HomeMy WebLinkAboutPD-39-93 `T°F1 CORP~l°IOtJ `BFI °~N O tr~CAST~
DN: WARRANTY.GPA
Meeting; General Purpose and Administration Committee File <-~ o ~ s 4`j
Date: Monday, March 1, 1993 r~,~.C~~~.~~
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Subject: TOWN OF NEWCASTLE - SUBDIVISION AGREEMENT
FURNACE REGULATIONS AND WARRANTY PROVISIONS
FILE: PLN 30.1
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It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. THAT Report PD- 39-93 be received for information.
1. BACKGROUND
1.1 Council at their March 23, 1992 meeting endorsed the following
resolution:
"THAT Staff review and investigate the possibility of
regulating furnaces as part of the Subdivision approval
process to enable the new home purchaser to be offered a
better warranty"
2. STAFF COMMENTS
2.1 In light of the unfortunate incident which occurred within the
Penfound Drive Subdivision, Staff were directed by Committee
and Council to investigate the regulatory aspects of furnace
installation and warranty provisions as they might pertain to
municipal jurisdiction.
2.2 The Ontario Building Code confirms that heating systems must
be designed, constructed and installed in accordance with good
engineering practices as described in the Heating,
Refrigeration and Air Conditioning Institute Publications or
the American Society of Heating, Refrigeration and Air
Conditioning Engineers Landbooks and Standards. .....2
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REPORT NO. PD- 39-93 PAGE 2
2.3 The gas furnaces are subsequently approved by the Canadian Gas
Association, installed by authorized dealers (in this case,
Flamemaster), and inspected by gas company inspectors.
Municipal involvement would include the inspection of the duct
work, while the gas company confirms the furnace itself, the
gas lines and hook-up system. It is Staff's understanding the
gas company inspections include the examination of the heat
exchangers within the furnace units.
2.4 Upon contacting the Ontario New Home Warranty Program, Staff
were advised that any warranty issue was of provincial
jurisdiction and that any claims were regulated and
administered through their office(s). It was confirmed that
the length of the warranty involved was a five (5) year period
and that the heat exchanger defect occurred within a six (6)
month period following the expiry of the warranty.
2.5 Staff would note, that the position of the New Home Warranty
Program would appear to be substantiated in that the Planning
-Act under- which the Municipality is empowered to enter -into -
Subdivision Agreements makes no references that would permit
a municipality to regulate furnaces within the context of an
agreement. Clearly, such is not a land use or planning issue.
2.6 Halminen Homes Ltd., in consultation with Staff at the New
Home Warranty Program, developed two (2) options that were
made available for any Halminen home owner with one of the
furnaces identified as having a defective heat exchanger. To
that end, Halminen Homes issued a press release, outlining the
options available (copy attached) and suggested that any home
owner contact their office for further information.
.....3
REPORT NO. PD- 39-93 PAGE 3
3. CONCLUSION
3.1 In that the Municipality does not have jurisdiction in dealing
with the matter raised by Council, Staff have not proposed any
amendments to the Subdivision Agreement process and provide
this report for Committee and Councils information.
Respectfully submitted, Recommended for presentation
to the Committee
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Franklin Wu, M.C.I.P. Lawrence E. Kot ~f
Director of Planning Chief Administr rive
and Development Officer ,J
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11 February 1993
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HALMIlVEN HOMES LTD. ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ i i ~ i PRESS RELEASE `
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1748 Baseline Road West MARCH 17, 1992 p• s
Courttce, Ontario L1E 2T1 -„ `-, ` ~ ~ y'
(416) 436.2600 Fax (416) 436-9605 , a~ i;r= Ct~~'P,ii~~fi'~i i~~,
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Recent reports in the news media have reported on a number of Flamemaster gas furnaces
that have developed cracks in the heat exchangers of these units which were installed in
new homes, approximately five years ago.
Background Information:
The Canadian manufacturer of the furnaces, Flamemaster, produced furnaces that were
widely distributed across Canada until it ceased operating in 1989.
The furnace units in question, were fully approved by the Canadian Gas Association and
the furnaces were installed and inspected by authorized Consumers Gas Dealers.
The full extent of the problem is unknown at this time since Flamemaster Furnaces were
installed across Canada since the early 1960's.
Remedies for the Problem:
Since being made aware of the problem, Halminen Homes Ltd. has been working very
closely with the Ontario New Home Warranty Program for any Halminen Home owners
that are affected by this situation.
Two options have been developed by Halminen Homes Ltd. for any homeowner with one of
these furnaces that has been identified as having a defective heat exchanger.
Option 1:
Arrangements have been made to replace any defective heat exchangers including
installation at no cost to the homeowner. (The normal manufacturers warranty for heat
exchangers covers replacement parts only but not installation.)
Option 2:
Arrangements have been made to upgrade existing Conventional Gas Furnaces that have
defective heat exchangers with new mid-efficiency gas furnaces made by another
manufacturer.
Details on these new furnaces are as follows:
Special pricing has been negotiated on behalf of Halminen Homeowners to supply and
install these new furnaces at a cost of $995.00 to $1095.00. (depending on furnace size)
Of the above amount, $300.00 to $450.00 will be recoverable through the Ontario New
Home Warranty Program depending on furnace size.
Significant energy savings will result from upgrading to the new mid-efficiency furnaces
now available and the furnaces will be fully warranted by the manufacturer.
For further details, Halminen homeowners are asked to call Halminen Homes.
John Halminen. -