluted white or apple cider vinegar is a proven and safe way to get rid of the Salmonella and E. coli bacteria.

The two substances should be put into separate spray bottles and sprayed immediately after each other.

When more toxic chemicals are used, take care to review each product's material safety data sheet (MSDS) for other ingredients that may harm the user. For example, be wary of combined cleaner-disinfectants that contain butoxyethanol or ethanolamine.

Leaving the product on a surface for longer than recommended does not increase its effectiveness, but can lead to dangerous and unnecessary chemical exposures.

Leaving it on for less time than recommended can inhibit its effectiveness. When using disinfecting wipes, avoid the spread of germs by ensuring that different wipes are used when cloths are passed from one surface to another.

Many chemicals contained in cleaners and disinfectants contribute to poor indoor air quality and have been implicated in the increase of respiratory ailments such as asthma. Exposure to and contact with cleaning chemicals can also cause eye, nose and throat irritation, skin rashes, headaches, dizziness, nausea and sensitization.

In commercial settings, cleaning chemicals are often purchased in concentrated solutions that require mixing and/or dilution by the employee who is responsible for application. Incorrect dilution of these products can cause adverse health effects for janitorial staff.

Certain cleaning chemicals may produce synergistic effects when mixed together, or repercussions more serious than those caused by each chemical itself. For example, a quaternary ammonium compound used in combination with bleach will release gases called chloramines into the air. (See associated story, page 30) Disinfectants such as quaternary ammonium compounds, phenols and bleach, which are used for routine cleaning in hospitals, the food service industry and by property managers, are registered pesticides.

Health effects from long-term exposure to quaternary ammonium compounds include asthma and hypersensitivity syndrome. zz Paul Goldin is Chief Sustainability Officer and Director of Marketing and Technical S e r v i c e s w i t h A v m o r. F o r m o re information, see the web site at www. avmor.com.

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healthyoperations

Garbage Chutes Reek Havoc Natural Extracts Can Neutralize Odours

Odour problems can make an otherwise perfect building unliveable. The tons of garbage that pass through a building’s waste management system – chutes compactor, bins, garbage room – can lead to bacteria growth, grease and fat build-up and a breeding grounds for pests. Meanwhile, the increasing prevalence of green bin programs and organics recycling presents new challenges.

It’s equally important that odour control practices be acceptable to building occupants, mangers and owners. Chemical products can be hazardous, while other do-it-yourself practices can be more costly than commercial odour control systems.

Step one for proactive property managers is to recognize that odour prevention isn’t a one-time project. It should be an ongoing process that addresses the entire waste handling system, as well as other common sources of odour: hallways, foyers, fitness centres, party rooms and washrooms.

Typically, odour is a by-product of decomposing organic matter. When living cells die, they attract bacteria that then break down the dead tissue. This natural process produces unpleasant smelling gases as an interim by-product.

Effective systems provide odour control in the air and on surfaces. Three commonly employed approaches include masking agents, bacteria/enzymes or odour neutralization.

Masking agents are scents sprayed in sufficient quantity to temporarily overcome the odour – an approach often employed by non-professionals. The result isn’t lasting since the added scent does not eliminate the odour. Building occupants may dislike the scent and/or react to breathing in a chemically based product.

Alternatively, sprays containing bacteria and enzymes that will ingest and liquefy the waste can be applied to problem areas. This technique typically takes 24 to 48 hours to get

By Thea Saarimaki results and is also sensitive to heat and humidity factors in the space.

Since the bacteria and enzymes must come in direct contact with the odour source, they don’t work on odorous garbage in enclosed in bags. Masking sprays are sometimes added to the formulation to help boost effectiveness.

These bacteria/enzyme sprays do not sanitize and cannot be used in the presence of sanitizing products. Nor can this approach be used where humans will come in contact with it because the bacteria can affect eyes, mouths or open sores.

Sprays containing natural plant extracts can neutralize odours as the extracts combine with odour molecules and, in the process, eliminate the odour. The environmentally acceptable formula is also safe to handle, which has helped to make odour neutralization increasingly popular for multi-tenant and industrial applications.

