PMR | November 2014

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. 21 NO. 7 • NOVEMBER 2014

PLUGGING IN TO ONTARIO’S SMART GRID SYSTEM EXHIBITION PLACE RECOGNIZED AS WASTE MANAGEMENT LEADER THE POWER OF GREEN TEAMS Q&A: MISSISSAUGA’S 40TH ANNIVERSARY

EVOLVING ENERGYSAVING OPPORTUNITIES PA R T O F T H E

Technology Nurtures New Varieties of Low-Hanging Fruit

P A R T

O F

T H E

TABLE OF CONTENTS

CONTENTS COVER STORY

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EVOLVING ENERGY-SAVING OPPORTUNITIES Technology nurtures new varieties of low-hanging fruit.

IN THIS ISSUE

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PLUGGING IN TO ONTARIO’S SMART GRID SYSTEM

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SETTING THE MISSION FOR TENANT ENGAGEMENT Dr. Chris Bart examines tenant communications and the power of an effective mission statement.

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Toronto’s Exhibition Place receives Recycling Council of Ontario’s very first 3RCertified Platinum certification.

A new report from the Environmental Commissioner of Ontario discusses the nuts and bolts of the province’s incoming intelligent energy network.

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EXHIBITION PLACE RECOGNIZED AS WASTE MANAGEMENT LEADER

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FOUR COMMON BUILDING INEFFICIENCIES FOUND DURING RE-COMMISIONING What to keep in mind when re-commissioning existing and residential buildings.

THE POWER OF GREEN TEAMS How green teams can bring environmental thinking into an organization’s business operations.

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LEARNING THE “LIFE SAFETY” OF PROPERTY MANAGEMENT A report from the Fire & Emergency Services Training Institute’s (FESTI) new property management safety training program.

Q&A: MISSISSAUGA’S 40TH ANNIVERSARY Mississauga’s Director of Development and Design Lesley Pavan reflects on the city’s achievements, growth, and future ambitions.

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EDITOR’S NOTE

PUBLISHER MELISSA VALENTINI melissav@mediaedge.ca | x248

A NEW YEAR, NEW PROMISE

EDITOR-IN-CHIEF BARBARA CARSS barbc@mediaedge.ca | x236

EDITOR MATTHEW BRADFORD matthewb@mediaedge.ca

CONTRIBUTING WRITERS

There is no shortage of issues and challenges facing property management stakeholders in the GTA, and we’ve covered many of these within our pages throughout 2014. With a new year on the horizon, however, now is an ideal time to focus on the people, organizations, and ideas that are bringing positive change to the industry now and in the years ahead.

Looking for inspiration? Read “Exhibition Place Recognized as Waste Management Leader” for a look at how one organization is leading the way in waste management and diversion. Also follow us as we celebrate Mississauga’s 40th Anniversary in our Q&A with Lesley Pavan, Mississauga’s Director of Development and Design, discussing the city’s evolution, it’s future plans, and why it continues to serve as a role model for the region.

In this issue, we’ve also spotlighted the ideas and initiatives shaping the property management landscape. Please read with interest our collection of eco-forward articles, including “Plugging in to Ontario’s Smart Grid”, Barb Carss’ “Evolving Energy-Saving Opportunities”, and Simone Skopek’s discussion on engaging staff in eco-friendly projects in “The Power of Green Teams”. Dr. Chris Bart also drops in for a visit in this issue with a “how-to” for motivating property staff in “Setting the Mission for Tenant Engagement”, and Lee Hodgkinson joins us to share a few operational ideas in “Four Common Building Inefficiencies Found During Re-Commissioning”.

Lastly, health and safety are always on our radar, and for this edition we turned a spotlight on the Fire & Emergency Services Training Institute’s newest educational program in “Learning the ‘Life Safety’ of Property Management”.

It doesn’t take much to find inspiration within our industry. And we’ve barely scratched the surface. If you have a success story you want to share, any idea for an article, or simply wish to comment on one you’ve read here, please email me at matthewb@mediaedge.ca.

CHRIS BART, LEE HODGKINSON, JASON REID, LESLEY PAVAN, SIMONE SKOPEK

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ACCOUNTING MANAGER MAGGY ELHARAR

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PLUGGING IN TO ONTARIO’S SMART GRID

SMART FROM SUNRISE TO SUNSET

Environmental Commissioner’s new report raises profile for Ontario’s energy network initiative

BY MATTHEW BRADFORD

Intelligent and responsible energy use – morning, day, and night. This is the goal driving Ontario’s energy stakeholders as they work to generate support for the province’s Smart Grid system. It’s also the focus of a new report by the Environmental Commissioner of Ontario that seeks to educate property owners and residents on Smart Grid fundamentals and the benefits of “plugging in”.

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“After transportation, buildings are the biggest end user of energy, and we’ve got to manage their use of energy,” says Deputy Commissioner Ellen Schwartzel, noting, “Commercial building managers have had smart building controls for years and this is becoming common for residential owners as well.”

Entitled Smart from Sunrise to Sunset, the primer outlines the ways Ontario’s Smart Grid initiative will improve how energy is delivered, consumed, and monitored across the province. The term Smart Grid itself is used throughout as a blanket term for the energy-saving technologies and processes that are being used to evolve Ontario’s electricity delivery network.

“I think the biggest misconception is that Smart Grid is some far-off futuristic thing, but it’s not. It’s already affecting our lives,” says Schwartzel. “Most people know

they have a smart meter but don’t realize the Smart Grid is a set of technologies and grid operating practices that extend far beyond the meter.”

In addition to explaining Smart Grid concepts and technologies, the report identifies the stakeholders with an invested interest in its development. They include the Ministry of Energy, Ontario Energy Board, Independent Electricity System Operator (IESO), transmission utilities (Hydro One Networks, Great Lakes Transmission, Canadian Niagara Power, etc.), local distribution companies, Ontario’s Information and Privacy Commissioner, and the province’s energy consumers.

