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Prior to the
presentation, Chair Luloff provided introductory remarks. He reminded
trustees that the Central Library was the Ottawa Public Library (OPL) Board’s
number one priority, and that together with staff, the Board had been working
on this exciting, generational project for nearly a decade, which included
prudent financial planning. He said the partnership with Library and Archives
Canada and collaboration with the Anishinābe Algonquin Host Nation has
made the project even stronger. The Ādisōke design is the direct
result of an unprecedented public co-design process that asked Ottawa
residents, Indigenous communities, and Canadians from across the country, and
from different backgrounds with diverse interests, to provide inspiration at
every stage. The resulting design incorporates recommendations
for accessibility, inclusivity, sustainability, and Indigenous
representation. This is the Central Library that the community has asked for
and deserves. He mentioned that Ādisōke has been an important OPL project
for the past decade and noted that the decision before the Board represents
an important milestone for the project. He said the Board will be receiving a
presentation from staff shortly and the goal is to work through the
recommendations regarding additional funding for Ādisōke, with a
view to moving forward, recommitting to being a part of something bigger, and
to support this once-in-a-lifetime new building in Ottawa.
Danielle McDonald, CEO,
and Craig Ginther, Division Manager, Ottawa Central Library, provided a
presentation on the Ādisōke project update and fundraising
strategy. (Held on file with the Chief Executive Officer). The
following City of Ottawa staff were in attendance to respond to questions:
Alain Gonthier, Director, Infrastructure Services, Simon Dupuis, Manager,
Design and Construction, and Isabelle Jasmin, Deputy City Treasurer.
Key highlights of the
presentation included:
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Key
Decisions (from 2012 to present);
-
Project
Vision (create a modern, iconic Central Library, one that acts as a local
branch for the downtown community, a resource for all Ottawa residents, and a
beacon for tourists from across Canada and around the world);
-
Project
Milestones (key milestones, which include project updates provided to the
Board at regular meetings);
-
Procurement
Process (construction tender procured in a four-stage process);
-
Tender
Results (low bid from PCL is over the budgeted project authority, and Council
approval is required to increase the total project authority);
-
OPL
Funding Strategy (OPL contribution proposal, specifically, Library City-wide
Development Charge Debt, Library Reserve Fund, and Fundraising); and,
-
Upcoming
Milestones (Next steps and summary)
Trustee Brockington
raised his frustration with the sequence of the legislative path, specifically
that the City’s Finance and Economic Development Committee (FEDC) held a
Special Meeting earlier in the day to approve additional funding
recommendations for the project. Chair Luloff described the legislative
authorities for the project, and that the increased price is outside of the
delegated authority. He said that OPL and the City of Ottawa’s Planning,
Infrastructure and Economic Development Department (Ādisōke project
lead) sought guidance from the City Clerk’s Office with regard to identifying
the appropriate legislative path and most appropriate sequencing of approvals
from OPL Board, FEDC, and Council to secure the necessary project
authorities. The CEO echoed the Chair’s comments. Trustee Brockington
appreciated the thorough response but maintained his frustration with the
recommended sequence.
Trustee Brown asked
whether the 40 years amortization period for debt servicing costs for Library
City-wide Development Charges is normal. Ms. McDonald said this is typical
for financial project amortization. Ms. Jasmin noted that there are
guidelines in the Municipal Act, 2001, that specify that amortization
can be extended to better match the life of the asset, to a maximum of 40
years.
In response to Trustee
Brown’s question regarding OPL contributions from the Library Reserve Fund,
Ms. McDonald explained that the staff recommendation for the OPL contribution
is consistent with the strategy presented and approved in 2018, and includes
a combination of development charges, Library Reserves, and fundraising. The
CEO said the Board approved a fundraising framework earlier this year and
further elaborated on the recommendation of contributing $16 million through
the Library Reserve Fund. She emphasized that staff are committed to providing
the Board twice-yearly updates on fundraising status beginning in 2022. Chair
Luloff said he was impressed with the ongoing fundraising efforts thus far
and congratulated OPL’s Michael Poliwoda, Manager, Major Gifts and
Partnerships, the fundraising extended team, as well as the Fundraising Ad
hoc Committee.
Trustee Begg remarked
that the report was clear, and appreciated the cost of Ādisōke
relative to comparative projects. He urged staff to reiterate to Council the
importance of the implications of not proceeding with the project. The Chair
said the comment is very astute and worth reiterating to Council. He
highlighted some of the implications. The CEO was pleased with how Trustee
Begg summarized the Board’s work on this project to date and said that there
are no real alternatives at this time, and that the best path is moving
forward with the recommendations.
Trustee Higdon agreed
with previous remarks made by his colleagues and felt that the staff report justified
the recommendations by explaining implications, providing arguments, and
identifying the costs of going backwards. He said that while the pandemic
created this perfect storm, from a business perspective the path is forward.
Trustee Brockington said
he agreed with the previous remarks, however, he noted that the project will
now cost more for taxpayers. He said it is a bitter pill to swallow because
at this point in time, it is too late to look for further efficiencies or
cancel the parking garage, for example, as it would mean new estimates, new
tenders, and higher construction prices.
