DATE:	22 April 2013
TO:	Executive Director, Ottawa Police Services Board
FROM:	Chief of Police, Ottawa Police Service
SUBJECT:	2670 QUEENSVIEW DRIVE – LEASE AND FIT UP OF CITY OF OTTAWA FACILITY

RECOMMENDATIONS

That the Ottawa Police Services Board:

1. Approve the execution of an Occupancy and Use Agreement with the City of Ottawa for approximately 33,870 sq. ft. of space located at 2670 Queensview Drive for a period of 11 years 8 months commencing May 1, 2013.

2. Delegate authority to the Chief of Police to complete required tenant fit-up, furniture and equipment acquisition and project management services for an amount not to exceed $3,950,000.

BACKGROUND

The Ottawa Police Service (OPS) has developed a long-term Facilities Strategic Plan (FSP) to support police operations for the coming 20 years. The draft FSP outlines the requirements for this period which include: addressing the existing shortfall of space, resolving health and safety issues, meeting operational service delivery changes, co-locating sections to improve operations, complying with business continuity plans, responding to growth throughout the city and replacing aging infrastructure.

The facility acquisition, realignment and disposal projects which need to be undertaken over the next 20 years to meet these requirements are set out in the FSP, along with costs and a funding plan. Staff have consulted with City staff and the Board’s Finance and Audit Committee (FAC) several times during the development of the FSP and have revised the analysis and approach accordingly. The final draft of the FSP will be presented to the FAC and the Board for approval in June 2013.

Under the Draft Plan, the Criminal Investigative Directorate (CID) becomes the primary occupant of Elgin Street. CID sections are gradually re-located to Elgin Street over the next 20 years, as other sections are able to leave, increasing the CID occupancy ratio from the current level of roughly 35% to the final level of 80%. This approach will enable the co-location of all CID functions, which are currently spread over 3 buildings, and will promote the operational benefits which are expected to flow from those groups working together with their senior leadership under one roof.

The Cellblock, the Executive and two small groups reporting to the Chief are the remaining secondary tenants of Elgin Street when the Plan is complete. All other groups currently at Elgin Street will move to other facilities over the coming 20 years: Tactical, the Communications Centre, the Information Technology and Records Sections and the Central Patrol and District officers.

This report outlines the plan and requirements to move the first group out of Elgin Street to a 34,000 square foot City of Ottawa facility on Queensview Drive (Queensview).

DISCUSSION

This report has been put forward in advance of the final approval of the FSP in order to take advantage of a highly economical 34,000 square foot lease opportunity offered by the City of Ottawa. The financial benefits of this arrangement are significant and are outlined in a subsequent section. Staff have analysed the lease opportunity against the requirements of the FSP and see that it is a strong fit with the immediate facility needs of the OPS. The City has asked OPS to finalize its response to the City’s offer this month, given that another client has expressed strong interest in the space.

Moving the Records Section out of Elgin Street to Queensview

The first logical group to move from Elgin Street is the Records Section. This group of roughly 70 employees occupies a significant amount of space on the first floor of the Elgin facility and can be easily and suitably accommodated in a leased facility. The active records which they manage can also be co-located and housed in a leased facility. These records are currently stored at 3 separate locations: 474 Elgin Street, the OPS portion of the Swansea facility and Dymon Storage. Under the FSP both the Records Section and Active Records Storage will ultimately be co-located with other Corporate Services sections in a common facility in the 10 to 20 year timeframe.

Moving CID Units from Greenbank to Elgin

Under the FSP, the vacated space at the Elgin facility will be back-filled with several CID units that currently reside at Greenbank. These units have significant and critical information technology infrastructure requirements. Relocation to Elgin will ensure they have access to the extensive IT/Telecom support and redundant infrastructure recently installed at Elgin.

This move will also begin the process of emptying the Greenbank facility, which has a remaining useful life of roughly 7 – 8 years. It is scheduled to be re-built in the 10 to 20 year period as an administrative facility serving the Office of the Chief Directorate and Corporate Services functions.

Other Sections which can Move to Queensview

Preliminary space planning and programming indicates that sufficient space may in fact be available to relocate to Queensview several other Corporate Services units which currently reside at the Greenbank facility. This finding is a positive one as it will continue the process of emptying out Greenbank, in anticipation of its rebuilding in the 10 to 20 year timeframe, and reduce the number of clients that have to be supported by its aging infrastructure.

The Queensview Leasing Opportunity

In October 2011, the City’s Real Estate Partnership and Development Office (REPDO) circulated a notice identifying an asset of the City of Ottawa, 2670 Queensview Ave, as available for possible use by a City group beginning in May 2013. The space is comprised of 30,688 sq. ft. of main floor office space and 3,182 sq. ft. of basement storage.

