Property Management Report - SEPTEMBER 2009 Vol.16 No.5

Property Management A Regional report focusing on the GTA, Hamilton & Niagara SEPTEMBER 2009

Vol.16 No.5

Report

Green Design Role Models

BOMA CDM Outreach

Capacity with Complications Demand Response Practicalities Favour Curtailment over Generation

By Barbara Carss The potential to enlist emergency a new Certificate of Approval (CofA) or an

Influenza Response Plans Contents Demand Response Green Achievement Awards Condominium Liability Risks Pandemic Preparedness

1 7 9 13

generators to address peak electricity demand remains more theoretical than plausible as the ramp-up period for the Ontario Power Authority’s Demand Response 3 (DR3) program nears the end. Ontario’s Ministry of the Environment (MOE) released standards in February 2009 to guide how prospective program participants could secure the Certificate of Approval required to deploy backup emergency generators for non-emergency purposes, but administrative hurdles make other key players in the DR3 program wary.

“Because the process is so onerous, we have stepped away from trying to enroll any conversion [of a generator] that would require

amended Certificate of Approval,” says Nathalie McLauchlin, Manager, Demand Response, with Direct Energy, one of the six authorized aggregators under the program.

“We are currently only looking at generators that already have CofAs that would allow them to participate now because the Ministry of the Environment’s timeline and the Ontario Power Authority’s (OPA) timeline are not in sync.”

With the period for DR3’s development phase scheduled to wrap up on December 1, 2009, aggregators like Direct Energy have focused more on finding participants in a position to curtail energy use during peak demand periods.

Continued on page 4.

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From the Editor PUBLISHER Sean Foley

Demand Response is so 2006 – and 2014 Investors in economically risky ventures deemed to be in the social good almost invariably deserve any government-sponsored incentive they may receive. For example, programs like tax increment financing that encourage the cleanup and redevelopment of obsolete brownfield lands essentially reward developers with their own money – i.e. through a temporary reprieve from elevated property taxes attributable to the improvements that investors have made.

Perks for industry leaders and early pursuers of targets that the government wishes to achieve are also easy enough to defend. All Ontario electricity consumers underwrite funding for conservation and demand management (CDM) programs, but some of those consumers are unduly wasteful. Indeed, it could be an effective public education tool if more people understood that their contributions to CDM programs are pro-rated to the amount of electricity they consume. That is, if the Ontario government was more forthcoming and transparent about what the Provincial Benefit/Global Adjustment is.

The cost/benefit balance of the new rate structure for renewable energy generation isn’t so apparent. The recently approved feed-in tariff uses electricity consumers’ money to disproportionately compensate the most inefficient producers.

Some economists are highly critical of agricultural marketing boards that set prices to account for costs of production, but those rates do not prop up marginal performers. Dairy farmers earn the same rate per litre of production regardless if they have quota for a milking herd of 20 or 2,000. In contrast, generators with rooftop solar photovoltaic systems producing less than 10 kilowatts (kW) of electricity can count on rates of 80.2 cents per kilowatt-hour (kWh), compared to a price of 53.9 cents/kWh for electricity generated from solar PV rooftop systems with a capacity to produce 500 kW or more. (The Independent Electricity System Operator reports Ontario’s average market price at 3.17 cents/kWh from January 1 to September 30, 2009.)

Perhaps, though, administrative hurdles will discourage smaller players with less stamina for red tape. Our Energy Management feature on the Ontario Power Authority’s Demand Response 3 (DR3) program points to one example of the lengthy bureaucratic timetables that project proponents can encounter, as prospective program participants endeavour to secure required Certificates of Approval (CofA) to use backup emergency generators for demand response.

Peak demand events that would require DR3 enrollees to shed load or divert generation to the electricity grid have occurred increasingly seldom recently.

Ontario has experienced three consecutive temperate summers, while the economic downturn has reduced consumption in some power-hungry sectors.

However, as coal-fired power is eliminated and renewable energy becomes a more significant element of supply, demand response could become increasingly important – particularly for those times when the wind isn’t blowing.

