The People Services Department of the City of Ottawa developed a two-phase renovation and replacement plan for Island Lodge in the City of Ottawa. Island Lodge consisted of over 300 long term care beds in two different buildings, Bradford House and Allan House, located on Porter Island.

Phase one of the plan included the development and construction of the Peter D. Clark Long-Term Care Centre in the former municipality of Nepean. The Clark Centre consists of 166 beds relocated from Island Lodge and 50 new dementia care beds awarded to the former Region of Ottawa-Carleton in 1998.

That phase was completed in May 2001, and, as a result, half the residents and staff were transferred from Island Lodge to the Clark Centre. Following the relocation to the Clark Centre, the remaining residents were consolidated in Allan House on Porter Island and Bradford House was demolished.

The second and final phase of this project is to build a new 180-bed facility on the west end of Porter Island, in the location previously occupied by the now demolished Bradford House. The new building will replace the 40+ year-old Allan House that currently supports 165 residents under the care of the City of Ottawa.

The relocation of residents from Allan House into the new Garry J. Armstrong Long-Term Care Centre will effectively make Allan House surplus to City needs and provides an opportunity for the redevelopment of the property under private ownership.

The construction of the Garry J. Armstrong Long-Term Care Centre for the City, and the redevelopment of Allan House under private ownership, constitute the basis for the P3 project covered by this report.

This project was one of four projects approved by Council in October 2002 for earliest implementation under public-private partnerships.

This report provides the results of the evaluation of the responses received from the RFQ stage, and details the framework that will be used in the development of the RFP.

DISCUSSION

Results from the RFQ Stage

A Request for Qualifications (RFQ) was issued on 3 February 2003 by Supply Management and advertised on Merx and at the Ottawa Construction Association. The RFQ closed on 6 March 2003 and qualification submissions were received from (listed in alphabetical order):

· Caregard Management Inc. (with ZW Group Inc.)

· Doran Contractors Ltd. (with Taggart Realty Management)

· PCL Constructors Canada Inc. (with The Retirement Residences Real Estate Investment Trust and Central Park Lodges Ltd.)

· The Windmill Development Group Ltd. (with Diversicare Canada Management Services Co., Inc.

The qualification submissions were evaluated against the evaluation criteria prepared by the Supply Management Division with the assistance of staff from a number of departments. The criteria was reviewed by the Fairness Commissioner retained by the City to oversee the process and to ensure that the evaluation process would be open, fair, and transparent.

An evaluation team consisting of two representatives from the People Services Department, one from RPAM, one from the Strategic Delivery Unit, and one from the private sector was set up to carry out the evaluation of the responses, under the leadership of the Supply Management Division and in the presence of the Fairness Commissioner.

In order to be considered to be short-listed and be invited to submit a detailed proposal, Respondents had to meet (a) all the Mandatory Requirements, (b) obtain the minimum passing grade of 75% on the Criteria Subject to Point Rating, and (c) achieve the highest scores on the Criteria Subject to Point Rating.

All submissions received qualified to be short listed for the Request for Proposal (RFP) stage of the process.

Framework for Development of the RFP

This public-private partnership is based on the premise that the private sector will build the City’s long term care centre in accordance with the design and specifications currently being finalized by J.L. Richards and Associates Ltd. on behalf of the City, and that it has an interest in acquiring and redeveloping Allan House.

In its simplest form, the partnership will reduce the construction cost of the City’s facility by an amount equal to the value of Allan House and the value of the land lease that will accompany the transfer of Allan House to the private sector. Other benefits to the City include the redevelopment of Allan House into a viable business addressing community needs, and contributing to the City’s taxation base.

Based on the above, the framework for the RFP will be developed in accordance with the following:

Proposed uses for the redevelopment of Allan House will need to conform to current zoning (retirement home/seniors residence);
Redevelopment to be compatible with the plans for the Garry J. Armstrong Long Term Care Centre to be constructed at the west end of the island, and to incorporate strong design elements respecting and enhancing the views of the island from the St. Patrick’s Street Bridge and surrounding areas;
City to obtain all approvals (ex: Ontario Ministry of Health, Rideau Valley Conservation Authority, site planning, building permitting) for the construction of the City’s long term care facility;
Private sector partner to obtain all approvals for the redevelopment of Allan House;
Contractual relationship for the construction of the long term care facility will be generally as per CCDC2 documents; these documents are the ones the City normally uses to tender construction projects of this type
Proposals to clearly indicate timelines for construction of long term care facility and redevelopment of Allan House; timely redevelopment of Allan House expected immediately following the transfer of patients to the new long term care facility;
Selection of partner to be based on above requirements being met and on best overall value to the City.

Timelines and Next Steps

Following approval of this report by Council, staff will finalize the RFP document and distribute to all firms on the short list. This is anticipated to take place on May 1^st, with the proposals expected back on 12 June 2003.

Staff would expect to report back to Committee and Council with a recommendation on the private sector partner in July 2003. Negotiations on the partnership agreement and the public information session are expected to take place in August 2003, with final agreements finalized and executed in September 2003.

ENVIRONMENTAL IMPLICATIONS

The contamination of Porter Island from former municipal waste dating from the early 1900’s is well documented. Necessary mitigation measures will be undertaken as required during construction to meet all applicable regulations.

A much improved storm water collection system will be provided on the island as part of the construction of the facility, and it will improve the quality of the discharge into the Rideau River.

RURAL IMPLICATIONS

There are no rural implications with this project.

CONSULTATION

The People Services Department has been in regular contact with the local community and stakeholders with respect to this development. An Open House has been organized on 6 April 2003 to provide an update on the project. An additional information meeting will be held once a partner has been selected by the City, and prior to the execution of any partnership agreement.

FINANCIAL IMPLICATIONS

There are no financial implications with the approval of this report.

ATTACHMENTS

Attached is a map showing Porter Island with Allan House located at the east end of the island, and the vacant site for the new facility at the west end.

DISPOSITION

Following approval of the report by Council, City staff will finalize the RFP and distribute to all firms on the short list in early May 2003.

Map – Porter Island