Chair Tierney opened by stating
that the OPL-LAC Joint facility will be like no other in all of Canada. He
set the stage by reminding Trustees of the 2017 approvals, and said the
majority of the Implementation Plan recommendations in the report are within
the governance scope of Ottawa City Council. The focus of the evening’s discussion
would be approval of the OPL’s participation in the Joint Facility, the contribution
of $1 million to the City’s share of the project from the Library Reserve
Fund as part of the funding strategy, and, declaring the current property
surplus so that it can be sold. The Chair indicated the Board will not
deliberate on areas that have already been decided (vision or procurement
model), or areas where the Board does not have authority (project cost and
parking).
Ms. McDonald provided an
overview of the Implementation Plan for the Ottawa Public Library and Library
and Archives Canada Joint Facility report. (Held on file with the Chief
Executive Officer)
Key highlights of the
presentation included:
-
Overview
of the context, past decisions to-date;
-
Key
Developments/Milestones;
-
Summary
of the main recommendations and the Implementation Plan reports to Board,
Finance and Economic Development Committee, and Council;
-
Overview
of the complex three-party Governance Agreement;
-
Summary
of the Funding Strategy;
-
Overview
of the Delegated Authority to the City of Ottawa (City) for potential
district energy services;
-
Overview
of the project’s next steps such as public engagement on design development;
and,
-
Summary
of the Ottawa Central Library vision.
Chair Tierney thanked Ms. McDonald.
Prior to questions from the Board, Ms. McDonald named the staff in attendance
to respond to questions:
o
Stephen
Willis, General Manager, Planning, Infrastructure and Economic Development,
City of Ottawa
o
Alain
Gonthier, Director, Infrastructure Services, City of Ottawa
o
Elaine
Condos, Division Manager, Central Library Development Project, OPL
o
Gord
MacNair, Director, Corporate Real Estate Office, City of Ottawa
o
Marian
Simulik, General Manager, Corporate Services and Treasurer, City of Ottawa
o
Geoff
Cantello, Senior Legal Counsel, Legal Services, City of Ottawa
o
Serge
Corbeil, Director General, Library and Archives Canada and Mario Gasperetti, Manager,
Library and Archives Canada
In response to a question from
Trustee McKenney about public consultation on design and development approvals,
Mr. Willis said the site plan is still subject to City approval. However, he
indicated that consultation requirements have been built into the Request for
Proposal process, given the importance of this with respect to the project. He
assured the Board that the Project Management Office will be briefing the OPL
Board and Ottawa City Council via normal processes.
Trustee McKenney asked how staff got
the $20M value for the existing facility and if the sale was sole sourced.
Mr. MacNair said the property is a complicated piece of real estate. He
explained that there are three components of the property, two owned by Slate
Properties and the other by the Library/City. Mr. MacNair said internal and
external appraisals were conducted and Slate did an independent appraisal,
all of which support the $20M finding.
Further to a question from Trustee
McKenney on why the surplus land (existing facility) was not on the open
market, Mr. MacNair reiterated that the deal is complicated. He mentioned
that it was staff’s professional opinion that they would not have achieved a
better price, saying Slate Properties has most of the control on two levels,
and a long-term lease on part of the property sub-terranean rights and air
rights. Mr. MacNair noted the deal with Slate Properties avoids ongoing operating
expenses and real estate fees.
In response to a question from
Trustee McKenney about the debt financing for the Joint Facility underground
parking garage, Ms. Simulik noted the estimated revenues from the 200-space
underground parking garage will pay for both its operating and capital
financing expenses, making the parking facility cost-neutral.
Trustee McKenney was concerned that
the City won’t be putting 25% of the proceeds from the main facility sale
into affordable housing, which is a city policy. Mr. Willis indicated that
the Finance and Economic Development Committee will be asked to waive the 25%
as the City would have to borrow the money for one public use to pay for
another public use. Trustee McKenney stated she would not be supporting that
part of the recommendation.
In response to a question from
Trustee Wilkinson on why the City is selling the existing library property so
early and not waiting to sell later to get more money, Mr. MacNair said
waiting would have prevented the City from getting incentives from the
purchasing company.
Trustee Wilkinson was concerned with
the fourth and fifth floor lease being terminated. Mr. MacNair explained that
there are contingency plans in place in the event that the lease is
terminated. Trustee Wilkinson further expressed concerns of the value of the lease,
Mr. MacNair explained the lease was $400K for 16 years until 2034, and
cancelling that obligation formed part of the negotiation with Slate
Properties.
Referencing the Halifax Public
Library public consultation, Trustee Wilkinson asked about the public
involvement and whether the public’s ideas will be incorporated. Ms. McDonald
said that is the goal. Ms. Condos added that public engagement components are
different than that of Halifax, and are included in the Request for
Proposals, recognizing the flexibility for new ideas and trends.
Trustee Wilkinson questioned the use
of the space, saying the Halifax library is approximately the same size,
although Ottawa is a much larger city than Halifax. Ms. Condos advised that
OPL & LAC will each have their own space with some shared space. She indicated
that earlier reports to the Board specified those numbers.