Enrollees in the DR3 program can collect a lucrative availability rate merely for being on standby. Again, that’s financed via the Provincial Benefit/Global Adjustment. Nevertheless, it’s a cost-effective and environmentally preferable alternative to building extra generating capacity in so-called peaking plants specifically to augment supply during periods of intense demand.

EDITOR Barbara Carss barbc@mediaedge.ca Ext. 236 ASSISTANT EDITOR Ashley Ward award@mediaedge.ca Ext. 233 CONTRIBUTING WRITERS Christy Allen, Joseph Griffiths, Ross Manley ADVERTISING SALES Sean Foley seanf@mediaedge.ca Ext. 225 Atif Malik atifm@mediaedge.ca Ext. 240 Steve McLinden stevem@mediaedge.ca Ext. 239 Paul Murphy paulm@mediaedge.ca Ext. 264 Senior Designer Annette Carlucci Wong annettec@mediaedge.ca Ext. 231 Designer Ian Clarke ianc@mediaedge.ca Ext. 243 Production MANAGER Rachel Selbie rachels@mediaedge.ca Ext. 223 Circulation MANAGER Cindy Younan circulation@mediaedge.ca Ext. 232 Property Management Report is produced as a supplement to Canadian Property Management magazine, published 8 times a year by:

5255 Yonge St., Suite 1000 Toronto, Ontario M2N 6P4

President Kevin Brown kevinb@mediaedge.ca Tel: (416) 512-8186 Fax: (416) 512-8344 E-mail: info@mediaedge.ca

Barbara Carss barbc@mediaedge.ca

PROPERTY MANAGEMENT REPORT SEPTEMBER 2009 3

Energy Management

“There is a significant capital outlay involved because the guideline for using emergency backup generators for non-emergency situations has some quite strict emission limits.”

Continued from page 1.

RULES & RATES The DR3 program is open to consumers who can send electricity to the power grid or commit to electricity load shedding for up to 100 or 200 hours annually (depending on the contract option they choose) in i n c rem en t a l p er i o d s of u p to fo u r consecutive hours. They must also pg be able to Winmar-CPM-Apr2008:third horiz do so during business days between 12 noon

to 9 p.m. in the summer or 4 p.m. to 9 p.m. in the other seasons.

The OPA’s initial demand response program, now known as DR1, was geared to larger industrial users that individually had the capacity to contribute one megawatt (MW) or more, while a subsequent DR2 initiative contracted with facility owners/ operators to 9:19 shift electricity 4/3/2008 AM Pageuse1 as much as possible to off-peak hours. DR3 is meant to

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broaden the scope of participation through the authorized aggregators, which each enlist and coordinate a number of consumers and then deliver a collectively accumulated reduction and/or generation target when called upon by the Independent Electricity System Operator (IESO).

The OPA compensates program participants with funds garnered through the Global Adjustment/Provincial Benefit that all wholesale and retail customers pay on their monthly hydro bills. (See Proper ty Management Report, July/August 2009.) In the case of DR3, the aggregators assume the risk of non-performance and will cover the financial penalties imposed if participants cannot meet their contracted obligations.

Nevertheless, smaller scale consumers aren’t widely represented among current contracted companies. Notably, Toronto Hydro Energy Services Inc. had attempted to recruit participants with load shedding capability as l ow a s 5 0 k i l ow a t t s ( s e e Proper ty Management Report, November 2008), but it has since withdrawn as one of the DR3 program’s aggregators.

“The requirements by the OPA are more strict than other programs that Direct Energy and our partners have worked on. We need quite a bit of curtailment per site to make it financially feasible,” McLauchlin observes. “We need to look at customers who are about 2 MW or higher.”

Participants are paid a so-called availability rate simply to be on standby and ready to respond when notified, at which time they will have to shed load or divert generation to the grid within 2.5 hours. This is calculated based on megawatts of capacity, with rates pro-rated to the length of the contract – one, two or five years – and the participation commitment per year – 100 or 200 hours.

Energy Management

For actual curtailment or generation, participants receive a higher rate of compensation per megawatt-hour (MWh) of load they’ve displaced. Available rates differ somewhat since each aggregator negotiates with its enrollees and takes its own percentage of the OPA payment.

