Inside this issue:

The RCA Indemnity Corporation A Membership Service worth retaining, an unnecessary Intrusion by RCABC into the Business of its Members, a Hedge against future “hard insurance markets” or simply, a Program that is no longer viable due to competition from the insurance industry.

The following information is part of staff’s instruction as recorded in a motion made by the RCABC Board at the December 3, 2010 Board Meeting. The motion reads: “That RCABC staff make contact with all non-RCAIC insured’s to provide information regarding mandatory participation in the RCAIC insurance program, and that the RCABC Board of Directors will vote at their meeting on January 28, 2011 on whether all RCABC Active members will be required, upon renewal, to purchase the minimum $5 million liability insurance from RCA Indemnity Corporation, as a condition of membership.”

Introduction For too many years the Board and Management of RCAIC has been “shadow boxing” with unnamed parties that would like to see the end of this unique special purpose insurance company. One can speculate as to the reasons why this is so, but in view of the seriousness of this issue, it would be a needless exercise. Suffice to say that RCABC is the only, association of trades contractors in Canada, with the resources (meaning the policies, procedures, regulations, risk

“Engineering Value”“Engineering Value”

EXECUTIVE VICE PRESIDENT’S MESSAGE

53 Years of Industry Service

R O O F I N G R O O F I N G R O O F I N G C O N T R A C T O R S A S S O C I A TC O N T R A C T O R S A S S O C I A TC O N T R A C T O R S A S S O C I A T I O N O F B R I T I S H C O L U M B II O N O F B R I T I S H C O L U M B II O N O F B R I T I S H C O L U M B I AAA

EVP Report 1-5

REF Report 6-7

RRR Photos 8-9

Technical Update 10-11

EVP AGM Report 12-15

Calendar of Events 16

Executive Vice President

Brian Hofler

Winter 2010-2011 ~ 21st Edition

management, standards and independent oversight) that define best work practices for professional roofers, to have its own liability insurance company. That in itself is an incredible achievement and will stand on its own regardless of future decisions. However, the question that the RCABC Board will grapple with shortly is, given that RCABC members are independent businessmen, given that contract values are down and

competition is fierce and saving costs is always part of the estimating equation, given that currently there are insurance syndicates targeting RCABC members with lower insurance rates, given that the association is made up of large and small roofing contractors throughout the province with a variety of insurance needs – should the RCABC Board mandate a policy that will require all RCABC Members to join the RCA Indemnity Corporation insurance program, as a condition of membership? That is the question. The intent of this article is to inform RCABC Members about the conditions that led to the decision to create a captive insurance company in the first place. It is an attempt to

(Continued on page 2)

The RCA Indemnity Corporation A Membership Service worth retaining, an unnecessary Intrusion by RCABC into the

Business of its Members, a Hedge against future “hard insurance markets” or simply, a Program that is no longer viable due to competition from

the insurance industry.

OOONNN TTTOPOPOP

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inform the members about the value that RCAIC has provided to all RCABC members (whether insured by RCAIC or not). Most importantly it is an attempt to clarify and dispel any anxiety that individual members may harbor due to the distribution of information that appears to contradict the professional guidance that has informed the Board on this particular issue.

Background The RCA Indemnity Corporation is wholly owned by the members of RCABC and is governed by an independent Board. The RCAIC Board includes roofing contractors (RCABC board and non-board), professional insurance consultants, representatives of Lindsey Kenney (counsel) and KPMG, as well as Shaw Sabey Insurance Brokers (Don Rose - RCAIC Manager). RCAIC is governed by captive insurance legislation in BC with regulatory oversight provided by the Financial Insurance Commission (FICOM). Third party actuarial services are by Price Waterhouse Coopers. RCAIC is a bonafide insurance company registered in B.C. and insured by the Property and Casualty Insurance Compensation Corporation (PACCIC), the organization that insures insurance companies in Canada. The collapse of the equity market, in conjunction with the after effects of 911, contributed to an unprecedented surge in the cost of liability insurance. Why? Because the practice of investing artificially low premiums (soft market) in a buoyant stock market, a profitability strategy that had been successful for some time, does not work when markets collapse. In order to curb those losses, the insurance industry looked at the risk profile of some groups and hiked premiums indiscriminately in an effort to reverse lost profits. Roofing contractors fell into a “high risk” category and therefore, roofers in the province saw rates rise in excess of 5% of their revenues (hard market) and for some, insurance was not available at any cost. At that time the AXA Pacific Insurance Company, which wrote many of the B.C. roofers, was pulling out of the roofing business due to a dismal loss ratio on their investment portfolio. In BC, if available, coverage was made through several intermediaries in Canada utilizing either Lloyd’s markets or the Kingsway Insurance Company. The failure of the so called national program promoted by CRCA only exacerbated the problem as RCABC members that supported this particular initiative were left high and dry when the program’s insurer, promoted by AON, pulled out on 30 days notice. In an effort to manage the crisis, the RCABC Board instructed staff, as well as its professional consultants (both legal and financial), to meet with larger brokers (Willis, Marsh et al) and find a solution to the problem. Unfortunately