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throughout the morning; equipment like smart meters and interval meters can manage energy use more effectively during the high-demand work hours; and a combination of energy management software, telecommunications devices, and data collection techniques can be used to better control energy usage at night and throughout the day.

Other benefits of the Smart Grid cited by the report include: • Distribution utilities can balance electricity supply and demand by storing energy for later use during peak periods, avoiding the use of fossil-fuelled generators.

• Smartphone apps will monitor people’s electricity usage, and suggest actions to lower consumption and save them money.

• Appliances will be able to automatically reduce demand and shift usage to lower-priced time periods, rather than use expensive electricity during times of peak demand.

• With sensors on power lines, utilities can react quickly to any outage, rerouting power and restoring it to blacked-out neighborhoods.

• Utilities could maximize the use of clean electricity produced locally by thousands of homes, businesses, and schools.

• Electric vehicles will be scheduled to automatically recharge overnight when the price is lowest and the power is produced by clean, low-carbon generators.

• Eventually, electric vehicle owners may be able to sell the power they don’t need back to the utility, when prices are higher.

“Smart Grid technologies have the potential to improve reliability, reduce system costs, empower customers, and lower the environmental impact of the electricity we use,” summarizes Commissioner Gord Miller, adding, “Consumers need to know about this potential so they can ask their utilities for the services a Smart Grid can provide.”

Broad in its vision and down-to-earth in its delivery, Smart from Sunrise to Sunset poses a compelling argument for Ontario’s Smart Grid intentions. Of particular interest, however, are the potential benefits for property management stakeholders. Says Schwartzel, buildings connected to the smart grid will represent the ‘next step’ in green buildings, thereby increasing their value, while condo owners will enjoy lower energy bills and a greener footprint. “Both groups will benefit from increased reliability and shorter power outages, whether that is for staying warm at home during an ice storm or keeping commercial enterprises with sensitive electronic equipment running productively.”

Ontario’s Smart Grid is coming, and if Smart from Sunrise to Sunset is any indication, there are benefits to be had. That is, assuming there’s a buy-in from energy users across the board.

“Property owners and managers have to get involved because they will have the ability to shape development of the smart grid – what it will provide, who will pay for it, and how fast it will be developed,” insists Schwartzel, adding, “They will be able to shape improved reliability to minimize power outages; generate their own zero-carbon power; help the grid operator cut peak demand, and make money.” ■ ____________________________________________________________ A COPY OF “SMART FROM SUNRISE TO SUNSET” IS AVAILABLE ONLINE AT: HTTP://WWW.ECO.ON.CA/INDEX.PHP/EN_US/PUBS/ BACKGROUND-DISCUSSION-ROUNDTABLE-DOCUMENTS/SMARTFROM-SUNRISE-TO-SUNSET

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NOVEMBER 2014

OPERATIONS

EXHIBITION PLACE RECOGNIZED AS WASTE MANAGEMENT LEADER Toronto’s Exhibition Place receives RCO’s first 3RCertified Platinum certification

BY MATTHEW BRADFORD

Toronto’s Exhibition Place celebrated an eco-friendly first this October after receiving Recycling Council of Ontario’s (RCO’s) 3RCertified Platinum status for its stewardship in waste reduction.

The top-tier certification was awarded to Exhibition Place reps during the 2014 RCO Annual Gala on October 23, 2014. It represented the first platinum-level status of its kind to be awarded in the province.

“We were thrilled to achieve this designation, and especially to be the first in Ontario to receive the platinum designation,” says John Harlowe, a senior

facility coordinator with Exhibition Place, which spans 192 acres of urban parkland and attracts over 5.3 million visitors a year.

RCO’s 3RCertified is a program created

to recognize leaders in waste reduction and diversion. To apply, organizations complete three surveys over a six-month month period, each of which require comprehensive details of a facility’s waste reduction strategies from generation to final disposition.

Facilities are then subject to a third-party on-site evaluation which reviews and verifies

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OPERATIONS

the survey responses, including those related to program policies, communications materials, source separation programs, initiative campaigns, and the overall management plans in place to ensure waste management due diligence.

“It’s a very thorough evaluation.

Everything we put down in our survey had to be looked at to make sure it was real and it could be verified,” recalls Ron Mills, Director of Facility services with Exhibition

Place. “For instance, when we said that we divert carpet as one of our streams through our waste diversion program, we had to show and verify exactly where that goes, where it gets hauled to, and what it gets turned in to.”

Following the evaluation, applications are awarded points for each of the 3RCertified’s survey questions, and awarded one of four status levels based on their accumulative score: bronze

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(60%+), silver (70%+), gold (80%+), and platinum (90%+).

“3RCertfied is designed to be a thorough review of waste reduction and recycling practices, and verify and reward innovative practices that progressive organizations are doing to reduce,” says Jo-Anne St. Godard, Executive Director, RCO. “Exhibition Place’s management commitment, internal tracking and reporting, communication tactics, and vendor management are all

2014 3RCertified PROPERTIES 11 properties in the GTA were recognized by the RCO for achieving 3RCertified status in 2014. They include: 3RCertified: Platinum Exhibition Place Complex (100 Princes’ Blvd., Toronto) Managed by Board of Governors of Exhibition Place

3RCertified: Gold Chatham-Kent Health Alliance 80 Grand Ave. W. Chatham) Managed by Chatham-Kent Health Alliance 25 York St. (Toronto) Managed by Menkes Procter & Gamble Building (4711 Yonge St., Toronto) Managed by Menkes Bell Trinity Square (Toronto, ON) Managed by Northam Realty

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aspects of how they achieved 3RCertfied Platinum status.”

According to Arlene Campbell, General Manager of Sales & Event Management, Exhibition Place’s 3RCertified Platinum status is a result of the organization’s “GREENSmart” environmental initiative, which represents a number of eco-friendly initiatives. “We have a strategic, three-year plan for the grounds, and one of the core pillars to that is an environmental strategic plan. As such, we’re not just committed to waste diversion, but to energy reduction, water conservation, green transportation, and a number of green-minded objectives.”

