Finance and Economic Development Committee
Comité
des finances et du développement économique
and Council / et au Conseil
27 March 2012 / le 27 mars 2012
Submitted by/Soumis par : Steve Kanellakos, Deputy City Manager/Directeur
municipal adjoint, City Operations/Opérations municipales
Contact Person/Personne ressource : Dan Chenier, General
Manager,
Parks, Recreation and
Cultural Services/directeur général, Services
des parcs, du loisir et de la culture (613) 580-2424 x 24295, Dan.Chenier@ottawa.ca
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Ref N°: ACS2012-COS-PRC-0005 |
SUBJECT:
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PUBLIC-PRIVATE PARTNERSHIP FOR NEW ARENA FACILITY IN
SHEFFORD PARK |
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OBJET :
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Partenariat pUBLIC-PRIVé
pour un nouvel aréna au parc SHEFFORD |
That the Finance and Economic Development
Committee recommend Council approve that staff initiate a P3 Process for the
financing, design, construction, operation and maintenance of a multi-pad arena
in Shefford Park as described in this report.
Que le Comité des finances et du développement économique recommande au
Conseil d'approuver le lancement par le personnel d'un processus PPP destiné au
financement, à la conception, à la construction, à l'exploitation et à
l'entretien d'un aréna à plusieurs patinoires au parc Shefford,
tel que décrit dans le présent rapport.
Shefford Park is located at 813 Shefford Road just east of the Beacon Hill neighbourhood and immediately south of the Robert O. Pickard Environmental Centre. The park has an area of 11.02 hectares and features 4 soccer fields, 3 mini soccer fields, 3 football fields, a beach volleyball area as well as the Potvin Arena and related parking lots.
Potvin Arena is a single pad facility built in 1975, and significantly renovated in 1995 and 2007. The building is 2400 square meters in size, with 4 dressing rooms, one small alternate gender changing area, limited spectator seating and a lobby and canteen area. The facility is constructed to operate 12 months of the year, is home to the Gloucester Centre Minor Hockey Association, and serves a range of ice sport activities.
In 2007, the City retained the services of Morrison Hershfield Limited to conduct a building condition audit of Potvin arena. The audit examined the structural and mechanical components of the facility and determined the useful life for each. Overall, the facility is in good condition with more than 10 years of life remaining on most components. The 2007 improvements under the City's lifecycle renewal program included the replacement of the rink floor and rink boards. The lifecycle program for the 2012 to 2015 period identifies $364,875 in required project funding to maintain the facility.
As part of the 2011 Capital budget, Council approved $1.3M in the Program Facility Upgrades envelope for Potvin Arena, with the following project descriptions: "In 2011 the planning and design work to refurbish the Potvin Arena in Gloucester and potentially expand the ice surface will be undertaken" and "This funding will be used for refurbishment and upgrading of the Potvin Arena in Gloucester. Enhancements may include an additional ice pad and the purchase and installation of an Ecochill system." Council also approved a $1M allocation to this project in 2012, 2013 and 2014 for a total of $4.3M.
Since the March 2011 approval of the Potvin Arena refurbishment and expansion funding, staff have worked with the ward Councillor on high level design concepts that would meet community needs. Consideration was given to ideas that included the addition of an ice pad, facilities to meet the needs of other ice sports (i.e. curling, speed skating), additional dressing rooms, and a community program room. Preliminary cost estimates for the most comprehensive assembly of amenities were in the $28M range, while a reduced program for an additional ice pad, change rooms and community space were valued at $18M.
The initial review of concepts for this site have led staff to conclude that there is insufficient funding in the approved City-funded capital program to deliver a facility that meets the intended objectives of expanding the availability of ice time, and creating a multipad facility in the east end of the City to support tournaments. The review also identified that site constraints to the north with the Robert O. Pickard Environmental Centre would require that any new construction be placed to the east and south of the existing arena, with potential impacts on the beach volleyball courts to the east and soccer fields to the south.
Because of the scale of the project contemplated at this location, as well as the great potential for this large and well located site, staff recommends that a Public-Private partnership be pursued as a solution to securing the financial resources to optimize use of the site. The City has experienced significant success in the last few years with P3s that deliver arena projects at reduced cost to the City and that play an important role in meeting public demand for ice time. This approach has proven to be a cost-effective way of delivering arena ice, while minimizing impacts on the City's operating and capital budgets. A P3 for the Shefford Park site has the potential to deliver a more comprehensive range of services and to optimize the use of the site for ice sports.
The Shefford Park location provides an ideal opportunity to leverage private sector financing and expertise to deliver increased arena capacity for the east end. An RFP will allow private enterprise to propose solutions to the City's stated desire to increase arena ice services at the site, as well as creative design, build, operate and maintain models that can deliver more services to the community. The City’s contribution to the project would include the land in proximity to Potvin Arena to build on, as well as a commitment to purchase ice time for community use at a negotiated rate.
The RFP will be developed in conjunction with Supply Branch and will include the standard requirements plus specifics to this project such as:
• Scope of the project
• Goals, Objectives and Principles of the P3
• Proponent’s qualifications and experience
• Description of the available site
• Proponent's proposed concept
• Proponent's proposed design, development and construction plans, planning process and timing
• Proponent's proposed management, operations, maintenance plans, performance standards, capital renewal, branding and community communications (clients and neighbours)
• Proponent's business plan, including business relationships, ownership structure, expected commitments from the City, etc.
• Comparison with public sector comparator (PSC).
The RFP will
identify the resources that the City is prepared to contribute to the partnership,
including:
Upon approval of this report, staff will complete the RPP document with the intent of issuing it by mid-April with an early June closure. Staff will undertake the evaluation of proposals and the selection of the successful proponent, if any, by the end of June. A report to FEDCO and Council recommending the preferred proponent will target the early July period, followed by negotiations with the successful proponent lasting until late August. A final agreement would be signed at that time. It is anticipated that the contract would be concluded in September 2012 and that the new facility would open to the public in the Fall of 2013.
Any new facilities built as part of a P3 partnership will be available to users from across the City, including rural residents.
This report has not been the subject of public consultation but any proposal selected by the City will be subject to a consultation process undertaken by the preferred proponent in conjunction with the City.
The Ward Councillor is aware and supportive of the recommendation of this report.
There are no legal impediments to implementing the recommendation contained in this report.
There are no risk management implications associated with this report.
HC2 - Provide
accessible, inclusive and quality parks, recreation services and urban spaces
for leisure, arts and heritage that respond to demographic trends in population
and activity.
SE2 - Improve the effectiveness and
efficiency of service delivery to reach targets that have been approved by
Council and communicated to residents and staff
There are no
technology implications associated with this report.
There are no financial implications associated with the recommendation of this report.
There are no accessibility implications associated with this report.
Upon approval of this report, the Parks, Recreation and Cultural Services Department will work with Supply Branch to initiate the procurement process.