(Continued from page 1) these large brokerages were unable to do so. Fortunately a chance meeting on a golf course provided an alternative option. The RCA Indemnity Corporation (RCAIC) was formed in response to this crisis. Since BC is the only Province in Canada with legislation that allows homogeneous associations (doctors, lawyers, municipalities, etc.) to form their own Canadian registered insurance company (that means registered in Canada with financial resources in Canada, not a PO Box on a Caribbean Island for tax purposes), the plan to create a private insurance company exclusively for RCABC Members was put into place. Staff was instructed to use all necessary resources to research and hopefully resolve this crisis. The fact that RCABC had significant claims data available through the Guarantee program was a key factor in attracting reinsurers to underwrite the program (this is the wholesale market that insurance companies deal with, not individual brokers). A Business Plan was developed, accepted by a reinsurance consortium and the information was presented to the Board. The formation of RCAIC was approved by RCABC Members at the AGM in 2005. Skip forward to today – companies such as Kingsway are a non factor, as their financial security has been downgraded to C+, essentially junk bond status. Currently it appears that three or more Lloyd’s markets are continuing to write roofing business in B.C. Competition from these syndicates has had a major effect on RCAIC during the past five years. The average rate for RCAIC in November 05 was 3.14% (equal to or lower than competitors when introduced) and as of March 09 the average rate was 1.64%. In response to continued competition RCAIC Management restructured as of January 1, 2010 which further decreased rates to RCAIC insured’s by a further 23% (again in order to compete with artificially low premium rates – soft market). In December 2009 RCAIC had severe competition on three of our largest accounts which prompted further action. The RCAIC Board, on the advice of technical experts at RGC, approved the reclassification of some of the categories of roofing which were previously categorized as “high risk”, to a “medium risk” category. This, as well as other premium adjustments has been done in response to a sustained assault by Lloyds syndicates to attempt to poach RCABC insured’s from RCAIC and thus undermine the program. Once again RCAIC was able to lower rates based on sound underwriting principles and claims data. However, as in the past, RCAIC’s low is not low enough. Given recent events it appears that the low premium in search of a bull market school of profitability is making a cyclical return – but is it sustainable, how long will it be before the “hard market” returns, what markets will be available at that time?

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It is expected that if unchecked, RCAIC will continue to see a decrease in volume in 2011 and it could drastically effect the survival of the RCA Indemnity Corporation and eventually the rates of every RCABC Member (one must conclude that if RCAIC goes, rates will raise across the board). Gross written premium for last year (2010) was approximately $1.2 million, based on virtually 100% retention of accounts and the fact that revenue/sales forecasts remain unchanged from the previous year. So far this year we have seen some renewal premiums fall considerably caused by a combination of our new rates and underwriting guidelines, as well as a drastic drop in anticipated gross receipts. The loss of even one or two of our largest accounts combined with the lower gross receipts may easily drop our gross premiums to lower than $900,000 and soon put RCAIC in a position where it does not have enough incoming revenue to continue. RCAIC must have a minimum retained premium to pay for reinsurance or it will not remain viable. .

RCAIC’s Major Objectives • To Provide member insureds with broad and appropriate

coverage • To Provide sustainable and cost effective insurance • To Provide member insureds with increased control over

their insurance expenditures through an insurance facility owned by and governed its own professional association

• To Develop and maintain a strong emphasis on risk management

• To Establish and maintain equitable member insured premiums

• To Fund the insurance business to a level sufficient to pay anticipated liability using sound actuarial principles

• To Further ensure the financial integrity of the insurance operations by the prudent use of reinsurance protection

• To Invest RCAIC funds in a prudent manner • To Manage claims in a fair and efficient manner RCAIC has and continues to achieve all of these objectives. Perhaps the single biggest thing that RCAIC has done during our existence was to spend approximately $300,000 to vigorously and successfully defend the 26 “School” claims that they were faced with which not only benefited every RCAIC member – but also every member of RCABC. Unfortunately for RCAIC, yet fortunately for our competition, all the work that RCABC and RCAIC have done for its members / insured’s has benefited the competition. The competition has matched the appropriate coverage’s that RCAIC has put in force including “hot work” and “water ingress” coverage. The competition has benefited from the risk management and educational seminars put on by RCABC

– yet paid for by RCAIC. By mandating participation in RCAIC we will guarantee the premium levels required for RCIAC to succeed going forward. It will give us almost twice the annual premiums that we anticipate for 2011 and a much better understanding of our risks and the overall loss ratio within the RCABC membership. Mandating the insurance puts all RCABC members on an “even playing field” when it comes to their cost of insurance (this does not mean the same rates – rates are based on sales, type of work being done, claims and claims management).

Potential Concerns • Q. Will mandating insurance increase the risk to RCAIC

because of – more members, more projects and greater overall exposure?

• A. This has not proven to be the case over the past 5+ years of claims management. As a homogenous group, adhering to the same risk management and operating guidelines as provided by the association, RCABC members have shown statistically that their risk profile is the lowest in the roofing industry.

• Q. Competition is good for business. Why would I want to

remove an insurer that may offer my company a more competitive rate?

• A. As things stand now the competition is threatening our very survival and has done nothing but benefit from everything that RCABC and RCAIC has done to date. RCAIC’s motivation is to provide a stable and sustainable insurance product for RCABC members. RCAIC profits do not leave the Province but are returned to the owner group.

• Q. Should the association be concerned that RCABC

members may revolt or leave the association if insurance through RCAIC is mandated?

• A. The Board is extremely concerned and that is why staff has been instructed to engage the membership regarding this issue and report back on January 28th. A similar situation occurred when associate member dues were raised several years ago. There was great concern about losing members. However, those companies that chose to walk did not have products in the Guarantee Program and did not participate in or take advantage of the opportunities offered by belonging to the association – they simply took a free ride on the RCABC Brand. Is it possible that some RCABC Active members are effectively non-participants today?)