In 2013 alone, Exhibition Place diverted 4,181,191 kg out of a possible 4,910,294 kg of waste, resulting in an 85.15% diversion rate.

The success of its overall plan, says Harlowe, is owed in large part to the dedication of Exhibition Place’s staff, suppliers, and event partners. “It took a complete buy-in from everybody in the organization to win this, from the senior management to our suppliers and right down to the people collecting the waste on the show floors.”

Adds Campbell: “We understand this is not only good for business, but it’s also good for all of us. There’s a pride in knowing that.”

Looking ahead, the team is eager to explore new ways of reducing its remaining waste that currently goes to disposal, while continuing to train and engage staff in its GREENSmart programs and work with all stakeholders to raise awareness for environmental sustainability.

“We’ve had a waste management program since 1989, and each year we try to build on that and get better and better,” says Harlowe, adding, “Now, we’re at the point where we could possibly reach zero waste in a few years. It’s a challenge, but that’s what we’re trying to do.”

RCO’s 3RCertified program is currently available to office buildings, retail establishments, and retail complexes, and will expand to include hospitals, hotels and motels, educational establishments, and manufacturing facilities in early 2015. ■

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on RCO’s 3RCertified program, visit www.3rcertified.ca

Linda Medeiros; Paul Evans, Deputy Minister, Ontario Ministry of the Environment and Climate Change; Gil Amaral; John Harlowe, Senior Facility coordinator with Exhibition Place; Ron Mills, Director of Facility services, Exhibition Place; Brian Dow, Facilities and Event Services Coordinator, Exhibition Place; and Jo-Anne St. Godard, Executive Director, Recycling Council of Ontario

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EVOLVING ENERGY-SAVING OPPORTUNITIES Technology Nurtures New Varieties of Low-Hanging Fruit

BY BARBARA CARSS

A decade into the Ontario government’s effort to inspire a culture of conservation, energy management specialists still see plenty of opportunity for low-cost or no-cost savings that can be attained through relatively simple initiatives – whether that be replacing and upgrading energy-consuming products or altering the behaviour of the people who use them.

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NOVEMBER 2014

ENERGY MANAGEMENT

The continued abundance of what’s frequently called “low-hanging fruit” is as much attributable to progress as to inaction. Blatant waste is still easy enough to find, but technological advancements are also steadily lowering the cost of once pricey measures.

“That’s the interesting aspect of the free market that companies keep bringing out new technologies that fit the category of no-cost/low-cost,” says Bob Bach, Senior Associate with Energy Profiles Ltd., and Vice Chair of the Conservation Advisory Committee to the Ontario Building Code. “I don’t see a slowing down of the availability of good products that will deliver savings at what is, at first, a premium, but is eventually going to end up as a competitive price.”

Adam Krehm’s multi-residential rental properties illustrate that theory.

“In our portfolio, I think we ate all that fruit some time ago,” quips the Principal with O’Shanter Development Company Ltd. “But these days, technology is advancing at a very rapid rate. For things that were good 10 years ago, there are now even better solutions. For example, we’ve started to replace what was considered energy-efficient lighting with LED lighting.”

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The experts generally agree on a few obvious sources for future savings.

“Lighting is still the number one thing.

It is the lowest hanging fruit. There is still a lot more to do with controls,” maintains Bala Gnanam, Director of Sustainability & Building Technologies with the Building Owners and Managers Association (BOMA) of Greater Toronto.

“The other area with greatest potential is HVAC. Pumps and motors are usually oversized and the system as a whole lends itself to operational improvements and optimization. For example, there are hydronic balancing (adjustments to warm and chilled water flows to ensure even temperatures throughout the building) opportunities.”

LED POTENTIAL Lighting, which has already been responsible for significant savings in the switchover from incandescent to increasingly more efficient iterations of fluorescent, is now poised for the transition to a new dominant technology.

The price of LED lighting has fallen rapidly, particularly in the last two years, in tandem with improvements in performance.

Notably, the Ontario Power Authority introduced new incentives as of October 1, 2014 for LED troffers for commercial interior applications ranging from $38 to $59 per troffer, and moved a selection of indoor and outdoor LED products into the prescriptive category of its saveONenergy incentives for commercial retrofit projects. This means qualifying participants receive a straightforward rebate based on a set amount for each LED installation.

“The incentives now make the costs virtually comparable to compact fluorescents. The LEDs’ longer lamp life may in fact bring the cost somewhat lower than fluorescents,” Bach says.

ENERGY MANAGEMENT

“It has supplanted all other light sources – halogen, compact fluorescent, T5 fluorescent, HPS, metal halide – in York Region’s construction standards,” affirms Michael Lithgow, Manager of Corporate Energy Services and Municipal Energy Conservation Officer for York Region.

“Linear T8 fluorescents are the only remaining old technology and even T8s will be gone very soon.”

Still greater savings are anticipated approximately 50,000 lamp-hours into the future when this generation of technology reaches the end of its life cycle. While fluorescent lighting has now come close to what the experts believe is its peak efficiency, LEDs are forecast to continue improving.

“When you come to replace them, the replacement will be significantly more efficient,” Bach says.

FALLING PRICE POINTS Bach identifies other products and technologies now demonstrating high performance at falling if not yet affordable prices, including: high-efficiency motors; condensing boilers; high-efficiency chillers; low-temperature heat pumps; and electrochromic glass.

Although few of those items can be defined as low-cost (and none as no-cost), he points to the narrowing price increment between superior and more conventional versions of the same goods and

equipment. For example, electrochromic glass has been used in the new Humber River Hospital project in Toronto, where it had to make financial sense in the rigorous budgeting of the private-public partnership (P3) development model.

“That’s what surprised, but pleased me,” Bach says. “It was still [being developed] in the lab seven or eight years ago and now it’s available on the

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market with more than one supplier. It’s not necessarily low-cost, but if you have to replace windows, generally the price increment is manageable.”

Changing perspectives on acceptable paybacks for energy-saving measures can also shape definitions of low-cost. For example, Krehm weighs his investments in the context of the current multiresidential market.

