Request for Proposal (RFP) Abstract: Implementation of a financing option for tower renewal projects




Document Request List:	N/A

Implementation of a financing option for tower renewal projects

Disclaimer

Header

	Reference Number	201029
	Solicitation Number	9119-10-7204
	Organization Name	City of Toronto
	Source ID	PU.MU.ON.542969.C58822
	Associated Components	No

Dates

	Published	2010-07-19
	Revised
	Closing	2010-08-04 12:00 PM Eastern Daylight Saving Time EDT

Details

	Category	Miscellaneous Goods
	GSINS	N99: Miscellaneous
	Region of Delivery	Ontario
	Region of Opportunity	Canada
	Agreement Type
	Tender Type	Request for Proposal (RFP)
	Estimated Value
	Solicitation Method

Notice Description

	Implementation of a financing option for tower renewal projects Description:Implementation of a financing option for tower renewal projects Implementation of a financing option for tower renewal projects Issue date: July 16, 2010 Closing date: August 4, 2010 at 12:00 Noon Buyer: Strugnell, Vicki Phone number: 416-397-5190 Email: vstrugn@toronto.ca Location: City Hall, 19th Floor West Tower Client Division: City Manager's Office Non-refundable document fee: $25.00 + 3.25 HST = $28.25 Scope of work: Consulting Services to undertake stakeholder consultation, research and analysis of issues arising from the implementation of a financing option for tower renewal projects, including the request for priority lien status for tower renewal project payments and the implementation of a city services corporation. The required work includes three core objectives with respect to implementing the financing option to support the undertaking of Tower Renewal projects: Objective 1 � To optimize the utility performance of buildings. These goals are consistent with the City�s climate change, energy and environmental strategy goals. The types of projects that will be undertaken will have significant performance results and will require investments in the range of $15,000 to $25,000 per apartment unit. Objective 2 � Support for projects that drive broad environmental, social, economic and cultural change. The range of objectives outlined in the Tower Renewal report should be considered. Particular regard should be made to the need to minimize impacts on tenants. The financing option should not require significant increases to tenant costs. Objective 3 - To maximize the number of comprehensive tower renewal projects undertaken. Reporting to the Project Director, the Vendor shall conduct the following: 1. Develop detailed prototype tower renewal project profiles (at least 4) for use as examples in the analysis of the financing option and to test the projects� financial impact on apartment building operations. The profiles should address the ownership types found in Toronto�s apartment sector, including privately owned companies, publicly traded companies, short term ownership horizons and long term holdings (longer than 10 years). The project profiles should reference the typical project characteristics that are outlined in the Tower Renewal Guidelines (http://www.daniels.utoronto.ca/files/TowerRenewalGuidelines.pdf) and the Tower Renewal Community Energy Planning Report (http://www.toronto.ca/city_manager/pdf/tr_arup_cep.pdf). This will include potential terms and conditions of tower renewal project contracts, including the term of the contract, how payments would be structured, impact of potential tax and accounting treatments, how utility savings would be verified and a description of the of tower renewal services that would be included in a typical contract. It is anticipated that this will require approximately 20 work days. 2.Building on the Tower Renewal Financing Options Report (http://towerrenewal.ca/images/uploads/1275938653_Mayors%20Tower%20Renewal%20-%20Financing%20Options%20-%20Report%20-%20may%202010.pdf) undertake, with advice from City staff, consultations with Provincial and Federal orders of government, members of the financial community (including capital market, mortgage, tax and accounting areas), property owners and other stakeholders to develop a detailed description of the issues that need to be addressed in assigning priority lien status to Tower Renewal Projects . Issues anticipated to be identified include how the priority lien status will be viewed by first mortgage holders, how CMHC insurance premiums may be impacted and how this request for priority lien status should be viewed as preferred to other potential requests for priority lien status. It is anticipated that this will require approximately 20 work days. 3. Undertake stakeholder consultation to assess the applicability of the financial option to the range of eligible projects (approximately 800 apartment buildings) to determine how well the prototype contract(s) would be received by the apartment building sector. It is anticipated that this will take approximately 5 work days. 4. Work with City staff and others to address the issues identified through the stakeholder consultation with particular focus on achieving the required amendments to allow for the priority lien status for Tower Renewal Project payments. Options on approaches to the issues raised should be provided. It is anticipated that this will require approximately 30 work days. 5. Provide related input into the development of the design of a shareholder directive for the City Services Corporation. This will include descriptions and analysis of the City's active involvement in the financial option. For instance, defining the City�s role in supporting the financing model. It is anticipated that this will require approximately 10 work days. 6. Comment on the steps that would be required to determine if the financing option would be applicable to other building types such as those for commercial or industrial uses. It is anticipated that this will require approximately 3 work days. 7. Prepare written draft and final reports as specified. It is anticipated that this will require approximately 12 work days. The Vendor shall provide the City with a report on: a) Details of the potential scenarios for Tower Renewal Project prototypes, covering a range of building characteristics and project types. The scenarios provided should largely encompass the privately owner apartment sector in Toronto. b) Example contract terms and conditions to be applied to Tower Renewal Projects and how these terms and conditions will impact the business operations of apartment building property owners. b) An overview of the consultations undertaken, description of the information sought through the consultations, the information and direction received as a result of the consultation process and a description of activities needed to follow-up on the consultation results. c) The expert advice, including the option presented, provided in preparing for and addressing the matters arising from the consultations. d) Recommendations to be considered in the design and development of a shareholder directive for a city services corporation that would administer the financial option, to include the role of over collateralization of the pooled funds. It is expected that the work required will take place over a time period in the range of 4 to 6 months. The Vendor should be aware that the reports should be submitted in draft and will be reviewed and may be edited by City staff, before being finalized. For all report deliverables, submit an electronic version in Word and PDF file formats via e-mail to the City. The reports should contain all text and graphics in the original file format, unlocked and not copy protected. As part of the study, the City will provide the following information on the pilots: a) Pilot site building owner contacts and general building characteristics. b) Inventory list of apartment building addresses located in the city c) Sustainability and environmental performance goals, as set out in documents such as: Climate Change Clean Air and Sustainable Energy Plan (http://www.toronto.ca/changeisintheair/pdf/clean_air_action_plan.pdf) The Power to Live Green: Toronto�s Sustainable Energy Strategy (http://www.toronto.ca/legdocs/mmis/2009/ex/bgrd/backgroundfile-24947.pdf) (http://www.toronto.ca/legdocs/mmis/2009/ex/reports/2009-11-02-ex36-cr.pdf (Item EX 36.9)) d) Stakeholders that could be included in stakeholder engagement and consultation. e) Information on the findings available for other elements in the Tower Renewal overall study such as building retrofits and tenant engagement strategies. Specific Tower Renewal comprehensive project descriptions for each site will be provided for analysis purposes. f) Also available for reference in completing the required work is the Tower Renewal Financing Options Study, Tower Renewal Implementation Book, Mayor�s Tower Renewal Opportunities Book, Toronto Green Development Standard Cost Benefit Study and the Tower Renewal Guidelines document. Please visit http://www.toronto.ca/tenders/index.htm for additional information. MERX asks that you contact the buying agency directly to obtain associated documents. The contact information can be found within the notice abstract.

Contact(s)

Client Agency

	Name	Vicki Strugnell
	Address
	City
	State / Province
	Postal Code
	Phone	(416)338-5584
	Fax	(416)338-5356
	Email	vstrugn@toronto.ca
	Website URL

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