March/April 2015 Smart Asset Management Halifax Plans Its Renaissance Power Forward Partnerships Drive Big Energy Projects Contents march /april 2015 ENERGY 12 The Long Game Darlington uses a replicated mock-up of its nuclear reactor to train for upcoming fuel channel and feeder replacements. By Matthew Le Blanc 16 Power on Top Saul Chernos on how First Nations hold the key to hydroelectric developments. SMART INFRASTRUCTURE 24 Boost Your City’s IQ How will smart infrastructure revolutionize the cities of the future? By John Jung 28 Seeing the Future Predictive analytics are able 8 to identify priorities for investment and calculate the impact of deferrals. By David Caplan 30 Data for Cities A new made-in-Canada standard provides cities with an opportunity for a standardized approach to city metrics that enables global benchmarking. By Patricia McCarney URBAN PLANNING 32 Halifax’s Bold Move Cynthia Robertson and Stanley Strug examine Halifax’s grand vision for the redevelopment of its waterfront. 34 Cementing Our Future Ensuring industry and jobs have a home on Toronto’s waterfront. By Michael Kraljevic 16 DEPARTMENTS 4 Editor’s Note André Voshart details how the Top 100 will expand in the next year. 5 Front Canada still under-investing in cities, and how transportation infrastructure needs to prepare for automated vehicles. 8 Top 100 Projects A photo gallery inside ReNew Canada’s Top 100 Key Players and Owners Dinner. 20 ReFinance La Caisse unveils an agreement with Quebec to carry out infrastructure projects, identifying $5 billion in developments as priorities. By André Voshart 12 32 22 Panorama Artists transform six industrial silos into gigantic, 7,200-square-metre work of public art on Vancouver’s Granville Island. 36 Re: The Law A look at the many legal considerations organizations need to consider when adopting building information modelling technologies. By Richard Shaban and Richard Yehia 38 People & Events Appointments, OPWA’s Annual Conference & Awards Luncheon, RCCAO panel discussion, FCM Sustainable Communities Conference, and Big City Mayors’ Caucus. 20 renewcanada.net 42 Closing Shot Todd Latham takes a break— but not before getting a few things off his chest. March /April 2015 ReNew Canada 3 Editor’s Note Staying on Top By André Voshart F or the past nine years, ReNew Canada has published its annual Top 100 Projects report, tracking the key players involved in the 100 biggest public infrastructure developments across the country. And since its inaugural edition in 2007, the list has grown by leaps and bounds. This year, the top projects in development or under construction represent a total investment of $157.9 billion, a 12-percent increase over 2014’s $140.5 billion. (Visit top100projects.ca for the filterable Top 100 project database) This past February, ReNew Canada hosted more than 120 key players and owners involved in these projects at the first annual Top 100 Key Players and Owners Dinner (see page 8 for photos). It was a smashing success, with great food, influential guests, and even better networking. We are looking to replicate our success with the dinner in 2016, so stay tuned for details on when and where it will take place. In addition, next year will be the 10th anniversary of the Top 100 report— and to celebrate, we’re thinking big. In past years, we’ve complemented the Top 100 with an article that touches on projects of significance that didn’t quite make the cut (see “Top 100 Spotlight” at bit.ly/2015review). However, in 2016, we’re going beyond 100. The next report’s precise shape depends on the outcomes of our research. Projects must be underway or with a reasonable shot at progressing forward, whether it’s undergoing an environmental assessment, in procurement, or under construction. While the report will still be focused on bringing you the most comprehensive picture of the Top 100, we recognize that the Top 100 doesn’t provide the whole March/April 2015 Volume 11 Number 2 picture of Canada’s infrastructure. Since rankings are determined by the projects’ total costs, the list ends up being dominated by high-profile energy, transit, and hospital developments, leaving others—such as smaller-scale water, waste, renewable, and municipal projects—in the proverbial dust. While the largest project is close to $9 billion, the smallest is still a hefty $400 million. To better understand the scale, the Top 10 projects dwarf the list, representing 35 per cent of the report”; in fact, the cost of No. 1 (Site C in British Columbia) is comparable to the combined value of the bottom 17. We’re talking big numbers here, but the vast majority of projects aren’t towering behemoths like Site C or the Eglinton Crosstown LRT in Toronto. We want to include these others in a more comprehensive guide, such as the $230-million Safe Clean Drinking Water Project in Saint John, New Brunswick; the $109-million Swift Current longterm care centre in Saskatchewan; or the $63-million biosolids management facility in Sudbury, Ontario. ReNew Canada prides itself on being the voice of record when it comes to public infrastructure, so get your voice heard. We will be reaching out to key players and owners soon, but there is only one way we can make sure we don’t leave you behind: send us your feedback. We want to know what projects are important to you. EDITOR André Voshart PUBLISHER Todd Latham ASSOCIATE PUBLISHER Chris Tully CONTRIBUTORS David Caplan, Saul Chernos, Alec Hay, Paul Hillier, John Jung, Michael Kraljevic, Matthew Le Blanc, Patricia McCarney, Ted McGrath, Cynthia Robertson, Richard Shaban, Stanley Strug, Richard Yehia ART DIRECTOR/ Donna Endacott DESIGNER ASSOCIATE EDITOR Rachel Phan Assistant Editor Clark Kingsbury CIRCULATION James Watson, ADPIC james@actualmedia.ca ADVERTISING Chris Tully chris@renewcanada.net Todd Latham todd@renewcanada.net Lee Scarlett lee@watercanada.net ADVISOR James Sbrolla ReNew Canada is published six times a year by Actual Media Inc. 147 Spadina Avenue, Unit 208, Toronto, ON M5V 2L7 Phone: 416.444.5842 Subscription services: 416-444-5842, ext 117 ReNew Canada subscriptions are available for $39.95/year or $64.95/two years and include the annual Top 100 Projects. ©2015 Actual Media Inc. All rights reserved. The contents of this publication may not be reproduced by any means in whole or in part, without prior written consent from the publisher. Printed in Canada "ReNew Canada" and "ReThink. ReBuild. ReNew" are Trademarks of Actual Media Inc. André Voshart is the editor of ReNew Canada magazine. andre@actualmedia.ca Undeliverable mail return to: 147 Spadina Avenue, Unit 208 Toronto, ON M5V 2L7 Join the conversation. Search “ReNew Canada” on LinkedIn. Canadian Publications Mail Product Sales Agreement 40854046 ISSN 1715-6734 Proud members of For daily news and discussion, visit 4 ReNew Canada March /April 2015 @ReNewCanada /ReNewCanada renewcanada.net ABOUT THE COVER Collaboration is critical when it comes to energy mega-projects. With the ongoing Darlington refurbishment in Ontario, Aecon and SNCLavalin’s nuclear divisions came together in a joint venture to develop a mock-up of a reactor to train staff for upcoming fuel channel and feeder replacements (see page 12). As well, partnerships between First Nations and provincial utilities are helping hydroelectric developments get off the ground (see page 16). St. Lawrence Seaway Infrastructure A new study reveals that more than $7 billion is being spent on asset renewal and infrastructure improvements in the bi-national Great Lakes–St. Lawrence shipping system. For example, capital investments being made in port and terminal facilities and waterway infrastructure total almost $3 billion, with $2.2 billion coming from Canada. The regional breakdown is as follows: Ontario $996.3 million Quebec $1.186 billion Total Canada $2.182 billion Illinois $58.6 million Indiana $77.5 million Michigan $118.5 million Minnesota $124.0 million New York $186.2 million Ohio $134.3 million Pennsylvania $10.8 million Wisconsin $104.5 million Total U.S. $814.4 million Total Waterway Infrastructure $2.996 billion Get the full report at bit.ly/seaway2015 Next Issue: May/June • The Federal Election Issue • Green Infrastructure and Food Production • Trends in Energy Transmission Assets Advertising Deadline: March 19, 2015 To reach our influential readers in print and online, contact chris@renewcanada.net Front Send your letters to the editor to andre@actualmedia.ca Canada still Under-Investing in Cities By Glen Hodgson F or many years now, we have made a strong case that cities play a critical role in regional and pan-Canadian economic development. Yet most cities still suffer from under-investment in infrastructure and public services by the federal and provincial governments, and few have a modern system for capturing their own share of tax revenues, in line with growth of the economy. So let’s reinforce the message once again: strong cities help build a strong national economy—investing in cities should be a top national priority. How large is the urban infrastructure gap? The Federation of Canadian Municipalities (FCM) has assessed the condition of drinking water, wastewater, stormwater, and road infrastructure across municipalities. Based on 2009 to ’10 data, the replacement cost to bring these systems up to a “good” standard was estimated at $172 billion. FCM is updating and expanding data on the state of urban infrastructure including public transit, bridges, and recreation facilities, which will provide a more complete picture of the gap. The Conference Board recently analyzed the importance of Montreal’s economy to Quebec, with the research led by l’Institut du Québec. Not surprisingly, Montreal represents a significant share of Quebec’s GDP, jobs, innovation and foreign investment—but all too often it has not received an adequate share of provincial resources. Montreal deserves to be treated as a top public policy priority since the Quebec economy cannot succeed without Montreal succeeding. How can the infrastructure-funding gap for Canada’s cities be closed? Allocating a larger share of provincial and federal government resources to cities is one part of the answer. Investment in urban and municipal infrastructure—notably public transportation, roads and bridges—should be a top national priority, to provide our cities and their businesses with an operating platform that rivals top cities globally. There is considerable room for innovation in how infrastructure investment in cities is actually financed and completed since the private sector is more than able to share the risks, responsibilities, and opportunities. Next, it’s time to give our cities greater capacity to generate their own tax revenues rather than continuing to rely on commercial and residential property taxes and service fees that are often regressive. Since cities are the legal creation of the provinces, we have argued previously that automatic access to a portion of provincial taxes, and specifically sales taxes, would be a smart and practical way to proceed. For its part, the federal government has already made permanent the transfer of a portion of gas taxes as their contribution. Moreover, new city-based revenue sources can be considered, with all revenues invested back into the cities. Possible revenue sources include improved and appropriate pricing of city services like water and sewage, road congestion charges, and putting a price on the city’s GHG emissions. Here, the recently announced Ecofiscal commission, of which I am a member, will have more to say as our research program develops. It’s time to invest in our cities if Canada is to continue having strong economic success. Glen Hodgson, Senior VP and Chief Economist, Forecasting and Analysis, The Conference Board of Canada renewcanada.net March /April 2015 ReNew Canada 5 Front Credit: Mercedes-Benz Only Online VIDEO: Infrastructure Partnership Mercedes-Benz announced its new autonomous F015 research vehicle in January 2015, envisioning a future that more easily accommodates self-driving cars. changing lanes New vision for transportation infrastructure and Ontario Premier Kathleen Wynne called for a Canadian Infrastructure Partnership, a collaboration that would have an explicit objective of investing five per cent of GDP in infrastructure renewal. bit.ly/infrapartner investment is needed to prepare for automated vehicles. A s automated vehicles (AVs) merge with traditional vehicles and increase their visibility on our roadways, motorists and government officials need to prepare to integrate AVs within our current infrastructure. A new study from the Conference Board of Canada, in collaboration with the Van Horne Institute and Canadian Automated Vehicles Centre of Excellence (CAVCOE)—titled Automated Vehicles: The Coming of the Next Disruptive Technology—estimates that self-driving cars could be on the roads by 2020-’25. AVs will offer potential benefits, but as with any transformative technology, they may also bring disruptions in their introduction and rollout. “Major transportation infrastructure investments are typically planned with 30-year time horizons in mind,” said Vijay Gill, director of policy research at the Conference Board. “As AVs are to become part of our lives well within that time frame, it makes sense to begin anticipating their impacts on those investment needs now.” New laws and regulations need to be passed. Governments in Canada need to start thinking about the benefits of AVs and how best to take advantage of them. Governments will play a major role, not only in permitting and regulating AVs but also in helping to improve the impact AVs may have on certain sectors and the public who rely on driving to earn a living. AV developers are focusing on making AVs that can exist with our current infrastructure rather than relying on the development of new infrastructure to accommodate them. The report shows that AVs will force us to redefine our infrastructure needs and adapt our infrastructure investment to take full advantage of the AVs capability. With many of the new AVs being powered by electricity, governments need to address how to meet the new demand for power. Private sector businesses like those involved in freight and passenger transportation and car-rental companies need to also stay informed. The Basement Flooding Protection Program is a billion-dollar, multi-year program to help reduce the risk of future flooding by making improvements to the city’s sewer system and overland drainage routes. bit.ly/torontoflood —André Voshart Image Credit Clarification In the January/February 2015 edition of ReNew, the cover image of the Spadina subway extension was provided with the permission of the Toronto Transit Commission. 