“Because of the low-interest environment, we are willing to look at a wider range of energy conservation measures because we have the capital to do it and the cap rates are so much lower,” he explains. “If the value of apartment buildings has gone up to the point where it is more difficult to rationalize buying them, if I can run what I have very efficiently, the return is greater.”

Investing in building controls, which now enable his staff to adjust various key building systems from their laptop computers, is one such example.

“Where it gets interesting is smaller buildings. The rule of thumb was that in buildings less than 100 suites it didn’t make economic sense to do it, but we’re doing 60-suite buildings now,” he reports.

“Long-term, I think it’s worth doing.”

OPERATIONAL VIGILANCE Nevertheless, controls must be knowledgeably deployed to deliver on their true promise.

“There tends to be a high degree drift over time as settings are tweaked to address localized issues by different people with different levels of skill,” Lithgow says. “Frequently, there are issues with initial design, installation and/or setup that can be coupled with inadequate documentation and training. And there traditionally was a lack of open networking that made diagnostics difficult.”

Happily, solutions are not capital-intensive.

“Low-cost training and recommissioning activities combined, as appropriate, with new open technology and better requirements documents should yield improved results,” he suggests.

This is also in sync with the operational vigilance that various energy and environmental management frameworks like LEED, BOMA BESt and ISO now reinforce.

“Continuous maintenance is surging to the fore, and I would define that as lowcost/no-cost,” Bach concurs. “You can think of it as maintenance for performance.

Maintenance in the traditional definition is done to keep the device operating, but the emphasis here is on keeping the system at its designed performance.”

TARGETING OCCUPANT BEHAVIOUR Meanwhile, bulk-metered suites, both residential and commercial, offer a veritable bumper crop of low-hanging fruit.

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ENERGY MANAGEMENT

“

MOST EMPLOYEES ARE JUST NORMAL PEOPLE WHO HAVE MANY OTHER RESPONSIBILITIES AND CAN’T SPEND A LOT OF TIME FIGURING OUT HOW TO SHAVE A FEW WATTS HERE OR THERE.

“To get tenant buy-in for electric energy conservation, there is no better way than to get the tenants to pay for their own electricity use,” Krehm advises. “Typically, there is a 20% reduction once that occurs.”

The BOMA BESt Energy and Environment Report 2014 likewise illustrates untapped potential in the office sector, with sub-meters found in less than one-third of the buildings certified as Level 2, 3 or 4 in 2013. Sub-meters were the least common initiative among the various energy management measures the BOMA BESt program tallies.

Beyond sub-metering, occupant/tenant behaviour is a key factor in realizing or, more accurately, not sabotaging the performance that technology promises.

Yet, while programs to promote conservation and sustainability in the workplace don’t make much of a dent in the capital budget, they can be labour-intensive – perhaps representing something of an administrative equivalent to continuous maintenance.

“Maintaining effective occupant engagement over an extended period is definitely very challenging. Most employees are just normal people who have many other responsibilities and can’t spend a lot of time figuring out how to shave a few watts here or there,” Lithgow acknowledges. “This is where recent advances in low-cost, non-proprietary energy meters and dashboards can prove valuable in providing near real-time feedback and compelling graphical presentation.” ■

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SUSTAINABILITY

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SUSTAINABILITY

THE POWER OF GREEN TEAMS Green teams can bring environmental thinking into an organization’s business operations

BY SIMONE SKOPEK

Until recently, many organizations have been content to leave sustainability initiatives to employee-driven Green Teams — voluntary groups of enthusiasts with a personal mission to “green” operations.

These Green Teams typically consisted of self-organized, grassroots, cross-functional groups of employees who were passionate about environmental matters and who voluntarily came together to educate, inspire, and empower employees around sustainability. Initiated by a few committed employees, they essentially organized themselves without any direct involvement by senior management. Their efforts generally revolved around recycling, composting food waste, reducing the use of disposable take-out containers, eliminating plastic water bottles, and that sort of thing. At the heart of their efforts was (and still is) employee education and awareness-building, with a lot of human interest thrown into the process.

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responsibility, organizations are realizing that shifting the culture necessarily begins in the workplace and that Green Teams also have the power to achieve broader objectives such as operational efficiencies, risk management, cost savings, corporate citizenship, quality of work life, the ability to attract talent and reduce turnover, and a culture of innovation and crossfunctional collaboration.

As a result, Green Teams have evolved from being loosely organized to officially sanctioned entities that can be instrumental in changing the culture of an organization. The most successful organizations embrace Green Teams and integrate their activities into their job descriptions and/or performance criteria.

EMPOWERING GREEN TEAMS By their nature, “grassroots” organizations are often made up of people who don’t necessarily hold positions of power or wield authority. In fact, grassroots entities often work outside established structures and prefer not to be centrally managed.

Unlike many bureaucratic committees that happily spend more time thinking and planning than actually doing, grassroots groups are “doers.” This is great, but it also means that they can easily lose momentum when things don’t happen fast enough. A classic scenario is for passionate volunteers to meet for the first time with great enthusiasm and dozens of ideas. A month later, there’s another meeting. It turns out that not much has happened but there are more good ideas — and so on, month after month. Attendance begins to flag as people soon find that there is not much action beyond the meetings, due to lack of support, skills, and focus.

To achieve consistent and measurable sustainability achievements requires a strategic approach that includes genuine top-down support, made visible at every opportunity, as well as efforts to fully

SUSTAINABILITY

integrate sustainability across all business operations. As a result, Green Teams in many organizations have become more formalized. In some large corporations, Green Teams connect with a Chief Sustainability Officer. This is a management position, often supported by a steering committee comprised of managers from various company functions or locations. The value of having this connection is that it provides a two-way communication path: the Green Team educates management on new ways to make the business more sustainable and management informs the Green Team on necessary business values that must be present in their proposals.