Information on Direct Energy’s web site, for example, indicates that a 1-MW participant contracted for five years at 200 hours per year could potentially earn $200,000 annually if called to shed load/divert generation for the full 200 hours. Of that, $40,000 would be derived from actual hours of participation and $160,000 would be realized through the availability rate.

Owners/operators of emergency generators currently must obtain CofAs from MOE to demonstrate that the equipment complies with allowable emission release levels for contaminants such as nitrogen oxides, sulphur dioxide, carbon monoxide, hydrocarbons and particulate matter. Beyond the obvious emergency power outage situations, CofAs also allow for a certain number of hours of equipment Forest_Condo_Sept09.pdf 10/7/09 testing every year.

Applicants who want to use their emergency generators for demand response programs will have to prove that they meet the lower emission targets MOE has established for generation of non-emergency power via internal combustion engines. They would have to carry out required testing, submit an application to amend their existing CofA and verify the emissions output the CofA is issued and the 10:32:37 after AM equipment is operational.

PROCESS PRECEDES PAYBACK This rate scale has captured the interest of some municipal government sector players with potential generating capacity from emergency backup generators at water and wastewater pumping stations. York Region has already undertaken a prolonged process to secure various Provincial approvals to deploy backup generating capacity at its Aurora wastewater pumping station for a separate emergency load reduction program with the OPA, known as the North York DR Program.

(See Property Management Report, April 2007.) The Region has received MOE sign-off on its application for a Certificate of Approval for that initiative, and has now identified potential DR3 program opportunities in other regional facilities.

“There is a significant capital outlay involved because the guideline for using emergency backup generators for nonemergency situations has some quite strict emission limits,” says Mike Lithgow, Manager of Corporate Energy and Municipal Energy Conservation Officer for York Region. “But the revenue opportunity is attractive. Probably about 75% of that revenue comes from just being on standby and available.”

Similarly, officials in the City of Hamilton – which is currently developing a district cooling system to serve a network of buildings in the city’s downtown core – are interested in potential revenue generating opportunities associated with demand response programs, but recognize that the City’s current backup generators would have to be upgraded or replaced.

“We don’t want to run backup diesel generators for demand response, particularly if peak demand happens on a smog day,” notes Geoff Lupton, Hamilton’s Manager of Energy Initiatives. “The limitation we face right now is the technology. We could do it, but we have to do some other steps to get there.”

PROPERTY MANAGEMENT REPORT SEPTEMBER 2009 5

Energy Management

EMISSION TARGETS DRIVE EQUIPMENT CHOICES Even stricter emission targets will go into effect in 2011. Interim standards in place until the end of 2010 allow for considerably higher levels of release – i.e. 1 kilogram of nitrogen oxides (NOX) per MWh currently versus 0.4 kg/MWh as of 2011 – in part to give equipment manufacturers time to develop new technology capable of meeting lower targets.

Generator owners who are considering participation in a demand response program

at some point in the future may want to aim for the 2011 standards now. CofAs that merely meet the interim emission standards will have to be amended again after 2010, requiring submission of another application.

Proactive proponents could face other obstacles and elevated costs, though. “Some of the generator suppliers don’t have the technology as of yet to meet the 2011 standards without a catalytic converter,” Miller notes.

“It pushes you toward a natural gas engine rather than a diesel, which is easily 50% more to double the cost,” Lithgow concurs.

Natural gas offers some logistical advantages, however, because it does not have to be delivered by truck and stored on-site.

Alternatively, some building owners who depleted their diesel supplies during the August 2003 blackout were left with inoperable emergency generators.

A backup generator that meets the requirements for generating non-emergency power could also bring spinoff operational and security/life safety benefits since more frequent use at full capacity should provide more assurance that it will function as needed in an emergency situation. “Any emergency generator that is enrolled in a DR program is going to tend to have a higher reliability than

one that isn’t enrolled because they are going to run under load,” Lithgow says.

