August 31, 1998
To:Corporate Services Committee
Toronto Atmospheric Fund
From:Commissioner, Corporate Services and
Commissioner, Works and Emergency Services
Subject:Window Improvement Project - Toronto City Hall: Phase 2
Purpose:
1. To report on historical expenditures for City Hall windows.
2. To obtain approval for Phase 2 of the project to replace all windows enclosing the ground floor, Council Chamber, and
the East and West Towers of City Hall with high performance windows, in accordance with the Facilities and Real Estate
Division's long term capital improvement plan.
Funding Sources, Financial Implications and Impact Statement:
Funding of up to $4,705,771 is being sought as a repayable loan for Phase 2 from the Toronto Atmospheric Fund (TAF).
The repayment of this loan will be sourced from the energy cost savings realized as a result of implementing this energy
efficiency and building renewal project. The total replacement project is estimated at $5 million, with Phase 1 for the
replacement of the second floor windows costing $294,229 including a 10% contingency.
Recommendations:
It is recommended that:
(1)the Commissioner of Corporate Services be authorized to issue a Request for Proposal Call for the design, supply and
installation of new high performance windows on the ground floor, Council Chamber, and the East and West Towers of
Toronto City Hall, to complete the second and final phase of the planned window improvement project;
(2)the Toronto Atmospheric Fund (TAF) provide the City with a repayable loan of up to $4,705,771 to cover the cost of
completing the second and final phase of the planned window improvement project as outlined in this report on terms,
conditions and other considerations the parties determine appropriate;
(3)in the event that there is an existing loan agreement between both parties for Phase 1 of the window improvement
project, the City and TAF shall amend the existing loan agreement to reflect the total funding advanced for the overall
project;
(4)we report back to your Committee on the terms, conditions and other relevant matters pertaining to the funding of this
window improvement project;
(5)this report be sent to the Toronto Historical Board for information; and
(6)the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.
Council Reference/Background/History:
City Council at its meeting of July 29, 1998 adopted Clause 9 of the Strategic Policies and Priorities Committee Report No.
16 entitled " Window Improvement Project - Toronto City Hall" and in so doing authorized the replacement of all windows
on the second floor of City Hall. Also, City Council requested that the Commissioners of Corporate Services and Works
and Emergency Services submit a comprehensive report on the consideration of the replacement of the remaining windows
at City Hall.
The Board of Directors of the Toronto Atmospheric Fund (TAF) at its meeting of July 6, 1998 approved in principle the
provision of a repayable loan to the City of Toronto for a window improvement project during the Phase 1 Renovations at
City Hall, subject to an acceptable interest rate being negotiated for the loan and subject to a repayment plan and agreement
from City Council, that interest on the loan as well as principal will be repaid in accordance with the terms of the loan.
Comments and/or Discussion and/or Justification:
The replacement of all existing windows of the City Hall complex with high performance windows, is a planned window
improvement project. Staff of the Facilities and Real Estate Division have determined that the existing City Hall windows
will require replacement within the next ten years and as a result have already included the replacement of these windows
in the Real Estate Division's long term capital improvement plan.
Historical Window Expenditures
The Facilities and Real Estate Division have advised that approximately $400,000 was spent in 1992 to install a window
film tinting material on all windows at City Hall. The records also indicate that several windows that were accidentally
broken were repaired through the City's insurance policy. No additional funds have been spent.
Window Improvement Project - Phase 1
The Phase 1 project includes the replacement of all existing windows on the second floor of City Hall with new high
performance windows, to coincide with other building renovation projects being implemented to facilitate the relocation of
all members of Council to City Hall.
Request for Proposal Call:
The Commissioner of Corporate Services issued a Request for Proposal Call (RFP NO. 3902-98-01023) for the design,
supply and installation of new windows on the second floor of Toronto City Hall. Four proposals were received by the
Purchasing and Materials Management Division by the August 25, 1998 closing date. A review of the four proposals by
staff of the Facilities and Real Estate Division and the Energy Efficiency Office of the Environmental Services Division
resulted in the selection of Windspec Inc. to design, supply and install high performance replacement windows on the
second floor at a cost of $267,481.
Request to the Toronto Atmospheric Fund (TAF) for the Release of Funds for Phase 1:
We have submitted a report to TAF requesting the release of funds in the amount of $294,229 ($267,481 plus 10%
contingency) to cover the cost of implementing the second floor window improvement project. This amount would be
secured through a loan agreement between TAF and the City of Toronto. Our report to TAF noted that the funds being
requested are needed immediately in order that the project contract may be awarded to the successful proponent. The early
release of funding would facilitate the completion of the second floor window improvement project by December 31, 1998
(to coincide with Phase 1 renovations of City Hall). The report explained that due to the urgency of this project, it is
unlikely there will be sufficient time to negotiate and reach agreement on all of the potential terms, conditions and other
matters to be considered. We are of the opinion that in order to ensure the opportunity to implement the project is not lost,
the provision of the funds would be required on or before the September 18, 1998 meeting date of the Board of Directors of
TAF. A copy of that report is attached.