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C-SUITE SUPPORT CEO support of Green Teams is essential and should be easy to obtain. After all, their work will benefit the company, not just financially but also in terms of employee engagement, image, and branding. In return, senior management champions have a responsibility to provide the necessary tools and resources.

And as with any effective program management, there should be some structure, including a chairperson, a process to bring new members into the team, roles, responsibilities, timeframes, and so forth.

Recognition also goes a long way to ensure continued engagement of the members of a Green Team, for example, by acknowledging in employee performance reviews the Green Team hours and activities. Properly understood and respected, grassroots have the potential and power to alter an entire culture thanks to their deep engagement. However, this can only happen if management is also genuinely engaged and involves those in lower echelons to actively participate in advisory or leadership roles.

MAKE GREEN ‘NORMAL’ “Green Teams” are one of the best opportunities to harness the power of networks and bring together natural professional communities. By involving many departments with a common goal of integrating sustainability thinking into the very DNA of the organization, these teams can affect all operations, paving the way for the future — from how employees are managed, to the overall structure of the organization, and how work is designed.

While corporate directives and senior management support are often needed to kick-start a program, provide support for Green Teams, and steer the organization towards a greener culture, the real objective is to make “green” normal and mainstream — an aspect that must be considered in every decision and business operation.

The outcome should be that green becomes the default choice, not an option; something everyone does, not just the “tree huggers.” Deep-greening the organization requires the involvement of everyone. When companies have a senior management that is committed to sustainability in every aspect of operations, a middle management that is engaged in the process, and dynamic Green Teams doing cool workplace campaigns, this can provide a major force that drives growth and competitiveness. ■

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MANAGEMENT

SETTING THE MISSION FOR TENANT ENGAGEMENT Looking within for the keys to tenant communications

BY DR. CHRIS BART

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MANAGEMENT

Communicating effectively with tenants can pay huge dividends, including less property damages, lower vacancy rates, lease renewals, and a strong base for tenant referrals. Ironically, the key to strong communications with tenants lies in the way that the leadership team builds and executes the mission statement of their particular organization.

Mission statements, however, are a paradox: the most popular management tool of the past twenty-five years, yet often the least respected. If built correctly, a mission statement will communicate clearly to each and every employee the reason that one’s property management company exists and, best of all, govern their actions accordingly. So why is this important? Because much of the effective communication with tenants is driven by the intentions that lie within the phrases of a mission statement.

In essence, effective communications with tenants falls out of the following sequence of events, with each subsequent step being critically reliant on the previous step.

1. Build a mission statement with the input of key stakeholders.

2. Make the mission statement part of “everyday life” within the organization by communicating it relentlessly and always engaging employees.

3. Engaged employees then reflect the mission statement in their communications with tenants, leading to greater tenant engagement and satisfaction.

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Building an excellent mission statement, and then using it as the platform for engaging effectively with all stakeholders, includes the following key steps.

1. THE MISSION STATEMENT SHOULD FOCUS ON YOUR STAKEHOLDERS’ REAL NEEDS For most organizations, there are four key stakeholders: customers (i.e. tenants), employees, owners, and society at large. Interestingly, the best mission statements put their emphasis on the customers and employees. The most effective ones also clearly and succinctly zero in on what the firm promises to do for each stakeholder group in exchange for their loyalty and commitment. Those promises should be rooted in a clear understanding of what each stakeholder wants, needs, and expects from the organization.

So do your homework. Engage with a reasonable sample of your tenants in one or more “focus groups” to understand them better and reflect this information in your mission statement.

2. YOUR MISSION DEVELOPMENT PROCESS MUST INVOLVE A CROSSSECTION OF EMPLOYEES A mission’s successful creation depends on buy-in from both formal and informal leaders in an organization. However, a common employee criticism I’ve heard repeatedly, particularly from the front line, is “It’s not my mission — I wasn’t included in creating it and neither were any of my peers.”

Input from a wide variety of sources should be solicited, considered and incorporated into the final document. If a company is small — involve everyone!

3. BE PRECISE AND CONVERSATIONAL The ideal length of a mission statement is often debated. If a mission statement includes a whole bevy of priorities, it will likely be too long. Conversely, a one-sentence blurb will rarely provide enough guidance. My research shows that most great mission statements run 60 to 80 words. Also, be sure to write the mission statement in a manner that is conversational so that it can be included in the verbal exchanges that occur throughout day-to-day business activities.

Once a top-notch mission statement has been developed, it’s critical to make it part of the culture of the organization.

Regularly refer to the mission statement as the basis for decision making and to reinforce positive behaviours of employees that mirror the intent of the mission statement.

Another aspect of bringing a mission statement to life is by making sure that employees know what to do – and why!

Be extremely clear about organizational goals and show employees how their work, including their communications with tenants, contributes to the organization’s success.

Everyone wants to feel important and to feel that what they do matters.

Those feelings are not always so easy to obtain, however, especially for persons performing frontline jobs.

That said, it is the responsibility of the ‘nearest leader’ (i.e., the immediate supervisor) to help those individuals see the ‘higher purpose’ in their work and that an organization is measured, through the eyes of the tenant, on every single activity regardless how big or small. Everyone, therefore, is depending upon them to do their job, especially as it relates to the tenant stakeholders, with excellence — or

MANAGEMENT

“

else the whole organization could fail!

This needs to be explicitly stated.

Last but not least, there is one phrase that needs to be said over and over again to all employees and tenants since they are such important stakeholders...

4. SAY “THANK YOU” (AND MEAN IT!) At the top of the list of practices that increase an organization’s level of employee engagement is the simple act of regularly and sincerely thanking employees and praising them for their work. Publicly acknowledging exceptional work is considered especially important, though rewarding the routine and commonplace is also encouraged, such as for good attendance. However, don’t underestimate the value of a personal, one-on-one conversation or note that thanks an employee for a job done well.

And guess what? The same is true for tenants. A simple “thank you” brings a human element to your relationship that few other forms

ONCE A TOP NOTCH MISSION STATEMENT HAS BEEN DEVELOPED, IT’S CRITICAL TO MAKE IT PART OF THE CULTURE OF THE ORGANIZATION.

of communication can provide.