• Q. What additional advantages are there for RCABC

(Continued on page 4)

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Members? • A. In addition to the objectives above one of the principal

achievements that RCAIC can realize is to take the extreme highs and lows out of the traditional insurance underwriting cycles over time. RCAIC now has a five year underwriting loss history and can more closely estimate its losses over time. This means that RCAIC is well positioned to provide the type of coverage required by RCABC Members as the construction industry improves its risk management practices.

• Q. What happens if we get a couple of bad apples who are

having extremely bad loss ratios? • A. This can be dealt with on an underwriting basis with

mandated higher deductibles as well as additional rating assessments or other means. A loss by one member insured is not transferred to an individual company or the group as a whole.

• Q. Why will RCAIC be less expensive

than the open markets (Lloyds) in the long run?

• A. RCAIC’s annual premiums consist of two components – fixed costs which run at approximately 25% which encompasses our distribution system through the manager, actuary support, audits and legal. The second component is the conservative reserving for losses. Over the past few year’s our actuary has allowed us to release over $1.5 million in reserves back to our policy holders and shareholder (RCABC) because essentially RCAIC is “not for profit”. Our competition ultimately through Lloyds has the following distribution costs: “For Profit” insurance companies typically run at a fixed expense ratio in the 30-35% range – this on top of the return expected by share-holders – call that 12-15% range. Additional costs include the domestic Canadian broker – 10-15% commission, usually a Canadian Managing General Agent 5-10% take, a London broker 5-7%. This very quickly adds up to 60% of the cost of risk – going to administration which makes you wonder how they are reserving for losses. So ultimately over time we have to deliver much better value to our customers.

Current Liability Insurance Update • Traditional Canadian Insurers continue to list “hot works”

roofing as a precluded class of business and are not providing quotations for roofing companies. Coverage is

(Continued from page 3) available through a few Lloyd’s syndicates who have set up operations in Canada over the past few years. QBE Canada and Catlin Canada are the leading providers of this coverage. RCAIC management has spoken to the Manager of Underwriting for Catlin Canada and the standard rates that they use for underwriting are as follows: $33/$1,000 for “high” risk work; $19/$1,000 for “medium” risk work; and $12/$1,000 for “low” risk work which is consistent with proper underwriting for this class .

• Liability Insurance is also available through various

MGA’s in Canada most notably A.M. Fredericks based in Toronto, Avec Insurance Managers based in Toronto, Can-Sure Underwriters based in Vancouver as well as Chutter Underwriting Services also based in Vancouver. Rates used by Fredericks, Avec and Can-Sure are similar to those used by Catlin Canada.

• Chutter Underwriting continues to aggressively target the

larger RCABC members using extremely competitive and inconsistent rates. They use Catlin’s London based syndicate as the lead underwriter on their program and have even taken business away from Catlin Canada this year. They display a constant practice of not underwriting their business. Example: Company X with revenue of $10 million renewed with Chutter in 2009 for premium of $62,000; 2010 renewal with revenues of $15 million renewed at a premium of $71,000. Chutter is not “underwriting” their insured’s based on risk – what they are doing is called “cash-

flow” underwriting where they know that if they stay within a certain price range they will be able to attach RCAIC clients or successfully retain their clients – just based on price.

Coverage issues continue to be a concern for RCABC in regards to Warranties issued by non-RCAIC insurers. Management continues to see “Hot Work” warranties provided by these insurers that require the “hosing down of the area – prior to and after the application of heat”. There also continues to be a variety of Water Ingress exclusions listed on these policies.

Solvency Issue in Regards to Canadian Licensed Insurers In November of this year RCABC’s lawyers wrote a letter to Lloyd’s Canada, Catlin Canada, OSFI, PACCIC, and FICOM enquiring as to the validity and solvency of Lloyd’s markets in Canada. Lloyd’s Canada’s lawyers confirm that the London

A loss by one member insured is not transferred to an

individual company or the group as a whole.

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based syndicates of Lloyds do not have the same solvency requirements of Canadian based insurers and do not have the same financial reporting requirements to OSFI of Canadian based insurers. It should be noted that twice in the last 30 year’s similar programs using Lloyd’s London based syndicates have left B.C. based programs for insured companies “high and dry” on filed claims due to the syndicate’s insolvency issues. These two incidents were in the Fishing Boat and Aviation side of the business. The original requirements laid out by RCABC when they created RCIAC required that all their members must provide proof of valid insurance placed with a licensed Canadian Company. It is clear from the response by Lloyd’s Canada that the coverage placed through some intermediaries does not meet that requirement.

