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Architectural Services Department The Public Private Partnership Experience Sharing Seminar on PPP Duty Visit to Canada 19 - 28 June 2006 Toronto: Ottawa:

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Presentation on theme: "Architectural Services Department The Public Private Partnership Experience Sharing Seminar on PPP Duty Visit to Canada 19 - 28 June 2006 Toronto: Ottawa:"— Presentation transcript:

1 Architectural Services Department The Public Private Partnership Experience Sharing Seminar on PPP Duty Visit to Canada June 2006 Toronto: Ottawa: Better Building Partnership ByWard Market By Uson CHUNG, Senior Project Manager

2 Architectural Services Department Capital Expenditure Core Operation Recurrent Expenditure Non-core Operation Facility Management Facility Maintenance Revenue The Public Private Partnership

3 Architectural Services Department Capital Expenditure Core Operation Recurrent Expenditure Non-core Operation Facility Management Facility Maintenance Revenue Toronto Better Building Partnership (BBP) Programme Better Building Partnership

4 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 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

5 Architectural Services Department Torontos Energy Consumption Commercial 21.7% Institutional 8.1% Residential 18.2% Industrial 13.6% Transportation 36.1% Street Lighting 0.1% Multi-Residential 2.2% Better Building Partnership

6 Architectural Services Department People Structure (passive) Systems (energized) Building Renewal and Energy Efficiency Better Building + Better Education Higher Energy Efficiency Better Building Partnership

7 Architectural Services Department How to deal with so many buildings? So many people? Better Building Partnership

8 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 Consultants Owners & Tenants Public-Private Sector Partnership

9 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 CO 2 emission reduction (Kyoto protocol, 20% Goal) Major job creation and economic development initiative What is the Better Buildings Partnership ? Better Building Partnership

10 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 Partners Better Building Partnership

11 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 Features Better Building Partnership

12 Architectural Services Department The Residential Energy Awareness Program The 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 Program The 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 Program The 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 Program The 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 Program The 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 Fund The 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 Programs Better Building Partnership

13 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

14 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

15 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 Process Better Building Partnership

16 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 (contd) Better Building Partnership

17 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 - CO 2 reductions Building owner shows leadership by managing and reducing overall building operating costs Project Goals Better Building Partnership

18 Architectural Services Department Typical Measures Chillers Bldg. Automation Lighting Envelope Boilers HVAC Better Building Partnership

19 Architectural Services Department No. of buildings443 Floor Area Retrofitted39 million ft 2 Job Creation3,800 person years Operating Cost Reduction$19 M per year Economic Impact$131 M CO 2 Emission Reduction 173,600 tonnes/yr Cumulative CO 2 Emission 876,118 tonnes Reduction (2004) Results to Date Better Building Partnership

20 Architectural Services Department $2M project - 3 bldgs. $172,000 in annual savings 11.9-year simple payback Boilers, lighting, building automation, glazing, HVAC CO 2 reduction 5,755 tonnes per year YMCA of Greater Toronto Better Building Partnership

21 Architectural Services Department $1.2M project - 13 bldgs. $176,000 in annual savings 7-year simple payback Lighting, DHW, boilers CO 2 reduction 2,013 tonnes per year Toronto Community Housing Company Better Building Partnership

22 Architectural Services Department $4M project 7 bldgs. $570,000 in annual savings 7-year simple payback Boilers, chillers, lighting, asbestos removal CO 2 reduction - 6,600 tonnes per year City of Toronto Buildings Better Building Partnership

23 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 CO 2 reduction - 4,200 tonnes per year Toronto Public Library Better Building Partnership

24 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 CO 2 reduction tonnes per year Neill-Wycik Student Cooperative Better Building Partnership

25 Architectural Services Department $225,000 project $23,000 in annual savings 9.9-year simple payback Boilers (fuel conversion), lighting, controls CO 2 reduction tonnes per year Supportive Housing Coalition Better Building Partnership

26 Architectural Services Department $345,000 project $44,000 in annual savings 7.8-year simple payback Boilers,lighting, air sealing CO 2 reduction 426 tonnes per year LOAN PAID OFF! Nisbet Lodge Home for the Aged Better Building Partnership

27 Architectural Services Department $250,000 project $20,000 in annual savings 12.9-year simple payback Heating upgrades, lighting, insulation CO 2 reduction 242 tonnes per year Metropolitan United Church Better Building Partnership

28 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 CO 2 reduction 474 tonnes per year York Condominium Corp. # Prudential Drive Better Building Partnership

29 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 CO 2 reduction 434 tonnes per year York Condominium Corp. # Prudential Drive Better Building Partnership

30 Architectural Services Department $33M project - 4 bldgs $5M in annual savings 6.6-year simple payback Elevators, life safety systems, lighting, building automation, HVAC CO 2 reduction 35,000 tonnes per year Toronto Dominion Centre Better Building Partnership

31 Architectural Services Department $17M project $1.4M in annual savings 12.2-year simple payback Lighting, HVAC, building renewal, fire safety, elevators CO 2 reduction - 27,000 tonnes per year First Place Tower (First Canadian Place) Better Building Partnership

32 Architectural Services Department Loan Repayment Reserve Fund Loan Leveraging Securitization Blended Loans (TAF – BBP) Private Financing Incentive Programs BBP Financing Better Building Partnership

33 Architectural Services Department Financing Examples Better Building Partnership

34 Architectural Services Department Financing Examples (contd) Better Building Partnership

35 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. Its 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)

36 Architectural Services Department Capital Expenditure Core Operation Recurrent Expenditure Non-core Operation Facility Management Facility Maintenance Revenue Ottawa By Ward Market Marche By /

37 Architectural Services Department History Marche By / Early picture of Ottawa River Colonel By building the Rideau Canal.

38 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

39 Architectural Services Department The original market building was constructed in 1848 and the current one was built in It was renovated in 1975 and re-opened in In 1985, the building became a domain for Art and Craft producers. In the early 90s, the City of Ottawa planned to further develop the area. Marche By / History

40 Architectural Services Department The Plan Marche 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.

41 Architectural Services Department The Plan Marche By / September of 1996 The ByWard Market Building Revitalization Group (BWMRG) was chosen as the preferred proponent.

42 Architectural Services Department The Partnership Marche 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 Ottawa Markets Management

43 Architectural Services Department Eight Key Functions of JV Marche 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.

44 Architectural Services Department Events Marche 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.

45 Architectural Services Department Marche By / BWBRG invested over $2 million in the renovation Tenants spent an additional $2 million in fit- ups. Building officially re- opened on June 18, Events

46 Architectural Services Department Results Marche By / increased ground floor square footage three fold, from under 6000 to over 18,000 square feet

47 Architectural Services Department Results Marche By / more than 18 tenants in the building

48 Architectural Services Department Results Marche 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

49 Architectural Services Department Results Marche By / in 2005, the City received $105,500 in base rent, in accordance with the rent sharing formula

50 Architectural Services Department Results Marche By / the City received almost $100,000 in property taxes annually

51 Architectural Services Department Results Marche By / the Citys operating savings are estimated at $100,000 per year

52 Architectural Services Department Results Marche By / the Building is fully leased

53 Architectural Services Department ByWard Market Marche By / Unlike most municipal services which are tax- funded, the Markets program operates on a cost-recoverable basis with stand fees and lease revenue covering all direct operating and capital costs, which amounts to over $1 million annually.

54 Architectural Services Department The Public Private Partnership Experience Sharing Seminar on PPP Duty Visit to Canada June 2006 Toronto: Ottawa: Better Building Partnership ByWard Market By Uson CHUNG, Senior Project Manager


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