Finance and
Economic Development Committee /
Comité
des finances et du développement économique
and Council /
et au Conseil
24 April 2012 / le 24 April 2012
Submitted by/Soumis par: Nancy Schepers, Deputy City Manager/
Directrice
municipale adjointe, Infrastructure Services and Community
Sustainability/Services d’infrastructure et Viabilité des collectivités
Contact Person/Personne ressource : Wayne
Newell, General Manager /
Directeur
général
Infrastructure Services / Services d'infrastructure
(613)
580-2424 x16002, Wayne.Newell@ottawa.ca
SUBJECT:
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OBJET :
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PLAN DE PARTENARIAT DU PARC
LANSDOWNE – TRAVAUX D'IMMOBILISATION |
That the Finance and Economic Development Committee
recommend Council approve that staff undertake the construction works for soil
remediation and the relocation of the Horticulture Building as described in
this report, to be funded through the advancement of $12.6 million of existing
capital authority to the 2012 spending plan.
Que le
Comité des finances et du développement économique recommande au Conseil
d'approuver que le personnel entreprenne les travaux de construction en vue des
mesures correctives du sol et du déplacement de l'Édifice de l'horticulture,
selon ce qui est décrit dans le présent rapport, travaux à financer au moyen
d'une avance au plan des dépenses de 2012 d'un montant de 12,6 millions de
dollars sur le crédit d'immobilisation existant.
BACKGROUND
At its
meeting of 25 August 2011, Council approved a project schedule and spending
plan for Stage 2 of the Lansdowne Partnership Plan project. The schedule contained a number of elements
that were recommended to be undertaken prior to legal close of the partnership,
including:
·
Removal of
contaminated soils; and,
·
Acquisition of the steel
and related speciality equipment required for the relocation of the
Horticulture Building.
The 25 August 2011 Council report (Ref N°: ACS2010-CMR-REP-0027) noted that proceeding with these tasks before
the legal close of the partnership would result in expenditures occurring
earlier, but would not result in an overall increase in the approved budget.
The 25 August 2011 Council
report identified that the existing areas of contaminated soils will be handled
in accordance with Ministry of Environment (MOE) policies and regulations. It
was noted that these areas on the northern portion of the site will ultimately
be excavated for construction of the parking garage and relocated to create the
berm adjacent to the stadium. It was
recommended that the City proceed with this relocation work by the spring of 2012,
whether or not the legal close of the partnership had been finalized, in order to
respect the timelines agreed to with the MOE related to the Record of Site
Condition. The cost to commence the soil
remediation prior to the legal close of the partnership was projected to be
$400,000 and it was noted that this cost was included within the Council-approved
budget for the Lansdowne redevelopment.
The 25 August 2011 Council report also recommended that ordering of
steel and equipment required for relocation of the Horticulture Building is
undertaken prior to the legal close of the partnership in order to minimize the
impact on the parking garage construction schedule. A financial commitment of
$1 million was estimated for this work, and it was noted that this cost was
included within the existing Council approved budget for the Lansdowne
redevelopment.
Council
received an update on these expedited tasks at its meeting of 22 February 2012. This update indicated the City has worked with the
MOE to establish a process for addressing the existing impacted soil and
environmental considerations on site, and that the project team was finalizing
the strategy for the removal of contaminated soil. It also indicated the City’s Supply Branch completed the tendering process for the steel
for the
Horticulture Building in preparation for
relocation.
A detailed update and description of the proposed relocation and
adaptive reuse of the Horticulture Building is outlined in the 22 February
2012, Lansdowne
Urban Park, Aberdeen Pavilion and Horticulture Building Programming Plan report (Ref N°: ACS2012-CMR-OCM-0002).
The 25 August 2011 Council
report identified a project schedule in which stadium construction and major
garage excavation would begin in June 2012.
The report also outlined the litigation process involving the Friends of
Lansdowne Inc. (FOL) legal challenge.