Effective systems should target air and surfaces. Simply cleaning with a mop and chemical-based, off-the-shelf products can be costly, time-intensive and negatively affect air quality. The professional approach is to use a product that is formulated with: • degreasing agents that remove fats, oils and decaying organics from the walls of chutes, bins and garbage room floors • a powerful contact deodorizer that provides long-term odour management • a sanitizing agent that prevents bacteria growth and eliminates pest nesting areas The product should be applied with a foaming applicator on garbage room floors, compactors and waste bins, or a spray applicator in trash chutes. The garbage chute should also be powerwashed once or twice a year.

Build-up of grease, fat and bacteria can cause persistent odour problems, fire hazards from accumulated fat/grease, plus pest attraction and associated health hazards.

Independent testing has detected that at least 30 types of bacterial growth – including salmonella, legionella, listeria, aeromonas, hydrophilia, clostridium perfringens – can occur in garbage chutes. zz Thea Saarimaki is a Microbiologist with Ecolo Odour Solutions. For more information, see the web site at www.ecolotoronto.com.

28 May/June 2010 | Canadian Property Management

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healthyoperations

Breathing Easy at Poolside Shining the Light on Water and Airborne Contaminants

By Marco Manconi, Bruce Hoskin, Kevin Nimmo and Domenic Cuccia

New technology is addressing and ameliorating some longstanding complaints about air and water quality at the City of Ottawa’s 18 indoor swimming pools. These facilities range from five to 75-years-old and have differing physical layouts, ventilation, pool filtration and chemical systems.

All the City’s swimming pools use some form of chlorine as the primary disinfectant, whether it be gas chlorine, calcium hypochlorite or sodium hypochlorite. This complies with Provincial Pool Regulation R.R.O. 1990, Reg 565 under the Health Protection and Promotion Act RSO 1990, which states: “every owner and every operator shall ensure that the pool water is treated with chlorine, a chlorine compound, or a bromine compound by means of an adjustable dosing chlorine.”

The odour typically associated with chlorine at indoor pools is caused by compounds commonly known as chloramines. The chloramines, in turn, arise from the combination of pool water and ammonia, and can cause eye and throat irritation among other nuisances.

At the City of Ottawa’s facilities, a combination of measures is employed to ensure the best possible environmental conditions in the pool and pool complex.

First, in keeping with the Ontario Pool Regulation, patrons are required to shower to reduce the contaminants they might carry into the pool. Programming staff have implemented a public education campaign, including increased signage and information brochures, to encourage pool patrons to cooperate.

On the operational front, properly designed and functioning mechanical systems are key for air distribution, outdoor air intake, pool filtration and water circulation. A review of current technical 30 May/June 2010 | Canadian Property Management

and health and safety information convinced City officials that ultraviolet pool disinfectant could further support the existing chlorinebased system.

Ultraviolet systems break down chloramines that are produced and contained within the supply water, thus improving air quality. This will sterilize most organisms, including those that are resistant to chlorine.

It also reduces the overall need for chlorination and the frequency of superchlorination.

COMPATIBLE CONNECTIONS TO EXISTING SYSTEM To begin, a mechanical engineering consultant surveyed the pool mechanical rooms and selected ideal locations for the UV systems. A local plumbing contractor then installed the necessary valves and bypasses during a regularly scheduled shutdown.

The bypass line hooks into the existing pool return line downstream of the filter system. The bypass valve will normally be closed to divert the total water flow through the new UV chamber, but the bypass line also enables the system to continue pool filtration when the UV is off for servicing.

With these connections in place, the UV system itself could be installed later with minimal disruption to the pool programming.

The City tendered for several pool UV systems at one time in an effort to minimize the number of different units from a maintenance perspective and to realize savings due to additional volume of work.

Specifications were based on the Siemens Barrier UV System (or equivalent). To date, three manufacturers’ systems – Siemens, Engineered Treatment Systems and Hanovia – have been chosen.

healthyoperations These systems use medium pressure UV bulbs to treat the pool water with broad polychromatic light in the spectrum between 185 and 400 nanometers. The equipment consists of two main parts: a stainless steel reaction chamber and a system control panel. The reaction chamber is placed in-line with the pool filter system and contains the UV bulbs, quartz sleeves, sleeve wiper and UV intensity sensor.

