REQUEST FOR PROPOSAL DOCUMENT
MUNICIPAL INDUSTRIAL PROPERTY TAXATION IMPACTS
The Union of British Columbia Municipalities (UBCM), in partnership with the
Province of BC, seeks proposals to undertake a study to determine the conditions
under which municipal property taxes have a material effect on business decisions for
major industry, in accordance with the following terms of reference.

TERMS OF REFERENCE
Objectives:
The objective is to determine the conditions under which municipal property taxes
have a material effect on business decisions for major industry. Of particular interest
is the determination of the conditions (including stages of the business cycle) under
which the level and changes in the level of class 4 Major Industry property taxation
has a material effect on decisions relating to the scale of operations. For this purpose
scale of operations includes decisions to open a new plant, to shut down an existing
plant, to invest or disinvest in order to change the capacity of an existing plant or to
vary the level at which a plant will operate in the short term.

The study should seek to answer, but is not limited to, the following questions:
• Do changes in industrial property taxation materially affect business decisions? If
yes, are these effects industry specific?
• Which type of business decisions are altered when changes to industrial property
taxation occur?
• How do the business decisions which are affected by changes in industrial
property taxation vary depending on the stage of the business cycle? Are such
changes industry specific?
• How significant do the changes need to be in order to affect business decisions?
For example, what is the magnitude of the impacts relative to the impact of
changes in operating and other business costs?
• Does the required significance of such a change vary depending on the stage of the
business cycle?

Scope:
The study will include an examination of the effect of British Columbia municipal
major industry property taxes in the context of major industry property taxes
collected on behalf of other taxing authorities (including the provincial school tax). If
qualitative or quantitative factors warrant a separate treatment of the individual
elements of major industry property tax burdens this should be identified.

Major industrial facilities are defined as those classified under BC’s Assessment Act as
class 4 (Major industrial properties), and include facilities which are built to
manufacture, mine, smelt, produce or process commodities such as coal, metallic or
non-metallic ore, aluminium, petroleum or natural gas, lumber, wood veneer,
plywood, etc, pulp, paper, chemicals, chemical fertilizer, synthetic resins, insulation,
sheet glass, as well as to build, refit or repair ships, or load cargo onto seagoing ships
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or barges and associated facilities, including grain elevators. Note that this list is not
exhaustive or definitive – please consult the Assessment Act for the definition of major
industrial improvements.

Port Properties subject to the Ports Property Tax Act will not be included as part of this
review.

Approach:
The intention of the study is to review specific businesses within key major industrial
sectors, in relation to various points in the business or economic cycle. The study
should delve into an appropriate level of detail, including specific locations, and over
an appropriate time period, to draw reasoned conclusions about what level of
municipal property taxes might influence business decisions such as making major
investment in the plant, or timing of opening or shutting down a plant. As a reference
point, the study should also classify other metrics which influence business decisions
and compare the materiality of such metrics to industrial taxation.

Deliverables and Timing:

The projected date for award of a contract, if one is to be awarded, is June 30, 2011, in
order to provide sufficient time for the contract deliverables to be met by September
15, 2011.

If a contract is in place by June 30, 2011, key deliverables are due as follows:
• updates or modifications to the proposed study methodology, if any, are to be
delivered to the project manager for approval by July 15, 2011;
• a progress report and initial findings are to be delivered by August 15, 2011;
• a final report setting out the study’s methodology and findings is to be delivered
by September 15, 2011.

Budget:
A budget not to exceed $50,000 is anticipated for this study, including all fees,
expenses and disbursements.

PROPOSAL SUBMISSION
Proposals in a sealed envelope marked “RFP – Municipal Industrial Property Taxation
Impacts” will be received by the UBCM on or before 3:00 p.m., Friday, June 17, 2011
at the following address:
525 Government Street
Victoria, BC
V8V 0A8

Proposals will be evaluated in accordance with the evaluation criteria set out below.
It is the sole responsibility of the proponent to ensure its proposal provides sufficient
information for such evaluation and that its proposal is received at the above location
and by the time stipulated.

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TERMS AND CONDITIONS
• This RFP should not be construed as a contract to purchase services;
• UBCM is not obligated in any manner whatsoever to any proponent and any cost
incurred by a proponent in developing a proposal will be borne solely by the
proponent;
• UBCM reserves the right to seek clarification from proponents, to assist in
evaluating the proposal, but is not obligated to do so;
• UBCM may enter into contract negotiations with the successful proponent, but is
not obligated to do so;
• UBCM is not bound to accept either the lowest priced proposal, or any proposal, of
those submitted.

EVALUATION CRITERIA AND PROCESS

The following criteria will be used to evaluate proposals:
• Proposed study methodology and a determination at the sole discretion of the
review committee of the ability of that methodology to meet the objectives set out
in the Terms of Reference;
• Proponent’s qualifications and expertise;
• Proponent’s performance and experience on similar projects, including the
proponent’s ability to deliver on time and on budget; and
• Price, including a determination at the sole discretion of the review committee
about the value offered by the proposal in relation to the proposed cost to
undertake the work.

Proposals submitted on time will be assessed by a review committee in relation to the

evaluation criteria, and at the sole discretion of UBCM, the successful proposal may be
used as a basis to negotiate a contract for services with that proposal’s proponent.
UBCM reserves the right to change the Terms of Reference for the project prior to, or
during, negotiations on the contract for services.

If a contract for services cannot be negotiated with the successful proponent, UBCM
may terminate negotiations with that proponent and negotiate a contract for services
with another proponent or with any other person, without issuing a further Request
for Proposals.

UBCM CONTACT INFORMATION

Questions regarding this RFP should be direct to:
Brenda Gibson
General Manager, Victoria Operations
UBCM
Phone: 250 356-0862
Email: bgibson@ubcm.ca

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