Canadian Apartment Magazine May/June 2009 by Rick Evangelista

C A N A D A ’ S O N LY N A T I O N A L P U B L I C A T I O N F O R A P A R T M E N T O W N E R S A N D M A N A G E R S

VOLUME 6 / NUMBER 1 / may/June 2009

Managing to do the Right Thing

PM#40063056

O’Shanter takes the green road

Slips and Falls – It’s Just not Fair

Finding Acquisition Opportunity in a Distressed Economy

Enhanced Photos Attract Tenants

Making a Difference Selling Apartment Buildings Across Canada Over 26,000 Units Sold in 10 Years in 30 markets!

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V O L U M E 6 / N U M B E R 1 / A P R I L / M AY 2 0 0 9

22 Cover Story

Managing to do the Right Thing O’Shanter takes the green road Toronto-based O’Shanter Development Company Ltd. has spent the past 30 years developing green building management practices that are not only environmentally friendly, but add to the company’s bottom line.

Managing to do the Right Thing

PM#40063056

O’Shanter takes the green road

Slips and Falls – It’s Just not Fair

Finding Acquisition Opportunity in a Distressed Economy

Enhanced Photos Attract Tenants

contents...

09098_CAM_May09.indd 1

5/19/09 10:31:38 AM

Slips and Falls – It’s Just Not Fair Creative legal strategies are transferring more risk and responsibility to liability insurers.

12 Finding Acquisition Opportunity in a Distressed Economy Although a strained economy may be an attractive time to seek out

deals, it is critical to carefully assess every potential transaction given the current economic environment.

16 Apartment Building Fire Safety Plans Fire safety plans maintain tenant security and assist police and fire fighters.

20 Occupancy Sensors Slash Energy Costs Occupancy sensors, which set thermostats to economy mode when

tenants are out, reduced energy consumption in a 215-unit building by nearly 13 percent.

36 Enhanced Photos Attract Tenants Enhancing your photos can turn a dark or washed out photo into one that illustrates a bright inviting unit.

38 Give Bed Bugs an Eviction Notice Once thought to be eradicated in North America, bed bugs have been rebounding over the past few years.

40 Multi facts 42 Regulations

4 Canadian Apartment Magazine

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Green Building Management Practices For many building owners and managers, energy conservation methods and green building management practices are a relatively new concept. Often they are viewed as expensive measures with long payback periods. This month’s cover story features O’Shanter Development Company Ltd., a Toronto-based multi-residential property manager. They take the view that energy conservation and green building practices are both good for the environment and good for the bottom line. Thirty years ago when Adam and Jonathan Krehm started in the property management business they began looking for ways to improve energy efficiency in the company’s portfolio. Today O’Shanter’s buildings are among the most energy-efficient multi-residential buildings in the Greater Toronto Area. They are also leading the way in multi-residential waste diversion. By 2010 the City of Toronto wants to see 70 percent of the waste generated by multi-residential buildings diverted from landfill. Through the company’s 3E program, Engineer, Educate and Enforce, the company feels confident it will meet the city’s target. Elsewhere in this issue our insurance specialist, Andy Schwartze, explains why insurance companies often settle law suits for slip and fall cases rather than go to court. Our marketing writer, Carissa Drohan, describes how photo enhancement can help your advertising material stand out from the crowd. Photo enhancement can increase contrast, fix blown out areas around windows or add new colours to a room. These adjustments can turn a dull or flat photo into one that shows a bright, attractive unit.

PUBLISHER Kevin Brown

ASSOCIATE PUBLISHER Marc L. Côté

EDITOR Randy Threndyle

SENIOR DESIGNER Annette Carlucci

DESIGNER Ian Clarke

PRODUCTION COORDINATOR Rachel Selbie

CONTRIBUTING WRITERS Rami Belson, Jonas Cohen Carissa Drohan, Mike Laurie Bill Melville, Andy Schwartze Michael Stoyan

CIRCULATION MANAGER Cindy Younan circulation@mediaedge.ca For sales information call (416) 966-4874 Canadian Apartment Magazine is published six times a year by:

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Circulation ext. 232 Subscription Rates: (GST Included) Canada: 1 year, $46.30 2 years, $82.60 Single Copy Sales: Canada: $8.00 Reprints: Requests for permission to reprint any portion of this magazine should be sent to Marc Côté

Quoteworthy “We’ve always approached it with a view that we would only invest in energy conservation measures if it was profitable.”

6 Canadian Apartment Magazine

– page 28

Authors: Canadian Apartment Magazine accepts unsolicited query letters and article suggestions. Manufacturers: Those wishing to have their products reviewed should contact the publisher or send information to the attention of the editor. Sworn Statement of Circulation: Available from the publisher upon written request. Although Canadian Apartment Magazine makes every effort to ensure the accuracy of the information published, we cannot be held liable for any errors or omissions, however caused. Printed in Canada

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insurance

Slips and Falls

It’s just not fair

Creative legal strategies transfer risk to insurers By Andy Schwartze

Two events have taken place recently, and each has again underscored the peculiar mix that makes up the common law legal system that regulates our society and how we relate to one another. Just recently an insurance broker received a statement of claim from a former client. The client had clearly advised the broker not to insure something and had done so in writing. A serious loss destroyed the uninsured property and now the former client was alleging that the broker had a higher duty of care than to simply accept the client’s instructions not to insure. On another front, an individual engaged in a sporting activity had instructed the technical personnel at the sporting goods shop to set the equipment being used to a certain standard. A serious injury occurred that same day resulting in hospitalization. The equipment setting was clearly the cause of the injury. There is talk of legal action against the sporting goods shop. In both cases the plaintiff (assuming an expected action is commenced in the injury case) would have to convince a court that it should ignore the clear instructions given to the service provider and take the position that, in spite of these clear instructions, the service provider should have acted otherwise. How? That’s not yet clear and won’t be for a while. A generation ago, cases like these would have been laughed out of court and the lawyer for the plaintiffs given a verbal spanking by the presiding judge. Today, this attempt to stretch the responsibility of defendants—in many new 8 Canadian Apartment Magazine

and different directions—has become the norm. The assumption of responsibility for one’s personal decisions and actions is being tested on many fronts as individuals try to find new and creative legal strategies to transfer their problems to the pocketbooks of others or, better yet, their liability insurers. We seem to be breeding a new set of attitudes that make it ever more acceptable to settle grievances in practical ways, as opposed to using the adversarial court system to argue, present and wade our way through to a decision that (hopefully) recognizes the true facts and brings them to a sensible conclusion. Court confrontations are expensive and, in moving ever more towards such “solutions” as negotiated settlements, mediation and arbitration, we are creating avenues that make it increasingly attractive to be a plaintiff and much tougher to be a successful defendant. For the liability insurers of this world, such a trend could not be more unpleasant. There is no more common lament from building owners and their managers, than the one that consists of highpitched indignation that an insurer has settled a slip and fall claim with a plaintiff who did not deserve a settlement or, better yet, was a fraud. It’s always interesting to find out that building owners and managers seem to have that special sixth sense about who is a “legitimate” claimant and who is not. So, their immediate question is: How could the insurer be so stupid? Why didn’t they fight the claim? They settled without the owner either knowing

