SOCIÉTÉS Publiques-Privées
ACS2002-CMR-OCM-0003
Councillor H. Kreling referenced meeting on several occasions with groups using recreational facilities and hearing that the number one priority in his community was an arena, or a double surface. He commented that proponents have also stated that arenas were a prime issue for P3 (public-private partnerships). Councillor Kreling stated another of the proponents' concerns relate to how the City would review unsolicited proposals which sometimes pose a challenge because other amenities or features are attached to them.
Councillor J. Stavinga commented that she had hoped the report would be more substantial and contain a framework to judge the proposals. The City Manager, Bruce Thom, acknowledged that the report contains a fair bit of substance, however not much detail, in part because no other municipality in Canada has this experience. He explained the report was developed through discussions with a top P3 consultant, with Industry Canada and with the Council for Canadian Private/Public Partnerships in Toronto. Mr. Thom highlighted the following three points the Committee should be aware of, and be comfortable with:
• That staff move more aggressively into the P3 practice, examining the budgets and determining where or whether there are possible projects;
• The establishment of a small unit in the City Manager' Office to scan the capital budget for approved projects with the potential to move forward as P3s; and
• A process to handle unsolicited proposals.
Councillor Stavinga believed it was important to establish a framework to deal with proposals and to communicate that P3s will not necessarily deliver in every circumstance: projects have to achieve best value for municipal dollars. She gave the example of a facility in the former Township of Goulbourn where after going through an evaluation process, it was ascertained the municipality could actually build and operate the facility at a better rate and more effectively than the private sector.
Councillor R. Chiarelli suggested that, as long as it remains flexible enough to recognize that the private sector will need to benefit from the partnership, a municipality could reap substantial benefits. He stated that both the construction of the new main library and the solid establishment of a Pay-As-You-Go structure could not happen unless the City made the best of P3 situations. Councillor Chiarelli pointed out that, in some of the cultural institutions, there is a pre-conceived notion that commercial activity is bad and a detriment to the facility whereas the public often has the exact opposite notion.
Councillor P. McNeely believed the City would not progress very far with P3 unless Council moved aggressively and examines some of the projects being proposed. He pointed out that the former municipality of Cumberland achieved positive results with the Ray Friel facility: service delivery was high quality compared to what the city could deliver. The Councillor pointed out that mechanisms have to be in place, confidentiality has to be respected and a more aggressive approach is needed in order to make some headway.
Mr. Thom indicated that, having had a chance to evaluate this and the establishment of the unit, this was as aggressive as he felt he could be at this time. He spoke about situations in other large municipalities in Ontario where senior personnel were dismissed as a result of moving into the process too rapidly and without enough forethought. He urged Committee members to be patient, as P3 is still in its infancy stage and staff will need to look at best practices elsewhere: notwithstanding this, the City Manager commented if Council directs staff to look at a specific project under this formula, this can be done.
Mayor Chiarelli stated the policy gives Council the tools it needs to do the job, and to be as aggressive yet cautious as it wants to be. He cited a number of examples of projects that have come to his attention, pointing out that the City does not have the means, the expertise or the process to evaluate all these projects due to the interdepartmental nature and staff are busy with the operating responsibilities. Chair Chiarelli expressed the view that an internal unit reporting to the City Manager could look at all aspects of the proposals in an organized manner and within the context of the approved capital program, thus ending the uncertainty of where to go to get expert advice. He also thought Ottawa would be the only city in Canada with a unit equipped to do this work and that this represents a tremendous opportunity for the community.
That the Corporate Services and Economic Development Committee recommend Council:
1. Endorse the concept of more fully utilizing Public-Private Partnerships (P3) as a tool which the City can use where appropriate to identify, analyze and implement innovative opportunities for capital project development;
2. Endorse the formation of a Special Delivery Unit within the City Manager's Office to co-ordinate the City's P3 efforts which will complement current centres of expertise and will work with external resources to investigate possible P3 initiatives; and
3. Endorse the framework for dealing with unsolicited P3 proposals the City receives as outlined in this report.
CARRIED