6 ReNew Canada March /April 2015 TORONTO: Flooding Prevention WIND: Record Year For the second consecutive year, Canada has set a record for the installation of new wind energy capacity. bit.ly/2014wind renewcanada.net New report available online Unlocking Ontario’s Advantages: Building new infrastructure on the foundation of existing public assets WATER ROADS & BRIDGES BUILDINGS PUBLIC TRANSIT A More Aggressive Approach to Infrastructure Investment in Ontario Ontario is in desperate need of solutions to fulfill its $130-billion pledge for infrastructure over 10 years. That commitment requires strong leadership, especially when the province faces a current year deficit of more than $12 billion. RCCAO’s latest report by Michael Fenn recommends that a number of initiatives should be advanced: greater use of publicprivate partnerships (or alternative financing and procurement), public asset recycling where proceeds are placed into a trust, the creation of a national infrastructure bank, and measures to facilitate tri-level government infrastructure investment by reforming accounting rules. Ontario taxpayers and consumers have spent billions accumulating government business assets over the years. These legacy assets may have made sense being in government hands at one time but for many that time has passed. The revenues from selling an interest in these assets to the private sector, or providing the opportunity to manage these assets, could fund a large part of our infrastructure deficit. Governments have the ability to unlock the wealth of public assets in order to build infrastructure. Fortunately, the capital needed to fuel a large-scale infrastructure investment program is available by leveraging existing public assets, by expanding the scope of welldesigned public-private partnerships, and by attracting patient investment capital, notably that of public sector pension plans. RCCAO’s latest report helps to frame the ongoing public discussion about investments in Ontario’s infrastructure. Fenn assesses the opportunities that we may be overlooking and some of the obstacles to overcome. Download the report at rccao.com RCCAO members include: Carpenters’ Union • Greater Toronto Sewer and Watermain Contractors Association • Heavy Construction Association of Toronto • International Union of Operating Engineers, Local 793 • International Union of Painters and Allied Trades, District Council 46 • Joint Residential Construction Council • LIUNA Local 183 • Ontario Formwork Association • Residential Carpentry Contractors Association • Toronto and Area Road Builders Association Top 100 Projects Credits: Paul Hillier Chris Escott, VP, RTS Canada Sector, Parsons Canada Paul Moorhouse, Senior Project Manager, Hatch Amanda Farrell, President and CEO, Partnerships BC Travis Smith, Senior VP and GM, Hydro West, SNC-Lavalin Charlie Rate, President, O&M, SNC-Lavalin Tomas Gregor, Senior VP, Hatch Mott MacDonald Kevin George, National VP, Transit & Rail Canada, WSP Parsons Brinckerhoff Carl Bodimeade, Senior VP, Hatch Mott MacDonald Jamie Witherspoon, Regional Director, South Central Ontario, WSP Chris Tully, Associate Publisher, ReNew Canada Chantal Sorel, Senior VP, Business Development, SNC-Lavalin Tom Middlebrook, Senior VP, Buisness Development, Eastern Canada, Dragados Vinvente Marana, Senior VP Project Development, ACS Infrastructure On Top Table sponsor: AECOM Inside ReNew Canada’s Top 100 Key Players and Owners Dinner. J udging by the din in the networking lounge and how people moved from table to table in the dining room, ReNew Canada’s Top 100 Key Players and Owners Dinner on February 5 was a tremendous success. More than 120 senior engineering, construction, and finance executives and governmental officials from across Canada gathered at the TIFF Bell Lightbox in downtown Toronto to network and celebrate their role in the 100 biggest infrastructure projects currently in development in Canada. Special thanks are extended to title sponsor ACS-Dragados and event sponsors SNC-Lavalin and Golder Associates, as well as opening speaker Bert Clark of Infrastructure Ontario and keynote speaker Amanda Farrell of Partnerships BC. 8 ReNew Canada March /April 2015 See the full Top 100 report at top100projects.ca renewcanada.net Top 100 Projects Todd Latham, President, Actual Media Linda Latham, Deputy Registrar, Regulatory Compliance, Professional Engineers of Ontario Kent James, VP, Finance, FER-PAL Infrastructure Cathy Campbell-Wilson, Business Development Manager, Parsons Canada Marie-Claude Dumas, Executive VP, Hydro, SNC-Lavalin Lyle McCoy, Infrastructure Capital Markets, BMO Capital Amanda Farrell, President and CEO, Partnerships BC Title sponsor: ACS-Dragados Mark Johnson, Senior VP, Ledcor Jay McCarthy, Manager, Business Development, Ledcor Stephen Byberg, Cole Engineering Group Ltd. Event sponsor: Golder Associates Haffez Habib, VP, Plenary Group Rueben Devlin, President and CEO, Humber River Hospital Barbara Collins, COO, Humber River Hospital Bill Bailey, VP, Redevelopment, Halton Healthcare Doug Rolfe, VP, Development, Plenary Group Event sponsor: SNC-Lavalin Manuel Rivaya, Executive VP, Dragados Michael Schatz, Executive VP, Hatch Mott MacDonald Bert Clark, President & CEO, Infrastructure Ontario renewcanada.net March /April 2015 ReNew Canada 9 Top 100 Projects Ramón Fiuza, Senior VP, Operations, Western Canada, Dragados Jamieson Robinson, Business Development Manager, Graham Marie-Claude Dumas, Executive VP, Hydro, SNC-Lavalin Troy Gaudet, Construction Manager, Graham Chantal Sorel, Senior VP, Business Development, SNC-Lavalin André Voshart, Executive Editor, ReNew Canada Amanda Farrell, President and CEO, Partnerships BC Richard Terry, Principal, ARUP Katie Wood, Principal, ARUP Bert Clark, President and CEO, Infrastructure Ontario Bill Mayer, Senior Counsel, Bechtel George Theodoropoulos, Managing Director, Infrastructure, Fengate Capital Gerry Grigoropoulos, Managing Director of Infrastructure Concessions, SNC-Lavalin Anthony Karakatsanis, CEO, Morrison Hershfield Steve Routledge, Facility and Operations Director, Fengate Capital Mathew Kattapuram, Senior VP, Aecon Title Sponsor 10 ReNew Canada March /April 2015 EVENT SponsorS renewcanada.net Energy Credit: Aecon Using the latest in laser scanning technology, also known as optical metrology, the inside of the Unit 2 vault was scanned to produce a model that would assure all dimensions, including structural steel and wall tolerances, were as accurate as possible. The Long Game Darlington uses a replicated mock-up of its nuclear reactor to train for upcoming fuel channel and feeder replacements. By Matthew Le Blanc W hile it’s often said that no two things are ever quite the same, that doesn’t hold true for the newly commissioned nuclear reactor vault mock-up located at Ontario Power Generation’s Darlington Energy Complex in Clarington, Ontario. Here, everything must be exactly the same. And it is here that Aecon Nuclear, working with SNC-Lavalin Nuclear in a joint venture, has ensured it is. Since being awarded this prized engineer, procure, and construct (EPC) contract in 2012, the team has already successfully replicated a massive, fully functioning mock reactor face equipped with a whopping 480 fuel channels. It has also replicated the entire vault in which it’s housed—walls and clearances included. This was no small feat: the Darlington Energy Complex reactor vault mock-up is a first of its kind. Built in a newly constructed 28,800-square-metre building, the mock-up will now help the team train and prepare workers for a series of upcoming fuel channel and feeder replacements to take place at the real Darlington Nuclear Generating Station (DNGS), located just down the road from the mock facility. At the mid-point of its service life, and given Darlington’s role as a key power contributor, a major refurbishment is in order to reach the station’s projected service life in 2055. Since fuel channel components are life-limiting factors of the reactor, critical components on the reactor core are on the docket for dismantling and replacing in a 12 ReNew Canada March /April 2015 renewcanada.net Energy Credit: Aecon manner that calls for precision and targeted expertise. Enter the SLN-Aecon project team. Aecon Nuclear construction manager Jeff Palmateer explained that a significant portion of the larger EPC contract awarded to SLN-Aecon in 2012 has been the commitment to first build this fullscale mock-up in order for the team to subsequently carry out Darlington’s fuel channel and feeder replacement (also known as an RFR) deliverables. “This mock-up is an exact replica of a CANDU nuclear reactor unit,” he explained of the eight-metre-high reactor face, complete with 480 perfectly aligned fuel channel slots, feeder tubes, and fuel channel assemblies. “It’s been invaluable in terms of planning the as extensive workforce training on the mockup unit in order to be fully prepared for the RFR replacement portion of the contract, scheduled to begin in October 2016. From start to finish Replicating an entire facility, right down to the exact bend in every pipe, requires strict attention to detail. With OPG-provided drawings in hand, the SLN-Aecon team set to work in 2012, digitally reconstructing an exact replica of Darlington’s Unit 2 vault. Using the latest in laser scanning technology, also known as optical metrology, the team scanned the inside of the Unit 2 vault to produce a model that would assure all dimensions, including structural steel “A project like this could definitely set an industry standard for nuclear work going forward.” —Jeff Palmateer, Construction Manager, Aecon Nuclear operation and perfecting the procedures we need to complete the replacement as efficiently and safely as possible. It gives workers the ultimate training tool to hone their skills before we enter the actual nuclear facility to refurbish OPG’s real CANDU units.” The mock-up reached completion and was officially commissioned for service earlier in 2014, ahead of schedule. For the SLN-Aecon project team, the next two years are now all about tool performance and testing, as well renewcanada.net and wall tolerances, were as accurate as possible. The drawings were then overlaid with the laser-scanned model to look for any discrepancies among the thousands of components. Achieving an exact match in the design phase, Aecon submitted its final design for review to OPG in mid-December 2012. After receiving approval, Aecon set forth and mobilized on site in May 2013—roughly nine weeks ahead of schedule—and began standing steel in June. Of course the main purpose of building a full-scale mock-up of this magnitude is to replicate the exact conditions the trained workforce will encounter when it comes time to perform at the live reactor face. Each of the workers using the mock-up will get a full taste of the clearances and interferences found inside the Darlington Nuclear Generation Station vault as they try to perform tasks wearing full protective gear while hooked to a supply of oxygen. Palmateer said providing an authentic experience also gives workers—many of whom may not have been in a reactor before—an opportunity to familiarize themselves with the tools required to complete the replacement. “Some of these tools are more than six metres long and extremely heavy, so you can just imagine how difficult it would be trying to complete a task without prior knowledge of the space.” Workers will receive training on the mockup beginning in March 2015. Two crews will “leap frog” as they alternate between training for a crew-specific task on the mock-up and actually performing it on site at the DNGS. That is to say, once a crew’s task is complete on site, they will return to the mock-up for further training as the other crew is swapped in. During their training, workers will be guided through the process and monitored by operators in a replica of the Re-tube Control Centre (RCC)—a room built to simulate the March /April 2015 ReNew Canada 13 Energy Leading up to Darlington’s Refurbishment March 2012 March 2014 May 2014 Reactor Vault Mock-up base of operations where remote-controlled tools are used when removing reactor components. The RCC will feature all the required technology to monitor and control the tools during training. Since reaching completion earlier in 2014, there’s been no shortage of daily visitors wishing to take an in-depth tour of this one-of-a-kind facility. “It really is a very high profile project that’s garnering lots of attention,” Palmateer noted, listing some of the notable visitors, including OPG senior executives and board members, media, government officials, and industry suppliers. “A project like this could definitely set an industry standard for nuclear work going forward. Aecon Nuclear really has gone to great lengths to reproduce the level of detailed work required for this mock-up to ensure it was a high-fidelity facility.” Having a mock-up of this size comes with serious benefits. The reality of working in a training area that doesn’t actually house any nuclear material offers the SLN-Aecon joint venture the unique advantage of building expertise. Training workers on how to properly complete inspections or how to efficiently change the feeder pipes on the mock-up without the radiation concerns is invaluable, not unlike the intense training Canadian astronaut Chris Hadfield went through in preparation for his space walk in the vacuum of space. Having the opportunity to work through the logistics of an issue outside the plant allows workers to identify and address a potentially