Trustee Brockington asked
what OPL agreed to pay in 2018 in the Governance agreement. Ms. McDonald said
if the Trustee is referring to the 2018 Implementation Plan report, OPL’s
direct contribution to the project was $1 million from the Library Reserve
Fund, operating costs of $1.865 million to be brought forward for approval
through the annual budget process, $10 million from the sale of Main library
and development charges. She
reinforced that of the total cost 61% is OPL and 39% comes from LAC.
Trustee Brockington said
that following 2018, the next contribution approval by the Board was February
2021 for $5 million from the 2020 surplus in Library Services. Ms. McDonald
answered in the affirmative.
Trustee Brockington was
concerned that this financial commitment from the Library Reserve Fund would
shortfall other OPL projects. Ms. McDonald stated that there would not be a
surplus if it were not for the pandemic. She explained that while the OPL
Board can recommend to Council, ultimately Council has final authority. To
that end, Council could have withheld the entire 2020 surplus to pay for
non-library investments. She added that there was a meeting with the City Solicitor
with respect to the Library Reserve Fund, and noted that this project has
been on the books since 2012, as OPL’s number one priority.
Trustee Brockington
reiterated his frustration with the sequence of the legislative path and
report going to FEDC before the OPL Board, and took issue regarding
fundraising for Furniture, Fixtures and Equipment (FF&E). Chair Luloff
remarked that FF&E also includes art, and equipment, including recording
equipment, etc. Every dollar fundraised will protect a dollar in the
Reserves. Mr. Poliwoda said that the fundraising case for support includes
items such as those for FF&E, as well as soft items, such as programs.
Trustee Brockington urged
staff to provide a fundraising update before the end of 2021, and that a
verbal would be acceptable. He then reiterated that he took issue with the
Library Reserves being drained. He would have preferred to hold back the
approval of the reserves until after the 2022 budget process. Ms. McDonald
said that the additional target of $7 million to be established to address
that pressure is to be taken out later and does not have to be accounted for
to award the construction contract. Ms. Jasmin confirmed that the amount
would not be drawn down immediately, but as needed.
Trustee Brockington also
expressed frustration with the additional contribution of $4 million from the
Library Reserves, and Ms. Jasmin confirmed that that amount would be drawn as part of the year-end
2021 financials. Chair Luloff said there is time between now and
Ādisōke opening to bolster reserves.
Trustee Brockington said
that he was unsure of his future tenure on the Fundraising Ad hoc Committee.
Vice-Chair Fisher asked
the CEO to share her thoughts on the return on investment for library
services. Ms. McDonald said OPL did a return-on-investment analysis in 2017
and for every dollar spent, the return was approximately $5.17, and that
currently it is more than $4.00. That return did not include the Ottawa
Central Library project. She noted that during the Commercially Confidential
Meetings it was noted: “If you build it, they will come.” The return on
investment for library services is significant. The CEO provided comparatives
of Calgary and Halifax, as well as libraries in Europe, stating that areas around
central libraries are springing up and building rich infrastructure.
Trustee Meehan echoed
previous remarks on the value perspective but also echoed concerns on
draining Library Reserves and wanted it on record that she needed to ask the
tough questions.
She provided feedback
from her community, specifically on the escalating cost of the
Ādisōke project and how that will affect other library projects.
She asked staff to provide her with language she can take back to her
community, specifically Riverside South, to reassure them that there will be
funds for their local library services. The Chair noted that the Central
Library has been the number one priority for the Board for a very long time
and is the single largest social infrastructure project for the City. He said
he finds it hard to square how the community would like a library but not a
central library. The CEO indicated that staff have done the work, prepared
the reports, and presented the justifications. A central library is also a
local branch for the downtown residents, our central branch for the other
branches to link to, and a destination for visitors. The Chair reiterated
that the Board has committed that the central library was not going to be
developed at the expense of other projects, however, the current project is
the number one priority. The goal
is to work through the recommendations regarding additional funding for
Ādisōke. Chair Luloff indicated that development charges for
Riverside South remain intact and would be happy to assist the trustee to
answer questions from her residents.
Trustee King said that
libraries are the most egalitarian institutions in our community. The Central
Library functions as a resource in the local community, and as larger
destination. He was disappointed with the unfortunate reality and economy at
the moment, however, libraries are an important aspect of big cities, which
bestows gifts to our youth and all residents, and a bridge to Indigenous
citizens. Trustee King said we must be bold, it will engage millions of
people. He supported Trustee Brockington’s suggestion for a fundraising
update in 2021. The Chair asked staff if they are prepared to take that as a
direction. The CEO agreed in the affirmative with twice a year going forward.
Vice-Chair Fisher thanked
Trustee Meehan and said that messaging from staff could be beneficial. She
highlighted the introductory remarks made by Leslie Weir, Librarian and
Archivist of Canada at Library and Archives Canada, at the FEDC meeting
earlier in the day, in which she explained the breadth of collections that
will be made available to cardholders due to the partnership and
Ādisōke, which will draw many people to the downtown core.
Trustee Slack fully
endorsed the project. He remarked that Ottawa is a G7 City and part of the
G20 inter-governmental political forum. He explained that Ādisōke
will be an elite building, and urged the Board not to muck around. He thanked
the CEO and Division Manager, Central Library Project for the presentation
and reports.
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