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insurance Andy’s Tip • Keep a building log book and use it. • Insist that snow removers and landscapers provide liability insurance certificates. • Have an internal incident form completed following a known slip and fall. • Fill potholes and level sidewalk slabs to lessen the chances of accidents.

or agreeing! Slip and fall claims are the biggest source of disagreement between the insurance buyer and his or her insurer. Nothing heats up the conversation more than this topic. Let’s try to understand just how the insurance system deals with these situations, keeping in mind the trends referred to earlier. Typically, a slip and fall situation is not serious. People fall all the time and the causes can be many. The mismatching of weather and attire is probably the most frequent cause of falls that impact a building’s insurer. Alcohol consumption is also not uncommon. In most cases the on-site building staff knows about the situation and files an internal report. The matter is considered closed. How we wish it were so. Within 12 to 24 months the owner is presented with a statement of claim. Courts frown on lawyers who wait years to file a claim, hoping that the building’s records have been stored, that there has been staff turnover and, better yet, the building sold to new owners. Years ago lawyers would sometimes wait six years to file a claim. In those situations the insurer who held the liability policy when the accident happened, found itself with no records, no witnesses and perhaps even a former building owner no longer interested in any of what happened back then. The insurer, in such a situation, had no choice but to settle and add that loss to the rate adjustments that inevitably follow. If you have no defence, you have no way out. With the shorter notification periods insisted on by judges, one would have expected an evening of the odds for building 10 Canadian Apartment Magazine

owners (and their insurers) in slip and fall cases. Alas, this was not to be in that the world of mediation and arbitration was rapidly expanding. The problem remains that building owners and insurance companies make terrible defendants. Not only are they perceived (often correctly) as being financially strong, we have seen a gradual shift, over the years, to a more defendant accommodating court system. Political winds tend to drive court attitudes in the same direction. So, while we have shortened significantly the notification timelines for serving a building owner with a statement of claim, we have brought in more conciliatory options that enable a quicker settlement process that usually results in the insurer having to write a cheque. We need to remember that insurance companies do not lead jurisprudence, they react to it. Very few court cases are initiated by an insurer wishing to establish new legal principles. Unless the case is a “floodgate” issue (one that can open an insurance clause to new interpretation and a flood of new claims) insurers will quietly settle and add the cost to our collective insurance bills the following year. As long as court procedures remain expensive and biased, this reality will not change. CA M Andy Schwartze, BSc, MBA, CIP, is an insurance broker specializing in property management and real estate. He is a former President of the Insurance Institute, has taught in the community college system and provides continuing education to other brokers. He can be reached at andy@takecover.ca.

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businesspractices

Finding Acquisition Opportunity in a

Distressed Economy Understand your Company’s Risk Tolerance

Although a strained economy may be an attractive time to seek out deals, it is critical to carefully assess every potential transaction given the current economic environment. By Michael Stoyan and Jonas Cohen

We all know the hallmark for real estate investment has historically been; the greater the risk – the greater the reward. But while risk has always been a part of the equation it is important to weigh the opportunities presented in today’s market to determine how they fit into this traditional trend. The current economic climate can present various challenges for some businesses; however, it can also create an ideal situation for a well financed company to consider growth via acquisition. There is no simple approach when considering a potential acquisition opportunity, especially in a down economy. Below are five steps to reflect upon when contemplating an acquisition: Know Your Risk Tolerance Understanding your company’s risk tolerance and securing a healthy risk/reward balance is crucial. Taking action to undergo a comprehensive internal review of your management and operational strengths can prove to be advantageous by identifying areas for growth and improvement. In addition, researching those external factors which you have little or no control over will help you to determine if now is the right time for your business to invest in growing your portfolio. These include items such as local and global industry trends, availability of capital and cost of capital. 12 Canadian Apartment Magazine

Another crucial function is analyzing your current capital structure to determine the options available to you. With two basic options to consider, one could either raise debt or raise equity capital to build financial strength in order to execute on potential acquisitions. Both of these options can inject cash into the business, however, it is necessary to take caution that you are not taking on too much leverage or diluting ownership equity. The acquisition of a distressed company may create a situation where speedy decisions are required. This could inherently reduce your ability to conduct due diligence to your satisfaction. If this occurs, businesses must ascertain and calculate any potential risk that goes along with an accelerated transaction. If the terms and conditions of the acquisition cannot be adjusted to offset the affiliated risk, be prepared to make speedy decisions which could possibly entail the rejection of the deal. Having an absolute understanding of your company’s growth impediments is also imperative. For example, if your road to success includes geographic expansion yet the capital requirements, time investment and general resources to set up your own operation are too onerous, then an acquisition strategy may be a means for you to obtain both your growth goals and infrastructure in one transaction.

Finding Profitable Opportunities For some, a slow economy represents a time to hunt for assets in distress; however, this approach is highly

businesspractices

“Value creation should be the root of any acquisition”

cautioned. In fact, the “bargain basement” approach can often present more risks than rewards over the long term. It is recommended that a comprehensive strategic plan always be followed in combination with a trained eye for identifying the right opportunity. Essentially, your approach will only be successful if it complements your existing business model. Acquiring underperforming assets can prove to be a favourable strategy to help you achieve your growth goals. Purchasing a distressed asset can allow a company to secure greater market share at a favourable price. If your goal is to diversify your portfolio, now may be the time to consider seeking alternate properties to enhance your asset mix including commercial, retail, residential, etc.