threatening situation in a non-radioactive mock-up environment. One of the biggest benefits comes in the form of time and budget reduction. When an estimate is submitted to the client, it’s a rough estimate of the time and money required to complete a contract. Performing practice runs on the mock-up gives a more accurate estimate of what to expect when performing the real thing. Tests, tests, and more tests Tool performance testing is a critically important success factor for the RFR project. Specialty tools designed to perform specific tasks in the replacement process need to be thoroughly tested before they’re deemed fit 14 ReNew Canada March /April 2015 Refurbishment Start: October 2016 March 2015 Tool Performance Testing for service. Combining lessons learned from previous projects with feedback from the workers, the team would customize tools and improve where necessary during the yearlong tool performance-testing phase. “If a tool were to breakdown in the past, a critical path delay would occur, which is difficult to recover from when performing refurbishment work,” Palmateer said. “With this facility, we have the unique opportunity to rigorously test and improve the tools to make sure they’re reliable before we’re even conducting the actual replacement. It’s really a hands-on approach that will enable workers to familiarize themselves with the tools and suggest improvements. This in turn will increase the effectiveness of the tooling and lead to or enhance worker engagement and buy-in.” The big day All of the extensive tool testing and training will finally pay off in October 2016 when, according to plan, SLN-Aecon will begin the refurbishment phase of the first reactor at Darlington. The first phase in the reactor face replacement is the removal of target 30-yearold components. Any required temporary and permanent modifications will be made inside each of the reactor units based on any interferences, such as staircases, that may prevent work from being efficiently completed. Shielding bulkheads will be installed to seal off the two fuelling ducts on either side of the reactor face and to protect workers against radiation exposure. There will be a series of fuel bundle removal and drain/dry exercises where heavy water will be drained from the feeder pipes that run into the fuel channels. A platform, called the Feeder Platform, will be installed to help remove the feeder tubes. The feeder pipes will be cut into small, manageable pieces and lowered to the floor where they will be cut up even further for transport. Once the feeder tubes have been removed using a large, elevating platform called the Re-tube Tooling Platform (RTP), the fuel channels will be cut in specific locations so the components can be pulled out and placed inside large shielded flasks, which Training help shield workers from the radioactive material. One by one and in sequential order, all 480 channels will be emptied of their components as the work progresses up the reactor face. After the removal, a series of inspections will take place in the calandria, a large cylindrical metal drum that normally contains the heavy water and houses the 480 fuel channels running through it. Robotic cameras will be used to inspect the various components and key areas to confirm all of the components are fit for continued service. With the inspection complete, the installation of the new reactor components can finally begin. Beginning at the top of the reactor face, new calandria tubes will be inserted into position and rolled into the calandria tube sheet. In a clean room, endfitting subassemblies are pre-rolled (one pressure tube rolled into an end-fitting) and transported to the vault where they are installed into the calandria tube. The second end-fitting is then mated to the pressure tube and final sealing of the fuel channel is completed. Workers will once again strategically work their way through each fuel channel, repeating the process 480 times per reactor unit. With the channel components replaced, new feeder tubes will systematically be weaved into the reactor face, welded to the feeder headers, and bolted to the end-fittings. Once the reactor core and face is completely replaced and refuelled, heavy water will be reintroduced into the moderator and primary heat transport system. With everything back in order, the reactor will be on its way to return to service and will continue to provide the residents of Ontario with reliable electricity. The fuel channel and feeder tube replacement portion of the SLN-Aecon contract is due to wrap-up in 2023. To date, the team is well aligned with the overall project schedule and anticipates successfully delivering on its commitment. Matthew Le Blanc is the features editor for Aecon Construction’s One Magazine. renewcanada.net Energy Credit: Nalcor Nalcor says a legacy of flooding was a key consideration in developing the Lower Churchill Project in Labrador (pictured). Concerns were resolved in part through an agreement to provide redress. Power on Top First Nations hold the key to hydroelectric developments. W ith a projected $8.775-billion price tag, the Site C hydroelectric project—the biggest public infrastructure project in Canada—on the Peace River in northeastern British Columbia would seem destined for powerhouse status. Approved in December 2014, plans call for a 1,050-metre-long earthfill dam, a 9,330-hectare reservoir, and a 1,100-megawatt generating station capable of producing 5,100 gigawatt-hours of electricity a year—enough to service 450,000 homes. With nuclear and coal generation under fire worldwide, proponents are touting Site C as a major source of clean, reliable power needed to serve a population forecast to grow 40 per cent over the next 20 years. “Affordable, reliable, clean electricity is the backbone of British Columbia’s economy,” British Columbia Premier Christy Clark said in the December announcement. “Site C will support our quality of life for decades to come and will enable continued investment and a growing economy.” Susan Yurkovich, executive VP responsible for Site C, said construction is slated to begin this summer 16 ReNew Canada March /April 2015 and will provide approximately 10,000 direct construction jobs. Calling the approval “a historic milestone,” she pledged the utility “will continue to work with First Nations, communities, and landowners to ensure that we deliver on our commitments and realize the many benefits of this project.” One might expect a project of this stature to be welcome news. However, even as By Saul Chernos the province issued its approval, Union of British Columbia Indian Chiefs Grand Chief Stewart Phillip called the project “ill-advised and incredibly stupid” and criticized the government for moving forward in violation of First Nations’ rights to free, prior, and informed consent as recognized by the United Nations Declarations on the Rights of Indigenous Peoples. Even when governments approve their hydroelectric projects, proponents across Canada are finding their plans depend on acceptance by local First Nations. the province positions its shovels, Site C could be heading for trouble. This past September, three months prior to the project’s approval, a delegation of Treaty 8 signatories who stand to be affected travelled to Ottawa to remind federal politicians that the dam and associated structures and right-of-ways would gravely impact their constitutional right to hunt, fish, trap, and harvest on their lands. In December, when “There’s enormous, widespread opposition,” Phillip told ReNew Canada. “The Treaty 8 First Nations are in the process of filing lawsuits and a significant number of non-Native residents in the Peace River Valley are also opposed.” Particularly contentious is the reservoir, which would flood an 83-kilometre stretch of land Treaty 8 members have relied on for generations. “These lands are an important winter renewcanada.net Energy habitat for wildlife such as moose,” he said. Opponents received a major boost last spring when a joint review panel conducted as part of the regulatory assessment process— without explicitly saying yes or no to the proposal—called for further independent review of BC Hydro’s cost estimates, energy demand forecasts, and conservation plan. “I’m convinced it’s never going to happen,” Phillip said. “There’s already two dams on the Peace that have greatly compromised the integrity of the river. That’s why there’s such a groundswell of opposition to having yet a third one. When push comes to shove, I think you’ll see a lot of people out on the land standing in front of bulldozers.” Site C community relations manager David Conway declined an interview, but wrote in an email that BC Hydro has been consulting and engaging with Aboriginal groups about Site C since 2007 and will continue to do so. “We are committed to working hard with Aboriginal groups to address their concerns and identify opportunities for them to benefit from the project,” he wrote. “These benefits may include payment streams, the implementation of land protection measures, the transfer of Crown lands, and significant work and contract opportunities.” renewcanada.net Lower Mattagami Hydroelectric Project Wraps Up Northern Ontario’s largest hydroelectric project in 50 years is now fully in service thanks to a partnership between the Moose Cree First Nation and Ontario Power Generation (OPG). Six new units on the Lower Mattagami River will add 438 megawatts of greenhouse gasfree electricity. The $2.6-billion project involved redeveloping four of OPG’s existing hydro stations on the Mattagami River. The stations are located about 70 kilometres north of Kapuskasing. The Smoky Falls station went into service in 1931, Little Long in 1963, Harmon in 1965, and Kipling in 1966. Smoky Falls was replaced with a new three-unit station built alongside the old station. A third unit was added to each of the other plants. Kiewit Alarie Partnership is the primary contractor—a partnership between two of the largest construction firms operating in Canada: Peter Kiewit & Sons Co, a North American company with offices in Milton, Ontario, and Leo Alarie and Sons Construction Ltd. of Timmins, a subsidiary of Aecon. “The project has helped rejuvenate the Moose Cree community and given our economy a much-needed boost,” Moose Cree First Nation chief Norm Hardisty Jr. said. “Many of our members will be able to use the training and new skills they developed to work on other infrastructure projects.” As part of the of the Amisk-ooSkow agreement, the Moose Cree will own a 25-per-cent equity stake in the project. Moose Cree businesses have also been awarded more than $300 million worth of sub-contracts since the project began four years ago, and at peak construction, 1,800 people worked on the project, including more than 250 First Nation and Métis —Staff workers. March /April 2015 ReNew Canada 17 Energy Credit: Emma Gilchrist DeSmog Canada Time will tell if Site C can gain full acceptance, though the affected First Nations and even some non-Aboriginal residents are putting up a fight. Credit: Manitoba Hydro The Keeyask Hydroelectric Project is a 695-megawatt generating station under construction on the Nelson River in northern Manitoba. The Canadian Hydropower Association is developing a compendium of stories from its members with plans to publish these as a document later this spring. “We’re trying to demonstrate that there’s been progress and that there’s cause for optimism amongst hydropower developers and Aboriginal communities,” president Jacob Irving said. “It’s not to do anything other than say these stories are often well known locally, sometimes provincially. We want to reflect back to everyone that there’s some positive trends happening not just at a local or provincial level but truly at a —Saul Chernos national level.” 18 ReNew Canada March /April 2015 Time will tell if Site C can gain full acceptance, though the affected First Nations and even some non-Aboriginal residents seem to be having none of it. Still, BC Hydro and Site C aren’t completely alone. Even when governments approve their hydroelectric projects, proponents across Canada are finding their plans depend on acceptance by local First Nations. Nalcor Energy, the utility developing the Lower Churchill Project in Labrador, has had to make peace with the Innu, whose territory encompasses much of the area. Just as the two initial dams on the Peace left a legacy of flooding for Treaty 8 members, damming of the Churchill in Labrador during the 1960s destroyed a large swath of ancestral Innu land, leaving a legacy of tension. The Lower Churchill Project follows on the earlier Churchill Falls Generating Station, adding stations at Muskrat Falls and Gull Island in separate phases. The two stations would have a combined capacity of more than 3,000 megawatts, and transmission lines would link Muskrat Falls to the Avalon Peninsula south of St. John’s, and western Newfoundland to Cape Breton. Whereas Treaty 8 nations continue to oppose Site C in British Columbia, the province and the Innu of Labrador signed an impacts and benefits agreement (IBA) in 2011. “We can see a future now where Innu once again will control our lives and our communities,” then-Mushuau Innu Deputy Chief Simon Pokue said in a statement issued at the time. Gilbert Bennett, Nalcor’s VP of the Lower Churchill Project, said the legacy of flooding was a key consideration and was resolved in part through an agreement to provide redress. Also key was that the Innu had never signed any treaties, so the proposed development of the Lower Churchill helped motivate land claims negotiations that were already underway. “Those agreements were the essential element to the work that we completed with the Labrador Innu in order to pave way for the work we’re doing today,” he said, adding that the IBA provides proponents with certainty and the Innu with environmental management rights, royalties, and training, employment, and business opportunities. Of course, further details need to be worked out. The treaty language has yet to be finalized, and support for the project isn’t unanimous. One Innu elder, Elizabeth