The OPS responded to the circular and conducted a feasibility study in early 2013 which concluded that it was a strong fit with the OPS needs for interim administrative and records storage space, as outlined in the Draft FSP. The Queensview site is being held by the City for the future expansion of the Bus Rapid Transit in that area. The City has confirmed the OPS can lease the facility until December 31, 2024, and possibly longer.

A recent building condition report indicated that the Queensview facility is in good condition. Base building components are in generally good condition. Major components of the roof top heating systems and the roof membrane are nearing the end of their design life however and further testing will be required to identify if these components can be maintained throughout the term of the proposed OPS occupancy. Building life-cycle investments will be incorporated as required in future OPS budgets.

The Queensview lease opportunity is a very cost effective one for the Board. The OPS is only required to pay operating costs for the space, estimated to be $10 per square foot. The City is not asking for a per square foot “lease” payment, nor are per square foot property taxes required, given Queensview’s status as a City facility. The cost of this arrangement is roughly 33% of the cost of a similar lease from a commercial landlord.

Relocating the active storage records to the Queensview site in early 2014 will create an annual budget savings of roughly $99,000, starting in 2014. In that year OPS will be able to terminate the lease arrangements for active records storage. The $99,000 savings will be contributed to the Board’s 2014 efficiency target.

Fit-up, Furniture and Equipment for Queensview

The investment that OPS will make in fit-up, furniture and equipment for the Queensview site will provide benefits for many years. It will ensure that staff can function in a suitable environment for the planned 12 years of the lease arrangement. The furniture and equipment can also be transported and used at the re-built Greenbank site, when it becomes available in the 11 to 20 year timeframe of the plan.

For fit-up of the premises, estimates are based on approximately $125 per sq. ft. or $3.95 million in total. The estimate includes installation of OPS corporate standard furniture, IT and telecom wiring and equipment, security equipment and specialized storage systems such as high density shelving. The premises will be occupied in early 2014.

Delegated Authority Request

To ensure timely delivery of this project, this report recommends that the Chief be given delegated authority for an amount not to exceed $3.95 million to undertake the furniture, fit-up, equipment and project management activities needed for OPS staff to occupy the premises. All procurement initiatives will be undertaken in accordance with City’s Purchasing By-laws and the OPS Financial Accountability Procedures Manual and will be reported in the quarterly financial reports.

PUBLIC CONSULTATION

Consultations have been held with OPS staff during the development of the Draft Facilities Strategic Plan. The management team in Records has also been consulted on the suitability of the Queensview site for their operations. Public consultation is not a requirement for this exercise.

FINANCIAL STATEMENT

Annual Operating Costs

Funding of $340,000 for the Queensview lease was included in the 2013 operating budget and is allocated to the Police Facilities Cost Centre 502610-124168.

Capital Costs

A requirement for capital funding of $3.95 million has been identified to undertake the required furniture, fit-up, equipment and project management activities for this project. In the 2013 Facility Realignment Plan project, $1.5 million was identified to fund up fitting of swing space. Along with this amount, a total of $1.55 million will come from the savings in the Comm Centre Renewal Project and the remainder of the funding ($900k) will come from the 2011 Facility Strategic Plan capital project money that is unspent to date. A summary is provided below. A request will be made to transfer the money from projects 904516 and 906166 to 907080 in order to maintain one account for the project.

	907080 – Facility Realignment Plan 2013	904516 –Comm Centre Renewal Project	906166 – Facility Strategic Plan 2011
Approved Budget	$ 2,850,000	$4,000,000	$ 2,950,000
Total Paid & Committed	0	2,026,875	(1,865,521)
Balance Available	$ 2,850,000	$ 1,973,125	$ 1,084, 479
This Request	1,500,000	1,550,000	900,000
Balance Remaining	$ 1,350,000	$ 423,125	$ 184,479

CONCLUSION

In accordance with the Draft Facilities Strategic Plan, a requirement exists to move the Records Section out of the Elgin facility into leased space that will serve as their interim location for roughly 12 years. This action will enable several critical CID sections located at Greenbank to be moved to Elgin and be co-located with their leader and their colleagues. An excellent opportunity exists to obtain the required lease space immediately through reuse of an existing City of Ottawa facility on Queensview Drive that will meet this need at a very reasonable cost. Funds are in the operating and capital budgets to cover this cost. A budget savings of $99,000 will be achieved in 2014 when leases for active records storage are terminated and these records and these records are moved to their new space on Queensview Drive.

(original signed by)

Charles Bordeleau

Chief of Police

Responsible for report: Director General Debra Frazer