This sincere sentiment should be included in every communication — both written and verbal — by every employee. When your employees are treated with this same level of respect, they will be much more willing to extend the sentiment to your tenants.

”

As the cycle continues, the benefits will also continue to be seen.

When you create this culture of engagement, it won’t be long before your competition’s tenants hear about your company… and choose to do business with you. ■

____________________________________________________________________________________ DR. CHRIS BART, F.C.P.A IS THE AUTHOR OF THE BEST-SELLING“A TALE OF TWO EMPLOYEES AND THE PERSON WHO WANTED TO LEAD THEM”. HE CAN BE REACHED AT WWW.CORPORATEMISSIONSINC.COM.

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BUILDING SYSTEMS

FOUR COMMON BUILDING INEFFICIENCIES FOUND DURING RE-COMMISSIONING

BY LEE HODGKINSON

Re-commissioning of existing commercial and residential buildings is integral in ensuring that a building is operating efficiently. Minimum building efficiency standards, both de facto — such as ASHRAE, LEED and BOMA — and legislated — such as city bylaws and the Ontario Building Code — have increased dramatically in recent years. Ensuring that older buildings are up to par is important in not only being able to compete in today’s market, but also in unlocking a sustainable future.

Re-commissioning can lead to lower operating and maintenance costs, reduced environmental impact, increased productivity and higher property value. In the U.S. commercial sector, for example, buildings that invest in energy retrofits generate an average increase of 7.5 per cent in the overall building’s value, according to McGraw-Hill Construction. In the re-commissioning of a condominium, an engineer or technician can illuminate many operational deficiencies, such as providing too little or too much heat to a zone, and inefficiencies associated with energy and resource consumption.

Issues such as these generally arise as buildings and equipment get older, are

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repurposed or as building operators, such as superintendents or mechanics, turn over. They are especially prevalent in buildings without central building automation systems (BAS).

The following is an overview of four common building inefficiencies found during re-commissioning.

1. BOILER EFFICIENCY The efficiency of a boiler is measured by the amount of useful heat it produces per unit of energy consumed. The term “useful” is important, as the boiler should heat the water in the pipes, not the room in which the boilers are located.

Technological advances have optimized

the design of boiler combustion chambers and burners in modern boilers. However, older boilers, which may last 25-plus years, are typically not very efficient, starting at 80 per cent efficiency when new and degrading significantly (to 60 per cent or less) over time.

To combat this decline, every preventative maintenance program should

BUILDING SYSTEMS

include combustion analysis — a process whereby a gas technician will measure the combustion efficiency and adjust the fuel-to-air ratio in an effort to improve this efficiency. Often, gains of three to five per cent in efficiency can be achieved by this practice for no extra cost.

Another way to decrease boiler energy consumption is to consider advanced

heating boiler controls, which are relatively new in the market but come with guaranteed gas savings of 10 per cent.

2. EQUIPMENT LEFT IN MANUAL MODE Most buildings have some form of automation or controls on their HVAC and lighting systems; thermostats, timers, proportional-integral-derivative (PID) loop

controllers and BAS are all examples of automation in buildings. An effective automation system allows for a building operator to run the system efficiently, responsively and effectively. Often, older systems must be triggered manually, or the automation may be deficient or improperly set up. This may be due to incorrectly trained or new operators.

The re-commissioning team will work with a building operator to thoroughly review all equipment and how it is controlled, as well as provide some guidance and training on how it should be controlled. It is very common to find a pump manually set to run all the time (or as we say in the industry, “left in hand mode”), because a building operator didn’t think he or she could turn it off, or to have a fan on a timer that is based on an outdated schedule.

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BUILDING SYSTEMS

access to change the schedule, and a higher level of control.

3. CONSTANT SPEED MOTORS ON VARIABLE LOADS Many condominiums are built quickly and cost-effectively, with little concern for energy consumption and a strong focus on “making it work.” As a result, it’s common to find motors that run 24/7 at full speed and feed loads that are actually variable (not 100 per cent all the time).

For example: the pumps that bring cold water to taps are typically running full speed, 24/7. Is a unit owner using that tap 24/7? When a unit owner does use that tap, is he or she cranking it to maximum flow? Probably not, so why do the pumps run 24/7 at full flow?

The solution to this is to install controls and variable speed pumps that automatically detect the water pressure at taps and adjust the speed of the pumps to maintain enough pressure at all times. This may mean the pumps run at 100 per cent speed at 8 a.m., when a unit owner is likely to take a shower, but run at 50 per cent

speed at 4 a.m., when he or she is likely to be asleep.

This is one example of constant speed motors serving variable loads a recommissioning team should be able to identify and for which it should be able to make recommendations to resolve.

4. SIMULTANEOUS HEATING AND COOLING The distribution and control of the heating and cooling in a building is complex.

Even experienced building operators may not always remember how each room is heated or controlled. As a result, it is possible (and sometimes common) that heating and cooling systems are running simultaneously.

This is a significant waste of energy in many buildings, as the systems combat each other and lead to discomfort.

Regularly reviewing and re-commissioning all heating and cooling equipment and their controls is the best defence.

Building automation systems can also be programmed to prevent heating and cooling from competing with one another and to detect when this does happen.

More broadly speaking, building automation systems provide effective safeguards and strategies that defend against poorly run buildings.

Boiler combustion analysis and checking what equipment is running in manual mode can be added to a building’s regular maintenance schedule. Full re-commissioning should ideally be budgeted for every two to three years. The cost-to-benefit ratio is such that re-commissioning is one of the best energy management paybacks available — often less than one year.

Building operators should be part of the re-commissioning process so that they can ensure their buildings run efficiently in between re-commissionings. ■ This article was reprinted with permission from the August 2014 edition of CondoBusiness. ________________________________________ LEE HODGKINSON IS A PROJECT MANAGER AT MANN ENGINEERING LTD. HE CAN BE REACHED AT LEE@MANNENGINEERING.COM OR 416-201-9109 EXT 121.