Penashue, expressed measured dissent last winter when she sought permission to walk through the Muskrat Falls site as part of her annual trek through the Mealy Mountains to pay respect to the land and Innu traditions. “I’m not forgetting about Muskrat Falls,” she told CBC News when she learned project proponents had denied her request. “It’s very important […] to teach the children to not [lose] our culture.” Furthermore, the Innu aren’t the sole Aboriginal people in Labrador. Members of the NunatuKavut Community Council—Labrador’s Métis—have also asserted land claims and have consistently opposed the project. In December 2014, they won a court injunction strengthening their right to protest at Muskrat Falls. The situation with the Keeyask Hydroelectric Project, a 695-megawatt generating station under construction on the Nelson River in northern Manitoba, is somewhat comparable. Manitoba Hydro and four local Cree communities signed the Joint Keeyask Development Agreement in 2009. It addresses training, employment, and business opportunities, but also offers equity provisions and effectively renewcanada.net Energy creates a partnership team, separate from Manitoba Hydro, to build and manage Keeyask. “Manitoba Hydro was starting to consider some of the next options in terms of hydroelectric development,” explained Vicky Cole, the utility’s licensing and relationship management director. “Tataskweyak Cree Nation indicated that if any further development was going to take place in their traditional territory, they wanted to be business partners. Through the course of discussions it was agreed that that was a good idea and that the other three (Cree) communities should also be engaged.” The agreement also provides funding to enable families to hunt, trap, and fish on their traditional lands, and a separate agreement addresses adverse effects. Cole went so far as to say that the concept of an equal partnership was fundamental and that Manitoba Hydro’s position at the time was that the project wouldn’t proceed without Cree support. Still Keeyask isn’t all smooth sailing. The Manitoba Métis Federation has consistently opposed the project. “Our understanding was that there were very few Métis people who were actually actively using this area of the province, and any effects to the Métis were easily addressed within the mitigation measures already proposed for the project,” Cole said, explaining the decision to include the Cree but not the Métis as partners. Ultimately, no one-size-fits-all template exists for building relationships. Jacob Irving, president of the Canadian H yd ro p owe r Association, said hydroelectric projects tend to be unique, and the dynamics between proponents and Aboriginal communities also vary from region to region. Still, he recommends approaching communities early on, listening carefully to information and advice and remaining open to conversations about benefits. “Each river system is different, each ecosystem is different, and a lot of planning needs to go into custom-building the facility to meet all the different needs—environmental, social, and economic,” he said. “There are many choices for generating electricity in Canada, and if you don’t receive social licence for your form of generation it simply won’t get built.” Saul Chernos is a Torontobased writer specializing in environmental issues and a regular contributor to ReNew Canada. renewcanada.net Download FULL ISSUES and ARTICLES from past editions of ReNew Canada magazine. library.actualmedia.ca March /April 2015 ReNew Canada 19 ReFinance Credit: Government of Canada A public transit system on Montreal’s new Champlain Bridge has been identified as a priority of the new business model. A New Model La Caisse unveils an agreement with Quebec to carry out infrastructure projects, identifying $5 billion in developments as priorities. L a Caisse de dépôt et placement du Québec has concluded an agreement with the Quebec government, establishing an innovative business model for the execution of major infrastructure projects. The model updates the government’s business practices by entrusting la Caisse with the execution of infrastructure projects. For la Caisse, the deal represents an opportunity to grow Quebecers’ savings by developing and operating assets that will generate commercial returns. Under the terms of the agreement, the government will identify projects that may present an interest for la Caisse. Assuming this interest is confirmed, la Caisse will become responsible for project planning, financing, development, and operation. The government retains responsibility for setting broad project parameters and approving solutions presented by la Caisse on the basis of consultations with the various stakeholders. The government thus preserves its role as guardian of the public interest, while entrusting la Caisse, an independent public institution with extensive expertise in infrastructure, with project execution in accordance with global best practices and the highest standards of efficiency and transparency. “Infrastructure has been central to our investment strategy for several years,” la Caisse president and CEO Michael Sabia 20 ReNew Canada March /April 2015 By André Voshart said. “These investments will generate returns that help to secure Quebecers’ retirement for the future. It’s a win-win partnership that benefits everyone.” The launch of this business model depends upon the adoption of legislative amendments According to preliminary studies commissioned by the Quebec government, these projects are expected to require financing of approximately $5 billion. Based on its international experience, la Caisse is aiming to complete both projects by the end By managing projects from start to finish, la Caisse can enhance process efficiency, shorten delivery times, and meet the highest industry standards. allowing for, among other things, the creation of a new infrastructure subsidiary for la Caisse. The Quebec government has committed to introducing these amendments to the National Assembly as soon as possible. Targeting projects The model envisions the execution of major public works according to global best practices and the delivery of projects of the highest quality, on time and on budget. While the agreement announced today does not limit the scope of projects that can be carried out by la Caisse, two projects have been identified as priorities: • a public transit system on Montréal’s new Champlain Bridge; and • a public transit system linking downtown Montreal to the Montreal-Trudeau International Airport and the West Island. of 2020 at the latest. In addition to the timely adoption of legislative amendments allowing for the creation of its new subsidiary, achieving this objective will depend on the efficient delivery of permits and other required authorizations. A new model Assuming it is approved by the Quebec National Assembly, this new business model will see the government set broad guidelines, select infrastructure projects that could be executed by la Caisse, and make the final decision to go ahead with projects on the basis of options proposed by la Caisse. It is understood that la Caisse will only assume responsibility for projects that have the potential to generate commercial returns that serve the interests of its clients, that is, all Quebecers who save for retirement. An renewcanada.net ReFinance independent financial expert will certify that la Caisse’s returns are in line with market standards for comparable projects. By managing projects from start to finish, la Caisse can enhance process efficiency, shorten delivery times, and meet the highest industry standards. All infrastructure projects covered by the agreement will be financed by equity investment and long-term debt. Insofar as la Caisse assumes ownership and control of a project, the impact of such infrastructure projects on public finances is significantly reduced, because the project is excluded from the government’s balance sheet. Only the government’s financial contribution, if any, would be included on its balance sheet. All projects executed under this agreement will involve the following three stages: • • • planning and solution development; review and approval; and project execution. For every project, la Caisse will coordinate calls for tender. As controlling shareholder, la Caisse will encourage vigorous competition to control costs and access optimal solutions. Bidders for contracts worth CA$5 million renewcanada.net or more will have to be qualified as such by the Autorité des marchés financiers. An independent auditor will also review the integrity of the tendering process. Infrastructure expertise With more than 15 years of experience in infrastructure investment in Canada, Europe, the United States, and Australia, la Caisse has developed extensive knowledge of global best practices in infrastructure. In the transportation sector, in 2005, la Caisse participated as a lead investor in the construction and operation of the Canada Line, the rapid-rail service connecting Vancouver Airport with downtown. Completed on schedule and on budget, the rail line covers more than 20 kilometres, transports more than 120,000 passengers daily, and is considered one of the most successful greenfield infrastructure projects in the country. In the United Kingdom, la Caisse is a shareholder in Heathrow Express, the rail service linking Paddington Station and Heathrow Airport, with more than 5.8 million passengers each year, and a shareholder in Gatwick Express, the fast train linking central London and Gatwick Airport, with more than 4.7 million passengers annually. Around the world Quebec is not the only government around the world facing the need to develop or renovate major infrastructure. That is why la Caisse believes this business model could offer other jurisdictions in North America and beyond a promising solution to build and operate important infrastructure projects without burdening the public balance sheet. Subject to the approval of amendments by the National Assembly, la Caisse’s new infrastructure subsidiary, to be called CDPQ Infra, will actively explore these business opportunities. Projects executed by la Caisse in Quebec will serve as evidence of its knowhow in project development, management, and operation. Once created, CDPQ Infra is expected to become a central component of la Caisse’s business strategy for years to come. André Voshart is the editor of ReNew Canada. With files from la Caisse de dépôt et placement du Québec. March /April 2015 ReNew Canada 21 Panorama Standing Guard The Vancouver Biennale has transformed an industrial landmark into a gigantic work of public art. Artists OSGEMEOS created a 360-degree, 23-metre-tall mural, the biggest public mural of their career and their first in Canada. Measuring a colourful 7,200 square metres, it was created on six silos that are part of the Ocean Concrete manufacturing and distribution plant on Vancouver’s Granville Island. —Staff 22 ReNew Canada March /April 2015 renewcanada.net Credit: Ted McGrath via Flickr renewcanada.net March /April 2015 ReNew Canada 23 Smart Infrastructure Credit: City of Surrey Surrey, British Columbia was named one of the Top 7 Intelligent Communities of 2015 by the Intelligent Community Forum. Boost Your City’s IQ Intelligent communities embrace technology to build their economies and become better places to live. How will smart infrastructure revolutionize the cities of the future? C ivilization was built one stone at a time. Today, urban infrastructure is the physical and organizational foundation required to operate modern and flourishing societies. The various elements that make up integrated infrastructure include the roads, railways, and waterways that allow our surface- and water-based transportation to move, as well as the development of modern airports to transport goods and people vast distances in short periods of time. Our infrastructure has expanded to include district heating and deep lake water-cooling system, such as Enwave’s Lake Ontario deep water-cooling system in Toronto, and other innovations like Montreal’s underground pneumatic vacuum waste collection system. Combined with energy-from-waste incineration, these vacuum systems in places like Stockholm and Malmo, Sweden have turned garbage into gold. The modern supply chain would not be possible without the efficient integration of all elements of infrastructure to move people, goods, and services. Add to this the 24 ReNew Canada March /April 2015 By John Jung advancements made possible by information technologies and telecommunications (ICT). These advances as part of essential modern infrastructure are now a key element in what is being called “smart infrastructure.” As urban regions are expected to grow to absorb 70 per cent of the world’s population by 2050, urban regions are already experiencing the impacts of this growth. Along with this growth come urban problems like congestion, pollution, the need to replace aging infrastructure, and the realities of increasingly limited resources to deal with them. Accordingly, municipal governments are seeking ways to do more with less—and are looking to smart infrastructure to help deliver more efficient and environmentally effective services. Through monitoring devices, significant amounts of information are collected, called “big data.” When analyzed, they are able to provide the basis for improved planning, informed budgets, and evidencebased decision-making that is essential for the smart management of road and rail traffic, electric grids, air traffic, and waterways (see “Seeing the Future” on page 28). With enhanced predictive analytics and visualization made possible with low-cost sensors and innovative software, aging infrastructure like crumbling bridges and gaps in water pipes can be replaced as part of systemic budgeting practices. Similarly, traffic congestion and natural disasters can be better managed, making for improved crisis controls in urban regions. Additionally, pollution can be monitored, and strategic efforts can help to ensure a reduced carbon footprint in every community. As a result, many