HARD TO FIND, EASY TO MEASURE Other types of generators that already have Certificates of Approval for daily operation could be a fit for the DR3 program right now, but aggregators haven’t found a lot of workable applications. One of Direct Energy’s few discoveries is a gas-fired generator driving a steam plant, which has an extra megawatt of capacity during the summer.

“The OPA rules dictate that it has to be an active load. It has to be an asset that is there and idling, and those seem to be few and far between,” McLauchlin says. “But for anyone who has a natural gas generator or a generator that has some extra capacity in some months, it could be much easier than curtailment.

Generation is a much clearer measure. It is much easier to sub-meter what’s coming out of the generator.”

The OPA has twice extended the deadline for the DR3 program’s ramp-up period, which is now scheduled to end on December 1, 2009. New participants won’t necessarily be shut out if they haven’t enrolled by that date, but the OPA has notified its aggregators that it wants to discuss the terms of the program beginning in January 2010 so the rules could change again. pmr

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“It can be kind of an expensive endeavour depending on the contaminants that need to be assessed. They will need to do dispersion modelling and possibly acoustic assessment as well since the Ministry has different noise separation requirements when a generator is used for emergency purposes,” explains Roslyn Miller, Certificate of Approval Product Manager with the environmental consulting firm, Pinchin Environmental.

“Going through the process, assuming all the information is available, it takes maybe three or four weeks to prepare the application,” she estimates. “Once it’s submitted to the Ministry, applicants are looking at, it’s pretty safety to say, a year before they’ll get a decision.”

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Sustainability

Green Design Groundbreakers

Sustainable Buildings Canada Honours Industry Leaders

By Ashley Ward

IIDEX/NeoCon Canada and the Green Building Festival joined forces this year to present a conference and trade show that exhibited the latest innovations in design and sustainable green buildings. The Green Building Festival celebrated its 5th anniversary and attendees were able to attend seminars such as: Reducing Footprints: Green Retrofits in the GTA; Evidence-based Healthcare Design; Experience with Sustainable Buildings in Europe; and the World Green Building Council’s Leaders Summit.

Mike Singleton, Executive Director of Sustainable Buildings Canada, explains that the two conferences were combined to bring to ge ther their differ ing st rengths in programming, content and workshops, and provide wider exposure to attendees who may not have participated in the past. The Green Building Festival on September 23 and 24 led seamlessly into IIDEX on September 24 and 25.

The presentation of three lifetime achievement awards was one of the highlights of the Green Building Festival. These acknowledged Neil Munro, Michael Hough and H.R. (Bob) Bach.

include Woodbine Racetrack and the Canadian Memorial Chiropractic College.

Richard Young, another Principal at Young + Wright/IBI Group Architects, has known Munro for 30 years and calls him the conscience of green building design and sustainable architecture for the firm, who was a proponent of the philosophy 15 years ago, ahead of most others.

“He became a beacon for green building design within our firm and created a green building studio,” Young says. “Neil was instrumental in looking at every project we’re doing from the green building perspective.”

MICHAEL HOUGH Michael Hough, known for design projects such as Ontario Place, Scarborough Place, and Major’s Hill Park, is a former professor at York University where he taught many about the importance of incorporating design with healthy communities and the environment.

“He really made you think differently about the role of ecology in cities,” observes David Leinster, a landscape architect with the consulting firm, The Planning Partnership, and Hough’s former partner. “He’s a great visionary and that’s his strength. He sees the world NEIL MUNRO Neil Munro, a Principal with Young + Wright/ through a different lens in a very holistic way.”

Leinster saw Hough as a great mentor and a IBI Architects, is an advisor to construction tr ade associations on env ironmental great thinker during the 19 years they worked improvements. Some of his notable projects together because he challenged ideas and

conventions. Dan Leeming, another Principal at The Planning Partnership concurs. He was one of Hough’s students at York University’s Faculty of Environmental Studies and sees him as a role model for setting high standards and working to make things better.

“He was one of the first people who wasn’t just talking about the biology side of the green movement. He was talking about the built form interface,” Leeming says. “Michael was able to pull the two together in a much more practical way where you could actually do something.”

