architectural services department the public private partnership experience sharing seminar on ppp...
TRANSCRIPT
Architectural Services Department
The Public Private PartnershipExperience Sharing Seminar
on PPP Duty Visit to Canada 19 - 28 June 2006
Toronto:
Ottawa:
Better Building Partnership
ByWard Market
By Uson CHUNG, Senior Project Manager
Architectural Services Department
CapitalExpenditure Core
Operation
Recurrent ExpenditureNon-coreOperation
FacilityManagement
FacilityMaintenance
Revenue
The Public Private Partnership
Architectural Services Department
CapitalExpenditure Core
Operation
Recurrent ExpenditureNon-coreOperation
FacilityManagement
FacilityMaintenance
Revenue
TorontoBetter Building Partnership
(BBP) Programme
Better Building Partnership
Architectural Services Department
Background
• January 1990, City of Toronto committed to reduce city's net carbon dioxide (CO2) emissions by 20 per cent, relative to 1988 levels by the year 2005.
• In 1996, launched BBP Programme• In 1999, the newly amalgamated City of
Toronto reaffirmed goal and launch full scale programme
• City of Toronto steers and takes a lead role
HOW?
Better Building Partnership
Architectural Services Department
Toronto’s Energy Consumption
Commercial21.7%
Institutional8.1%
Residential18.2%
Industrial 13.6%
Transportation36.1%
Street Lighting0.1%Multi-Residential
2.2%
Better Building Partnership
Architectural Services Department
People
Structure(passive)
Systems(energized)
Building Renewal and Energy Efficiency
Better Building+
Better Education
HigherEnergy
Efficiency
Better Building Partnership
Architectural Services Department
How to deal with so many buildings? So many people?
Better Building Partnership
Architectural Services Department
Better Building Partnership
• Oversee the program • Provide independent,
un-biased technical advice to the building owners
• Pre-qualify and screen EMFs
• Provide loans to building owners through the Loan Recourse Fund (LRF)
• The EMF (Energy Management Firms, a team of experts in their field) - provide "turn-key" solutions from feasibility study to construction and commissioning.
• Toronto Hydro and Enbridge Gas Distribution Inc. - provide training and educational programs and technical advice on new and emerging technologies.
• Join BBP programme
• Agree financing and re-payment arrangement with EMF
• Attend training programs
ConsultantsOwners & Tenants
Public-Private Sector Partnership
Architectural Services Department
An innovative public-private sector partnership program that promotes and implements energy-efficient retrofits of commercial, institutional and multi-residential buildings.
Environmental initiative that addresses and supports CO2 emission reduction (Kyoto protocol, 20% Goal)
Major job creation and economic development initiative
What is the Better Buildings Partnership ?
Better Building Partnership
Architectural Services Department
City of Toronto Toronto Atmospheric Fund Enbridge Gas Distribution Toronto Hydro Corporation 36 Implementing Partners Property managers for over 440
buildings
BBP Sponsors and PartnersBetter Building Partnership
Architectural Services Department
• Workplace Health & Safety
• Project costs normally recovered from energy savings
• Off-balance sheet financing
• Innovative financing, credit enhancement by City and the Toronto Atmospheric Fund (TAF), and loan leveraging for private buildings
• Better Buildings Loan Repayment Reserve Fund
• Loans to public/non-profit sector fully secured, partially secured or unsecured depending on needs of each project
Program FeaturesBetter Building Partnership
Architectural Services Department
• The Residential Energy Awareness ProgramThe Residential Energy Awareness Program is a program designed to increase the public's knowledge of energy efficiency and conservation in the residential sector. By increasing awareness around lifestyle changes that would reduce household energy use, we protect the environment and save money.
• The Large Office Building ProgramThe Large Office Building Program has been a very successful component of the BBP and has already achieved great energy/water cost savings. Expansion of this program across the entire city will enable many more building owners to participate in the program.
• The Small/Medium Commercial Buildings ProgramThe Small/Medium Commercial Buildings Program provides tools that assist participants of this sector to realize energy and expanding cost savings. This program is designed to increase awareness of the benefits of energy efficiency and to provide financial solutions for these projects.
