Report to/Rapport au :


Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique


and Council / et au Conseil


14 January 2004 / le 14 janvier 2004


Submitted by/Soumis par : Steve Kanellakos, Acting City Manager/Intérimaire directeur général des services municipaux


Contact Person/Personne ressource : Réjean Chartrand, Director, Strategic Delivery Unit/ Directeur, Unité d'exécution stratégique

(613) 580-2424 x21696,


Ref N°: ACS2004--CMR-OCM-0001













That the Corporate Services and Economic Development Committee recommend Council authorize staff to enter into negotiations with Forum Leasehold Partners Inc. for the design, construction, financing and operation of an Ottawa Paramedic Service[1] Headquarters facility located at 2465 and 2495 Don Reid Drive.




Que le Comité des services organisationnels et du développement économique recommande au Conseil municipal d’autoriser les employés à entreprendre des négociations avec Forum Leasehold Partners Inc. pour la conception, la construction, le financement et l’exploitation d’un quartier général du Service paramédic d’Ottawa situé aux 2465 et 2495, promenade Don Reid.




The Ottawa Paramedic Service currently operates out of leased premises located at 530 Tremblay Road.  The existing lease is being renegotiated to expire on December 31, 2005 but can be terminated within a 90-day notice period by the Ontario Realty Corporation (ORC), the owner of the property.  Even though the City would have considered a longer-term commitment on that site, it is ORC's expressed intent to dispose of this property and accordingly there is a large for sale sign on it. The property occupies an area of just under 30 acres and is a prime location for a major land development project, including the likely rezoning of the property to a higher and best use.


Short of purchasing the entire property, 530 Tremblay Rd. does not represent an option for the permanent location of the paramedic headquarters.


Staff also examined the market for an existing facility to accommodate the Ottawa Paramedic Service but found that because of the required size, specialized needs, and high probability of extensively retrofitting any existing facility, the best option would be to locate a suitable parcel of city owned land and develop it as part of a public-private partnership (P3) initiative. 


As a result in October 2002, Council approved the design, construction, financing and operation of a Paramedic Headquarters facility as one of a number of projects to be delivered under a public-private partnership,


The new facility is intended to provide long term, secure, efficient and effective support for the Ottawa Paramedic Service’s centralized processing of emergency response vehicles, administration, as well as interaction of paramedics, supplies and supervisory staff.  The new facility will support public safety, health, and well being of residents and visitors alike, through the provision of efficient and effective emergency response, emergency preparedness, proactive education/ prevention services, and attentive care. 


The proposed facility will accommodate three of the four divisions that comprise the Paramedic Service and will operate 24 hours a day, seven days a week.  The Communications Division (Central Ambulance Communications Centre) will remain separate from the Ottawa Paramedic Service Headquarters facility[2].  The three divisions (Logistics, Operations and Program Development) of the Paramedic Service will be provided with the space and equipment to maximize their operational efficiency. 


The facility will be approximately 120,000 sq. ft. in size and located on city-owned sites at 2465 and 2495 Don Reid Drive in the Ottawa Business Park.  As stated previously, the strategy approved by Council is to seek a private sector partner to design, build, finance, and operate the facility.  The City will then become the tenant and repay the capital cost over the term of the agreement, to be between 20 and 30 years. At that point, the facility will revert back to the City for one dollar.


This public-private partnership approach should provide the City with excellent value as it builds on the strength of both partners, will deliver a new facility on a timely basis, and will remove the operational risks associated with our current leasing situation at 530 Tremblay Road. 


The process to secure the private sector partner followed the process utilized for the other four public-private partnerships currently being implemented at the City.





In spring of 2003 the services of an external consulting firm, Delcan Corporation, were secured through a competitive Request for Proposal (RFP) process to develop the program of requirements and initial design brief for the facility.


A Request for Qualifications (RFQ) was issued on 5 June 2003 by Supply Management and advertised on MERX.  The RFQ closed on 7 July 2003 and qualification submissions were received from eight firms.  In August of 2003, City Council approved a short-list of four firms to receive the Request for Proposal (RFP) in the next stage of the partnering process:


·      Doran Contractors Limited (in association with Taggart Realty Management, Edmundson Matthews Architects, DuBois Plumb Partnership, Halsall Associates and R.J. McKee Engineering Ltd.)