High-energy UV breaks the chlorinenitrogen bonds of the chloramines – a process known as photolysis. This applies to the full water flow of the pool filter system, meaning that the total pool volume passes though the UV system multiple times in one day.

SAVINGS AND SATISFACTION Reduction of waterborne chloramines reduces the chloramines released to the air thereby reducing the prevalence of nasal and throat irritation and the obtrusive chlorine smell. UV treatment also provides a spinoff benefit by neutralizing chlorine-resistant bacteria, viruses and protozoa such as Cryptosporidium and Giardia.

Ten pools have been retrofitted with UV systems since September 2007, with eight of those projects occurring in the fall of 2009 and winter of 2010. Thus far, operators have noted the following outcomes: • Decreased requirement for breakpoint chlorination • Reduced labour costs associated with superchlorination • Increased programmable time in the pool • Decreased requirement for excess ventilation air • Reduced associated utility costs for heating ventilation air in winter • Decreased requirement for chemical oxidizers such as Potassium Monopersulphate • Increased consumption - large system average power consumption is 10.3 kVA • Annual UV maintenance costs • Bulb replacement cost/effort – approximately $800 annually • Wiper blade replacement costs Pool patrons were also quick to notice.

“Since we have had the UV system installed, I have noticed a change in the air quality.

The air does not have a heavy chlorine smell and it is easier to breathe on the pool deck,” reports Sue Chiumera, a Recreation Supervisor with the City of Ottawa. “Clubs are not complaining during their swims and,

once they are done, the lane swimmers that follow are no longer complaining that it’s hard to breath because of the chloramines that are airborne.”

“Swimming in our pool is as close as it gets to swimming in a pristine, clear lake,” concurs Aquatics Recreation Supervisor, Marc Latreille. “Overall, the pool water and air quality is great.”

These successes fulfill the City’s goal to address and improve air and water quality

for its patrons and staff at indoor pools.

Installation of UV treatment systems will continue in existing pools and will be a requirement for new pools in the future. zz Marco Manconi, P.Eng is a Program Manager with the City of Ottawa’s Infrastructure Services Department. For more information, see the web site at the www.ottawa.ca.

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wastemanagement

Bankrolling Waste Diversion EPR Should Shift Costs Away from IC&I Sector in Ontario

By John Willms Ontario is poised to make extended producer responsibility (EPR) the foundation for the province’s future waste diversion framework. The full cost of waste diversion would be shifted away from municipal taxpayers, who currently pay 50% of the cost of the Blue Box program, and businesses, which pay for the bulk of their own waste recycling costs, and onto the producers of designated products and packaging materials that end up in the waste stream.

Among the product categories to be targeted within the first two years of the program are industrial, commercial and institutional (IC&I) paper and packaging, construction and demolition materials and certain electronic equipment. Those waste streams currently designated under the Waste Diversion Act, 2002 (WDA), including Blue Box materials, waste electronics, used tires and special wastes, would also be shifted under the EPR model. In addition, a number of treatment processes currently discouraged under the Act would be permitted in order to meet diversion targets.

EPR shifts the primary responsibility for waste diversion from consumers to those who introduce products and packaging into the marketplace. The theory is that producers are best positioned to make critical waste control decisions during the design, production and distribution processes that will reverberate throughout the lifecycle of a product or package.

In a discussion paper released in the fall of 2009, Ontario’s Ministry of the Environment (MOE) proposed making individual producers fully and legally responsible for meeting diversion requirements for waste discarded in both the residential and IC&I sectors. It is anticipated that the true costs of waste disposal would then be incorporated into the purchase price of a product and its packaging.

32 May/June 2010 | Canadian Property Management

Producers would be permitted to meet waste diversion requirements either by joining a materials management scheme or by developing their own individual waste diversion plans. However, individual producers would remain responsible for meeting the waste diversion target should a material management scheme fail to achieve compliance. The legal obligation rests with the producer, not the scheme.

Individual producers would also be required to annually report information on their sales of designated products into the Ontario marketplace.