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Under Provincial Fire Code, building managers, residential superintendents, and property supervisory personnel are required to be familiar with the building life safety systems for which they are responsible. The term “Life Safety” itself is a broad one, and refers to anything that may impact building occupant safety.

Addressing this subject head-on, over 35 property management industry leaders were invited to the Fire & Emergency Services Training Institute (FESTI)’s safety training program, The “Life Safety” of Property Management, an educational initiative uniquely developed for the property management industry.

“It is exciting to see an education program that will bridge gaps between property management, residents and contractors,” says Matthew J. Williams, a condominium security specialist. “As a security professional who works with 5:45 PM property managers daily, I believe this would significantly enhance best practices as well as helping to make people work together cohesively and safely.”

Launched on October 9, the program provides a clear overview of building safety systems, procedures for supervisory personnel, and reference material for use in the event of a building emergency.

It also supplies detailed information on testing and inspection requirements, occupant training, and what to do in the event of a life safety system failure, as these are all critical components to successfully managing a property and protecting both tenants and the public.

“The event was very informative and full of critical information on how to prepare for being part of the solution when it comes to managing fire emergencies,” recalls Babak Ardalan, District Manager for Del Property Management.

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With respect to fire drills, property managers are mandated to conduct these drills as required by law, yet little to no guidance is provided to them with respect to preparing – or even holding – these drills. Knowing this, FESTI’s program provides step-by-step instructions, coupled with lessons learned from both an operational impact and liability realm.

“This is an area where majority of condominium managers can improve their knowledge and be more prepared,” notes Babak. “Ultimately, it helps us avoid serious liabilities while protecting the communities that we manage.”

Upon completion, FESTI’s training program provides the industry with a recognized certificate training in building fire and life safety code compliance, as well as a vast array of operational and safety best practices.

KNOWING THE RIGHT QUESTIONS, LEARNING THE RIGHT ANSWERS In addition to reviewing vital life safety strategies, FESTI’s program also brings

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property managers up to speed on newly introduced legislation, so that they may be better prepared for the impacts in their industry.

“Arming both property managers and building security with current code compliant information is a vital component of ongoing industry education,” says Matthew, adding, “This is empowering our industry.”

For example, attendees were prepped for the incoming changes to the Ontario Fire Code (OFC) with regard to carbon monoxideDavroc_Condo_March_2014_FINAL.pdf (CO) alarms. Implemented as

part of the Hawkins Gignac Act, the changes affect all properties and were therefore a key issue during FESTI’s program.

1

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Do all existing residential buildings require CO alarms?

Existing residential occupancies that contain at least one fuel-burning appliance (e.g., gas water heater or gas furnace), fireplace, or an attached garage, require the installation of a CO alarm.

QUESTIONS COVERED INCLUDED: Why is the Ontario Fire Code (OFC) being amended?

The Hawkins Gignac Act amended the Fire Protection and Prevention Act, 1997 When did the CO alarm regulation come (FPPA) to allow the regulation of CO into force? alarms through amendments to the OFC. The CO alarm regulation came into force on It also proclaims the week beginning October 15, 2014. Buildings that contain no November 1 as Carbon Monoxide more than six suites of residential occupancy Awareness Week. are required to comply 1with14-08-13 the installation 14-03-18 10:14 AM ASEpoxy_PMR_August_2014_FINAL.pdf 9:29 AM

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Jason D. Reid, President, National Life Safety Group; Steve Hall, Acting Deputy Fire Chief, FESTI; Audrey McGuire, Regional VP, Larlyn Property Management; Steve Hill, CEO/Owner, Whitehall Residential; Matthew J. Williams, Condominium Security Specialist.

has a bylaw (www.toronto.ca/legdocs/ municode/1184_387.pdf). Industry experts recommend each building review their own respective requirements for CO code compliance based on their annual hazard review conducted at each of their properties.

and replacement requirements within 6 months of the in-force date (April 15, 2015, at the latest). Elsewhere, buildings that contain more than six suites of residential occupancy are required to comply with the installation and replacement requirements within 12 months of the in-force date (October 15, 2015, at the latest).

The maintenance and testing requirements for existing CO alarms (e.g. those devices previously installed to comply with the OBC or a municipal by-law) take effect on the October 15 in-force date.

Many municipalities already have bylaws in place that may or may not require CO alarms in a building. For example, Toronto

ESSENTIAL TRAINING Covering this topic and more, The“Life Safety”of Property Management provided an invaluable learning opportunity for property management professionals.

“The program provides best practices, lessons learned, and valuable insights from high-rise fire safety experts, police, fire, and EMS personnel” says Jason Reid, co-author of the program, adding “It brings reality to the operations world of property management.”

For more information, visit www.festi.ca. ■

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GTA PROFILE

QA &

MISSISSAUGA’S TH 40 ANNIVERSARY Mississauga turned 40 this year, marking four decades of growth, innovation, and forward-thinking. To celebrate, GTA & Beyond reached out to Lesley Pavan, Director of Development and Design with the City of Mississauga’s Planning and Building Department, to shine a spotlight on the city’s evolution, its achievements, and its plans for the decades ahead.

MISSISSAUGA CELEBRATED ITS RUBY ANNIVERSARY IN 2014. LOOKING BACK, HOW FAR HAS THE CITY COME SINCE ITS FORMATION IN 1974?

When the City of Mississauga had its inaugural meeting of council in January 1974, the city was a collection of historic villages, post war subdivisions, and natural areas including the Credit River and Etobicoke Creek. There was an emerging employment area around the airport, but the city also included large areas of farmland.

At that time, we were Canada’s twelfth largest city with a population of 208,000 people. Now, we are the sixth largest city with over 734,000 residents and

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55,000 businesses, the latter of which employs over 400,000 people. Moreover, Mississauga has more than 63 Fortune 500 companies with Canadian head offices or major divisional head offices.

Those farms have also developed into beautiful neighbourhoods, providing a range of housing options, access to highquality community amenities, employment, and access to transportation infrastructure.