Asbestos Issues For the first time in our history RCAIC was involved in fires – both of which required “asbestos abatement” which is not covered by RCAIC wording (or other policies until recently) and the clients were faced with uninsured losses. This is an exposure which we did not contemplate originally when RCAIC was formed and it has only really evolved as we have discovered for the last 10 years. None the less it is a substantial exposure faced by our RCABC member base and it is something that RCAIC may want to insure for them. The average “asbestos abatement” project cost for a 3-4 story apartment building in B.C. is $250,000 with a high of $2 million. It should be noted that municipality authorities will mandate total asbestos abatement of a building if the loss exceeds 75% of the assessed value of the building. RCAIC management is currently reviewing “asbestos” wording with the view that because this is an issue for RCAIC insured’s a mechanism to provide coverage is a priority. A similar review occurred regarding “water ingress” issues. RCAIC was the first to include water ingress coverage, an important factor for roofing contractors. This is the beauty of a Captive Insurance Company. Insurance can be tailored to address the potential claims encountered by a specific cohort. In conclusion, RCABC members are reminded that RCAIC returned premium to RCABC (as a dividend on investment) as well as it’s insured’s after a three-year accumulation of reserves and on the actuarial advice of Price Waterhouse Coopers. During that same period, RCAIC invested significant monies in protecting all RCABC Members from any litigation

from the “leaky school” investigations undertaken by government. As well, additional profits from RCAIC provided the RCABC Board the flexibility to remove the $.20/hour levy

previously paid by RCABC members to support apprenticeship as well as marketing and promotional activities. RCAIC also pays for risk management / safety courses attended by RCABC members as well as making it possible for the $500 subsidy paid to every apprentice from outside the lower mainland that attends school at the Roofing Institute. RCAIC has also made it possible to have a dedicated staff person available to assist RCABC members with safety and Risk Management issues. And finally, apart from bringing stability and reasonable insurance rates for all RCABC Members, RCAIC is in the enviable position of retuning profits

through dividends and / or premium rebates to the association which in some form or another is returned to all Members of RCABC. As a strategic goal (to identify a mechanism to diversify revenue), recognized at the last planning session by the RCABC Board, the creation of RCAIC has allowed the Board to all but eliminate charges to RCABC Members.

In Summary In the life of every association there are key decisions faced by those elected to represent the membership, the Board of Directors. In the past, the decision to build a facility dedicated to the education and training of an industry was controversial but proved to be insightful. The decision to build Phase 2, and again Phase 3 have also met with some resistance but the result is a qualified and professional workforce available to RCABC members at a time when other organizations struggle to attract and retain qualified tradespersons. Recent policy decisions such as the apprentice / journeyman ratios, the “no torch to wood” policy and the requirement for COR, as well as continual, changes to the Guarantee Standards, are the result, not of arbitrary decision making by a Board of Directors divorced from reality, but rather, a Board of Directors informed and advised by professionals, an elected Board dedicated to enhancing opportunities for all RCABC Members. In advance of the Board of Directors meeting on January 28, 2011 – please direct all enquires, comments, and / or information in writing that you wish to have received and reviewed by the RCABC Board regarding this issue. All comments will be presented to the Board.

Lloyd’s Canada’s lawyers confirm that the London based syndicates of Lloyds

do not have the same solvency requirements of Canadian based

insurers and do not have the same financial reporting requirements to OSFI of Canadian based insurers.

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REF Report Apprenticeship classes are in full swing and attendance has been very good. We are very excited to be using our new Sheet Metal shop and expanded mock ups for both flat and steep roofing. Architectural Sheet Metal apprentices are enjoying the extra space to work on their projects and the exceptional tools they are able to use. As we now have eight steep roofing mock ups, Roofing Apprentices can now demonstrate and be evaluated on their individual skills. These photos

on the right will give you some idea of our new facilities.

Career Fairs December and January are always busy months for career fairs. We are always there promoting RCABC and the Roofing Industry recruiting future apprentices and employees for our members. They also provide an opportunity to promote the upcoming ACE IT Program in May, 2011. Some of the fairs attended have been in Victoria, Abbotsford, Kamloops and Kelowna.

Top Apprentice Tyson Nordby from SL Roofing in Cranbrook was the recipient of the Dr. Laaly Award, receiving his plaque at the Awards Lunch. Tyson also won the grand prize at the RRR—a trip for two to Las Vegas!

COR Compliance 2011 Roger Sove, in his role as Risk & Safety Management Supervisor, is continuing to help any members that are not yet COR certified. The deadline is fast approaching and Roger is available to provide information and assistance so feel free to contact him.

You can phone Roger (7:30 am to 4:00 pm Monday to Friday) at 604-882-9734, extension 213, or fax the Education department at 604-882-9684, or email: roger@rcabc.org

TRAINING MANAGER’S MESSAGE

Education & Training Manager Shirley Caldwell

Thank you Our Associate Members often donate supplies, provide guest speakers and contribute in various ways to our apprenticeship classes. This year, in recognition of their contribution, plaques were given out in appreciation for the resources they generously contributed to the Apprenticeship & Continuing Education programs.

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Safety Symposium The next Safety Symposium for the Steep Roofing Industry will be held in Cranbrook on Feb. 17th, 2011. This will be the second Partnership Symposium for RCABC with WorkSafe BC. The Lower Mainland Symposium is in the planning stages but there has not yet been a date set.

IKO Industries Ltd. Mike Tolhurst

Carlisle Syn Tec Systems Canada

Leonard Coughlin Firestone Building Products Enzo Saponaro

HAL Industries Inc. Bob Woykin

Makin Metals Ltd. Philip Powel

Menzies Metal Products

Phil Jones

Roofmart Pacific Ltd. Michael Stewart

Soprema Inc. Jamie Mantle

RGC UPDATES: RGC Material Acceptance Applications Accepted in 2010 Soprema Canada Inc.