municipalities are seeing these benefits and adopting an approach to transform themselves into smart cities. Smart-city infrastructure is a new horizon for city planning and development, for municipal asset managers, and for mayors and budget chiefs looking to create more efficiently run communities—but it is only the first step in creating intelligent communities. This intelligence is a natural evolution for cities that have embraced technology, innovation, and collaborative systems renewcanada.net Smart Infrastructure renewcanada.net Credit: Town of Stratford to build their future communities and societies and become better places to live. With smart infrastructure as its physical base, communities can focus their attention toward enhancing their skills, innovation, public policies, and philanthropy, creating a civil society that will flourish. Without it, cities will not be able to evolve into intelligent communities. Accordingly, towns, cities, and regions must first become smart in order to become intelligent communities. The intelligent-community movement began with the World Trade Centers and World Teleport Associations in the 1970s and ’80s, which linked trading centers around the world through satellites and teleports. In the ’90s, the Internet combined with ICT advances made it possible to begin to transform some of our cities in new and exciting ways. The emergence of smart infrastructure and its associated broadband-based economic benefits in the past two decades has culminated in a global explosion of government-led smart-city projects in places like India, China, and much of the Western world. The Intelligent Community Forum (ICF) (intelligentcommunity.org) evolved from these key science and trade associations and has led the intelligent-community Stratford, a town in Southern Ontario, was first designated an Intelligent Community for 2011 by the Intelligent Community Forum. movement since 1999. This created a global movement—reflected in 134 communities on every continent. As municipal governments around the world are planning for hundreds of new smart cities and regions to emerge, ICF is educating them on expanding and enhancing their planning and development to include these broader goals. ICF has identified five key criteria that every community must address as they move toward intelligent-community status: 1 Smart City Infrastructure Broadband is the new essential utility, as vital to economic growth as electricity, clean water, and roads. Intelligent communities express a clear vision of their sustainable broadband future and develop plans and policies to encourage deployment and adoption of these strategies by all elements of its society. March /April 2015 ReNew Canada 25 Smart Infrastructure Nunavut Moncton Fredericton Quebec City Edmonton Canada’s Vancouver Intelligent Communities 2 Knowledge-based Talent A knowledge workforce creates economic value through the acquisition, processing, and use of information. Intelligent communities exhibit the determination and demonstrated ability to develop a workforce qualified to perform knowledge work. Universities and other educational institutions have a central role in the planning, development, and implementation of prosperous, knowledge- 26 ReNew Canada March /April 2015 Calgary Montreal Winnipeg Kenora Sudbury Stratford Windsor–Essex St. John Western Valley, Nova Scotia Ottawa–Gatineau Kingston Toronto Burlington Waterloo centric intelligent communities. A key differentiator is the ability to create, attract, and retain this talent. 3 Innovation and Creativity This is key in developing a prosperous society where continuously new and efficiently produced products and services can be created for commercial gain. Communities that collaborate and provide the support to build an innovation ecosystem to be able to create, attract, and retain the talent and are able to generate the domestic and foreign investment necessary for them to thrive are among the most successful intelligent communities. 4 Digital Inclusion Participation by all citizens is vital in intelligent communities. Accordingly, policies and funding programs that provide have-not members in the community with renewcanada.net Smart Infrastructure affordable access to digital broadband technologies is important. Through selfimprovement and employment, these citizens can improve their lives, their health, and their self-esteem. It also creates a community that is safer and more selfreliant. Talent and investment are attracted to such caring and healthy communities. 5 Marketing and Advocacy Like businesses facing greater global competition, communities must work harder than ever to communicate their advantages and explain how they are maintaining or improving their position as wonderful places to live, work, and build a business. Effective marketing shares their story with the world while advocacy and public policies build a new vision of the community from within. There are currently 134 intelligent communities around the world that have met ICF’s criteria, and 22 are in Canada alone. Canadian intelligent communities have acted as models for many years from small- and medium-sized municipalities like Stratford, Ontario; Surrey, British Columbia; and Waterloo, Ontario to larger centres like Vancouver, Montreal, and Toronto. Many of these communities tend to be early adopters renewcanada.net of technology, enabling various aspects of their industry sectors to thrive. What were early trends, such as the development of gigabit broadband environments in Waterfront Toronto, are now being adopted in other cities. As older business and industry activities are replaced by new disruptive technologies, intelligent communities like Waterloo have been able to weather the storm of a major industry downturn. Today, the community’s newest innovations focus on robotics, wearables, and even quantum computing and nanotechnology applications. Montreal’s Smart and Digital City strategy facilitates the bottom-up emergence of individual initiatives and supports multi-stakeholder acceleration of these initiatives. Stratford is a growing beta-testing community with its many “living lab” projects, among them LeoNovus, an Internet-video platform startup based in Silicon Valley and Ottawa, which is testing its accelerated Internet and video platform in more than 50 Stratford homes and will consolidate idle CPU power as a massively distributed computing cloud. Waterfront Toronto boasts the highestperformance Internet services in Canada, providing subscribers in its new waterfront communities with 500-megabit-per-second symmetrical Internet connections at affordable rates. ICF has been in the forefront to identify and share best practices of these communities with others around the world. Since 1999, these intelligent communities have been showcased through a unique awards program that culminates in an annual summit in New York City where the Intelligent Community of the Year is announced. In2014, that title went to Toronto. In addition to mayors, chief administrative officers, chief information officers, and planning and economic development officers, the summit is also an international gathering of university and private sector business executives. In celebration of the 20th anniversary of the world’s first smart-city conference held in Toronto in 1995, the 2015 summit will again take place in Toronto from June 8 to 12 and will include a visit to the Region of Waterloo, 2007’s Intelligent Community of the Year. John Jung is chairman and co-founder of the New York-based Intelligent Community Forum. March /April 2015 ReNew Canada 27 Smart Infrastructure Seeing the Future By tracking data associated with assets, predictive analytics are able to identify priorities for investment and calculate the impact of deferrals. By David Caplan O ver the past 10 years, Canada has seen a level of infrastructure investment that is only surpassed by the massive construction projects of the Depression and post-war era. This investment, spurred by recognition that existing assets were approaching their end of life cycle and the role infrastructure development plays in boosting economic activity, has resulted in new public assets at the cost of many billions of dollars. If the state-of-good-repair mistakes of the past are to be avoided and the value of investments maximized, an innovative and intelligent approach to asset management is required. Although many federal and provincial projects have been completed utilizing some sort of public-private partnership (P3) model, where the private partner is responsible for life-cycle management, a number of new projects have been completed utilizing traditional procurement. This is particularly true for projects completed by municipal governments. Governments whose power to raise and finance capital are limited have made significant investments in water and wastewater, roads and bridges, and recreational infrastructure. As such, although asset life-cycle management is important for all levels of government, it is keenly strategic for Canada’s cities and towns. Not too long ago, asset management could be described as a guessing game. The decision to repair or replace a piece of infrastructure was based upon incomplete information that consisted, in some cases, solely of data related to the age of the asset; often, the decision to repair or replace an asset is impacted by political and economic considerations (as it can be more politically expedient in the short term to defer a costly sewer program). One can add another degree of complexity if the project is politically unpopular or if there is an election on the horizon. Developing a holistic, multi-year asset management plan can help governments of all levels better manage their capital 28 ReNew Canada March /April 2015 expenditures and diffuse temptations of political interference. Various provincial jurisdictions across Canada have developed strategies mandating municipalities to develop asset-management plans to guide their infrastructure investments. In Ontario, for example, this was done in 2012 under former Infrastructure Minister Bob Chiarelli. In order for a municipality to qualify for many of the new provincial and federal infrastructure funding programs, comprehensive asset-management plans had to be submitted as part of the application process. Senior levels of government want to know how municipalities plan for the maintenance and sustainability of their current portfolio assets, and they want to know how a new project or partnership will impact those plans. has been an increase in asset management capabilities and the advent of predictive analytics tools. Private concessionaires are utilizing sophisticated modelling technology in order to better optimize asset life-cycle performance. This technology allows for a thorough examination of financial impacts of decision-making in terms of short-, medium-, and long-term modelling. Utilized in P3s, this technology can be a strong ally for a government looking to develop their own asset-management plans By tracking a range of data points associated with a portfolio of assets, predictive analytics technology is able to identify priorities for investment and calculate the impact of deferrals, providing an analysis of where scarce investment dollars might make the most impact. This type of information can provide an edge not Predictive analytics technology is able to identify priorities for investment and calculate the impact of deferrals, providing an analysis of where scarce investment dollars might make the most impact. Some municipalities and municipal associations are ahead of the curve in terms of the development of these plans. In fact, some were undertaking these initiatives before governments mandated them—but current requirements exceed what even the most progressive municipalities were tracking. Provincial governments have offered financial assistance to municipalities, and municipal associations have offered their expertise to smaller municipalities. However, through the recent utilization of P3s, a strong tool has been developed that can be used by all levels of government to assist in providing transparency and guidance in the development of asset-management plans. One of the derived benefits of a robust provincial and federal infrastructure program only in terms of controlling expenditures, but it can assist governments as they prepare their assets for increased pressures caused by climate change. Flood and rain events like those experienced in Calgary and Toronto in 2013 are examples of the extreme weather all levels of government have to plan against. Including predictive analytics in asset management will allow governments to identify and repair or replace weak links in their infrastructure system, thus preventing a cascade of failures. In an era when governments at all levels are striving to control expenditures while still wanting to be seen to be investing prudently for the public good, this type of asset management is a key feature in smartinfrastructure design. If a plan is sufficiently renewcanada.net Smart Infrastructure Be an early adopter strategic in its approach, it can allow for effective data mining. The data mined can, in turn, inform how assets are used: Our industry-leading • Are there peak periods of demand? • Are certain users more likely to utilize trenchless watermain • Does save time, money lining helps municipalities the asset than others? the asset have capacity space in the event that another part of the infrastructure system becomes overloaded? and the environment. before • C an the asset be structured in a way that it pays for itself—like a high-occupancy toll lane, time-of-use electricity meter, or digitized water meters? Governments already utilize some form of predictive analytics when it comes to asset management. In Ontario, for example, smart-grid technology informs how the electricity system is utilized including when and where demand spikes, troughs occur, and failures take place. Failure detection is critical in attempts to localize problems and mitigate any impact on the wider customer base. In Guelph, Ontario, as