Design a Plan A sound and comprehensive plan should be the basis of any transaction and should clearly define how the transaction will provide value to your existing business. Commonly referred to as the deal thesis, your plan will detail how profit will be generated and how additional value will be added to your core business. Value creation should be the root of any acquisition. Clearly gauging and measuring estimated cash flow levels to account for the risks will allow you to estimate if the value creation is sustainable. 14 Canadian Apartment Magazine

Conduct Due Diligence Performing due diligence prior to closing a transaction is a common practice for most real estate professionals. But what does due diligence entail? What are the best practices? Many wonder if conducting due diligence yourself is satisfactory or if engaging a firm that specializes in buy-side advisory services is required. As risk is a key component to any real estate deal, robust due diligence can help protect you by equipping you with the necessary information to make the best possible decisions. Even though you may employ a due diligence team internally, companies have been appointing professional due diligence advisors to better asses the risk given the current economic climate. Although an asset may appear to be a solid investment, one must always keep in mind that if its capital structure is unstable you may be at risk of placing all or part of your existing operations in a potential distressed situation. With that in mind, each and every transaction requires an individual and customized due diligence program that delves into a number of areas including the quality of the earnings, quality of assets, potential tax exposures and liabilities. Design an Acquisition Structure that Minimizes Tax Liability When structuring an acquisition, it is important to view the structure from a tax standpoint. There are

many alternatives to consider such as a corporation, a partnership, an individual purchase or, as a trust. It’s all part of your overall tax planning Different rules apply to each structure and each provides unique tax benefits depending on the circumstance. For example, if you are financing the purchase through debt, your taxes will be impacted according to how the debt is structured. Depending on what your goals are, you can work with a professional advisor to help you determine the tax structure that best suits your needs.

Expertise can Reduce Risk In today’s uncertain economic climate – or even when the financial landscape is thriving – no acquisition is without risk. With a well thought out strategy and the right expertise on hand, healthy businesses can significantly reduce those risk factors to drive stronger, more profitable results. CAM Jonas Cohen, Vice-President of Fuller Landau Consulting Ltd., specializes in mergers and acquisitions, corporate finance and due diligence. To contact Jonas call 416-645-6574 or email jcohen@fullerlandau.com. Michael Stoyan is a Partner leading the firm’s real estate specialty group. Michael can be reached at 416-645-6545 or email mstoyan@ fullerlandau.com.

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Apartment Building

Fire Safety Plans

Critical protection for the apartment industry

By Mike Laurie

Fires that occur in the home account for 84 percent of firerelated deaths in North America and Canadians spend more than 65 percent of their time at home. Much of that time is spent asleep, which puts apartment building residents at greater risk due to their reduced awareness and ability to respond to an imminent threat. The great majority of fire victims are killed not by fire but by smoke inhalation, which underscores the necessity for well-mapped fire escape plans and evacuation procedures. Fire safety plans help facilitate the effective utilization of a buildingâ&#x20AC;&#x2122;s life safety features to protect occupants from smoke and fire. They typically show the inventory and location of fire equipment, scheduled maintenance records, escape routes and evacuation plans, and other pertinent information. They are important to overall safety and security and become absolutely vital in the event of an emergency. Having a clearly articulated fire plan in place additionally ensures compliance with both legislative mandates and the requirements of local fire departments. Fire plans assist with orderly fire drills and emergency evacuations, and aid fire fighters and police. Referring to a fire plan helps an emergency responder understand the layout of the 16 Canadian Apartment Magazine

building, the location of various systems, and the best way to approach the building to fight a fire or rescue those who are inside. The National Fire Code, Section 2.8, requires the establishment and implementation of a fire safety plan for every building containing a Group A or B occupancy â&#x20AC;&#x201C; and also for those that are required by the National Building Code to have a fire alarm system. Penalties for noncompliance include stiff fines and imprisonment. Because of how the laws are written, potentially liable parties include not just apartment building owners but also building management companies, maintenance staff, and tenant organizations. But even if they were not compulsory, fire plans are an essential resource for anyone in the apartment investment or management business. Without a comprehensive and updated fire plan, the risk of fire hazards naturally accelerates. But so does the threat of dangerous exposure to various criminal and civil liabilities that can virtually wipe out the assets of apartment industry professionals and their corporations. Fortunately for Canadian owners, managers and tenants, Canada now offers some of the most

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technologically advanced fire plan designing processes. In fact, Canada has shown uncommon leadership in this regard as the first country in the world to create Webenabled fire plan applications. With the help of digital technologies that take advantage of powerful online capabilities, the entire fire plan process is simplified and streamlined. Today fire plans created with these new Internet-based platforms are more flexible, agile, and adaptable. Plus, they are surprisingly economical – both in terms of their cost and their efficiency. Creating, maintaining, and updating digitized fire plans is easier and less labor intensive, which reduces the frustration and time involved in developing and managing documents, evacuation drawings, schematic layouts, and floor plans. One centralized and integrated system can store and sort all the required documents and put them within reach with a few clicks of a computer mouse. Some fire plan software even provides dynamic document features that can actually modify themselves based on jurisdiction, usage, and building type. That means that, for example, an existing fire plan can be quickly altered or tailored to accommodate renovations, remodelling, new infrastructure, or the addition of emergency equipment such as sprinkler and alarm systems. Perhaps the most important and exciting feature of the forward-thinking Web-enabled plans is that they are instantly available and downloadable by fire departments. As soon as a fire is reported, fire fighters can gain wireless access to valuable information about the specific location and building environment. As the fire truck is en route to the scene, for instance, fire fighters can download the entire fire plan to the truck’s on-board computer terminal. By the time they arrive at an apartment building, emergency 18 Canadian Apartment Magazine

responders have already been brought up to speed on a wide variety of strategically and tactically essential specifics. The plans clearly show stairways as well as roof entry points, any access or staging areas and complete statistics related to the size and configuration of the building and its apartments. Fire plans also indicate, for example, such details as the locations of hydrants, utility shut off valves, and on-site hazardous materials – plus information about any mobility-impaired persons who are living in the building. But current research indicates that only half of the buildings that should have a fire plan actually do. Of those that have a fire plan, only about one in ten have a plan that is updated and currently viable. Most fire plans, in other words, either do not exist or are obsolete, invalid, and illegitimate in terms of actually protecting life and property. Responding to this phenomenon, fire departments are stepping up enforcement and pushing for more stringent laws. Within the past five years, for example, the province of Ontario doubled its fine for building owners who fail to comply with the Ontario Fire Code, increasing it to $50,000. Canada’s Criminal Code also calls for prison sentences up to five-years long for building owners who are found negligent in terms of fire safety precautions. Apartment building stakeholders are encouraged, therefore, to waste no time availing themselves of the newest digitally formatted and Web-enabled systems and features to implement professional quality fire plans. Not only do those sophisticated tools give fire departments fast access to critical emergency information in real-time, but they also generate interactive data management resources for building owners and managers. With appropriate software it is possible, for instance, to have a secure fire department interface, submit plans electronically to the local fire inspector for approval, and to import CAD drawings. Modules typically included in the software also offer customized data management and maintenance programs that extend beyond basic fire plan creation to generate additional cost reduction benefits over time. While the lack of a fire plan is downright treacherous and blatantly irresponsible, the features and benefits of the new first-class fire plans are many. That makes the decision to create or revise apartment building fire plans an obvious goal for 2009. A fire plan project can save money and headaches for those in the apartment industry – while it also has the real potential to save precious assets and priceless lives. CA M

Mike Laurie, P.Eng, is the President of Planit Measuring. He can be reached at 1.800.933.5136, email: mike@planitmeasuring.com.