BROADER SCOPE ALLOWS FOR COMPETITIVE SERVICES Since the establishment of the Blue Box program plan – the initial program plan under the WDA – the Province has approved a series of EPR-styled programs where those industries with commercial connections to a designated product or packages must bear direct responsibility for the appropriate diversion of that product or package. These include: three phases of the Municipal Hazardous or Special Waste (MHSW) program; two phases of the Waste Electronic and Electrical Equipment (WEEE) program; and a program to manage used tires.

While the Province acknowledges that the current programs under the WDA are significant from a pollution prevention perspective, they represent only a small portion – less than 15%, according to Ministry figures – of the total solid wastes generated in the province. If Ontario is to meet its overall waste diversion targets, it must widen the scope of its efforts and address additional wastes from the IC&I sector, as well as bulky consumer products and other packaging materials.

A material would be designated for diversion if it: 1) constitutes a significant portion of the waste stream and 2) its diversion contributes to the protection of the environment and human health.

Producers of IC&I packaging and paper, waste electronic and electrical equipment, and construction and demolition material such as wood, rubble, masonry and concrete, shingles, drywall, metal, fixtures and flooring would have to comply within two years.

While the costs of the Blue Box are now shared by industry and municipalities, the MHSW, WEEE and used tire programs introduced over the last two years are based on a stewardship model that employs industry funding organizations (IFO) to develop, implement, finance and operate diversion efforts. It is expected that each of these monopoly-based programs will be shifted to the competitive individual responsibility model envisioned in the MOE’s discussion paper at some as yet unspecified time in the future. The Ministry states that transition plans will be developed in consultation with all stakeholders in each of the existing programs.

To support and facilitate producer responsibility, the Ministry could outright ban designated materials from disposal.

More likely, though, MOE will implement a disposal levy to “narrow the gap between the cost of diversion and disposal”. The disposal levy would apply to all wastes discarded in both the IC&I and residential sectors.

The revenues collected would be used to support the waste diversion efforts of businesses, consumers and municipalities – such as “design for the environment” measures and consumer education programs.

VARIED RESPONSE TO MINISTRY PROPOSALS Many industry associations are unhappy

wastemanagement with the prospect of shouldering the entire financial burden for waste diversion. The Packaging Association of Canada (PAC) has urged the government to conduct an economic impact analysis of the costs of fully extending producer responsibility under the WDA. On the other hand, municipalities are eager to shed their share of the Blue Box costs. “Holding industries accountable for the waste management costs related to their products and packaging is the most practical means of reducing the amount of waste we create as a society,� says Peter Hume, President of the Association of Municipalities of Ontario (AMO).

AMO has recommended a full and immediate development of a transition plan for the Blue Box Program Plan to full extended producer responsibility.

In a joint submission on the EPR proposals, AMO, the Regional Public Works Commissioners of Ontario and the Municipal Waste Association argue that the plan should go even further. “We support the designation of all packaging and printed paper sold in the Ontario marketplace for inclusion in the program,� it states.

The Ontario Environmental Industry Association (ONEIA) wears two hats: it represents both the producers of various products and services sold in Canada, as well as the businesses that recover and reuse the resources related to those products and their packaging.

With an environment industry worth approximately $8 billion to the economy each year and employing approximately 65,000 people, the members of ONEIA are the very foundation of the economic activity the Ministry hopes to foster.

The association strongly supports the move away from what it calls the “inflexible and overly complicated� IFO model towards a more competitive approach. “This mandated IFO approach has proven to have negative effects on producer, consumer and end-of-life processor markets,� ONEIA’s brief to the Minister maintains. The current system “affords IFOs with market power as monopoly buyers of environmental services that in some cases has resulted in end-of-life material processors being unable to thrive, invest and proactively increase diversion.�

The proposal has garnered strong support from environmental groups. A

brief submitted by a coalition of nongovernment organizations, including the Canadian Environmental Law Association and the Canadian Institute for Environmental Law and Policy says: “it will be essential that the program entail vigorous immediate enforcement� and calls on the Ministry to “maintain and significantly increase its enforcement capacity� to uphold the proposed revisions to the

WDA. “In order to ensure that all waste management parties (collectors, haulers and processors) and their downstream sub-vendors adhere to the highest standards, a licensing system should be considered. This is in addition to developing a registry for the tracking, reporting and auditing data that stewards will submit as part of their waste diversion program requirements.�

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Canadian Property Management | May/June 2010 33

wastemanagement

A material would be designated for diversion if it: 1) constitutes a significant portion of the waste stream and 2) its diversion contributes to the protection of the environment and human health.