identified in Richard Harvey’s 2014 paper for the University of Guelph, municipal sewer systems were inspected between 2008 to 2011 using closedcircuit television technology. The city is using the information gathered through these inspections to develop the type of asset-management plan I am describing: capturing information regarding material used to form the pipe, material used for mortar, where cracks exist, where tree root infiltration has occurred, and where corrosion is at its worst. Harvey estimated $3 could be saved for every $1 spent on proactive measures. We have all seen it. Roads ripped up and repaved only to be ripped up less than a year later due to water or sewer main replacements required due to an unforeseen break, poor scheduling, or political interference. Not only does this represent tax dollars wasted, it represents opportunities lost for the development of systemic efficiencies. If designed holistically, an asset-management plan offers a real opportunity for governments to optimize asset life cycle, harden against extreme weather events, and in some cases, get the asset to pay for itself. after Reduce Costs by 30% Minimize Public Intrusions S t ay a head Engage Communities in the Process of th e curv e Lower Greenhouse Gases w i t h F E R - PA L p: 416-742-3713 e: info@ferpalinfrastructure.com ferpalinfrastructure.com View the Top 100 2015 David Caplan is the vice-chair of Global Public Affairs. project details, funding and key players. top100projects.ca renewcanada.net March /April 2015 ReNew Canada 29 Smart Infrastructure Helsinki Toronto Boston London Amsterdam Rotterdam Barcelona Shanghai Amman Dubai Minna Guadalajara Makkah Haiphong Makati Bogota In November 2014, the following cities became the first in the world to be certified in accordance with ISO 37120. Johannesburg São Paulo Buenos Aires Melbourne Data for Cities A new, made-in-Canada standard provides cities with an opportunity for a standardized approach to metrics that enables global benchmarking. T he pressure on city leaders and managers to make smart decisions regarding infrastructure planning and investment has never been greater. A recent report from McKinsey estimates the world will require $57 trillion in infrastructure investment by 2030—more than the current value of the worlds’ existing infrastructure stock—with the majority of investment needed in urban centres. This is a global issue: advanced economies need to maintain and replace aging infrastructure while fastgrowing cities in the developing world need major investments just to provide basic levels of services and keep pace with service demand by rapidly growing populations. This is coming at a time where financing capital investments can be very difficult for city administrations, particularly given constraints on public budgets across all levels of government. Infrastructure investment is also taking place in an increasingly complex planning environment, as cities are also seeking to drive sustainability and improve resilience to climate change and natural disasters. Achieving ambitious sustainability and resilience targets will often necessitate major transformations in the design, construction, and operation of a city’s 30 ReNew Canada March /April 2015 infrastructure systems—including buildings, energy, mobility, telecommunications, water, wastewater, sanitation, and wastemanagement services—and optimizing the inter-linkages between these systems. Cities are also likely to bear a major share of the burden of the costs and risks associated with climate change, as well as the responsibility of greatly improving system resilience. Not surprisingly, these complex challenges are driving demand for globally comparable data, strategic analytics, and a more comprehensive knowledge of city performance to inform decision-making. In fact, comparable data and city indicators are now increasingly considered critical for making cities more liveable, inclusive, sustainable, resilient, and prosperous. Inside ISO 37120 This is what makes the publication of a new international standard on city indicators such an exciting development. ISO 37120 – Sustainable Development of Communities – Indicators for City Services and Quality of Life was published in May 2014 by the International Organization for Standardization (ISO). Now hosted by the World Council on City Data (WCCD), ISO By Patricia McCarney 31720 defines and establishes methodologies for a comprehensive set of indicators that will enable any-sized city in a developed or developing economy to track and measure its social, economic, and environmental performance in relation to other cities. This first ISO international standard on city metrics has been developed by the Global City Indicators Facility (GCIF) at the University of Toronto in partnership with the Government of Ontario. It is based on a set of indicators and their corresponding definitions and methodologies that was developed and tested by the GCIF and the member cities (more than 255 worldwide). ISO 37120 was also developed using input from the ISO Technical Committee on Sustainable Development of Communities (ISO/TC 268). Members of TC 268 included international organizations, leading businesses, and international experts from more than 20 countries including Canada, which is leading the efforts on standardized indicators for cities and currently convenes the working group on city indicators within TC268. ISO 37120 includes 100 indicators, which are structured around 17 themes that define city services and aspects of quality of life in cities. These include: education, transportation, renewcanada.net Smart Infrastructure safety, governance, water and sanitation, solid waste, and recreation. Recognizing the differences in resources and capabilities between developed and developing world cities, the overall set of city indicators has been divided into core indicators, which all cities adhering to the standard would be required to report on, and supporting indicators. Cities must report on the 46 core indicators for conformity to ISO 37120. The standard represents a critical paradigm shift when it comes to city data. It provides cities and stakeholders with an opportunity for a standardized approach to city metrics, and a global framework for third-party verification of city data. A reliable foundation of globally standardized data will assist cities in building core knowledge for city decisionmaking and enable comparative insight and global benchmarking. In addition to ISO 37120, a new series of standards on resilience indicators for cities is now being developed. Benefits to municipalities Standardized indicators enable cities to assess their performance and measure progress over time and also to draw comparative lessons from other cities locally and globally. They also help to guide policy, planning, and renewcanada.net management across multiple sectors and stakeholders. City leaders worldwide want to know how their cities are doing relative to their peers. Standardized indicators allow city leaders to measure their performance and compare with their peers to foster learning and the sharing of best practices. The new international standard will be particularly useful in helping cities invest in making their infrastructure more sustainable and resilient. It will foster more informed decision-making, enable local benchmarking and planning while facilitating learning across cities, and help cities to leverage funding and recognition from international entities and senior levels of government. Cities are now working with the WCCD to also review potential applications of cities adopting the standard for other management tools, including credit/bond ratings, risk assessment for insurance, and other applications. Looking forward The WCCD, launched in May 2014 at the Global Cities Summit in Toronto, has been established to take this critical data agenda forward. The WCCD coordinates all efforts on city data to ensure a consistent and comprehensive platform for standardized urban metrics through ISO 37120 and future standards under development. In 2014, the WCCD worked with 20 foundation cities to pilot the implementation of ISO 37120. In November 2014, the following cities became the first in the world to be certified in accordance with ISO 37120: Amman, Amsterdam, Barcelona, Bogota, Boston, Buenos Aires, Dubai, Guadalajara, Haiphong, Helsinki, Johannesburg, London, Makati, Makkah, Melbourne, Minna, Rotterdam, Shanghai, and Toronto. With this pilot complete, the WCCD has opened the process to all cities globally to adopt ISO 37120. There are now more than 100 more cities signing expressions of interest and filing applications with the goal of adopting ISO 37120 in the early months of 2015. The WCCD particularly encourages Canadian cities and municipalities to become a member of this made-in-Canada global initiative (dataforcities.org). Patricia McCarney is the president and CEO of the World Council on City Data and a professor at the University of Toronto. March /April 2015 ReNew Canada 31 Urban Planning Credit: Daniel Gorman Halifax’s Bold Move On Halifax’s waterfront, a tangled web of roads and ramps effectively blocks the city’s north end from the downtown. We examine the city’s grand vision for the redevelopment. I n the 1960s, Halifax was struck with the same idea as Toronto: build a major commuter highway through the lower downtown core to enable cars to transverse the city. In fact, the designers of the Cogswell Street Interchange were the same engineers who designed downtown Toronto’s Gardiner Expressway—and we all know the outcome of that experiment. The Cogswell interchange currently occupies more than 16 acres of land north of and adjacent to the downtown core. The current series of over and underpasses effectively blocks the city’s north end from the downtown. The interchange design eliminated the old grid pattern of city blocks, 32 ReNew Canada March /April 2015 By Cynthia Robertson and Stanley Strug reduced the ability to walk from one end of the downtown to the other, and made the auto king of the roadway. Current Halifax city-planning protocols call for the reintegration of the north end of the city with the downtown, effectively turning back the clock to earlier times when the north end was a vital part of the cultural and business heart of the city. The erection of the Cogswell Interchange cut off these vital links, and as a direct result, the north end of the city skidded into a long-term decline. The grand vision The grand vision for the redevelopment includes the complete removal of a tangled web of roads and ramps, linking at least four streets (including Barrington and Lower Water streets and Rannie Drive) and redeveloping the brownfield site with a grand boulevard lined with walkable green spaces, bike lanes, a major transit hub, extension of the harbour district heating system, commercial redevelopment, and a mixture of apartment and condo buildings. The design completed to date is merely indicative; however, Paul Kent, the outgoing CEO of the Greater Halifax Partnership, said this opportunity was a profound change in a city that has seen far too little growth in the past 20 years. The entire site, fortunately, falls outside renewcanada.net Urban Planning of the restrictive Halifax View planes guidelines, a controversial plan that protects the view of the city’s harbour. In an interview, Halifax mayor Mike Savage called this project “a unique opportunity to correct a piece of infrastructure that is a remnant of the 1960s and 1970s transportation plan that separated north and south Halifax. Imagine what could be there: a reconnection of the city. This project makes a lot of things possible including being the gateway to the north end of the city.” Savage also noted the location is a good place for higher buildings. Without being specific, however, he noted that the site is outside of the view planes and therefore has only city-planning restrictions as outlined in HRM By Design , a detailed city-planning document that was completed in 2012. He said he’s in favour of densifying the area and indicated he likes height to achieve this goal rather than lower structures. He methodical in its approach, letting both factual and technical issues lead the projectplanning process. City council has agreed on a set of goals, but want to let the design come from the development community, with the only proviso being that cityplanning guidelines be followed, without council being overly proscriptive. Fraser indicated the project should allow for the renewed plan to allow for a “signature gateway” linking the downtown core with the north end, the Naval Dockyards, two harbour bridges, and the Irving Shipyards. (The Irving Shipyards have been awarded a $25-billion, multi-decade federal contract to build the Canadian Navy’s new frigate fleet. This contract is expected to employ thousands of skilled workers.) The realignment will also open access to the harbour walkways, Casino Nova Scotia, the Purdy’s Wharf office complex, and the Halifax Marriott Harbourfront Hotel, which Realigning the road systems will drastically improve accessibility [and] further re-engage the city with the working waterfront, improving quality of life for those living and working downtown. wants the project to free ground space for pedestrian access, but he also wants to make it “interesting.” This would include innovation in design, making the new space accessible to a variety of people to live, work, shop, and play. Savage has identified that risks associated with construction and final development should be passed onto future private-sector partners, who are better able to handle these types of risks than the city. In the initial phase, the Cogswell plan calls for the complete demolition of the current roadbeds, at an estimated cost of about $45 million. The roads will be realigned with the demolition and road realignment expenses being in part recouped by the sale of the developable portion of the lands and associated development charges coupled with future property-tax revenues. Jane Fraser, director of operations support with the City of