The historic villages have thrived through the transformation to become destinations in their own right, featuring many festivals that attract visitors each summer.

Notably, a significant area of growth and transformation has been in our downtown.

Although the Square One Shopping Centre opened a year before Mississauga became a city, it was really a suburban shopping mall surrounded by apple orchards and pastures. That downtown has since grown throughout the years with the addition of offices; high-rise residential condominiums; and the development of civic buildings and spaces, including the Civic Centre in 1987, Living Arts Centre

in 1997, Celebration Square in 2011, and Sheridan College Phase I in 2011.

In short: 40 years ago we were seen as a bedroom community for Toronto, but now we are a complete city where people can live, work, learn, and play.

WHAT ARE AMONG MISSISSAUGA’S MOST SIGNIFICANT ACHIEVEMENTS? Our greatest achievement has been developing a vision for the city and seeing this vision implemented through its growth.

GTA PROFILE

In 1974, the city council wanted to become “a city of unparalleled natural beauty – a city where scenic parkland and extensive recreation facilities are intertwined among the commercial, residential, and industrial areas”. Today, Mississauga owns more than $8 billion in infrastructure, including more than 480 parks, 295 kilometres of trails, 11 community centres, 25 ice rinks, 2 marinas, and 18 libraries, to name a few.

Another achievement is maintaining a high qualify of life. Through environics polling, Mississauga residents consistently state they enjoy living in their city, and are proud to say they live here. In our latest survey, nearly all respondents said they have a very high quality of life (95%) and are truly satisfied with their city as a place to live (96%).

We have also had great success in the management of the city’s fiscal resources. This year, Mississauga earned its 11th consecutive ‘AAA’ credit rating from Standard and Poor’s Rating Services (S&P), which noted “strong economic fundamentals, exceptional liquidity, and very low debt burden” as the keys to Mississauga’s success. Excellence in

budgeting has also ensured that we have a very competitive tax rate compared to other municipalities.

Also, Mississauga has marked 25 consecutive years of receiving the Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA), reflecting the commitment of the governing body and staff to meeting the highest principles of governmental budgeting.

WHAT ROLE DOES MISSISSAUGA PLAY WITHIN THE GTA? Mississauga is the second largest city within the GTA. In a very short period of time, it has become its own unique city that no longer looks east for employment or entertainment.

In many ways, Mississauga is the “Gateway to the Province”. The Lester B. Pearson Airport is the landing point for people and goods arriving to the province and the country, and we are a major goods movement hub.

On the people front, the census tells us we are diverse, with over 50% of our citizens considered to be a visible minority

as well as over 50% of the population being immigrants. This diversity is celebrated in the many festivals held throughout the city. Of these, Carassauga is one of the most outstanding. It is the second largest cultural festival in Canada, representing 72 cultures and attracting over 300,000 visitors each spring.

We are also very well educated. In the age group from 25 to 64 years of age, over 70% of the population has a postsecondary education. This combination of diversity and education makes Mississauga a significant contributor to business and innovation within the region.

THIS NOVEMBER, MISSISSAUGA’S MAYOR HAZEL MCCALLION RETIRED AS THE CITY’S LONGEST RUNNING MAYOR. WHAT IS THE LEGACY SHE LEAVES BEHIND? Mayor McCallion has led the city for almost four decades, setting the tone for “running the city like a business”.

She, along with the councils who have worked with her, have put in place the administration and the policies which have really guided Mississauga to what it is today.

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GTA PROFILE

WHAT ARE AMONG THE MOST SIGNIFICANT DEVELOPMENTS OCCURRING OVER THE NEXT FEW YEARS? Downtown Mississauga has 12,000 residential apartment units that are either in the master planning phase or under active development application, which means we are going to continue to see growth in our city centre. Additionally, Sheridan College will also commence construction of Phase II this fall with opening scheduled for September 2016.

We are also actively working on a public transportation system to support this growth. The first phase of the Mississauga Transitway is opening this November and will connect our downtown to the Dixie Station with four station stops. When fully completed in 2017, it will connect Winston Churchill Boulevard Station in the west to Renforth Gateway Station located just south of the airport with 12 station stops and connecting to the subway system in Toronto.

We are also awaiting funding announcements for the LRT (Light rail transit) which will connect the GO station in Downtown Brampton to Port Credit along Hurontario Street.

In the coming years, remaining undeveloped sites along the city’s waterfront will be transformed into vibrant communities with great public spaces and amenities. Our Inspiration Port Credit initiative envisions 1 Port Street and 70 Mississauga Road, the site of the former oil refinery, as sustainable and connected mixed-use areas celebrating local marine and water heritage, as well as ensuring public access to the water.

Inspiration Lakeview, located on the eastern waterfront of the city where the previous power generating station was, will become a unique set of six neighbourhoods over the next 30 years.

The area will accommodate a population of 15,000 to 20,000 people and approximately 8,000 jobs. More than a third of the site will be comprised of public spaces and amenities, particularly along the waterfront.

HOW ELSE IS MISSISSAUGA ANTICIPATED TO GROW OVER THE NEXT 40 YEARS? The next 40 years will see major development occurring along our transit corridors, in our corporate employment

centres, downtown, and on some of the city’s strategic sites on the waterfront. Our empty fields are mostly gone. The focus on development tends to be on mixeduse, transit friendly developments.

The city has started the Dundas Corridor study, which will examine the potential for intensification of land development and higher-order transit along the Dundas Street Corridor. It will also make recommendations for strategic changes along Dundas to achieve that potential.

As we are well served by transportation facilities, including access to the provincial highway system, rail, and the airport, we will still see businesses continuing to grow here to take advantage of this system for moving goods and people.

Overall, the future growth will only strengthen our communities and we will continue to welcome the world. ■ ________________________________________ LESLEY PAVAN IS THE DIRECTOR OF DEVELOPMENT AND DESIGN WITH THE CITY OF MISSISSAUGA’S PLANNING AND BUILDING DEPARTMENT.

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