•Alsan RS 230 Flash PMMA, (scrim reinforced liquid membrane) •Soprastar Flam WF SBS (MB cap sheet) •SopraRock DD, SopraRock DD Plus (mineral wool insulation) Roxul Inc. •TopRock DD & TopRock DD Plus (mineral wool insulation) IKO Industries Ltd. •Waterproofing Membrane Systems (qualifying SBS membrane assemblies) •Armourshake (asphalt shingles) •IKO MS Detail (scrim reinforced liquid membrane) •IKO Cold Gold (proprietary roof system adhesive) Garland Canada Inc •Qualifying SBS membrane assemblies (Waterproofing Membrane System) •GMX Hot Applied Rubberized Asphalt (Waterproofing Membrane System) •Qualifying SBS membrane assemblies (Roof Membrane Systems) •Prop. BUR Assemblies (Fibreglassfelts/SBS) SMT Reasearch Ltd. •Roof Moisture Survey System - (moisture survey and monitoring system for waterproofing) Firestone Building Products •Resista Polyisocyanurate, (insulation) •UltraPly Invisiweld 60 mil. (TPO)

Technical Technical Technical ManagerManagerManager

Jim WatsonJim WatsonJim Watson

TECHNICAL MANAGER’S MESSAGETECHNICAL MANAGER’S MESSAGETECHNICAL MANAGER’S MESSAGE Tech-Crete Processors Ltd. •CTI / SRI Concrete Topped Insulated Roof Panels (concrete topped insulation) Dow Chemical Canada •Tiempo 2000 (TPO membrane) GAF/Elk •Capstone, Timberline Cool (asphalt shingles) Malarkey Roofing Products •Highlander CS AR, Ecoasis, Northwest XL AB, Ecoasis Premium. (asphalt shingles) Grace Construction Products •Grace Ice & Water Shield (eave protection.& underlay) •Grace Ice & Water Shield HT (eave protection & underlay, inc. metal roofs) •Grace Ultra (300 degree metal roof underlay) •Grace Tri-Flex (asphalt & cedar underlay) •Grace Tri-Flex Xtreme (asphalt & cedar underlay) Blue Ridge Fiberboard Inc. •Structodek (high density fibreboard insulation & coverboard)

New Guarantee Standards Approved 2010 A4.1 INSULATION & OVERLAY BOARDS Effective on all jobs tendered on and after September 1st 2010 Polyisocyanurate Insulations with organic (paper) facers will no longer be permitted for use on projects in the RGC Guarantee Program. NOTE: Only non-organic facers (e.g. fibre-glass or acrylic) will be acceptable for use in the RGC Guarantee Program. AND: Effective on all jobs tendered on and after September 1st 2010 the following RGC Guarantee Standards A4.1.2 & A4.1.3 provide new requirements for multi-layering all plastic foam insulation types on projects in the RGC Guarantee Program. A4.1.2 Multi Layering - All square edge flat format plastic foam insulation boards, that have a thickness greater than 67.5 mm (2.7”) in thickness, shall be installed in multiple staggered layers on all adhered, mechanically attached and loose laid ballasted low sloped roof assemblies. In addition, all slope format plastic foam insulation boards greater than 150mm (6”) in thickness shall be installed in multiple

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staggered layers or alternatively be installed under a minimum of two staggered layers of RGC accepted insulation overlay boards. A4.1.3 Overlay Boards - RGC accepted insulation cover or overlay boards shall be installed over all plastic foam insulations on all adhered and mechanically attached low sloped roof assemblies. RGC guarantee standard A1.2 Material Storage now includes the following requirement. A1.2 Material Storage & Protection All installed roofing system materials that are susceptible to moisture damage shall be made weather tight by end of each work day. Asphalt Shingle specification 7.1.2 Steep & 7.1.4 Low slope, as well as Cedar Shake and Shingle RPM sections in Tab 7.2 now include the following requirement. A6.3 Strip-in Type Vents & Penetration Flashing (Low Slope), Strip-in type roof penetration flashings (lead, aluminium, stainless steel, copper, etc.), must be properly sized to fitted roof pipe penetrations or alternatively when pipes are irregular in size oversized flashings with sprayed foam insulation may be used. All organic based asphalt shingles are as of this date NOT accepted for use in the RGC guarantee Program and all listings for organic based asphalt shingles will be removed from the RGC Accepted Materials list during the next update of the RGC Roofing Practices Manual. Vent heights RGC guarantee standards, are now a minimum of 200mm (8”) on roof slopes of less than 1:3 (4” in 12”), for all roofing material types. E2.2 Concrete Decks .4 Cold joints between concrete pours, at horizontal concrete decks and vertical walls that are at or below grade, shall be sealed and covered with waterproofing membrane flashing. Membrane flashing shall cover all deck/wall transitions, shall lap over cold joints and onto horizontal slabs (deck) a minimum of 200 mm (8”), and be compatible with both the deck and wall waterproofing or damp proofing materials. Or alternatively, when materials at deck /wall transitions are not compatible the use of compatible sealants and termination bars that create a watertight lap that is a minimum width of 200 mm (8”), is acceptable. A4.5 Insulation & Thermal Barriers on Steel Decks .1 When installing insulation or thermal barriers directly over steel decks, all edges of the insulation or thermal barrier are to be fully or intermittently supported by the deck. .2 Mechanical fasteners must penetrate steel decks a

minimum of 20mm (3/4") and must be located in the top flutes only. .3 The minimum thickness of insulation directly over fluted steel decks shall be a minimum of one-half the nominal flute width. Additionally, the minimum allowable thickness of expanded polystyrene or unfaced glass fibre insulation shall be 38 mm (1-1/2"), and the minimum thickness for extruded polystyrene, faced glass fibre, faced polyisocyanurate, etc. shall be 25 mm (1"). (For loose laid ballasted systems, see Tab 2.1.3, C.4.3.)