Halifax, said she is excited that city leaders, including the mayor and councillors, are focusing on the downtown core. She noted that Halifax leaders are engaged in redefining Halifax as the Atlantic leader in economic, industrial, and cultural sectors. She noted that council has been very renewcanada.net currently have difficult access and egress roadways due to the blockages erected to support the interchange. Realigning the road systems will drastically improve accessibility to these major buildings for business, recreation, and tourism purposes. It will also further re-engage the city with the working waterfront, improving quality of life for those living and working downtown. Halifax renaissance Currently, Halifax is in the midst of a renaissance in the form of a building boom in the downtown core. After 20 years of few projects other than apartment and condo developments, redevelopment is happening in the commercial area at the Royal Bank building, which is planned to be demolished, and the CIBC and TD complexes. The face of downtown Halifax is rapidly changing. The recent opening of the new Halifax Library on a former parking lot on Spring Garden Road, which holds an award-winning design with advanced environmentaldesign features, is helping to redefine the city core. As well, the construction of the estimated $500-million Nova Centre, which is underway at the heart of the Argyle Street entertainment and business district, is the largest integrated development project in Nova Scotia’s history. Getting it done Andy Fillmore, VP of planning and development with the Waterfront Development Corp., led the public consultation process for the Cogswell Street Interchange project. Formerly a city planner—with experience in many large projects, including stints as the project manager for the development of HRM By Design in Halifax and the Big Dig transit mega-project in Boston—said this project “has been a fascinating thing to be involved in.” The vision and strategy includes collaboration across both the private and public sectors, which he believes is critical to success. Ultimately, he wants to get people back on the street enjoying a vibrant cityscape. The total Cogswell project area encompasses about 16 acres. Of this total, about six are required for road realignment, publictransit facilities, bike paths, and pedestrian walkways. The city has identified a desire for parkland, which could encompass up to an additional four acres, leaving a minimum of six for private-sector development. How this remaining land will be developed is unknown, with the city wanting to allow the private sector to play a major role in determining the density and ultimate mix of building types. However, the city would like to see more people living in the downtown core and recognizes this will require the provision of services like schools and recreation facilities. These supports have largely disappeared over the past 40 years due to declining population density in the older parts of the city. The city expects this project to build out over the next six to 12 years, giving time first to complete the roadway demolition, realign the road network, and complete the underground infrastructure improvements required to support these ambitious plans. But as is now clear, Halifax is in a building renaissance—and it is now time for the city to take its place amongst the major Canadian urban centres. Cynthia Robertson and Stanley Strug are both with Halifax-based Parkridge Consulting. March /April 2015 ReNew Canada 33 Urban Planning Credit: booledozer via Flickr View of the old Essroc terminal from the Keating Channel Cementing Our Future Ensuring industry and jobs have a home on Toronto’s waterfront. M any Torontonians are often surprised to learn that the Toronto Port Lands remain a functioning port area and will continue to house industrial tenants. Situated on the northwest shore of Lake Ontario, the Port Lands are an extensive industrial area of 988 acres (400 hectares) of reclaimed land located south of Lake Shore Boulevard and the Keating Channel/Don River. Its largest landowner is the Toronto Port Lands Company (TPLC), Toronto’s urban development corporation. This area—rich in development opportunity—is bounded by the Toronto Inner Harbour to the west, Ashbridges Bay to the east, and Lake Ontario to the south. Since 1917, these lands, reclaimed from Lake Ontario, were used for a number of heavy industrial activities, such as bulk aggregate, storage, oil refining and blending, lumber, and other manufacturing uses. The Port Lands are designated as a Regeneration Area and are part of Toronto’s long-term vision for the area to become a broad mix of commercial, residential, light industrial, parks, and institutional uses. Currently, TPLC manages more than 100 long-term leases in a prime area. Marquee tenants include CORUS Entertainment, 34 ReNew Canada March /April 2015 Pinewood Toronto Studios, and Essroc Cement Corp. Located minutes from the downtown core and nearby transit and highway access, the Port Lands make for an ideal location for industrial, commercial, and residential mixed-use development opportunities. The majority of Port Lands are considered brownfields, which TPLC recognizes as a parcel of underutilized land that is, or could be, contaminated by industrial activities. TPLC has partnered with the Ministry of Environment (MOE) and the City of Toronto to address the contaminated properties and make them safe for future use. Although TPLC is the environmental steward in the Port Lands, all brownfield redevelopment is regulated by the MOE. Consequently, environmental stewardship is a key priority for TPLC as it continues to redevelop the area through its numerous reclamation activities. In fact, the corporation has restored more than 130 acres of brownfield lands back to productive use since 2009. One key example is East Port’s industrial area, aptly dubbed the “Concrete Campus.” Concrete Campus In 2004, Toronto city council approved a rezoning application at Commissioners By Michael Kraljevic Street and Unwin Avenue that would permit concrete companies like Essroc, Lafarge, Metrix, and St. Mary’s to consolidate their operations. This strategy enables longerterm leases to be established with all similar cement users in one clearly defined area. Relocating heavy industry opens up prime property of contaminated sites, allowing TPLC to clean up and develop these lands. These projects help to stimulate economic development opportunities and increased employment in the Port Lands for the construction industry, which in turn provides economic benefits to the City of Toronto. In its continuing effort to relocate and move businesses as a means of retaining jobs and creating economic efficiencies, TPLC has recently completed a significant move of long-time tenant Essroc’s main cement terminal to the Eastern Port Lands. “TPLC continues to generate much needed jobs in the City Toronto and the Essroc relocation is a prime example of how our City corporations generate economic growth,” noted Denzil Minnan-Wong, deputy mayor of the City of Toronto. Construction on this project started in 2013, and for more than three years, TPLC worked closely with Essroc to assist with the renewcanada.net Urban Planning relocation of its terminal from its original site at Cherry Street to its new location just north of the ship channel in the Eastern Port Lands at 575 Commissioners Street. TPLC also worked closely with the Toronto Port Authority and Waterfront Toronto to complete this significant multi-million dollar project. This collaboration helped to put into operation one of Essroc’s terminals in the fall of 2014. “Essroc’s continued commitment to the City of Toronto and the GTA is now fully realized with the opening of our new cement terminal,” said Brian Costenbader, VP of logistics at Essroc. “The Toronto Port Lands Company is a key partner in helping grow our business.” The decision to keep Essroc Canada in the port area, where it is close to high-rise projects using concrete for construction, achieves a number of city initiatives, such as minimizing commercial truck traffic on roads, which reduces traffic congestion and road wear and tear. The result is better overall service for the Greater Toronto Area’s construction industry. Environmentally, a key benefit is the reduction of greenhouse gases as truck traffic is decreased for more efficient use. The Essroc move is just one of many projects led by TPLC in the urban-development strategy intended to generate economic growth through a mix of industry, commercial, and residential expansions along the Toronto Port Lands. Michael Kraljevic is the president and CEO of Toronto Port Lands Company. renewcanada.net TPLC Quick Facts Number of Employees: 20 Property Management Land Assets • • • • Holds close to $0.5 billion • Largest land owner; owns and manages • Economic Impact anages more than 80 tenants M Manages more than 100 longand short-term leases Operates rail and manages dock wall berthing • • close to 988 acres in the Port Lands Owns 23 properties in leasable buildings upports more than 4,000 jobs S through its tenants Provided $57.7 million in distributions to city programs and agencies since 2009 Established in 1986, the Toronto Port Lands Company (TPLC) is wholly owned by and works closely with the City of Toronto to accelerate economic growth and job creation in association with a number of public and private sector partners. Through its leasing, development, brownfield reclamation, and land management activities, TPLC finances its own operations while funding other operations and is able to deliver a financial dividend back to the city. In 2012, TPLC provided the City of Toronto with a $40-million special dividend. March /April 2015 ReNew Canada 35 Re: The Law BIM Risk Legal considerations to consider when adopting building information modelling technologies. By Richard Shaban and Richard Yehia O ne of the most recent developments in infrastructure delivery is the increased use of building information modelling, or BIM, in largescale infrastructure projects. BIM is often misconceived of as a simple software system used to develop infrastructure models, but this perception undersells its complexity. Rather, BIM is a robust system that describes the activities and technology used to model and relate information, as well as the use and sharing of this information by multiple stakeholders involved in the construction of a building to streamline infrastructure delivery. Project owners are increasingly requiring their contractors, subcontractors, consultants, and facility managers to leverage BIM techniques in an effort to improve efficiency and cost savings. With the advent of new infrastructure technology, however, come corresponding legal issues that project participants should consider. Canada: A New Player The adoption of BIM technology in Canada is a relatively recent trend when compared to the United States and United Kingdom. For example, in the United Kingdom, the AEC (UK), an architectural, engineering, and construction industry committee, was formed in 2000 and first published a comprehensive BIM Protocol in 2009. By comparison, in Canada, the first AEC (Can) BIM Protocol was not published until 2012, and was modelled after the United Kingdom’s. The most recent Canadian BIM Protocol was published in September 2014. From a legal perspective, one of the more interesting 36 ReNew Canada March /April 2015 features of the new protocol is its provision of sample language with respect to terms of use, disclaimers, and model copyright. Some of the sample language includes the following: “By executing this self-extracting file, the user agrees that they will be bound by the following conditions and disclaimers: • The information in the self-extracting file does not form part of the Contract Documents unless specifically designated as such in the Project specifications. • The consultant makes no warranty or guaranty that dimensions provided or established from electronic drawing files represent actual site conditions. • The information in the self-extracting file is provided for the convenience of the user. The user, and any third party to which the user transmits the information, agrees to indemnify and hold harmless the Consultant to the fullest extent permitted by law from any damage, liability or costs (including, without limitation, special, indirect or consequential damages) arising from the information. The Consultant is not liable for any unauthorized use of information. Any reproduction or distribution for any purpose other than authorized by IBI Group is forbidden. Written dimensions shall have precedence over scaled dimensions. Contractors shall verify and be responsible for all dimensions and conditions on the job and IBI Group shall be informed of any variations from the dimensions and conditions shown on the drawing. Shop drawings shall be submitted to IBI Group for approval before proceeding with fabrication.” Legal implications As can be seen from the excerpts above, the allocation of risk or liability with respect to the use of BIM technology, and specifically the sharing of information, is one that is continuing to evolve among infrastructure project participants. It is undoubtedly of interest to parties adopting BIM technology to have written agreements in place that spell out the obligations and limitations of liability of the various parties, so as to have clear lines of responsibility. The sample language provided in the AEC (Can) Protocol attempts to address the issue of liability through the use of waivers, indemnities, and limitations on use. The Institute for BIM in Canada also provides, for a fee, contract language packages. However, it must be noted that, unlike the standard Canadian Construction Documents Committee contracts, the sample language described above has not been tested and applied by Canadian courts. It should also be noted that sample language is not tailored to the specific intricacies of the project in question, and must be adjusted in consideration of the specific project. Although the AEC (Can) Protocol and commercial