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energymanagement

Occupancy Sensors Slash Energy Costs Gas and electricity costs reduced by $32,000

By Rami Belson

Devonshire Properties, a Vancouver, BC property management firm, was experiencing spiraling energy costs at Walden Circle, a 21-storey, 215-unit multi-residential apartment complex in Mississauga. This high rise was built about 35 years ago and contains mostly two- and three-bedroom apartments. It is equipped with central gas-fired boilers and an electric rooftop chiller proving seasonal heating and air conditioning. Constant use of the HVAC system was impacting profits due to sharply higher fuel costs, as well as maintenance costs due to increased wear-and-tear. Additionally, Devonshire was seeking to reduce its environmental impact. The company needed to: • Control rising energy costs • Reduce HVAC system maintenance and equipment costs • Reduce environmental impact

Solution

minutes, the sensor communicates this to the thermostat, which is then automatically set to ‘economy’ mode (lowering the heating point or raising the cooling point). When the tenants return to the room, the sensors automatically revert the temperature to ‘occupied’ mode, in which all heating, cooling and ventilation functions are quickly restored to their previous set points. The result is a reduction in energy use while the room is unoccupied, while maintaining tenant comfort upon their return. “It was important to me that our tenant comfort will not be compromised,” said Barb Patelsky the building’s Property Manager. “In fact, the response was positive and we received no complaints or issues after more then a year since the installation was completed.” Just eight months after the sensors were installed, Walden Circle has already saved over $32,000 in gas and electricity—almost 13 per cent of its total annual energy budget. Devonshire has not received any complaints from residents about the comfort of their apartments. In fact, many tenants have thanked Devonshire for working to keep costs down and contributing to the greening of the environment. “We always challenge ourselves to manage energy and resources better,” said Zev Shafran, President of Devonshire Properties. “Today’s newer technologies allow us to tighten costs without impacting our tenants. We are exploring more opportunities for occupancy sensors throughout all our buildings,” Shafran added. CA M

Devonshire worked with its consulting firm to install infrared occupancy sensors in each of the high rise’s apartments. The installation of the system can be wired or wireless, and each unit can be installed in just under one hour. When a room becomes vacant for more than 30

Rami Belson is the President of Energex Inc. He can be reached at 604-448-1899, or toll free at 1-866-787-1836, or at www.energexince.com

Analysis In response to the rising energy costs, Devonshire analyzed Walden Circle’s energy use patterns. They discovered that most tenants did not adjust their thermostats when they left their apartments for the day. As a result, many of the 215 units in the building were being heated and cooled as if a tenant was present, wasting valuable energy. Devonshire hired a Richmond, BC energy management consulting firm to help them design a solution to this problem.

20 Canadian Apartment Magazine

coverstory

22 Canadian Apartment Magazine

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Managing to do the Right Thing Toronto-based Oâ&#x20AC;&#x2122;Shanter Development Company Ltd. has spent the past 30 years developing green building management practices that are not only environmentally friendly, but add to the companyâ&#x20AC;&#x2122;s bottom line. By Randy Threndyle

May/June 2009 23

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“We thought it was important to meet the Kyoto Accord targets because of our sense of social responsibility.” Left to right: Randy Daiter, General Manager; Adam Krehm, Principal; Jonathan Krehm, Principal; Bill Scott, Maintenance Manager

For many multi-residential property managers, energy conservation and green building methods are a relatively new concept. In many cases they are ideas that have been forced on them by high energy costs or government policies that dictated change. For one multi-residential property manager however, green is a way of life. O’Shanter Development Company Ltd., a Torontobased company, has spent the last 30 years developing green building management practices aimed at lowering energy costs and reducing the company’s carbon footprint. O’Shanter was founded in the 1950s by William Krehm, who was a homebuilder. Later the company branched out into the multi-residential rental business. Today O’Shanter manages about 2,600 rental units in the Greater Toronto Area. It has an ownership position in about 1,600 units and about 1,000 are managed on a third-party basis. O’Shanter is now owned by William’s sons, Adam and Jonathan. Both brothers joined the company in the late 1970s. As early as 1979 the Krehm brothers were implementing policies aimed at making the company’s buildings more energy efficient. In those days, when most building 24 Canadian Apartment Magazine

managers took the view that energy conservation measures were a costly venture with little potential for payback, the brothers took the view that energy conservation was both the right thing to do for the environment and something that would lower operating costs and add to the company’s bottom line. “We’ve always approached it with a view that we would only invest in energy conservation measures if it was profitable,” says Adam Krehm. Over the years the company has made something of a science out of predicting the outcome and profitability of energy conservation methods. One of the ways they are able to do that is through constant monitoring of utilities. Constant monitoring has created a large database that allows the company to compare the past and present energy consumption of any building in the portfolio. Their latest tool is a Webbased energy monitoring system that allows O’Shanter to measure the natural gas, electrical and water consumption of each of the company’s buildings every 15 minutes. “We are able to use that database to evaluate energy conservation projects on an ongoing basis,” says Krehm.