·      Emergency Medical Headquarters Group: PCL Constructors Canada Inc., ABN AMRO Bank, Lowry Otto Erskine Architects Inc., Oxford Properties Group

·      Forum Leasehold Partners Inc., (in association with Aecon Buildings, Trammell Crow Corporate Services Canada Ltd.)

·      Ottawa EMS Consortium: Giffels P3 Inc., NORR Limited, CB Richard Ellis Limited, O&Y Enterprise, National Bank Financial


The RFP was issued by the Supply Management Division and distributed to these firms on 26 September 2003.  The RFP closed on 4 December 2003 and the City received proposals from each of the four short-listed respondents.


Evaluation of Responses to the RFP

The Supply Management Division, in conjunction with representatives from Ottawa Paramedic Service, RPAM, the Strategic Delivery Unit and an external representative, established a set of predetermined evaluation criteria in order to assess the respondent proposals to the RFP.  These evaluation criteria were published in the RFP and available to each of the four short-listed firms.


An evaluation team was established which included representatives from the Ottawa Paramedic Service, RPAM, the Strategic Delivery Unit, and an external representative.  The evaluation process was lead by the Supply Management Division.  In addition, a Fairness Commissioner was retained to oversee the process to ensure that the evaluation was conducted in a fair and consistent manner.


The evaluation team reviewed all four proposals received.  The respondents were required to meet the mandatory requirements and were then evaluated on the Design and Construction, the Operations and Management, and the Business Plan components of their submissions.  According to the predetermined evaluation criteria, respondents’ proposals were rated and the successful candidate chosen from the submission that obtained the highest total out of 100 points allotted in the evaluation process. 


The evaluation team determined that the proposal received by Forum Leasehold Partners Inc., was deemed to be the best value for the City, having met all the mandatory criteria and achieved the highest point total. 


Following Council approval of Forum Leasehold Partners Inc. as the preferred respondent, the Strategic Delivery Unit staff will form a negotiation team to develop a partnership agreement related to the construction of the Paramedic Service Headquarters.


Selection of a preferred partner does not automatically imply that negotiations will be successful.  Issues related to the modification of the proposal and contractual agreements require review and negotiation.  The City will need to conduct a due diligence process and verify the information and assumptions made by the respondent.  Negotiations will focus on achieving the best value for the City within an acceptable risk structure and a win-win partnership. 


The use of the Public Sector Comparator developed for this project will be instrumental in determining the best value for the City and in defining the framework of the agreement.


While the City is committed to the process and has full expectations to enter into a successful partnership, it will only proceed if there is a strong sense that a successful and positive partnership can be formed between the City and Forum Leasehold Partners Inc.  Failing this, the City will have the option to enter into negotiations with the respondent who achieved the next highest points.


Timelines and Next Steps

It is anticipated the negotiation stage will be conducted between February and April 2004.  Once the negotiation team has established a framework for the public-private partnership agreement, staff will report to Committee and Council in order to seek approval to enter into the final negotiations stage with Forum Leasehold Partners Inc. and to execute the necessary legal agreements. 


As per Council’s direction, a public meeting will be held in the community where this facility is proposed for development.  This meeting will be organized with Forum Leasehold Partners Inc., prior to the completion of the final negotiations stage.   Staff will report the outcome of the public consultation as part of its next report to Committee and Council.





The Ottawa Paramedic Headquarters facility will serve all residents in the City of Ottawa, including those in rural areas.




As per Council’s direction, a public meeting will be held in the community where this facility is proposed.  The consultation will occur during the negotiations stage of the P3 process, prior to execution of the partnership agreement(s).





Based on the RFP the capital project cost estimate is in the range of $18 – $23M (excluding land costs).  The intention of this proposed public-private partnership is that the City will repay the capital investment to the private sector partner on an annual basis over the term of the partnership.  This will result in an additional pressure on the City’s operating budget over the term of the agreement.  As the new facility is expected to be delivered in mid-2005, the financial impact will be reflected partly in 2005 and then fully from 2006 and in subsequent years.





The Strategic Delivery Unit will implement the recommendation as directed by Council.



[1] Council approved a change of name from Emergency Medical Services to Ottawa Paramedic Service on July 23, 2003.

[2] The Central Ambulance Communication Centre is required by negotiated contract, between the Province and City to remain at their 2380 St. Laurent Boulevard site.