The purpose
of this report is to recommend that Council approve the commencement of
construction work prior to the legal close (i.e. the closing of the project
agreements and the commencement of Stage 3 – Construction) of the Lansdowne
Partnership Plan (LPP) agreement, which the City will need to complete in order
to address the environmental issues on the Lansdowne site, regardless of the
outcome of the FOL appeal. This work would be funded within the existing
capital authority for the Lansdowne redevelopment. Approval of the recommendation in this report
does not constitute the legal close of
the LPP, nor does it have an impact on any or all of the conditions precedent
in favour of the City approved on 28 June 2010.
DISCUSSION
The City is
proceeding with its negotiations with the Ottawa Sports and Entertainment Group
(OSEG) for the next stages of the LPP. The Ontario Court of Appeal has not yet rendered
a decision on the Friends of Lansdowne Inc. appeal. As such, the City is unable to finalize the
Agreement with OSEG for the Lansdowne Partnership Plan and recommends to
Council that the City move to Stage 3 – Construction, until legal action
related to this appeal has been finally resolved. The timing of the Ontario Court of Appeal
decision is unknown although an order was obtained on 19 September 2011, which
provided that the appeal be expedited. On
30 March 2012, legal counsel for the City wrote to the Senior Legal Officer of
the Court asking when a decision might be expected. No answer has been
provided.
Briefly, on 28 June 2010, Council approved the Lansdowne Partnership
Plan and Implementation report (Ref N°: ACS2010-CMR-REP-0034)
authorizing staff to proceed with Stage 2 of the revitalization of Lansdowne. Council also directed staff to proceed with the implementation of the LPP
through the initiation of the required planning approval processes and the
finalization of the necessary project agreements pursuant to delegated
authority.
The approved process included
the three major components of the redevelopment being brought together into a
single Integrated Site Plan through the City’s two stage site plan approval
process. Stage 2
is now nearing its conclusion with the issuance of tender
documents and the preparation of the
necessary material to seek the various permits required for construction and the closing of the project agreements.
As directed
in the 28 June 2010 Council report, the tender for competitive pricing of the construction
of the Stadium, Garage and Site Services has been issued by OSEG, on behalf of
the Lansdowne Partnership, to pre-qualified general contractors. Preliminary submissions have been received
from three general contractors: PCL Constructors
Canada Inc., EllisDon Corporation and Pomerleau. The tender is currently scheduled to close in
early May 2012 and will be valid for a 90-day irrevocable period.
A Fairness
Commissioner has overseen the OSEG tendering process as has City staff from the
Infrastructure Services Department and the Office of the Chief Procurement
Officer.
With the
delay on a decision from the Ontario Court of Appeal, it is recommended that
specific works proceed, in accordance with the schedule for the Lansdowne
Partnership Plan project, to reduce adverse schedule impacts and to contain costs that
might otherwise be caused by this delay. These works would be recommended to be
undertaken by the City in any case, and consist of the following:
Works not included in current tender
and proposed to be undertaken by staff:
·
Horticulture Building relocation $5.0
million
·
Initiation of adaptive
re-use of Horticulture Building $1.3 million
·
Other related works, e.g. relocation
of memorials from site $0.2 million
Estimated total cost
of works not included in tender $6.5
million
Works included in current competitive
tender issued by OSEG:
·
Excavation of soils and
placement in berms, including
remediation of contaminated soils $1.9 million
·
Coliseum Building asbestos abatement
and demolition $0.6 million
·
Horticulture Building foundation
construction $3.8
million
·
Other related works, e.g.
site servicing, removals, utilities $1.2
million
Estimated
total cost of works included in tender $7.5 million
The extensive design work undertaken through the Stage 2 Site Plan
approval process confirms that the site for the relocation of the Horticulture
Building is the best location for the building’s future adaptive reuse. The
relocation site ensures prominent visibility along the Rideau Canal corridor
and strengthens the profile of this important heritage asset on the site
enables integration with and support for the proposed park programming; and
provides an effective transition between the mixed-use area and the urban park.
