Report to/Rapport au :
Corporate Services and Economic Development
Committee
Comité des services organisationnels et du
développement économique
and Council/et au Conseil
5 August 2003/le 5 aout 2003
Submitted by/Soumis par : Steve Kanellakos, A/City Manager/
Directeur des services municipaux intérimaire
City Manager’s Office, Bureau du directeur des
services municipaux
And
Jocelyne St. Jean, General Manager, People
Services Department /
Directrice générale, Services au citoyens
Contacts/Personnes-ressource : Réjean Chartrand, Director, Strategic
Delivery Unit/Directeur, Unité d’exécution stratégique
580-2424, ext. 21696,
Rejean.Chartrand@ottawa.ca
and Colleen Hendrick, Director, Innovation,
Development and Partnerships/
Directrice de l’Innovation, development et
partenariat,
724-4122, Ext./poste 24366,
Colleen.Hendrick@ottawa.ca
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Ref N°:
ACS2003-CMR-OCM-0008 |
SUBJECT: PUBLIC-PRIVATE PARTNERSHIP (P3)
PROJECT –
DOMED / INDOOR PLAYING FACILITIES
OBJET
: PROJET
DE PARTENARIAT PUBLIC-PRIVÉ (3 P) –
STRUCTURE DE JEUX INTÉRIEURE EN
FORME DE DÔME
REPORT
RECOMMENDATIONS
That the Corporate Services and Economic
Development Committee recommend Council:
1. Authorize staff to enter into
negotiations with Thunderbird Management Services Inc. (TMSI) for the
construction and operation of a year round, air supported, domed playing
facility at Hornet’s Nest on Bearbrook Road; and
2. Direct staff to report to Council on the outcome of the
negotiations in September 2003.
Que le
Comité des services organisationnels et du développement économique recommande
au Conseil municipal :
1. d’autoriser le personnel à entreprendre
les négociations avec la société Thunderbird Management Services Inc. (TMSI) en
ce qui concerne la construction et l’exploitation durant toute l’année d’une
structure de jeux gonflable en forme de dôme au Hornet’s Nest situé sur le
chemin Bearbrook;
2. de demander au personnel de fournir au
Conseil municipal un compte rendu portant sur les résultats des négociations en
septembre 2003.
In October 2002, City Council approved that a
number of projects be implemented on a priority basis under public-private
partnerships, including the provision of domed / indoor playing facilities.
A Request for Proposal (RFP) for Domes / Indoor
Playing Facilities was issued 4 April 2003 on MERX by the Supply Management
Division. The RFP closed on 8 May 2003,
and two qualified submissions were received from:
After evaluating the two proposals, it was
deemed that both proposals were non-responsive to the City’s requirements; and
therefore, the RFP process came to an end.
Discussions were held internally with the decision that the City would
consider a year round structure subject to the project being implemented at no
net cost to the City. The two respondents were invited to submit proposals
based on these parameters, and proposals were received from both firms at the
end of June.
This report recommends that staff enter into
negotiations with TMSI for the construction and operation of a domed / indoor
playing facility at Hornet’s Nest on Bearbrook Road. As per Council direction, a public meeting will be held in the
community during this stage.
DISCUSSION
The RFP invited respondents to submit proposals
for the construction and operation of an air supported seasonal domed playing
field on two City locations – Hornet’s Nest on Bearbrook Road and Minto field
at the Nepean Sportsplex.
At Hornet’s Nest, there are currently 12 soccer
pitches of natural turf and a clubhouse constructed in 2000 that is on a septic
and well system. The pitch closest to
the parking lot is the proposed site for development. The natural turf would be replaced with an artificial turf system
as part of the dome installation.
Improvements to the parking area and an upgrade of the power source
would also be required.
The fields are currently operated under the
terms of an agreement between the City of Ottawa and the Gloucester Soccer
Association (GSA). The GSA has
exclusive use of the clubhouse and food concession. They also have exclusive rights to the playing fields for the
soccer season approximately June 1 to September 30, making the field available
to the private sector partner from approximately the beginning of October to
the end of May.
Minto Field is located east of the Nepean
Sportsplex main parking area. The field
is on property covered by a long-term lease between the City and the National
Capital Commission. The playing surface
is an artificial turf that was first used in Spring 2001. In order to accommodate a dome, services
would need to be extended from the front of the property to the field
perimeter. The field is currently fully
booked with long-term users from approximately the second week of April to the
second week of November. The site would
therefore be available to the private sector partner from approximately mid
November to the first week in April.
Proposals were received from TMSI and The
Farley / 1v1 Partners. The evaluation
team, comprised of representatives from the People Services Department, RPAM,
the Strategic Delivery Unit, and an external representative, evaluated each
proposal considering the stated objectives of the City and using the
established detailed evaluation criteria. These criteria were known to all
proponents since they formed part of the RFP.
Neither proposal expressed an interest in
developing Minto Field at this time.
The shorter operating season was cited as a deterrent. Both proposals detailed developing Hornet’s
Nest and required the City to pay for the site preparation and installation of
artificial turf. Additional conditions
included a year round structure or the City to pre-purchase field time and
assume all risk. For all these reasons,
the proposals were deemed non-responsive and the RFP process closed.
The submissions, as well as feedback from
potential proponents received during the process, indicated there either needed
to be a change to the overall parameters of the project or the City would have
to be more involved in order for a viable business case to be established. It became clear that a year round structure
provided the best scenario, minimizing the City’s risk exposure and providing
the necessary revenue required by the private sector.
A year round structure would, however, place
pressure on the well capacity and septic system. The current well capacity would not meet the water requirements under
the fire code. The year round usage with a larger concession would also put
pressure on both water and septic systems.
Permanent services would be required, and could be provided by extending
the water main along Bearbrook Road to the Hornet’s Nest site and by installing
a sewage lift station with a 100mm. diameter force main to connect to existing
services on Bearbrook Road.
Discussions were held internally with the
decision that the City would consider a year round structure subject to the
project being implemented at no net cost to the City. Both proponents submitted revised proposals under these
conditions. One proponent proposed
developing the Hornet’s Nest now and developing Minto Field at a later
date. The conditions for development of
Minto Field were unacceptable to the City and therefore, Minto Field was
removed from consideration, leaving Hornet’s Nest as the sole site.
Both proposals were evaluated and TMSI was
deemed to be the preferred respondent, providing the City with the best value. Staff recommends that the City enter into
negotiations with TMSI to develop an agreement for the construction, financing,
and operation of a permanent facility at Hornet’s Nest at no net additional
cost to the City.
An external consultant to the City carried out
a study at the Hornet’s Nest site in April 2003. It was noted that with attention to site preparation, drainage
design and proper construction practices, the addition of a structure would
have minimal impact on water drainage and the environment.
The facility will be available to users from
across the City, including rural residents who will have access to the new
indoor field.
The Gloucester Soccer Association was consulted
during all phases of this process and confirm their support for the City to
proceed. They have committed to
negotiate an agreement with TMSI on the use of the clubhouse and the soccer
field.
A public meeting will be held during the
negotiations process with the private sector partner prior to the execution of
a P3 partnership agreement.
FINANCIAL IMPLICATIONS
Negotiations with TMSI will be undertaken to
form an agreement that will result in no net additional costs to the City.
None.
The Strategic Delivery Unit and People Services
Department will implement the recommendations as directed by Council.