March 12, 1999

To:Corporate Services Committee

From:Commissioner of Corporate Services

Subject:Results of Request for Proposals to Establish a Roster of External Negotiators Required for Municipal Real Estate Projects (All Wards)

Purpose:

To secure City Council approval of a list of prequalified external negotiation consultants to assist the City with municipal real estate projects.

Financial Implications:

Not applicable at this time.

Recommendations:

It is recommended that:

(1)six external negotiation consulting firms, Arthur Andersen, Colliers International Realty Advisors Inc., Johnston Donald Associates Inc., Namara Associates Limited, S. Spera & Associates Ltd. and Kenneth Stroud & Co. Ltd., be listed on a roster of external negotiators required, on an as required basis and according to their expertise, for municipal real estate projects and be notified of same;

(2)subject to City Council approval of the project and the allocation of the necessary funding, the Commissioner of Corporate Services enter into individual consultant agreements containing relevant terms of reference and any other conditions deemed appropriate by the Commissioner of Corporate Services and the City Solicitor, with each negotiation consulting firm at the time the firm is retained to carry out work for the City;

(3)the unsuccessful negotiation consultants be notified that they will not be given further consideration at this time; and

(4)the appropriate City officials be authorized and directed to take the necessary action to implement the foregoing.

Background:

Utilizing the services of an external negotiator was not widely undertaken by all the former municipalities, but a practice that has emerged over the past few years as a result of major expropriation and acquisition initiatives (i.e. Yonge/Dundas Redevelopment Site, Sheppard Subway, Union Station, Downsview Site). External negotiators were engaged to act as the principal contact for the City; to meet with the parties affected; to provide staff with status reports and project updates; and to give advice to critical real estate issues as they related to the project on hand. The use of external negotiators has supplemented staff resources and has allowed staff to focus on other aspects of project management and simultaneously administering and completing numerous claims. It has been advantageous and beneficial for the City to retain the services of an unbiased professional who is able to represent the City's interest and successfully complete a complex real estate negotiation.

To establish a protocol that can be used by the new City and to ensure fairness of access to City business, a Request for Proposal (RFP) was issued for the establishment of a roster of prequalified external negotiators required for complex real estate projects. The external negotiation consultants would assist staff and provide professional negotiation services on an as required basis for various real estate related assignments.

Comments:

The RFP was issued and provided an opportunity for all negotiation consultants, meeting the requirements, to submit a proposal to act for the City on various negotiation assignments. The RFP will result in the City establishing set fee schedules, determining other appropriate contract terms and conditions and will enable staff to use the services of professional negotiators, on an as required basis.

The RFP, administered by Purchasing & Material Supply staff, was advertised in the Globe & Mail and was listed on the City's website. Successful proponents will:

• act as the principal contact for the City;
• represent the City's interest in various negotiation assignments;
• ensure that negotiations are administered by professional, accountable negotiators;
• provide advice to the Executive Director of Facilities and Real Estate on critical real estate issues;
• report to City staff on a regular basis in order to receive guidance and assistance as issues arise relating to the project;
• be able to meet City's deadlines and budget requirements;
• be able to ascertain project priorities;
• be responsible for all information meetings and presentations, as required;
• make, retain and distribute records of all meetings and interviews; and
• providing ongoing consulting and reporting services to the City.

To secure the services of a professional external negotiation consultant that can properly represent the City's interest, achieve positive results with minimum expenditure and be administered by professional, accountable negotiators, it was necessary to establish stringent criteria to assess the proposals received.

Eighteen responses were received and submissions were evaluated against a range of criteria including:

• the demonstrated ability of the consulting firm to successfully carry out all aspects of negotiation projects;
• a proven track record of successful negotiations in municipal real estate acquisitions and/or disposals;
• the success record of the consulting firm and the principal negotiator(s) over the past year;
• the professionalism of the consulting firm;
• the expertise, resources and ability to undertake municipal negotiation projects;
• the ability to provide ongoing consulting advice to City staff;
• the ability to meet the City's timelines and budget requirements;
• the ability to provide a full critique, summary, recommendations and/or project status; and
• the cost of hiring the consulting firm.

A Selection Team consisting of three staff members from the Real Estate Section and staff representatives from the Toronto Parking Authority and the Toronto Transit Commission reviewed and evaluated each of the proposals on the basis of the set criteria. Each team member individually graded each proposal.

It is the Selection Team's consensus that six negotiation consulting firms clearly displayed professionalism, expertise, resources, attributes and abilities required to meet the City's needs. The successful proponents not only possess experience in dealing with a variety of negotiation assignments but have substantive experience with the public sector and have knowledge of policies and processes.

Each external negotiation consultant will be required to enter into a consultant agreement at the time they are retained for an assignment or project. The agreement will contain relevant terms of reference outlining the details of the service, a fee structure and any other appropriate conditions deemed necessary by the City Solicitor. Entering into the agreement will be subject to City Council approval of the project and the allocation of the necessary funding.

At minimum the roster should be used for the term of this Council and, thereafter, be periodically reviewed. The recommended external negotiation consultants for inclusion on the roster are listed alphabetically as follows:

(1)Arthur Andersen

(2)Colliers International Realty Advisors Inc.

(3)Johnston Donald Associates Inc.

(4)Namara Associates Limited

(5)S. Spera & Associates Ltd.

(6)Kenneth Stroud & Co. Ltd.

In should be noted that in certain situations there may be extenuating circumstances where it is to the City's advantage to utilize the services of an external negotiator not on the roster. Should this situation present itself, prior Council approval would be required to retain a negotiator not on the roster.

Conclusion:

The use of external negotiation consultants provides an opportunity to achieve positive results on difficult real estate assignments. Accordingly, it is recommended that the roster of external negotiators, as set out herein, be established for retention on an as required basis and drawn upon according to their expertise for municipal real estate projects.

Contact Name:

L.L. Tymkewycz, 392-7207, Fax No. 392-1880, ltymkewy@toronto.ca, (cs99036.wpd)

Margaret Rodrigues

Commissioner of Corporate Services