• The Multi-Residential Non-Profit Buildings ProgramThe Multi-Residential Non-Profit Buildings Program was oversubscribed in the pilot phase of the BBP as there was a tremendous market response. Potential benefits for building owners in this sector include decreased operating costs, reduced maintenance costs and an increase in property value.
• The In-House Energy Efficiency ProgramThe In-House Energy Efficiency Program retrofits municipally-owned buildings. Energy/water efficiency continues to an opportunity for cost reduction and environmental protection through CO2 reduction.
• The BBP Loan Recourse FundThe BBP Loan Recourse Fund provides loans through the Enbridge Gas Distribution Inc. to building owners for energy efficiency retrofit projects by securitizing loans. This is an innovative program designed for the small/medium ICI and multi-residential sectors.
BBP ProgramsBetter Building Partnership
Architectural Services Department
• Enhance and preserve asset value of buildings
• Reduce operating costs
• Improve position for purchasing power
• Improve occupant comfort and productivity
• Enhance tenant satisfaction and retention
• Demonstrate environmental stewardship
• Energy Efficiency can be strategically integrated into the overall property management plan
Why BBP?Better Building Partnership
Architectural Services Department
• No risk to owners– Guaranteed savings and paybacks
• Cash flow neutral with available financing– Guaranteed savings
• Capital upgrades & energy and operational advantages– Planned replacement of equipment
– Control of energy costs in a volatile market
• Turnkey solutions– eliminate additional workload for staff
Business Case: Self-Funded Solution
Better Building Partnership
Architectural Services Department
• BBP assesses the building
• Building Owner issues Request for Proposals (RFP)
• Energy Management Firms (EMF) conduct walk-through audit and submit proposal
• Building owner signs Letter of Intent to selected EMF
• EMF completes a detailed feasibility study
• If the feasibility study supports original energy savings: project proceeds or pay
• If the engineering study is negative: project folds and the building owner is not billed for the work performed by the EMF
The Energy Retrofit ProcessBetter Building Partnership
Architectural Services Department
• Building owner and EMF finalize measures• Building owner signs Contract• EMF completes detailed engineering design• EMF, in consultation with building owner, selects
the equipment and contractors• EMF manages implementation of measures• EMF and building owner verify energy savings
The Energy Retrofit Process (cont’d)
Better Building Partnership
Architectural Services Department
• Offers new, reliable, and efficient equipment• Reduces need for:
– expensive repairs– replacement of equipment– mechanical service contracts
• Greater building comfort for building occupants• Greater savings, especially as utility costs rise • Better basis for electricity purchase• Improves the environment - CO2 reductions• Building owner shows leadership by managing
and reducing overall building operating costs
Project GoalsBetter Building Partnership
Architectural Services Department
Typical Measures
Chillers
Bldg. Automation Lighting
Envelope Boilers
HVAC
Better Building Partnership
Architectural Services Department
• No. of buildings 443
• Floor Area Retrofitted 39 million ft2
• Job Creation 3,800 person years
• Operating Cost Reduction $19 M per year
• Economic Impact $131 M
• CO2 Emission Reduction 173,600 tonnes/yr
• Cumulative CO2 Emission 876,118 tonnes Reduction (2004)
Results to DateBetter Building Partnership
Architectural Services Department
• $2M project - 3 bldgs.• $172,000 in annual savings• 11.9-year simple payback• Boilers, lighting, building
automation, glazing, HVAC
• CO2 reduction ‑ 5,755 tonnes per year
YMCA of Greater TorontoBetter Building Partnership
Architectural Services Department
• $1.2M project - 13 bldgs.• $176,000 in annual
savings• 7-year simple payback• Lighting, DHW, boilers
• CO2 reduction ‑ 2,013 tonnes per year
Toronto Community Housing Company
Better Building Partnership
Architectural Services Department
• $4M project‑7 bldgs.• $570,000 in annual savings• 7-year simple payback• Boilers, chillers, lighting,
asbestos removal
• CO2 reduction - 6,600 tonnes per year
City of Toronto BuildingsBetter Building Partnership
Architectural Services Department
• $3.2M project - 85 bldgs.• $282,000 in annual savings• 11.4-year simple payback• Lighting, lamp and PCB ballast
recycling, building automation, fuel conversion
• CO2 reduction - 4,200 tonnes per year
Toronto Public LibraryBetter Building Partnership
Architectural Services Department
• $1.65M project • $112,000 in annual
savings• 14.6-year simple payback• HVAC, boilers, air sealing,
water conservation, washroom renovations, telephone system
• CO2 reduction - 571 tonnes per year
Neill-Wycik Student Cooperative
Better Building Partnership
Architectural Services Department
• $225,000 project • $23,000 in annual
savings• 9.9-year simple payback• Boilers (fuel conversion),
lighting, controls
• CO2 reduction - 355 tonnes per year
Supportive Housing CoalitionBetter Building Partnership
Architectural Services Department
• $345,000 project • $44,000 in annual
savings• 7.8-year simple
payback• Boilers,lighting, air
sealing
• CO2 reduction ‑ 426 tonnes per year
LOAN PAID OFF!