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coverstory Without the database, he says, it would be difficult to identify operating inefficiencies. Krehm first started collecting data on energy use more than 30 years ago. In those days collecting gas, water or electrical consumption figures was done manually. Today, that information is available on-line in real time. Bill Scott, the company’s Maintenance Manager, says the real time data flows to the company through a website known as Energy Brain. The website connects a building’s utility meters to the Internet and allows building owners to compare actual energy consumption with weather conditions and the performance standards expected from the building and installed equipment. Using the data, building owners and managers can compare consumption against historical benchmarks and accurately predict future consumption. Any loss of performance or sudden increase in consumption generates an alert to the building manager. While the Energy Brain system gives a building owner real time data, its true value is in measuring energy consumption over time. O’Shanter, says Scott, has made large investments in energy saving boilers, lighting systems and water reduction plumbing fixtures. That’s significantly reduced the company’s energy and water consumption. Brentwood Towers, a 957-unit, fivebuilding complex in the Yonge and Davisville area of Toronto, has had many energy-related upgrades since it was purchased by O’Shanter in 1984. In one change, aimed at lowering utility costs, the company installed new lowflush six litre toilets in all the units. At first, says Krehm, the company recorded “excellent results” and significantly lower water bills. “You could see it graphically, from the data,” he says. “But after about five years we started to notice that water consumption going up and we couldn’t understand why.”

Leaky Low-Flush Toilets After a thorough investigation, he discovered that plumbers servicing the low-flush toilets were replacing the original flapper valves with standard flapper valves. The standard flapper valves all leaked. “We had created a massive number of leaking low-flush toilets,” says Krehm. The valves were replaced with proper lowflush valves and the problem was solved, but, says Krehm, if the company hadn’t had been monitoring water usage and comparing it 26 Canadian Apartment Magazine

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“You can’t just install it and forget about it, you have to monitor and maintain the system.” against historic averages, they might never have picked up on the problem. Other problems that can be identified through the monitoring system are boiler controls that are malfunctioning, makeup fans being run too aggressively or apartments that are being overheated. Often, says Scott, building managers install new energy efficient boilers, but they fail to install control systems that will allow the boilers to operate to their true efficiency standards. “In the past people just installed systems and walked away from them,” says Scott. “You can’t just install it and forget about it, you have to monitor and maintain the system.” A typical control sensor installed a few years ago might, says Scott, have a range of four degrees Celsius. A military spec sensor, on the other hand, will control temperature to plus or minus half a degree. When you are controlling the temperature of people’s apartments, says Scott, a range of plus or minus two degrees, is simply not good enough. Along with controlling the temperature inside the units, sophisticated control systems also monitor the makeup air in the building, ensuring both a more energy efficient building and a healthier building. 28 Canadian Apartment Magazine

Accurate controls, along with new boilers and windows, have helped reduce gas consumption at the Brentwood Towers complex from 2.8-million-cubic metres of gas per year to 1.8-million-cubic metres of gas per year. Throughout the entire portfolio, electricity consumption was reduced by 15 percent, water use decreased 43 percent and gas consumption was slashed by 45 percent. This resulted in the company receiving two awards for environmental achievement—one from the Federation of Rental-housing Providers of Ontario and the other from the Recycling Council of Ontario. In fact, the company has reduced its energy consumption so much over the past few years that it is considered to be compliant with the Kyoto Accord. While there is no legislation requiring companies to meet the targets of the Kyoto Accord, Krehm says, “We thought it was important to meet the Kyoto Accord targets because of our sense of social responsibility. We also felt it was very important to document it carefully because, if and when there is mandatory compliance with the Kyoto Accord, we don’t want them to come to our efficiently operated buildings and say: ‘Now reduce the energy consumption another 25 percent.’ We wanted to show where we came from, to where we are now.”

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coverstory By keeping track of the fuel consumption, and the reduction in consumption that the company has achieved, Krehm says O’Shanter can prove it has met the requirements set out in the accord. Another area where O’Shanter is leading the way is in converting buildings with bulk electrical metering to individual metering. So far the company has put individual meters in a 64-unit building and a 72-unit building. Three more buildings are slated for conversion this year. Krehm says over the long haul the company would like to convert all its buildings to individual metering as it would further reduce energy costs. “We are of the view that if people pay their own electrical bill they will use the commodity more responsibly,” he says. However, the program has been put on hold pending a clarification of an opinion memo recently released by the Ontario Energy Board. The board takes the position that rental building owners cannot use individual meters installed after 2005 to charge tenants for their electrical consumption. While increasing the energy efficiency of the company’s portfolio is something that O’Shanter has done voluntarily,

other green initiatives, such as waste diversion and recycling are taking place as a result of legislation put in place by municipal governments. In July of last year the City of Toronto launched a program aimed at diverting 70 percent of the waste generated by multi-family buildings away from landfill by 2010. That’s created a tremendous challenge for the owners of older multi-residential buildings. Owners that do not meet the targets will pay increased fees for garbage removal. Randy Daiter, O’Shanter’s General Manager, says currently the company is far exceeding the city’s targets for waste diversion.

Engineer, Educate and Enforce The company’s success in recycling and waste diversion is the result of a three-pronged program, described as Engineer, Educate, and Enforce. The 3-E program was aimed at making recycling and waste diversion part of a tenant’s everyday activities. From an engineering perspective, says Daiter, the company went through key buildings looking for areas

ISO Certification Guarantees Dependability As the only ISO 14001 Environmental Management and ISO 9001 Quality Management certified multi-residential property management company in Canada, O’Shanter Development Company has come to view the dual certifications as a way to create a dependable business model. The certifications both hold the company to a high standard of environmental practices, and ensure that the company’s day-to-day business practices are carried out using good methods and practices. Jonathan Krehm, a co-owner of O’Shanter with his brother Adam, says the company began considering ISO certification because they found that companies which had ISO certification, where simply better and easier to do business with. When you have a large group of buildings, he says, “You need to get people to do things either the same way or in a rational way. That way everyone knows what is going on and is going in the same direction. With a quality management system you can do that.” As a hands-on manager, he says one of the biggest frustrations was going to a building and finding that someone had changed a system or a process, but hadn’t told anyone. That, he says, led to problems. The certification, which was granted in 2002, took two years to complete and involved weekly meetings where every job function in the company was analyzed and every process defined.

30 Canadian Apartment Magazine

“Generally you don’t do that. I had been in business for 20 years and I had never done that before,” he says, adding, “It was a long arduous process to sit down and think about everything our company did.” Once the process is complete, all job functions and processes are documented. If something needs to be changed, the changes are documented. In order to maintain certification the company goes through a yearly external audit, much like a financial audit. Its biggest advantage, says Krehm, is that it gives the owner of the business “dependability.” A quality management system creates a set of procedures that both you and your employees are paying attention to, he says. “You are measuring what you do. It makes things more transparent and rational.” The ISO system also adds a sense of dependability when he’s away from the office. “I can leave for two weeks and I know things are well run. I get the odd email or phone call. Ten years ago I had to worry more about that.”