BOB BACH Bob Bach of the energy consulting firm, Energy Profiles Limited, was honoured for his work involving energy efficiency in buildings and environmental assessment programs. He is also the founding director and treasurer of Sustainable Buildings Canada.

“I would say, in Canada, when it comes to the energy side of building codes, he is probably the foremost expert in Canada,” Singleton maintains.

Mike McGee, President of Energy Profiles Limited, calls Bach instrumental in leading the push for energy efficiency standards, and suggests he embodies the patience and commitment it takes to advance energy codes at a provincial, federal and international level with ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) pmr

BOMA TORONTO CDM PROGRAM HITS $10 MILLION MARK The Toronto Conservation and Demand Program (CDM) initiated by the Building Owners and Managers Association (BOMA) of Toronto will be extended until December 31, 2010. Earlier this summer, BOMA Toronto reported that the program had reached the $10 million mark in electricity conservation incentives implemented in more than 100 building in Toronto.

The program is open to owners and tenants of commercial office buildings, hotels, retail properties, entertainment venues and industrial buildings. Qualifying retrofits include deep lake water cooling systems, lighting, installation of variable frequency drives and/ or HVAC redesign or replacement.

Among building owners, Scotia Tower and The Rogers Centre, located in downtown Toronto have made many of these improvements. Meanwhile, Stikeman Elliot LLP, is the first tenant to submit an application for the new Tenant Incentive Program (TIP), with plans to install 263 occupancy lighting sensors in its offices at Commerce Court West in Toronto. This is projected to save approximately 450,000 kilowatt-hours of electricity annually.

The law firm has adopted a GoingGreen Corporate Social Responsibility directive, which includes carbon footprint reduction, recycling, energy conservation and supplier selection.

“Stikeman Elliot is proud to be certified carbon neutral, and we hope we’ve begun a tradition. BOMA Toronto’s TIP will help us achieve that goal,” says Michelle Taylor, Director of Facilities and Office Services for Stikeman Elliot LLP. PROPERTY MANAGEMENT REPORT SEPTEMBER 2009 7

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Security/Safety/Risk Management

Liability Risks for Condominium Corporations and Boards Employer and Owner Status Increases Exposure

By Joseph Griffiths and Christy Allen

As legal entities, condominiums are elements (or a certain aspect of the common exposed to some significant liability risks. elements) to owners.

The condominium’s duties are not limited Condominium boards of directors should be to that described by the Occupiers Act. The aware of the following issues. condominium also has a duty to take reasonable steps to enforce its Declaration, OCCUPIER’S LIABILITY Under section 26 of the Condominium Act, By‑laws and Rules. Even where those governing 1998, a condominium corporation is deemed documents transfer responsibility to ensure to be an occupier of the common elements. that the common elements are safe for use to The legal obligations of an occupier are set in owners, the condominium must still take reasonable steps to ensure that the owners Ontario’s Occupier’s Liability Act: An occupier of premises owes a duty to take fulfill that obligation.

In order to reduce the condominium’s such care as in all the circumstances of the case is reasonable to see that persons entering on exposure as the occupier of the common the premises, and the property brought on the elements, many boards are arranging a regular premises by those persons are reasonably safe review of the conditions of the common elements. That review may identify any while on the premises.

The duty imposed on the condominium dangerous conditions that exist with the applies whether the danger is caused by the common elements and assist the condominium condition of the property or by an activity in addressing or resolving those conditions, carried out on the property. To fulfill its duty, perhaps relating to adequate snow clearing/ the condominium is required to take reasonable salting in the winter, icicles, fallen trees or steps to ensure that the common elements are debris, etc.

Beyond these requirements, a reasonably safe for all users, including condominium must also ensure that any employees, residents, their guests and invitees.

It should be noted that in some cases, the owner complaints or comments regarding the condominium’s duty as the occupier is shared condition of the common elements are with the owners. For example, owners will have investigated in a timely manner. The regular an obligation to ensure that those portions of review, as well as the results of investigation the common elements, identified as exclusive of a l l ow n er com p l a i n t s , s h o u l d b e use, are safe for use by all users. The documented in a log. This will provide the Declaration, By-laws or Rules may also transfer condominium with evidence that it did fulfill or delegate some responsibility for the common its legal obligations.