The relocation of the Horticulture Building is being coordinated by CDS
Building Movers. The relocation at this
time is recommended as it permits cost effective removal of contaminated soils
beneath and adjacent to the building and relocates the building to the right location
to permit appropriate development of the site. The demolition of the Coliseum Building is
also required to complete contaminated soil excavation as these soils are
located beneath and immediately adjacent to the building.
The total estimated construction cost of all these works
is $14.0 million which is inclusive of project management fees and
contingencies. These costs are also
inclusive of $1.0 million for the Horticulture Building relocation pre-works
and $0.4 million for contaminated soil remediation as approved by Council at
its meeting on 25 August 2011. Therefore,
an increase in the current spending authority of $12.6 million within the
existing capital authority for the redevelopment of Lansdowne is required to
complete these works.
The estimated
cost of these works is included in the overall Council-approved Stadium, Garage
and Site Servicing capital authority of $129.3 million and Urban Park capital
authority of $37.5 million.
The OSEG
tender has been prepared to allow the above-described soils excavation and
remediation, demolition and foundation construction works to be bid as a
separate package and to proceed prior to the award of the main stadium and
garage construction works, with Committee and Council approval. This separate package would be managed by the
City.
Works not
included in the OSEG tender will be managed by the City by the award of
separate contracts in accordance with City’s Purchasing By-law and procurement
practices.
If Council approves the staff recommendation for these construction
works, they are scheduled to be completed by 30 November 2012. This
includes the move of the Horticulture Building, although it should be noted
that structural works to stabilize the relocated Horticulture Building will be
ongoing until early March 2013.
It is
anticipated that the MOE will post a Certificate of Property Use (CPU) by
mid-May. The CPU will establish the risk management measures approved by the
Ministry of the Environment regarding the contaminated soils on the Lansdowne
site. The CPU will be posted for a minimum of 30-days, during which time the
public will have the opportunity to provide comment. The City will not issue a
Commence Work Order until such time as the CPU has been approved by the MOE.
The City
retains the right to award the contract of the excavation of soils, within
90-days of the tender close, and a Commence Work Order is required before the
contractor can begin the excavation. The timelines to complete the work by the
end of November take into consideration the time required to obtain the MOE
approval of the Certificate of Property Use.
Obtaining Council approval for these construction works at this time
not only reduces schedule impacts caused by the delay in the decision from the
Ontario Court of Appeal, but is also necessary to respect the timelines agreed
with the MOE related to the Record of Site Condition and relocation of soils,
as noted in the 25 August 2011 report to Council. This construction work
is beneficial to the City as a stand-alone project as it is relevant to, and
permits flexibility for all possible redevelopment scenarios for Lansdowne
Park.
As part of
these works to be undertaken, staff will have to consult with and incur costs
for MHPM Project Managers Inc. (MHPM), since the works that are proposed to be
undertaken are a part of the larger project and it is essential to ensure
proper coordination and sequencing of all of the work for the LPP. These additional costs are included within
the overall funding request in this report. MHPM were selected through a competitive
process undertaken by OSEG, and they have been involved in managing all aspects
of the current OSEG tender.
MHPM are also
on the City’s Standing Offer list for project management services. Therefore, they
have previously successfully competed for the right to provide such services to
the City through a call up under the Standing Offer.
As indicated earlier, approval of this report does not constitute the
legal close of the LPP and does not limit Council’s discretion in that regard
should any or all of the conditions precedent in favour of the City and
approved on 28 June 2010, not subsequently be met.
RURAL
IMPLICATIONS
There are no
rural implications related to this report
CONSULTATION
Extensive consultation has been
undertaken over the last two years for the Lansdowne Partnership Plan project
and has been captured in previous Lansdowne reports.
In addition,
a community meeting was held on 21 March 2012 at St. Giles Presbyterian Church
to provide the community with the details of the Risk Management Plan (RMP)
that has been submitted to the MOE as part of the Risk Assessment approval
process for the contaminated soils at Lansdowne. The RMP details how the
berm will be constructed and the implementation measures to ensure no adverse
effects associated with the contaminants present on the site.