Should this loan request be granted by TAF, an interim loan agreement would be executed, pending the decision of City
Council regarding our recommendation to complete the second and final phase of the project.
Carbon Dioxide Emission Reduction and Energy Cost Savings for Phase 1:
The Phase 1 project will reduce the City's inventory of carbon dioxide emissions by approximately 250 tonnes per year.
The City's energy bill will also be reduced by approximately $15,000 per year. The actual magnitude of energy savings and
resulting carbon dioxide emission avoidance will be determined after the project is completed through the use of
monitoring systems supported by building energy end-use modelling.
Window Improvement Project (Phase 2)
The Phase 2 project would include the replacement of all existing windows on the ground floor, Council Chamber, and the
East and West Towers of City Hall, with high performance windows.
Benefits:
The completion of this overall window improvement project will provide both quantitative and qualitative benefits such as:
1. Improved employee health and comfort - Increased relative humidity levels will significantly improve indoor air quality,
enhance the building environment, improve comfort and reduce complaints by occupants.
2. Reduced heating loads - Higher efficiency windows will provide a significant improvement over the non-thermally
broken single glazed system presently installed in the building. The reduction in heating/cooling loads will enhance heating
and cooling equipment life and reduce operating costs for both heating and cooling the complex.
3. Reduced Noise Levels - High performance windows will reduce the penetration of outdoor noise levels. The indoor
sound levels originating from activities on Nathan Phillips Square will be noticeably lower particularly on the ground and
second floors.
4.Reduced Air Infiltration - Unwanted air infiltration through the window system will be eliminated and will provide a
more uniform temperature throughout the City Hall complex.
As stated earlier, some of the above benefits are qualitative but are of major significance to the building occupants as they
promote a healthier workplace.
Project Payback:
Based on the technical data currently available, it is expected that all project expenditures can be recovered from energy
cost savings realized within a 25 year period. Although this project has a simple payback of twenty-five years, which is
longer than projects normally approved by TAF, it is of importance to note that Toronto City Hall is a historical public
building that will be in service for many years to come. Furthermore, the approval of this project by TAF, despite the
extended financial payback period, would serve as a notable example of the efforts of TAF and the City to develop
solutions that address long term sustainable development challenges.
Toronto Atmospheric Fund (TAF)
We are therefore recommending that funding of up to $4,705,771 be sought as a repayable loan from TAF to cover all costs
associated with the final phase of the window improvement project. This recommended loan arrangement with TAF would
position the City to undertake a much needed capital upgrade project while sourcing all loan repayment funds from energy
cost/operating budget savings, with no impact on the City's capital budget.
Request for Proposal Call:
We are further recommending that subject to the approval of the above loan by TAF, that the Commissioner of Corporate
Services be authorized to issue a Request for Proposal Call for the design, supply and installation of new high performance
replacement windows on the ground floor, Council Chamber, and East and West Towers to complete the second and final
phase of the overall window improvement project for City Hall.
Carbon Dioxide Emission Reduction and Energy Cost Savings (Phase 2):
The carbon dioxide emission reduction resulting from the improvement of windows throughout the entire City Hall
complex will be approximately 2400 tonnes per year. Energy cost savings in the range of $150,000 to $200,000 per year are
being projected, depending on the window specifications selected.
Demonstration and Public Education Initiative:
Upon completion of this project a joint demonstration and public education initiative should be undertaken by TAF and the
City to increase awareness of the City Hall installation and of the environmental benefits of installing high performance,
energy efficient windows.
Conclusions:
Implementation of the window improvement project being recommended in this report would provide benefits such as;
reduced energy use, reduced carbon dioxide and other harmful emissions, improved indoor air quality, reduced occupant
complaints and reduced noise penetration into the City Hall complex. The proposed loan arrangement with TAF would
allow the City to undertake a much needed capital upgrade project with no impact on the City's capital budget.
Contact Name and Telephone Number:
Cathie MacdonaldJohn Warren
Interim Lead Director, Environmental Division
Facilities & Real Estate DivisionCity Works Services
Toronto Community Council AreaToronto Community Council Area
Phone: (416) 392-0449Phone: (416) 392-1846
Fax: (416) 392-0029Fax: (416) 392-0684
E-mail: "cmacdona@city.toronto.on.ca"E-mail: "jwarren2@city.toronto.on.ca"
Margaret RodriguesBarry H. Gutteridge
CommissionerCommissioner
Corporate ServicesWorks and Emergency Services