FIRE SAFETY In addition to being deemed occupiers of the common elements for the purposes of occupier’s liability, condominiums are also considered to be owners of units for the purposes of the fire code. Condominiums must therefore take reasonable steps to ensure that all units comply with the fire code.

The Courts have not confirmed what constitutes reasonable steps for the purposes of the fire code, but generally speaking, a condominium is going to be most concerned with the functionality of smoke detectors and/ or fire alarm systems within each unit, along with the common elements where appropriate.

To fulfill that obligation, a condominium may elect to undertake an annual inspection of each unit to confirm that the fire alarm system is functional and that the unit and, where appropriate, the common elements, have the requisite number of smoke detectors.

The Court has confirmed in at least one case that this approach is reasonable and would satisfy the condominium’s obligations under the fire code. However, this may not be feasible in larger condominiums.

As an alternative, the condominium might consider requiring its owners to confirm in writing, on an annual basis, that their fire alarm systems are functional and that their units have the requisite number of smoke detectors. If an owner failed to provide written confirmation, the condominium would then undertake an

PROPERTY MANAGEMENT REPORT SEPTEMBER 2009 9

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inspection of the unit. Although this approach is less onerous on the condominium, it has not been judicially considered and may not meet the condominium’s legal obligations.

WORKPLACE SAFETY When a condominium hires or contracts with a person or company to undertake work for the corporation, the condominium is subject to the applicable workplace safety legislation.

In Ontario, the Occupational Health and Safety Act (OHSA) governs all workplaces.

As such, the condominium will have obligations under the OHSA, either as the employer where an employee/employer relationship exists, or as the owner where it has hired an independent contractor. It should be noted that a determination of whether an employee/employer relationship or owner/independent contractor relationship exists will depend upon the nature of particular arrangement.

Simply because a contractor is called an independent contractor in a contract for service does not necessarily make it so.

Condominiums should consult with their legal counsel to ensure that the arrangement complies with the legal requirements of an owner/independent contractor relationship.

The advantage of that relationship is that, generally speaking, under an ow ner/ independent contractor relationship, a condominium may shift at least some of the liability under the OHSA to an independent contractor. In contrast, under the OHSA, the obligations of an employer are far more onerous than the obligations of an owner.

Generally speaking, an owner must take all reasonable steps to ensure a safe and healthy workplace. The obligations of an employer are numerous, and include ensuring that workers are properly instructed and supervised with respect to health and safety at the workplace, ensuring that proper protective equipment, materials and devices are available and are properly used by the employees, and generally ensuring that every reasonable precaution is taken in the circumstances to protect all workers.

Condominiums may have fur ther obligations under the OHSA as a supervisor and/or a constructor of the work.

Condominiums should not be surprised if, as part of any destructive work, its engineer or consultant includes in the scope of work a Designated Substance Survey (DSS). New regulations make a DSS a prerequisite before almost any destructive work may be carried out.

The survey must be undertaken by a qualified individual, who will review the premises for any designated substances, including asbestos,

Security/Safety/Risk Management

mould, lead, mercury, silica and other contaminants. Before the work begins, the condominium must ensure that workers are not exposed to any dangerous substances during the work. If designated substances are discovered, the DSS consultant must establish a designated substance management plan.

OBLIGATIONS & SAFEGUARDS Failure to meet the requirements of the OHSA can lead to fines and penalties against condominiums, as well as against its directors and/or agents (which can include managers) of the condominium individually. Recently, the Criminal Code was amended to include the following language: “Every one who undertakes, or has the authority, to direct how another person does work or performs a task is under a legal duty to take reasonable steps to prevent bodily harm to that person, or any other person arising from that work or task.�

This amendment was implemented following the Westray Mines disaster, and essentially makes it a criminal offence for an owner or employer (or supervisor or constructor) to fail to take reasonable steps to prevent bodily harm with respect to the work undertaken. While this addition to the Criminal Code does not alter the duties of a condominium, or its directors or agents relating to work under taken at the condominium, it does make the penalty for not doing so far more serious. It is therefore important that condominium directors and managers are mindful of their obligations when undertaking work at the condominium.