Nisbet Lodge Home for the Aged
Better Building Partnership
Architectural Services Department
• $250,000 project• $20,000 in annual savings• 12.9-year simple payback• Heating upgrades, lighting,
insulation
• CO2 reduction ‑ 242 tonnes per year
Metropolitan United ChurchBetter Building Partnership
Architectural Services Department
• $337,000 project • $50,000 in annual savings• 7 year simple payback• condensing boilers for heating
and domestic hot water, air sealing, building automation, corridor ventilation upgrades
• CO2 reduction ‑ 474 tonnes
per year
York Condominium Corp. #386100 Prudential Drive
Better Building Partnership
Architectural Services Department
• $313,000 project • $46,000 in annual savings• 6.8-year simple payback• New condensing boilers for
heating & domestic hot water, air sealing, building automation
• CO2 reduction ‑ 434 tonnes per year
York Condominium Corp. #380301 Prudential Drive
Better Building Partnership
Architectural Services Department
• $33M project - 4 bldgs• $5M in annual savings• 6.6-year simple payback• Elevators, life safety systems,
lighting, building automation, HVAC
• CO2 reduction ‑ 35,000 tonnes per year
Toronto Dominion CentreBetter Building Partnership
Architectural Services Department
• $17M project• $1.4M in annual savings• 12.2-year simple payback• Lighting, HVAC, building
renewal, fire safety, elevators
• CO2 reduction - 27,000 tonnes per year
First Place Tower(First Canadian Place)
Better Building Partnership
Architectural Services Department
• Loan Repayment Reserve Fund
• Loan Leveraging
• Securitization
• Blended Loans (TAF – BBP)
• Private Financing
• Incentive Programs
BBP FinancingBetter Building Partnership
Architectural Services Department
Toronto YMCA buildings
Financed concurrently with 33.3% BBP $$ & 66.6% private financing
Toronto City Buildings
100% EMF working in concert with BBP
Toronto Public Library Branches
Financed concurrently with 33.3% BBP $$ expended into project first then 66.6% private financing serially expended into project after BBP funding
Financing ExamplesBetter Building Partnership
Architectural Services Department
Metropolitan UnitedChurch buildings
Financed concurrently with 33.3%BBP monies and 66.6% in-housefinancing
Nisbet Lodge Homefor the Agedbuilding
Financed concurrently with 33.3%BBP monies and 66.6% privatefinancing
Toronto CommunityHousing CompanyApartments
Financed concurrently with 33.3%BBP monies and 66.6% privatefinancing
Hospital for SickChildren
Financed concurrently with 10%BBP monies and 90% in-housefinancing
Financing Examples (cont’d)Better Building Partnership
Architectural Services Department
Dr. David Suzuki:
“The BBP demonstrates the art of the possible : The positive and practical link between the economy and the environment.
It’s a cause to celebrate, a situation where everybody wins.”