RGC Research & Development Initiatives •Metal Wall Cladding Guarantee Standards •Standards development by Busque Engineering NRC/RCABC/ Associate Member Firms Research Project •Sheet Metal Edge Flashing Wind Uplift Research – Project Startup 2011 NRC/SOPREMA Inc/RCABC Research Initiative: •Impact of Thermally Induced Stresses in Modified Bituminous Roof Systems •Ongoing testing at NRC Testing to determine the source of thermal stresses that may result in the buckling & wrinkling of Mod Bit membranes.

Guarantee Program Statistics 2009-2010

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ENGINEERING VALUE EVP Report at the 2010 AGM On behalf of President Rod Parker and the RCABC Board, welcome to the RCABC’s 2010 Annual General Meeting. As in past meetings, detailed departmental reports will be presented by Technical Manger - Jim Watson, Education & Training Manager - Shirley Caldwell and the RCABC Group Controller - Johanna Kuker. Their presentations will contain key information describing the ways in which engineering value was achieved technically, educationally and financially during fiscal 2009 / 2010. As well, the chairpersons of the various Standing Committees will report on the actions over which they presided during this past year which, by all reports, surpassed expectations on every level.

In addition, we are fortunate to have a special presentation outlining a new but compatible direction for the guarantee program. The presentation, one that encompasses future business expansion opportunities for RCABC Members, will be presented by Pierre-Michel Busque of Busque Engineering Ltd., an RGC Accepted Inspection Firm. Pierre is an engineer and building envelope expert who was hired by the Board to provide a feasibility study to examine the potential to expand the RGC Guarantee Program by including architectural metal wall panels.

A better description may be the development of standards for preparation for the attachment of metal panels, in order to bring surety to this sector of the damp proofing industry. As you know this sector, call it water ingress avoidance if you like, has traditionally fallen within the scope of professional roofers. In view of the investment that RCABC has made in a world class ASM education and training program, one that includes a significant emphasis on building envelope issues, it is timely that RCABC members consider expanding their business model to include opportunities in a sector that is complementary with core business practices.

The stand alone report presented by Don Rose, manager of the RCA Indemnity Corporation, is scheduled after the break. As you know, RCAIC emerged from the crisis of insurance availability that occurred after 911. Although I am sure everyone present remembers the 911 events, perhaps not everyone is aware of the significance that these events had on the availability of liability insurance, especially to members of the roofing industry. Make no mistake this was a crisis for many RCABC members, members with established companies with positive balance sheets. And although today the insurance market is soft and appears stable, world events can affect rates and availability without warning. There will be an opportunity for members to discuss the merits of

RCABC’s special purpose insurance company, to address any misconceptions regarding the efficacy of RCAIC compared with traditional insurance companies, as well as to ask general questions of the manager and some of the key professionals working on behalf of RCAIC.

I am confident that all the information you are about to hear will provide insight into the strategic direction of the association in the recent past as well as the immediate future.

However, before you are inundated with information that speaks to the strengths of the association, and the Boards commitment to engineering value for the benefit of all members, I want to take this opportunity to stray from the usual EVP reporting path to offer some comments, some observations, and possibly some insight by reflecting upon the themes as well as the Presidents the guided RCABC through the challenges of the day, challenges that resonate still.

As most of you know, this is my last address as Executive Vice President. Like many of you, I too have been in a reflective state of late, some say for perhaps too long. There is no doubt that aging and the knowledge that change is taking place both within and without the organization is a factor in my decision. The passing of key individuals during the past few years, as well as the events of recent days, reinforces the fact that the timeline between career and retirement is blurred and the choice of when one ends and the other begins is often not ours to make.

My report is not meant to be just nostalgic, rather it my opportunity to emphasize the fact that not only do you belong to the best roofing association in Canada, you are served by individuals that have taken the time to volunteer on your behalf and in doing so, your stature has been raised as well as the value of your company within the entire roofing community. Over the past eight years I have had the great fortune to work with Presidents and Boards of Directors whose focus has been on engineering value for all RCABC Members.

Reflection on the Themes of the past 8 years – a tribute to the presidents and their qualities that guided my tenure as Executive Vice President

2001/2002 THE VALUE OF HIRING FROM WITHIN AUGUST KNACKSTEDT Still a member of the RCAIC Board - cantankerous at times - an individual who is not afraid to say what is on his mind…

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My comments at that time are worth considering given the transition occurring today. By “hiring from within” the Board has signalled that the unique abilities of all staff, our collective contribution to the continued success of RCABC and particularly, our adherence to the vision pioneered by past leaders of this association, does not go unnoticed.”

2002/2003 EMPHASIZE EDUCATION – EXPECT EXCELLENCE DAVID FLINT Always up for a philosophical discussion, passionate about the things he values, assertive

“Today, our emphasis on education is truly reflected in the excellence of the trained people entering our industry. Our commitment to quality will ensure that the RCABC star will continue to rise even as provincial support for standards and certification fades.”