Given the risks in this area, condominiums should be sure that they are well informed of their obligations before undertaking any major work on the common elements. Under subsection 37(3) of the Act, the directors and officers of a condominium can reduce their liability by following the advice of the condominium’s consultants (e.g. an engineer or an architect) and its legal counsel. As such, it is important that appropriate advice be sought in advance of any work being done at the condominium.

In addition, in an effort to reduce its risks and liability, a condominium can arrange for the development of an occupational health and safety policy. While safety policies are generally required by the OHSA, a condominium may wish to invest in a more comprehensive policy to be followed, which would be further evidence that the condominium met its legal obligations under both the OHSA and the Occupier’s Liability Act, if and when a claim were to arise. A condominium may wish to consult its engineer (some consultants

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specialize in the development of health and safety policies) and/or legal counsel to assist it with the development of this type of policy.

INSURANCE Finally, sections 99 and 102 of the Act require a condominium to maintain property and liability insurance. This insurance will, generally speaking, provide the condominium with coverage for many of the above stated risks.

Insurance is not a substitute for preventative action and does not eliminate the condominium’s legal obligations. In fact, insurance coverage is often affected by a condominium’s failure to meet its legal obligations under any of these legislative schemes.

In addition, section 39 of the Act requires condominiums to obtain and maintain directors and officers’ liability insurance where it is reasonably available. Generally speaking, D&O insurance is reasonably available across Ontario, and all condominiums should have a D&O policy in place.

This insurance will provide coverage for directors and officers with respect to their individual obligations in relation to the above noted risks, and will also provide some comfort to those individuals who volunteer their time and energy to participate as a director or officer of the condominium. Managers should also ensure that they have appropriate insurance in place to address their own liability exposure for the above noted risks. pmr Joseph Griffiths is a member of the Insurance Defence, Personal Injury and Wrongful Death practice groups with Nelligan O’Brien Payne LLP. Christy Allen is an associate with the Condominium Law practice group with Nelligan O’Brien Payne LLP. For more information, see the web site at www.nelligan.ca.

Cable Abatement Is Now Code!

There is over 6 billion feet of abandoned cable occupying space all across Canada. All of this spells a potential Fire Hazard.

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12 september 2009 PROPERTY MANAGEMENT REPORT HighTech_PMR_Sept09.indd 1

10/7/09 4:27:12 PM

Health & Risk Management

A Different Kind of Disaster

Pandemic Crisis Unfolds Over Extended Time Period

By Ross Manley

A pandemic is not like a physical disaster. A pandemic has unique characteristics that require restriction of movement, quarantine and closure of public gatherings. Unlike other catastrophic destructive incidents, it would not be a short-lived immediately followed by a recovery phase.

The impact of a pandemic would likely be widespread, even nationwide, not localized to a single area. Many business continuity plans (BCPs) assume some part of the organization will be unaffected and can take up the required capacity, but there may be little outside assistance.

Vendors and service providers will also likely be affected at the same rate as the wider population. Thus, reliance on others in the time of any pandemic may not be the best strategy.

Should H1N1 influenza spread within Canada it will probably be some weeks before the full impact on the workforce will be felt, although there may be some early impacts resulting from closures of schools and similar containment measures. It is always possible that any warning period may be very short.

Unlike natural disasters, where any disruption to business service provision is likely to be related to physical assets, disruption to business operation in the event of a pandemic is anticipated to be mainly human resource oriented. Canadian health authorities advise that businesses should plan for up to 50% staff absences for periods of about two weeks at the height of a severe pandemic wave, and lower levels of staff absence for a few weeks on either side of the peak. Overall a pandemic wave may last about eight weeks.

should maintain a reasonably high level of preparedness. Smaller premises and those providing non-essential services will also benefit significantly from some degree of preparedness.