contract language packages provide a useful starting point, they should not be seen as a substitute for appropriate contract review and project specific allocation of risk. The system of warranties, indemnities, and limitations on use may also be counterproductive to the objective of using BIM, namely, the collaborative use renewcanada.net Re: The Law of technology to streamline infrastructure delivery. Such a system is predicated on the ability to rely on the information provided by other project participants to coordinate efforts, however, restrictions on liability and use of electronic data may preclude project participants from effectively relying on information provided by others. Parties should carefully consider the extent to which such provisions are necessary to effect the desired arrangement most conducive to the specific project. A means to mitigate potential problems is to ensure that those administering the project are adequately trained in the use of BIM software and technology. The Canada BIM Council offers four levels of certification with respect to the use of BIM. The ability to demonstrate sufficient competency in the use of BIM technologies will be a focal point of any potential claim with respect to allegations of negligent and deficient performance. Organizations leveraging BIM technology would do well to ensure their representatives are sufficiently trained and certified, as necessary. There are many other potential legal considerations organizations need to consider when adopting BIM technologies, renewcanada.net whether by choice or by way of imposition through a contract. The below list, while by no means exhaustive, provides some other potential questions organizations should consider: • Does the language of the contract reflect the agreement between the parties with respect to any intellectual property rights? • Are appropriate systems in place to store detailed records and to ensure that any information can be easily and accurately retrieved? • Is there insurance coverage or protection project. However, BIM technology provides a new tool for consideration to identify issues for large-scale infrastructure projects before the implementation of the work. The level of confidence in this technology and the extent to which the results are reliable will need to be balanced with the allocation of risk for legal liability for problems caused by any technological failure. While we have attempted to provide an overview of some of the legal issues that may arise from the use of BIM technology, it will be interesting to see how these and other issues develop with the increased use of BIM. that extends to issues arising from the use of BIM software? • Is the multiplicity of programs being used to implement BIM compatible and reliable? • Does the information technology system used protect against data corruption risk by ever-changing and updating software tools? As we have cautioned in our previous article in November/December 2014 (see “Shared Risk and Reward,” bit.ly/rc-risk), no infrastructure delivery method addresses every unpredictable and potential unforeseen issue that may arise in an infrastructure Richard Shaban is a senior partner and past regional leader of the construction and engineering group in Borden Ladner Gervais LLP’s (BLG) Toronto office. Richard Yehia practices construction and surety law with BLG. March /April 2015 ReNew Canada 37 People & Events Appointed Angus English has joined MMM Group Ltd. as regional manager in its Vancouver office. He brings with him 31 years of experience Angus English in infrastructure revitalization, replacement, and upgrading for public and private-sector clients in Western Canada, South America, and Asia for a wide range of asset portfolios ranging from municipal utilities and transportation schemes to materials handling for heavy industry. His project experience ranges from small assignments to large multi-year, multi-contract projects. Contact Terry Hardy at Email: info@opwa.ca Join us at the 2015 IT Symposium on March 31. “Technology Application in Public Works: Proven Uses and Emerging Trends” 38 ReNew Canada March /April 2015 Ian Rokeby has joined as a partner with Va n c o u ve r based Collings Johnston, a technical management company Ian Rokeby providing advisory and management services to owners, lenders, and contractors for major transportation infrastructure projects. He has more than 30 years of experience in the management and execution of a wide range of planning, feasibility, design, and construction projects for transportation infrastructure in British Columbia. Scott Roux, former VP of U.S. operations at Buckland & Taylor, has become president and managing director of its sister company, Jenny Scott Roux Engineering, a specialist tunnelling company based in Springfield, New Jersey. Both Buckland and Taylor and Jenny are part of the COWI North America group. At Buckland & Taylor in North Joe Viola Vancouver, Joe Viola and Murray Johnson have both been appointed to the position of VP and project director. Entuitive has appointed Brian Shedden to associate in their Calgary office. He has more than 30 years of experience in the building construction Brian Shedden and restoration industry, providing enclosure consultation and design. renewcanada.net People & Events events Credit: FCM L-R: Raymond Louie, first VP of FCM, chair of the Green Municipal Fund (GMF) council, and City of Vancouver councillor; Peter Fenwick, mayor of Cape St. George, Newfoundland and Labrador, waste program award winner; and Brock Carlton, CEO, FCM. L-R: Brock Carlton, CEO, FCM; sustainability manager Anna Mathewson and councillor Bruce Hayne with the City of Surrey, Ontario, Energy Plan award winner; and Raymond Louie, chair of GMF council. Sustainable Communities Conference london, ON Canadian municipalities are on the front line of protecting the environment and driving the green economy as they deliver services and develop more sustainable infrastructure. Municipal governments are also the closest to citizens and can most readily engage the community as regulators, facilitators, partners, program renewcanada.net deliverers, educators, and business partners. The Federation of Canadian Municipalities’ (FCM) Sustainable Communities Conference February 10 to 12 offered a unique three-day experience that enabled participants to connect with experts and peers, explore London, Ontario’s leading facilities and projects, and experience delegate-driven content. FCM celebrated best practices in sustainable community development through its annual Sustainable Community Awards, with nine award recipients in six categories. Get full list of award winners at bit.ly/fcmawards March /April 2015 ReNew Canada 39 People & Events Big Cities Summit toronto, ON Nineteen mayors of Canada’s biggest cities came together February 5 in Toronto to hammer out solutions to the country’s economic challenges. With a federal election on the horizon, the Big Cities Summit places cities at the centre of the national discussion about Canada’s future. “At a time when Canada is facing economic uncertainty, the Big City Mayors’ Summit is an exciting opportunity to envision and highlight how our cities can provide a path to stable, long-term economic growth and prosperity,” said Vancouver mayor Gregor Robertson, chair of the Federation of Canadian Municipalities’ Big City Mayors’ Caucus. The mayors called for a new era of cooperation between all orders of government, including municipal, provincial and federal to focus on Canada’s most pressing challenges: jobs, the economy, and quality of life. Mayors invited federal parties to work with them to achieve specific goals such as: •a coordinated focus on cutting commute times, including hard targets; •sustainable levels of infrastructure investment across all orders of government; and •a long-term plan to make housing more affordable for all Canadians. Ontario Economic Development, Employment and Infrastructure Minister Brad Duguid (right), with RCCAO executive director Andy Manahan, says Ontario will continue to reduce unnecessary regulatory burden. RCCAO Talks Infrastructure toronto, ON Economic Development, Employment and Infrastructure Minister Brad Duguid encouraged members and guests of the Residential and Civil Construction Alliance of Ontario (RCCAO) to keep pressure on the federal government to increase its investment in infrastructure, pointing out that Ottawa’s 10-year, $70-billion commitment for all of Canada pales in comparison to the province’s $130 billion planned investment over the same time period. In addition, he pointed out Ontario is a global leader in alternative financing and procurement (AFP) delivery, and that significantly over-budget projects can greatly benefit from taking a closer look at the AFP model Duguid wants to continue reducing the unnecessary regulatory burden, and cited potential improvements to the municipal class environmental assessment process, building permit approvals, and more timely utility locates under One Call. —Andy Manahan, RCCAO Credits: Debbie Yea/OPWA OPWA’s Annual Conference & Awards Luncheon Mississauga, ON The incoming 2015 OPWA board of directors ReNew Canada publisher Todd Latham Former Mississauga mayor Hazel McCallion 40 ReNew Canada March /April 2015 Credit: Actual Media Caucus chair and Vancouver mayor Gregor Robertson Credit: @VanMayorsOffice/Twitter Credit: @MayorGregor/Twitter L-R: Mayors Gregor Robertson (Vancouver), Naheed Nenshi (Calgary), Brian Bowman (Winnipeg), Bonnie Crombie (Mississauga), John Tory (Toronto), and Denis Coderre (Montreal) The Ontario Public Works Association’s Annual Conference & Awards Luncheon took place on January 29 at the Mississauga Grand Banquet & Convention Centre. ReNew Canada publisher Todd Latham moderated sessions and introduced lunch speaker Hazel McCallion, who served as the mayor of Mississauga from 1978 until 2014. Project of the Year Award winners included the Rumble Pond adaptive stormwater project (Richmond Hill); Middleton water supply system upgrades (Waterloo); Keswick Wastewater Pollution Control Plant expansion; Burlington–Oakville interconnecting watermain; North Oakville East Wastewater Pumping Station; Durham/York Energy Centre; Hannon Creek realignment and Dartnall Road extension (Hamilton); Buttrey Street sewer outfall (Niagara Falls); Ottawa WWTP Raw Sewage Pump Station emergency bypass pumping; and construction of the Kirkland Lake Wastewater Treatment Plant. renewcanada.net Closing Shot Five Things on my Mind W hen you ask a friend or colleague how they’re doing, invariably the answer is “busy.” We are all busy, so I’ll skip the introduction and get right to what’s on my mind. 1 Municipalities are no longer children of the province. Cities have grown up and don’t need their parents as much anymore. They are where most Canadians live and work. They own 60 per cent of the infrastructure, but only get six per cent of the federal/provincial tax revenues taken from residents who use the assets. It’s time to give municipalities more power to generate revenues and a much larger portion of gas taxes so they don’t have to beg for desperately needed capital. We should carve off one per cent of the GST for them, too. 2 Ontario’s auditor general has made quite the mess. Bonnie Lysyk’s December 2014 report included a section on publicprivate partnerships (P3s) that lacked credibility, seemed blatantly biased, and was outrageously myopic and likely politically motivated. In it, she demonstrates a misunderstanding of project risk transfer, public-sector contracting, maintenance and operations costs, and the true value-formoney inherent in most P3s. As Municipal 42 ReNew Canada March /April 2015 Affairs Minister Ted McMeekin said about the much-criticized report, she was “blowing smoke.” Shame on her for listening to special interest groups and conveniently ignoring important facts—her MBA seemed to be MIA for this one. By Todd Latham infrastructure, but they do very little of that at home. It’s not their fault—we just aren’t making it attractive enough. Governments should provide tax incentives and clarity (read: certainty) to reduce domestic investment risk and open up the Canadian market for tolls, concessions, P3s, O&M and EPC contracts, and the like. Run Canada like a business and we’ll all profit like one. 3 Gasoline and water are too cheap in Canada. We’re spoiled and wasteful. Oil prices are low now, so it’s a good time to increase the cost of gas by 10 to 15 cents per litre and dedicate the new revenue to a national infrastructure bank or public-transit fund. Or just funnel it directly to the municipalities on a per-capita basis (see No. 1). In addition, water rates should be increased in all jurisdictions by at least 10 per cent. It is human nature to not value that which has little cost associated to it, so let’s charge more for this precious resource and use the money for drinking water and sewer infrastructure. If people don’t have a problem paying a buck (or more) per litre for bottled water, they shouldn’t object to a few pennies per litre for the stuff that comes out of their tap. 5 After this issue, I’m stepping aside from writing this column. For almost 10 years, I have spewed my opinions onto this back page, and it has been a real privilege to have your ear for my missives. But there are other opinions I believe need to have a “closing shot.” (And our editor, André Voshart, is tired of having to constantly pin me down to editorial deadlines.) I will still contribute from time to time (when I have a burning rant to share), but you will see other infrastructure pundits here more regularly. Maybe you can write an opinion for this page next issue. Send us your best shot. 4 Corporations, banks, pension funds, and other private equity in Canada should be allowed to more freely invest in our nation’s infrastructure. Our own Canada Pension Plan Investment Board fund managers are investing billions in foreign water, road, and energy Todd is the founder of this magazine and also the president of Actual Media Inc. His wife and mother will be the two readers who miss his columns the most. renewcanada.net