TRANSITION POLICIES REQUIRED Questions arise. If producers take over responsibility for waste diversion, what will become of the millions of dollars worth of existing infrastructure?

Who assumes responsibility for the stranded assets and existing contracts?

The Ministry discussion paper attempts to clarify the governance and oversight

structure of the new diversion regime.

The Ministry of the Environment would set the long-term policy framework, designating materials, setting five-year collection and diversion targets, establishing timelines, setting penalties for non-compliance and promulgating environmental standards as appropriate.

Over the short term, the Ministry would develop transition plans and set

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ǁǁǁ͘ƌĞŝĐ͘ĐĂ ϭͲϴϬϬͲϱϰϮͲϳϯϰϮ ŝŶĨŽĐĞŶƚƌĂůΛƌĞŝĐ͘ĐŽŵ KEd d h^ dK z͊ 34 May/June 2010 | Canadian Property Management

phased end dates for each existing program, with corresponding milestones to move existing programs to the proposed new framework. The current diversion framework would be kept intact until transition is complete.

F o r i t s p a r t , Wa s t e D i v e r s i o n Ontario (WDO) would handle oversight and compliance duties, conducting compliance checks on registrants, reviewing waste diversion plans, collecting annual data submissions and levying administrative penalties for noncompliance. The Province has suggested giving the WDO authority to charge fees for registration, compliance checks and data submissions on a cost-recovery basis. zz John Willms is a Partner with Willms & Shier Environmental Lawyers LLP. The preceding article is excerpted from the Willms & Shier Environmental Lawyers Special Report, May 2010. For more information, see the web site at www. willmsshier.com.

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contracting/outsourcing

RFP ABCs Professional Process Helps Identify Calibre of Bidders

By Gary Pelphrey P r o p e rt y m a n a g e r s a r e frequently required to take bids from contractors and other service providers.

The request for proposals (RFP) process can be daunting, but when conducted effectively, it can yield cost-competitive results and also reinforce to bidders that decisions have been made fairly and professionally.

The steps in hiring a commercial janitorial service or building service contractor can present something of a template for the bidding process. First, property/facilities managers must decide exactly what services and work they want performed and how often. For example, property/facilities managers should decide if green cleaning is a priority and, if so, specify it in the bid documents.

A 2004 study from the Building Owners and Managers Association (BOMA) identified the following major costs associated with operating a multitenant office building: • Taxes, insurance, mortgage, and related fixed costs: 33% • Utilities: 20% • Cleaning, including groundskeeping: 15 to 20% • Repairs and maintenance (other than cleaning): 15% • Administrative costs: 13% Clearly, cleaning costs are one of a building’s predominant operating expenses. Managers should assess the thoroughness and professionalism of prospective contractors’ bid submissions as evidence of the company’s performance in general.

COMPLYING WITH THE SPECS Carefully outline the required services to all contractors involved in the bidding process. Provide potential cleaning contractors with floor plans for the building, identify the types of floor coverings in the facility and where they are located, and discuss office density 36 May/June 2010 | Canadian Property Management

(the number of people using an area or areas) and room uses. This ensures that all bidders have accurate, identical information.

Examine bidders’ financial statements to verify that they have the financial resources to pay their workers and provide the tools and equipment necessary to provide the services as outlined in their bids while awaiting payment from their clients. Make sure insurance requirements are clearly noted.

As the bidding process gets to its final steps, some managers also ask for the names, phone numbers, addresses and other information about the workers who will actually be working in their facilities.

Background checks and reports are also often requested.

Review the contractors’ billing procedures and requirements. Most contractors now bill their clients at the first of the month for the month of service, with payment due at the end of that month. Additionally, late fees and interest charges will likely be noted.

Make sure all of these points are clear and acceptable.

The lowest bid is not always the best.