CLEANING PRIORITIES It is necessary to contemplate staff absences of up to 50% for periods of two to four weeks with ramp-up and down periods before and after. Sanitization services are also a priority for pandemic preparedness planning.

In a pandemic scenario, additional measures will be needed to minimize the transmission of the virus through touch-points such as sinks, counters, handles, railings and other objects. Influenza viruses may live up to two days on such surfaces.

Touch- points should be cleaned with a neutral detergent followed by a disinfectant solution. Alcohol or chlorine can destroy influenza viruses. Surfaces that hands frequently touch should be cleaned often, depending on the traffic levels.

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Staff absences can be expected for many reasons: • Illness/incapacity (suspected/actual/post-infectious); • Some employees may need to stay at home to care for the ill, or for dependants and relatives; • People may feel safer at home – a simple and understandable fear of venturing out. • Some people may be fulfilling other voluntary roles in the community.

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A pandemic will have other impacts on businesses, for example: • Supplies of materials needed for ongoing activity may be disrupted. • Availability of services from sub-contractors may be affected (this may affect maintenance of key equipment, and is an area that merits close planning attention). • Demand for services may be affected. Demand for some services may increase (internet access is a possible example), while demand for others may fall (e.g. certain types of travel activity may decrease).

Planning responses will depend on the nature of the business/ workplace. Larger premises with high numbers of occupants and/or public access, or those providing essential services or infrastructure,

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PROPERTY MANAGEMENT REPORT SEPTEMBER 2009 13 CPE_PMR_Sept09.indd 1

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Health & Risk Management Consider providing sanitization products &/or wipes to client staff for use in personal work spaces/stations. Other priority areas include: • Washrooms (normal cleaning and replenishment with additional focus on touch points) • Kitchenettes • Meeting rooms • Shared spaces entries, lobbies, waiting areas • Any area used/occupied by a person who is known or suspected to have been infected

Priority Touch-points include: • Door handles & push plates • Light switches • Phones, keyboards, mouse • Washroom faucets, buttons, levers, dispensers • Desks, tables and chair arms • Lift buttons • Handrails and escalator rails During any outbreak, the focus of janitorial sanitization services must increasingly shift from normal specifications and job routines to priority areas based on risk points. From a janitorial

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14 september 2009 PROPERTY MANAGEMENT REPORT

services perspective, risk points are most easily identified as touch-points and garbage.

Cleaning frequency for the areas normally considered high priority, such as lobby/entry floors and windows and washroom mirrors will need to be scaled back or passed over completely in order to focus on touch points. Property/ facilities managers should account for shifting priorities and discuss them with their sanitization services providers. Particularly since, sanitization services providers will also experience staff shortages and will need to rationalize services.

RESOURCES FOR RESPONSE Two principles should guide planning: • During any implementation phase, personal contact should be avoided.

• A collective responsibility for health and minimization of risk must prevail.

Ensuring adequate availability of essential supplies is another key planning consideration. This includes supplies related to business operations and support service, particularly cleaning supplies for sanitization and disinfection.

Shortages may occur because of increased demand during the pandemic, disruptions in transportation systems, or inability of suppliers to meet demands because of their own staff shortages. Not all supplies necessarily need to be stockpiled, however. Reduction in demand due to a reduced workforce will mean that some supplies will last longer than usual.

The basics of personal hygiene, washing hands and coughing or sneezing into a tissue or sleeve are effective. Any business has a responsibility to ensure it provides the products necessary to facilitate this – soap, hand sanitizers, napkins etc.

Businesses may also wish to go further by providing disinfecting wipes and face masks.

Ultimately, deployment of any plan requires the following: • Clear points of responsibility and communication • Communication with all parties concerned • The ability to be flexible both internally and externally • A collective responsibility for health and minimization of risk.

Any pandemic outbreak will be a stressful time where daily life as we know it may be considerably disrupted and bring severe personal impacts.

People will react in a wide variety of ways. Cool heads, an objective understanding and an approach based on integrity, respect and caring will make a significant difference. No need to panic. pmr Ross Manley is Vice President, Corporate Development with Omni Facility Services Canada Ltd. For more information, see the web site at www.ominfacility.ca.

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