2003/2004 TRADITION, TRANSITION, TRANSFORMATION FRANCIS GALLICHAN Quiet, strong, straight shooter who prefers stepping out of the limelight

“…Tradition, Transition, Transformation is a respectful reference to the traditional founders of RCABC and their contributions to the roofing industry, acknowledgement that the Board demographic was transitioning due to the election of new Directors and as a result, the Association was transforming….”

2004/2005 FROM SUCCESS TO SUCCESSION – PLANNING STRATEGICALLY IVAN VAN SPRONSEN Ivan fills up a room and firmly believes in

the value and vision of this association and as he has remarked…never met a microphone he didn’t like.

“From Success to Succession – Planning Strategically is an attempt to promote awareness among the membership about the strategic planning evident in the contents of the reports being presented today, while at the same time emphasizing the need to consider the future of your businesses as well as the primary resources that have a direct impact on your success.”

2005/2006 LEADING, PLANNING, DOING – A BLUEPRINT FOR SUSTAINABILITY LYLE NELSON One of the youngest president, intelligent and willing to challenge the status quo,

values diversification

“…when associated with words such as leading, planning and doing, sustainability best describes the “hands on” approach to work that has guided RCABC leaders in the past, invigorated the planners of the present and facilitated mentoring of the doers of tomorrow.”

2006/2007 TIME TO REFLECT, TO DEMONSTRATE RESOLVE TO REVITALIZE LEN EDMONDSON

Assertive, focused on value for the members, understood the value of diversification

What will the inevitable transfer of responsibility from one generation to the next mean to your business and to RCABC? How will you maintain and strengthen the professionalism associated with RCABC membership? Should membership be increased? How will you ensure that material standards and standards of application remain industry “best practices”? How will you show continued support for education and training as human resources become scarcer?

(Continued on page 14)

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2007/2008 SINCE 1958 SETTING THE STANDARD ROSS LAING Great ambassador for RCABC when on the CRCA Board – our 50th Anniversary host, sees the value of diversification

Today, December 6, 2008 is truly a milestone. It is the Annual General Meeting of an association that has been around for fifty years. Ladies and Gentlemen, RCABC is the oldest Roofing Contractors Association in Canada.

2008/2009 BUILDING ON FIFTY YEARS OF INNOVATION ELDON DONALD Quiet, introspective, thoughtful and reflective, supportive of the association values and vision.

“…reflects the focus of RCABC today, yesterday …tomorrow as well. This is an association that is expanding and creating opportunities for all members, not only by paying attention to existing roofing trends but also, through strategic diversification aimed at protecting, as well as growing, your market share. Most importantly, building on 50 years of innovation signals a continued investment in a workforce recognized by RCABC Members as a true renewable resource rather than an expendable commodity.

2009/2010 ENGINEERING VALUE ROD PARKER Youngest president, very self assured, intelligent, unapologetic, strong supporter of education and training, human resource investment, values of diversification

“Engineering value encapsulates the guiding principles and strategic initiatives that have defined the success of RCABC throughout its 52 years.”

(Continued from page 13) ENGINEERING VALUE You will notice that thoughout my report, the term “engineering value” has been used several times. It is a theme that I think sums up what I have attempted to do these past eight years. Engineering value encapsulates the guiding principles and strategic initiatives that have defined the success of RCABC throughout its 52 years.

Engineering value is the brand of a proud and resourceful association, an organization that continuously strives to create opportunities for you and your employees as well as for the entire roofing community. RCABC is in the business of engineering value - the alternative need not be mentioned.

A SPECIAL PARTNERSHIP Seriously – I think the picture says it all.

Before I sum up, I want to speak briefly of partnership. Occasionally, if we are lucky, we have the opportunity to work with someone who shares the same work ethic, the same “can do” attitude; a person who is not intimidated by so called experts regardless of the letters behind their name or the opinions they have published. In my case, such a person is Jim Watson. Jim has been a special partner

since we began working together in 1995.

Over the years we have discussed our successes – few I admit - and especially our mistakes – which were many. We have learned how to mediate, to negotiate and sometimes to draw a line in the sand. We have agreed and disagreed, sometimes p a s s i o n a t e l y . M o s t importantly however is that we have enjoyed working together, we have enjoyed

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working for an association that has challenged us in many ways, without compromising our ethics or our values while providing us with the tools to be successful.

Jim has been an incredible ambassador for RCABC, one who has earned the respect of the industry from coast to coast. He is an individual that I am fortunate to have had the privilege to work with.

CLOSING COMMENTS

RCABC is an association without equal in North America. The value of belonging to RCABC, and the opportunities that accrue due to membership in this association, are the envy of professional roofers, as well as their representative roofing associations, across the country.

The opportunities unveiled today, the decisions made at today’s meeting, the new directors that will be elected today – are all part of the changeover that is occurring within RCABC. The decisions made during this our 52nd. year is just as significant as the pivotal decisions of the past. New directors will bring ideas and leadership that will guide RCABC through another transformation. You can be sure that the evolution of this association is due to a strategic vision guided by competent individuals with your collective best interest at heart.

The transition that is currently taking place is evidence that the Board, my successor Ivan Van Spronsen and I, as well as Jim Watson and his successor Rob Harris, are focused on ensuring that nothing is lost and much will be gained as RCABC’s succession plan evolves. At the same time, the key elements that assist with the sustainability of your companies, (education, risk management, business opportunities, technical information, marketing, as well as social events) remain the highest priority of the association leadership. Those priorities are the focus of all RCABC staff, a team that works tirelessly on your behalf to insure that you, your company and your employees receive service and information in a timely and respectful manner.