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coverstory where they could build a centralized recycling depot. They also created stations where tenants could drop off batteries and CFL light bulbs. Since the city is now charging landlords for the volume of garbage that is being sent to landfill, O’Shanter has looked at ways to increase both the use and efficiency of garbage compactors. “We wanted to make recycling as convenient and accessible as possible. There is a correlation between diversion rates and convenience,” says Daiter. To make recycling convenient for tenants the company located its recycling rooms across from elevators in the parking garage or near a laundry room. In some cases underground parking spaces were converted to recycling centres. That way people did not have to go outside and recycling was convenient 12 months of the year. Tenants were given bags to carry items for recycling, so if a tenant is on their way to their car, they can drop off their recycling and simply fold up the bag and take it with them. While items like cans, bottles and newspapers can all go in one recycling bin, a separate bin is needed for organic garbage. Organic garbage is largely made up of kitchen scraps and waste food items. Homeowners in Toronto

32 Canadian Apartment Magazine

have used green bins to separate organic garbage from the landfill stream for several years, but multi-residential has been exempt from organic recycling. O’Shanter is part of a special roll-out program launched by the City of Toronto aimed at bringing multi-residential buildings into the green bin program. Daiter says the green bin program may be difficult for some building owners as an organic recycling area has to control odours and prevent the organic garbage from attracting rodents and other pests. Despite the difficulties, Daiter expects that approximately 40 percent of the company’s apartments will have organic waste disposal by June of this year. On the education side of the program the company began informing tenants about the changes six to eight months before the program was launched. Letters were sent to tenants and signage was put up inside the buildings. O’Shanter updated its website and recycling obligations were incorporated into tenancy agreements and new tenant orientation packages. In order to create signage the company studied recycling posters across North America. Eventually they modelled their recycling posters after one from the City

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coverstory of Seattle. “They had the best poster in terms of simplicity and universality, for tenants whose first language is not English,” says Daiter. “We wanted it to be intuitive.” In addition to the posters, existing tenants where given an information package. New tenants receive an information package when they move in. On the

Under the city’s plan, each unit would be allowed to throw out no more than two-thirds of a green garbage bag every two weeks. Despite the waste diversion efforts put forward by the company, initial estimates indicated that O’Shanter might face a bill of $250,000 per year under the new program.

weekends, the company set up information and outreach kiosks where tenants could get information on both what could be recycled and the reasons for the new program. They also set up websites explaining the program. In a unique educational effort, they partnered with the tenants’ associations to create an outreach program for kids. Children who participated would get credit for community service by volunteering to help elderly and disabled tenants with the new recycling program. As a result, says Daiter, “We’ve had tremendous buy-in from tenants.” On the enforcement side, the company has made an effort to restrict access to garbage areas to prevent illegal dumping. They’ve installed signs warning that the recycling areas are under video surveillance and that illegal dumping could result in a $5,000 fine.

At present, he says, it’s difficult for building managers to judge how much extra they will pay for waste removal. Originally, he says, building owners understood that the city was going install transponders on bins, which would count the number of bin lifts generated by each building. That, apparently, had problems and the city has reverted to a system where the bins are simply counted manually. The problem, says Jonathan Krehm, is that there is no sure way to verify the bill. “They (the city) are saying: ‘Just trust us.’ To me that’s not a very adequate response.” In order to minimize potential disputes the company has decided to video tape garbage pickups at some locations in order to verify the amount of garbage being picked up. Jonathan Krehm says unlike other utility bills, the city is not regulating the way it measures how much garbage is being picked up. Water, gas and electricity bills, he points out, are metered and the meters that measure usage are regulated by independent government agencies. The bills for the new program are just starting to be issued and Jonathan Krehm says there are already discrepancies in the company’s accounts with the city. “Most people are just starting to get the bills and to be fair, when you are starting a new system there are things that are in doubt. Hopefully that will change. We will see.” CA M

Recycling a Social Responsibility Jonathan Krehm says tenants have been positive and cooperative in the company’s recycling efforts. Most, he says, tend to see recycling as part of their social responsibility. But, he says, the best efforts of tenants and building owners have not eliminated all the problems with the new program. A big issue facing building owners, he says, is calculating how the city will bill for waste that is not diverted from landfill. 34 Canadian Apartment Magazine

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marketing

Enhanced Photos Attract Tenants Illustrate a Bright and Inviting Unit By Carissa Drohan

The rental industry is competitive and landlords are doing everything they can to stand out from the competition. To catch a renterâ&#x20AC;&#x2122;s eye online or in marketing brochures you need to have top notch photos. Most landlords simply cannot afford to hire a professional photographer to photograph their units but there is an alternative. Many landlords are now having their photos edited and enhanced. This strategy is saving them money and giving them excellent photos. Whether you are for it or against it, the truth remainsâ&#x20AC;&#x201D;many landlords are regularly enhancing their photos. Can you afford not to? Photo enhancements can take many forms. A good graphics editor can do anything from increasing contrast, to fixing bright blown out areas of windows or adding elements to a room. These adjustments can turn an old, dull photo into one that shows a bright, attractive unit. Iâ&#x20AC;&#x2122;m going to explore why enhancing your photos can help you compete and attract renters.

Warming up your photo Renters are searching for a place to call home. They are looking for a unit that looks bright and inviting. Many 36 Canadian Apartment Magazine

landlords use standard beige or white walls when turning over a unit. This may save on paint costs but it also makes for a poor photo. Unfortunately white or beige walls make a unit feel unlived in and empty. Photo enhancing can help to add colour and warmth to the photo, giving it an inviting feeling. A graphics editor can easily bring colour to the photo by replacing the wall colour or adding an earth tone. This acts to brighten up the room.

Get rid of the glare A common problem when photographing apartments is the windows. Often, to capture a room, you need to point the camera towards the window. This overexposes the area and creates a white, blown out effect. This often distracts the eye when looking at the photo and diverts attention away from the room. It also does nothing for selling the view. Photo enhancing can fix this problem. A digital editor can remove that unwanted white area and replace it with a nice outdoor scene. Take a look at the example. The bright window area has been removed and replaced with a view from the balcony and the balcony was reconstructed. The room now becomes the focal point

marketing and the renter sees what an amazing view it has.

