architectural services department the public private partnership experience sharing seminar on ppp...

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


CapitalExpenditure Core

Operation

Recurrent ExpenditureNon-coreOperation

FacilityManagement

FacilityMaintenance

Revenue

The Public Private Partnership



Operation


FacilityManagement

FacilityMaintenance

Revenue

TorontoBetter Building Partnership

(BBP) Programme



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?



Toronto’s Energy Consumption

Commercial21.7%

Institutional8.1%

Residential18.2%

Industrial 13.6%

Transportation36.1%

Street Lighting0.1%Multi-Residential

2.2%



People

Structure(passive)

Systems(energized)

Building Renewal and Energy Efficiency

Better Building+

Better Education

HigherEnergy

Efficiency



How to deal with so many buildings? So many people?




• 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


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 ?



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


• 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


• 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


• 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


• 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



• 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


• 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)



• 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


Typical Measures

Chillers

Bldg. Automation Lighting

Envelope Boilers

HVAC



• 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


• $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


• $1.2M project - 13 bldgs.• $176,000 in annual

savings• 7-year simple payback• Lighting, DHW, boilers


Toronto Community Housing Company



• $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


• $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


Toronto Public LibraryBetter Building Partnership


• $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



• $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


• $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



• $250,000 project• $20,000 in annual savings• 12.9-year simple payback• Heating upgrades, lighting,

insulation


Metropolitan United ChurchBetter Building Partnership


• $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



• $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


York Condominium Corp. #380301 Prudential Drive



• $33M project - 4 bldgs• $5M in annual savings• 6.6-year simple payback• Elevators, life safety systems,

lighting, building automation, HVAC


Toronto Dominion CentreBetter Building Partnership


• $17M project• $1.4M in annual savings• 12.2-year simple payback• Lighting, HVAC, building

renewal, fire safety, elevators


First Place Tower(First Canadian Place)



• Loan Repayment Reserve Fund

• Loan Leveraging

• Securitization

• Blended Loans (TAF – BBP)

• Private Financing

• Incentive Programs

BBP FinancingBetter Building Partnership


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


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


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)


(A world-renowned geneticist, academic and broadcaster, Dr. David Suzuki has spent the past 40 years educating the public about environmental issues)



Operation


FacilityManagement

FacilityMaintenance

Revenue

OttawaBy Ward Market

Marche By/


HistoryMarche By

/

Early picture of Ottawa River

Colonel Bybuilding the Rideau Canal.


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


• 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


The PlanMarche By

/

• 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.


The PlanMarche By

/

September of 1996

The ByWard Market Building Revitalization Group(BWMRG)

was chosen as the preferred proponent.


The PartnershipMarche By

/

• 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


Eight Key Functions of JVMarche By

/

• 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.


EventsMarche By

/

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.


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


ResultsMarche By

/

• increased ground floor square footage three fold, from under 6000 to over 18,000 square feet


ResultsMarche By

/

• more than 18 tenants in the building


ResultsMarche By

/

• 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


ResultsMarche By

/

• in 2005, the City received $105,500 in base rent, in accordance with the rent sharing formula


ResultsMarche By

/

• the City received almost $100,000 in property taxes annually


ResultsMarche By

/

• the City’s operating savings are estimated at $100,000 per year


ResultsMarche By

/

• the Building is fully leased


ByWard MarketMarche By

/

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.


The Public Private PartnershipExperience Sharing Seminar

on PPP Duty Visit to Canada 19 - 28 June 2006

Toronto:

Ottawa:


ByWard Market

By Uson CHUNG, Senior Project Manager

architectural services department the public private partnership experience sharing seminar on ppp...

Documents

better buildings partnership

project program

large office building

building owners pre

benefits of energy efficiency

multiresidential buildings

residential sector

owned buildings