Trustee Wilkinson expressed concerns
that the property adjacent to 557 Wellington would be sold off, and asked
that staff keep space in order for future expansion, and possibly more parking.
In response to a question from
Trustee Wilkinson on what the major project milestones are, Mr. Gonthier
provided a listing as per the detailed Board report.
Trustee Wilkinson suggested that the
OPL Board Chair sit as ex-officio on meetings of the Executive Steering
Committee to enable reporting to the Board. Mr. Willis indicated he would
take away the request with respect to touch points in the process but assured
the Board that routine updates will be provided to the Board and Council.
Trustee Fisher posed a question on
impact of terminating the fifth floor lease, and whether contingency plans
are in place. Ms. McDonald said a Letter of Interest was signed several
months ago. OPL has been working with the Real Estate Office on contingency
plans.
In response to Trustee Higdon’s
concerns on reassurances that the complexities of the project will be met,
Mr. Willis said there are advantages of having one person managing
construction, etc. (Mr. Gonthier, Infrastructure Services). Staff gave a
great deal of assurance with respect to maximizing opportunity in areas
around the site.
Trustee Higdon was concerned with
new technologies in the future that may delay the project related to the
federal government’s new district energy plan, the Energy Services Acquisition
Project (ESAP). Mr. Willis indicated the ESAP replaces the existing district
energy program, stating it may be an opportunity for the City to get on board
with a very low carbon source.
In response to a question from
Trustee Higdon on possible infrastructure grants, Ms. McDonald said she and
the Chair have been conducting funding outreach and mentioned staff will
report back in the fall on the fundraising potential.
Trustee Higdon voiced his support of
Trustee Wilkinson’s statement of staff keeping an eye on land nearby for
additional parking in the future.
In response to Trustee Higdon’s
question regarding the $1.865M operating pressure to be brought forward for
approval through the annual budget process, Ms. Condos indicated the costs
are to operate the facility (staff, maintenance, security, etc.).
Trustee Begg asked why staff believe
the $20M purchase price of the Main Library branch site is a good deal and
what variance scenarios were considered as to the highest estimated value of
the property. Mr. MacNair said the Real Estate Office evaluated different
scenarios and felt that this option was the most reasonable approach.
In response to a question from
Trustee Begg to Library and Archives Canada (LAC) regarding project authority
and complexities surrounding approvals, Mr. Corbeil explained the four levels
of project authorities at the federal level, advising that LAC is at level
three. He assured the Board that the necessary analysis assessment has been
conducted with authority to be considered in the fall.
Trustee Begg inquired whether OPL
has had delegation of design and construction of this magnitude in the past.
Ms. McDonald stated that the highest delegation for a construction tender was
$10M for Beaverbrook, which was largely financed through development charges.
Trustee Begg sought assurance regarding
touch points with the Board, adherence to the functional program, and that
public consultation be incorporated into the design, specifically input from
the Indigenous community as noted earlier. Mr. Willis stated that an
information report will be brought to the Board identifying work program details.
He further stated that the Board will be provided updates on a regular basis.
With respect to the Indigenous element, there is a component of the design
plan that requires consultation and engagement with the Indigenous community.
The City has established capacity in the last few years in this area with
local partners who have experience to help support connections.
Vice-Chair Bergeron asked about the
National Capital Commission’s (NCC) role in approving design and if they
would be responsible for any cost overruns if their demands are more
expensive. Mr. Willis explained the federal building project process with
respect to the National Capital Act and approval of new buildings.
There are currently daily transactions with the NCC on a staff-to-staff level
with plenty of dialogue. He indicated that the NCC has shared design
principles and will be involved at the start, so it does not delay the
project. The City cannot avoid their involvement without changing federal
legislation.
In response to a question by Trustee
Wilkinson on the type of design the project is and the City being the active
project manager, Mr. Willis indicated the design is a conventional City
approach (design-bid-build).
Trustee Wilkinson raised concerns of
the quality of materials to be used in the construction asking that the
Project Management Office ensure beautiful and durable materials are used.
Mr. Willis said the team will work with the architect and the constructor to
make sure the build is done to specifications.
With respect to a question from
Trustee Fisher to what kind of dispute resolution process could be
anticipated in the Governance Agreement, Mr. Willis said they have a lot of
experience with respect to construction issues on community facilities. There
is a high degree of trust in the legal team. Mr. Cantello added that it is a
three-party agreement working together to build and operate for the long
term. Disputes are unlikely but are provided for in the agreement in the
eventuality they occur.
After much discussion regarding the
Board receiving regular updates from the Project Management Office, the Board
agreed to Trustee Fisher’s friendly amendment to recommendation 2c, adding
the words “progresses and”:
c) Direct the Project
Management Office to provide updates to the Ottawa Public Library Board as
each major project milestone progresses and is met, as described in
Document 1.
There being no further discussion, the Board received
recommendation 1, approved recommendation 2 as amended, and approved
recommendations 3 and 4 of the Implementation Plan for the Ottawa Public
Library and Library and Archives Canada Joint Facility as presented (Vice-Chair
read the full recommendation):
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