I have been incredibly fortunate to work with these professionals who, despite my fickle nature and my occasional desire to rage against the machine, have supported me through these many years. I sincerely want to thank them all, and all of you, for the opportunity.

Thank you,

Brian Hofler, M.Ed. Executive Vice President

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2 Entertainment Committee Mon 9:00 am 9 RCAIC Board of Directors Mon 10:00am 17 Risk Management Committee Tues 10:00 am 19 Education & Training Committee Thurs 10:00 am 23 CLOSED VICTORIA DAY

7 Technical Committee Thurs 10:00 am 11-13 CRCA Conference/RoofTech Montreal 22 CLOSED GOOD FRIDAY 25 CLOSED EASTER MONDAY

PRESIDENT: Tony Caputo, Eby & Sons Construction VICE PRESIDENT: Laurence Matzek, Bollman Roofing SEC’TARY/TREASURER: Bruce Taylor, Alpha-Duron Roofing PAST PRESIDENT: Eldon Donald, Coast Hudson DIRECTORS: Ray Dennis, PRC Roy Dennis Roofing Lyle Nelson Nelson Roofing & Sheet Metal Ross Laing Laing Roofing Colin Rasmussen Western Roofing (Master Roofers) Alex Goldie Admiral Roofing Howard Schlamb Chilliwack Roofing John Silva Flynn Canada Leonard Coughlin Carlisle SynTec Systems Canada Jamie Mantle Soprema Ali Nanji Convoy Supply Philip Powel Makin Metals

9734 - 201st Street, Langley, BC V1M 3E8 604-882-9734 www.rcabc.org

RCABC BOARD OF DIRECTORSRCABC BOARD OF DIRECTORSRCABC BOARD OF DIRECTORS

ADMINISTRATION: Executive Vice President: Brian Hofler, M.Ed.: executivevp@rcabc.org Associate EVP: Ivan van Spronsen: ivan@rcabc.org Executive Assistant/Events: Barbara Porth: bporth@rcabc.org Controller: Johanna Küker, CGA: johanna@rcabc.org Bookkeeper: Patrick Opong: patrick@rcabc.org Receptionist/Administrative Assistant: Adele LaRiviere: adele@rcabc.org TECHNICAL & GUARANTEES: Technical Manager: Jim Watson, TQ, PRC, RRO: technicalmgr@rcabc.org Assistant Technical Manager: Rob Harris, IP, RRO: rharris@rcabc.org Guarantee Administrator: Karen Esbensen: guarantees@rcabc.org EDUCATION & TRAINING: Education & Training Manager: Shirley Caldwell, TQ, PID: scaldwell@rcabc.org Registrar: Michelle McKinnon, PID: registrar@rcabc.org Instructor: David Rice, IP, PID, RRO: instructor1@rcabc.org Instructor: Connor Höfler, BA, TQ: asm@rcabc.org Instructor: John Scott: RISK MANAGEMENT: Risk & Safety Management Supervisor: Roger Sové, CSC, PID,IP: roger@rcabc.org

CALENDAR OF EVENTSCALENDAR OF EVENTSCALENDAR OF EVENTS

27 RCABC Executive Committee Thurs 10:00 am 27 Education & Training Committee Thurs 3:00 pm 28 RCABC/RGC Board of Directors Fri 9:00 am

8 Risk Management Committee Tues 10:00 am 14 RCAIC Board of Directors Mon 10:00 am 14-18 NRCA Convention/Int’l Roof Expo Las Vegas 21 Entertainment Committee Mon 9:00 am

9-12 RCABC/RGC Strategic Planning Phoenix 23 Membership/RGC Inspection Cmte Wed 10:00 am 23 RCABC Executive Committee Wed 3:00 pm 24 RCABC Board Strategic Planning Thurs 9:00 am 25 RCABC/RGC Board of Directors Fri 9:00 am

FEB

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A

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MA

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3 Entertainment Committee Mon 9:00 am 10 CLOSED THANKSGIVING 17 RCAIC Board of Directors Mon 10:00 am 27 RCABC Executive/Audit Committee Thurs 3:00 pm 27 RCABC Nominating Committee Thurs 5:00 pm 28 RCABC/RGC Board of Directors Fri 9:00 am

5 CLOSED LABOUR DAY 15 Membership/RGC Inspection Thurs 12:00 pm 15 RCABC Executive Committee Thurs 3:00 pm 16 RCABC/RGC Board of Directors Fri 7:00 am 16 Regional Golf Tourney Victoria 12:30 22 Technical Committee Thurs 10:00 am

15 RCABC Executive Committee Wed 3:00 pm 16 RCABC/RGC Board of Directors Thurs 9:00 am 17 Lower Mainland Golf Tourney Northview 12:30

NO MEETINGS

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1 RCABC Executive Committee RiverRock 3 pm 2 RCABC/RGC Board of Directors RiverRock 8 am 3 Annual General Meeting RiverRock 9 am 3 Awards Lunch RiverRock 12 pm 3 RRR Reception & Dinner RiverRock 5:30 26-Jan 2 CLOSED CHRISTMAS BREAK

4-5 RGC Accepted Inspectors Course Fri-Sat 8:00 am 8 Risk Management Committee Tues 10:00 am 11 CLOSED REMEMBRANCE DAY N

OV

D

EC

JA

N

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