More experienced managers generally zero in on mid-range bids between the highest and lowest submitted.

Bid takers should ask for documentation that outlines how the bid pricing was established. These cost sheets should include items such as: • Labour costs, including worker benefits and supervisors’ wages • Number of workers that will be working at the property • Equipment and supplies to be purchased specifically for the location in question • Overhead and administrative costs • Profits The cost sheet should also provide a projection of the total number of hours of service required to carry out specified work at the facility. This allows bid

takers to calculate productivity rates by determining the number of square feet cleaned per worker per hour. (In a multitenant office building, one worker is generally expected to clean 4,000 to 4,300 square feet per hour.)

TOURS & REFERENCES Meeting with prospective cleaning contractors to show them the facility and discuss the cleaning specifications for the location can be a good way to gauge the company's professionalism and responsiveness. Property/facilities managers may want to conduct such tours individually with potential contractors or invite all of the qualified cleaning contractors to attend one building tour.

Many managers then identify the most promising proposals and arrange follow-up meetings with the contractors.

This is both an opportunity to review the bid proposal and get to know the contractor better.

Most contractors – no matter what service they are offering – will include a list of references with contact information.

This list of references enables managers to follow up and share experiences, usually by phone, with a bidding company’s customers. Some managers might visit the references’ actual locations and speak with the facilities’ decisionmakers about the cleaning company’s level of service.

Managers should assume that contractors will name only satisfied clients as references. As the list candidate list narrows, consider asking for additional references to ensure that companies can also point to other satisfied clients on short notice. zz Gary Pelphrey is the General Manager of Powr-Flite Direct, a dealer in cleaning equipment for janitorial contractors. For more information, see the web site at www.powr-flite.com.

contracting/outsourcing

Vigilance Thwarts Fee Escalation Consultants should be Service Providers, Not Decision Makers

By Gordon Perchthold and Jenny Sutton Too often, consultants produce underwhelming results for overwhelming fees. The executives or managers who select and oversee these consultants and their projects are somewhat at fault for this outcome, however.

The right type of consultants, used for the right reasons, can provide significant value to organizations in challenging and structuring thinking, overcoming the status quo and turning ideas into actions, but client companies must deploy consultants effectively and remain vigilant for conflicts of interest with consulting firms.

Organizations must not concede control to their consultants.

Ensure that power remains with those who are paying for consultants’ services.

1. Define the problem. Too often, executives leave it up to the consulting firm to define the problem, while consulting firms tend to view each client’s problem through the prism of their own capabilities and solutions. Executives must understand the desired results of the project and ensure that the consultants are focused on finding the specific solution to their problem.

2. Dictate how to structure the project. Consulting firms frequently attempt to maximize the consulting head count for the projects they propose, while clients complacently accept the project structure that comes along with the proposal.

However, most projects underuse the resources in the buyer’s organization. From the first draft of a proposal, clients should analyze what is being offered, look into their own organization for dollar-saving opportunities, and challenge the proposed approach and team composition with their own recommended changes.

3. Oversee the execution of the project with adequate direction. Consultants should be managed just as any other team reporting to the manager, and should not be allowed to reschedule work, redefine scope, substitute resources or make significant decisions without the knowledge and agreement of the client manager.

4. Ensure the desired results are achieved before consultants walk away with all their fees. Without proper management and evaluation, consultants too often get paid for just putting in the work hours instead of producing the results. In today’s economic climate, there is greater expectation and governance surrounding pay for true performance over the mid to long-term. Clients must create a stronger tie between fees paid to consultants and the benefits a business receives over the mid to long-term to ensure they are receiving maximum value.

Many companies spend huge sums of money on consultants, but more effective scrutiny can help keep fees under control. That requires effective selection, negotiation, project structuring and knowing when and how to release consultants. If goals are aligned with incentives and consultants are managed effectively, companies can extract better results and also enhance internal capability by learning new skills from consultants. zz Gordon Perchthold and Jenny Sutton are partners and co-founders of The RFP Company and authors of Extract Value from Consultants: How to Hire, Control, and Fire Them. For more information, see the web site at www.rfpcompany.com.

Canadian Property Management | May/June 2010 37

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