(BBP Launch May 4, 1999 ‑ Design Exchange Toronto)
Better Building Partnership
(A world-renowned geneticist, academic and broadcaster, Dr. David Suzuki has spent the past 40 years educating the public about environmental issues)
Architectural Services Department
CapitalExpenditure Core
Operation
Recurrent ExpenditureNon-coreOperation
FacilityManagement
FacilityMaintenance
Revenue
OttawaBy Ward Market
Marche By/
Architectural Services Department
HistoryMarche By
/
Early picture of Ottawa River
Colonel Bybuilding the Rideau Canal.
Architectural Services Department
Marche By/
• For over 150 years, the City of Ottawa has operated the historic ByWard Market.
• The Market was the central place for farmers to sell their produce, but also to sell cattle and livestock. Butchers would set up shop and slaughter animals right in front of you. Livestock selling continued until the early 1980s.
History
Architectural Services Department
• The original market building was constructed in 1848 and the current one was built in 1926.
• It was renovated in 1975 and re-opened in 1976.
• In 1985, the building became a domain for Art and Craft producers.
• In the early 90’s, the City of Ottawa planned to further develop the area.
Marche By/
History
Architectural Services Department
The PlanMarche By
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• In 1993, the City Council approved the ByWard Market Strategic Plan for the reintroduction of specialty food retail in the Market building as one of the main objective.
• A design and financial feasibility study determined that a renovation of the building was possible and estimated at $3.6 million.
• As the capital funds were not available, Council, in March of 1996, approved a Request for Proposal for the operation and alteration of the building.
Architectural Services Department
The PlanMarche By
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September of 1996
The ByWard Market Building Revitalization Group(BWMRG)
was chosen as the preferred proponent.
Architectural Services Department
The PartnershipMarche By
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• In November 1997, a joint venture (JV) between the City of Ottawa and the BWMRG
was put into place under the terms of a 20 years lease.
• The JV is to ensure that a strong, viable and attractive food retail component continue to serve as a commercial anchor in this dynamic and changing community.
BWMRG
City of OttawaMarkets Management
Architectural Services Department
Eight Key Functions of JVMarche By
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• area/property management• contract/lease management• standholder/tenant relations• tourism, public relations and representation• promotion and marketing• policy development and planning• project management• financial and general administration.
Architectural Services Department
EventsMarche By
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Beginning in November 1997, the building underwent a major transformation and rejuvenation whereby it was expanded, renovated and upgraded in order to house a broad range of specialty food retailers, along with artisans who had for years called the building home.
Architectural Services Department
Marche By/
• BWBRG invested over $2 million in the renovation
• Tenants spent an additional $2 million in fit-up’s.
• Building officially re-opened on June 18, 1998.
Events
Architectural Services Department
ResultsMarche By
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• increased ground floor square footage three fold, from under 6000 to over 18,000 square feet
Architectural Services Department
ResultsMarche By
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• more than 18 tenants in the building
Architectural Services Department
ResultsMarche By
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• all exterior agri-food, arts and craft, and refreshment stand holders, who had occupied stands around the old building, were accommodated through a comprehensive relocation plan
Architectural Services Department
ResultsMarche By
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• in 2005, the City received $105,500 in base rent, in accordance with the rent sharing formula
Architectural Services Department
ResultsMarche By
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• the City received almost $100,000 in property taxes annually
Architectural Services Department
ResultsMarche By
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• the City’s operating savings are estimated at $100,000 per year
Architectural Services Department
ResultsMarche By
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• the Building is fully leased
Architectural Services Department
ByWard MarketMarche By
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Unlike most municipal services which are tax-funded, the Markets program operates on a
cost-recoverable basiswith stand fees and lease revenue covering all
direct operating and capital costs, which amounts to over $1 million annually.
Architectural Services Department
The Public Private PartnershipExperience Sharing Seminar
on PPP Duty Visit to Canada 19 - 28 June 2006
Toronto:
Ottawa:
Better Building Partnership
ByWard Market
By Uson CHUNG, Senior Project Manager