Get rid of the clutter Nobody likes looking at a cluttered room. The first rule of home staging is that less is more. People like negative, unused space, free of clutter. Since renting a unit is not unlike selling a home photos should be free of clutter. This is easy to do if the unit is empty but what if the current tenant has not moved out? This is another situation in which photo enhancing can help. A photo editor can remove those unwanted ornaments, furniture or items that are overpowering the photo. By cleaning up this clutter the renter can now see the room without the distractions.

drawn to the bright property and see it as welcoming. So, with all of these strategies on how to use photo editing to your advantage there remains only one question: How do I find a digital editor? Well, my suggestion is to search online for photo enhancing, or, simply ask your local print house if their graphic designer does photo editing. I also offer many free tips on how you can alter your own photos on

my blog, photoenhancement.blogspot. com. Just remember that your photos are meant to entice the renter to come and view your property. It’s worth spending a bit extra to breathe new life into your photos and spark the renter’s interest. CA M Carissa Drohan is the Marketing Coordinator at Skyline Apartment REIT. You can contact Carissa at cdrohan@skylineonline.ca or call 519-826-0439.

Light up your assets It’s hard to take some indoor photos indoors and have proper lighting. The purpose of the photos is to show the renter your asset but some indoor lighting poses a problem with producing clear photos. For example, a poorly lit hallway will almost always have a dark carpet and over exposed lights. This never clearly illustrates what the hallway actually looks like. This is a situation in which photo enhancing can help. By adjusting exposure levels, brightness and contrast, your poor photo can become an effective photo. It then will be able to sell your product to the renter.

Let the sun shine through Photographing the exterior of a building is an easy task but it does not always produce an appealing photo. Depending on the time of day and the weather, the sky can be any colour from grey to blue. Remember what I said about colours impacting a photo? The same holds true for a dull, grey sky. So, instead of waiting for a bright sunny day (especially in the winter), why not enhance and give the photo the brightness it needs? Photo editors can do this as well. By masking in a sky an otherwise dull photo can be brought to life. Renters will be naturally May/June 2009 37

buildingmaintenance

Give Bed Bugs an Eviction Notice Tips for pest identification and treatment By Bill Melville

Thought hotels were the only ones who had to worry about bed bugs? Guess again. These tiny pests are invading Canadian apartment buildings as well. With constant tenant turn-over, bed bugs can easily hitch a ride into an apartment. Tenants can bring them in on move-in day with furniture or other belongings, or after a business trip or vacation, where bed bugs may hide within suitcases. From there bed bugs can spread throughout a building – multiplying at an alarming rate. Fortunately, there are steps you can take to keep bed bugs from hijacking your own building. Once thought to be eradicated in North America, bed bugs have been rebounding over the past few years. Many suspect the re-emergence of these pests is due to the use of less toxic 38 Canadian Apartment Magazine

pesticides coinciding with an increase in international travel. Unlike most pests, bed bugs are not attracted to filth. They can be found in basement apartments or penthouse suites – all they need is a host to feed on, and they prefer human blood. So what can you as an apartment manager do to combat these critters? The answer is vigilance. In just one month, two bed bugs can produce more than 160 offspring, resulting in 200 additional eggs. The earlier you catch a bed bug infestation the easier it will be to get it under control. Early detection requires a partnership with your residents, facility maintenance staff and pest management provider. Be honest with your tenants – bed bugs are on the rise and they need to know that. Work with your pest

management provider to educate your tenants on what to look for. Encourage them to report any signs of bed bugs promptly. Adult bed bugs resemble an apple seed in size. Unfed they are a tan color, but turn brownish red after a blood meal. Bed bugs are nocturnal and anesthetize the spot where they bite – making detection difficult. Some people react to bites with itchy bumps, but others may not have as severe of a reaction. Bed bugs tend to hide in mattress seams, behind headboards and in furniture near a host. Other tell-tale signs are reddish brown stains on sheets or mattresses, and a musty, sweet soda pop like odor. Share these signs with tenants and encourage them to monitor for signs of bed bugs.

buildingmaintenance Discourage your tenants from picking up used furniture or mattresses from sidewalks â&#x20AC;&#x201C; thereâ&#x20AC;&#x2122;s a reason theyâ&#x20AC;&#x2122;re out on the curb. Encourage them to travel smartly â&#x20AC;&#x201C; inspecting hotel mattresses for signs of bed bugs, and storing suitcases off the floor and away from the bed. After travelling, clothes should be put in the dryer on a high heat setting for five minutes to kill any bed bug eggs. Suitcases should ideally be stored in a storage area outside of the apartment or at least left out on the terrace. Never store suitcases under the bed.

prepared for several follow up visits, as bed bugs typically require more than one round of treatments before they are eliminated. With a proactive bed bug monitoring program and a partnership with a professional pest management provider, youâ&#x20AC;&#x2122;ll be able to take on this pest if it shows up on your property. Donâ&#x20AC;&#x2122;t hide under the covers, but rather, face this problem head on. Bed bugs â&#x20AC;&#x201C; though difficult to manage â&#x20AC;&#x201C;

are treatable. Be proactive, aggressive and vigilant so you â&#x20AC;&#x201C; and your tenants â&#x20AC;&#x201C; can rest easy at night. CA M

Bill Melville is Quality Assurance Director for Orkin PCO Services. He has 35 years of experience in the industry and is an acknowledged leader in the field of pest management. For more information, email Mr. Melville at bmelville@pcocanada.com or visit www.orkincanada.com.

What do you do if a tenant reports a bed bug problem? First and foremost, call your pest management provider. He or she will be able to confirm the presence of bed bugs and work with you on the best treatment option. Your provider also should do an inspection of adjoining apartments as well as the apartments immediately above and below the infested units. Bed bugs are known to spread through a building by way of air ducts, plumbing and electrical wiring. Cooperation from tenants is imperative to effectively treat for bed bugs. Once your pest management professional confirms an infestation, he or she will likely ask that the room be prepared for treatment. Furniture will need to be moved to the center of the room and personal items placed in plastic trash bags. Clothing should be washed, dried and bagged as well. Your provider may ask that you remove or loosen all items attached to the walls such as electrical switch plates and carpeting. Treatment for a bed bug infestation is a combination of physical removal and chemical application. Actual bugs can be vacuumed while dry steam is used to kill existing bed bugs and any eggs. Chemical treatments are used in the form of crack and crevice treatments. For example, dusts may be used in electrical sockets and around the perimeter of a room. Your pest management professional may recommend treating adjoining rooms as well. Be

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multifacts Building Owners and Residents Join Forces for Spring Food Drive Apartment building owners and residents from over 700 buildings across the Greater Toronto Area joined forces in April, donating more than 100,000 pounds of food as part of the Greater Toronto Apartment Association’s (GTA A) annual Spring Hope Food Drive. “Not only is the Spring Hope Food Drive an annual tradition, it’s a clear example of what can be achieved when we come together as a community to support those in need,” said Brad Butt, President and CEO, Greater Toronto Apartment Association. “With the current economic situation, the need this year is greater than ever and I’d like to thank all the participating buildings, residents and volunteers for their continued support and generosity.” The Spring Hope Food Drive is a door-to-door collection effort in GTA A-member apartment buildings and demonstrates the GTA A’s continued commitment to combating hunger across the GTA at a grassroots level. W hile Daily Bread Food Bank is the central recipient of the generosity of building owners, staff and tenants throughout the region, local food banks will also directly benefit from the Spring Hope Food Drive. The food collected from apartment buildings in the Mississauga and North York regions will go to support the clients of The Mississauga Food Bank and the North York Harvest Food Bank.