This meeting was attended by Ward
Councillor Chernushenko, a representative from MPP Yasir Naqvi’s office and
approximately 30 participants.
Ongoing Consultation Activity
Consultation
with community associations, residents and agencies concerning the Lansdowne
Partnership Plan is ongoing as described in the 22 February 2012 report.
Updated
information remains available through Ottawa.ca.
COMMENTS
BY THE WARD COUNCILLOR
Councillor
Chernushenko is a member of the Lansdowne Design Review Panel (LDRP). The
Councillor has been apprised of the specific recommendations contained in this
report.
LEGAL
IMPLICATIONS
For the
reasons set out hereafter, there are no major legal impediments to implementing
the recommendation in this report. Legal Services has been consulted in the
preparation of this report and has been involved throughout the Lansdowne Partnership
Plan (LPP) Implementation. Although the
Court of Appeal has not yet rendered its decision in the Friends of Lansdowne
Inc. litigation, the lower court decision of the Superior Court of Justice at
Ottawa found in favour of the City and upheld the structure and legality of the
LPP. Further, the Divisional Court in
Toronto recently dismissed the legal challenge brought by the Lansdowne Park
Conservancy against the City and, hence the LPP, as an abuse of process. In light of the above and the benefits to the
City of the proposed work irrespective of whether the LPP closes, should
Council wish to move forward with the work to preserve its options and to contain
costs, Legal Services is of the opinion that staff has recommended a credible and
permissible contingency plan for approval.
RISK
MANAGEMENT IMPLICATIONS
There are
risk implications. These risks have been
identified and explained in the report and are being managed by the appropriate
staff.
FINANCIAL
IMPLICATIONS
There are no
financial implications with the approval of the recommendation in this report. The estimated cost of these works is included
in the overall Council-approved Stadium, Garage and Site Servicing capital
authority of $129.3 million and Urban Park capital authority of $37.5 million.
ACCESSIBILITY
IMPACTS
Accessibility
impacts of the Lansdowne Partnership Plan have been outlined in the 22 February
2012 Council report.
There are no
additional accessibility impacts resulting from the works described in this
report.
TECHNOLOGY
IMPLICATIONS
There are no technology implications on Corporate
infrastructure, resources and security related to this report.
The Lansdowne
Partnership Plan and revitalization initiative relates to the following
Strategic priorities of Council:
Economic Prosperity
Objective: Promote Ottawa Globally - Revitalized
Lansdowne provides an Ottawa venue for hosting major sporting and cultural
events.
Transportation and Mobility
Objective: Promote
alternative mobility choices - A key element of the Lansdowne revitalization is
putting in place a comprehensive and aggressive Transportation Demand
Management (TDM) program to encourage and promote use of sustainable
transportation for day to day activities and for events.
Environmental Stewardship
Objective: Improve
stormwater management - The Lansdowne revitalization will provide for
significantly improving the manner in which stormwater flows into the City
system, decreasing storm runoff, improving the quality of storm flow to the
canal and providing for use of storm water for site irrigation.
Objective: Reduce
environmental impact - The Lansdowne revitalization will make effective use of
an existing urban site to accommodate a mix of uses, increase greenspace and
revitalize a major city facility, thus reducing the environmental impacts
of growth outside the urban area.
Healthy and Caring Community
Objective: Improve
parks, recreation, arts and heritage - The revitalization program provides for
re-establishing Lansdowne as a significant urban place that is grounded in the
site's history. It provides for improving opportunities for sporting and
cultural endeavours with a re-purposed stadium
and a significant urban park to accommodate events and for
day-to-day community use.
Governance, Planning and Decision Making
Objective: Make
sustainable choices - The decision to revitalize Lansdowne in a way
that recaptures its sense of place and positions it to once again become a
dynamic urban place will improve economic health, cultural vitality and
environmental responsibility.
SUPPORTING
DOCUMENTATION
N/A
DISPOSITION
Subject to
Council approval, staff will implement the recommendation as outlined in this
report.