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“The Mississauga Food Bank is thrilled with the results of this year’s Spring Hope Food Drive,” said Chris Hatch, Executive Director of The Mississauga Food Bank. “Thanks to the efforts of everyone involved in the 2009 drive, more than 12,000 pounds of food will go directly to support our clients in the Mississauga area. The collective effort of all involved will go a long way in helping us address the ever increasing need for the services that food banks provide.” “The food collected from apartment buildings in North York will directly benefit those in need of our services,” said Anette Chawla, Executive Director of the North York Harvest Food Bank. “The local connection and knowing that the food you donate could be supporting someone from your own community really motivates donors. We can’t thank the Spring Hope Food Drive participants enough for their generosity, which resulted in more than 30,000 pounds donated.”

New Trucks to Pick up Hazardous Materials and Electronics The City of Toronto has unveiled two new trucks to pick up discarded household hazardous waste and home electronics from multi-residential high-rise buildings. The trucks, called the ElectroVan and the HazMobile, are part of a new pilot project that will allow residents in a select number of Toronto’s 5,000 apartment buildings to put out home electronics, batteries, paint, oil, solvents and other hazardous materials for recycling. Geoff Rathbone, the city’s general manager of solid waste, said the program is made possible by new funding from industry to recycle electronics and household hazardous waste. Currently, anyone can take such items to one of the city’s waste depots, or to an “environment day” organized by their local councillor. But city officials expect to collect more by making it easier for residents to recycle.

Calgary Dennis Aitken or Doug Eveneshen Phone: 403-237-8975 Fax: 403-266-5002 Email: calgary@peoplestrust.com

“Like a lot of things, the more convenient we make it, the better participation we’re going to have,” Mr. Rathbone said. If the pilot program is successful, it could be rolled out to all of the city’s multi-residential buildings, many of which are just now adapting to the city’s green-bin organic waste program.

Toronto Michael Lombard Phone: 416-368-3266 Fax: 416-368-3328 Email: toronto@peoplestrust.com ™

www.peoplestrust.com 40 Canadian Apartment Magazine

“Apartment buildings in the GTA play a critical role in helping the Daily Bread Food Bank reach our collection goals and we are grateful to the Greater Toronto Apartment Association for their ongoing support in helping us meet the growing demand for our services,” said Gail Nyberg, Executive Director, Daily Bread Food Bank. “Despite these challenging economic times, the building owners and residents dug deep to support this year’s drive, which resulted in close to 59,000 pounds of food donated to Daily Bread Food Bank. Even if just one or two small items are donated by each person, it goes a very long way in helping us combat hunger in our city.”

Curb side service for electronics is in the works for singlefamily homes as well, Mr. Rathbone said. Large, bulky items such as computers and TVs can be picked up now, although the city is not yet recycling all of the material.

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May/June 2009 41

regulations

Ontario Enforces Elevator Equipment Guarding Regulations The implementation of guarding equipment within elevator machine room spaces is part of a focused effort on the part of the Ontario Ministry of Labour (MOL) to reduce worker and workplace injuries. The potential for inadvertent injury within an unprotected environment is high, notwithstanding current accident and injury statistics within these locations. Reliance upon a locked machine room access door, with limited available access does not constitute sufficient or appropriate guarding, even when used with lock out/tag out procedures and the safe shutdown of live equipment whenever the elevator machine room access door is opened. Once through the door, where live unguarded equipment remains in operation, a worker is still exposed to all its potential hazards within the machine room. The requirements for elevator machine room equipment guarding comes from the Ministry of Labour’s enforcement of Sections 24, 25, 75 and 76 of Ontario Regulation 851 (O.Reg 851). Enforcement is being mandated by the MOL. Its increased compliment of inspectors means locations that have not previously been inspected, will now be visited. There are separate sets of applicable Occupational Health and Safety Acts and Regulations. Ontario Regulation 213/91 sets out occupational health and safety requirements for a construction project. Ontario Regulation 851 applies to industrial establishments. Commercial, institutional, recreational, educational, residential and all other building occupancies would be considered as industrial establishments on the basis of worker safety. Hence, the requirements of O. Reg. 851 apply not only to factories or mines, but also to all forms of residential, commercial, institutional, retail and other facilities where elevator equipment is found. In the eyes of the MOL, all represent

industrial establishments in terms of worker safety and the requirements of O. Reg. 851 apply. It is the elevator owner’s responsibility to ensure equipment guarding provisions are installed and compliant with the requirements of O. Reg. 851. This regulation establishes the outcome or expectation of appropriate guarding. It does not itemize, define or explain specific guarding designs or expectations when installing equipment guarding to an existing or new elevator installation. The focus of this guideline is to assist stakeholders with compliance by: • Explaining the requirements for equipment guarding. • Confirming and identifying related safety code and design requirements that specifically affect elevating devices. • Explaining some of the technical considerations that need to be accounted for when designing elevator equipment guarding. When it comes to the retrofitting of elevator machine room equipment guarding, it is important to realize that there are no grandfathering exemptions. Th e requirements for elevator machine room equipment guarding apply to installations whether new or old. Secondly, there is no far off compliance deadline. The requirement for compliance exists now, and the absence of equipment guarding will result in orders to comply being issued by the Ministry of Labour the next time they inspect an elevator installation where no guarding is provided. Failure to comply with the requirements of O.Reg 851, after notification to do so, will be considered an offense. An offense carries a maximum fine of $25,000 or one year’s imprisonment, or both per noted offence (multiple elevators can result in multiple offenses). For corporations, fines can be as much as $500,000 per offence. CA M

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42 Canadian Apartment Apartment Magazine Magazine 42 Canadian

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