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HomeMy WebLinkAboutCAO 05-21 Report Number: CAO 05-21 Date: August 30, 2021 From: Fiaz Jadoon Director, Economic Development & Strategic Projects Subject: Lakeridge Health – New Hospital Opportunity -File: A-1440 Recommendation: 1.That in accordance with Purchasing Policy Item 10.03 (c), the proposal submitted by HOK in the amount of $195,000.00, dated July 27, 2021 and Deloitte LLP in the amount of $85,425.00, dated August 11, 2021, respectively, to develop a compelling and comprehensive response to the anticipated RFP release for a new hospital in Durham Region in the amount of $316,880.25 (HST included), and the net project cost of $285,360.00 (net of HST rebate) be accepted; 2.That Council authorize the Director, Finance & Treasurer to finance the net project cost of $285,360.00 as follows: a. The sum of $142,680.00 to be charged to the General Government Consulting account (2126.2392.0000); and b. The sum of $142,680.00 to be funded from the North East Pickering Landowners Group; 3.That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report; and 4.That the City Clerk forward a copy of Report Number CAO 05-21 to the North East Pickering’s Landowner’s Group. Executive Summary: Lakeridge Health, Durham Region’s community healthcare system provider, will be releasing a request for proposal (RFP) to invite municipalities to submit responses for the selection of a site for its new hospital. The City of Pickering has expressed interest in this opportunity, and is proposing a hospital on a site situated at Salem Road and Highway 407 in Pickering. The 70 acre site is being donated by the North East Pickering Landowners Group Inc. for this purpose for this purpose. In 2019, Lakeridge Health began developing its Master Plan to map out the next 25 years of healthcare in Durham. During this process, Lakeridge Health identified the need for a new comprehensive acute care hospital to address the needs of the community. This proposed new hospital (along with other key capital investments identified in Lakeridge Health’s Master Plan) will help ensure that, as Durham continues to grow over the coming decades, residents’ health REVISED CAO-05-21 August 30, 2021 Subject: Lakeridge Health – New Hospital Opportunity care needs are met. The site selection process is expected to be completed by the end of 2021. An acute care hospital with an emergency department would significantly improve the healthcare infrastructure in the City of Pickering and provide much needed care to an underserved area with a significant projected population growth, without causing an overlap in the existing network. Pickering’s site is ideally located to not only serve a large catchment area, but to also attract top tier talent from a number of post-secondary institutions in Durham Region, York Region, and the City of Toronto. The site is also highly connected with access from Highways 407, 412, 7, and 401. The City of Pickering is one of two municipalities in Durham Region without a major healthcare asset. Lakeridge Health sites currently reside in Ajax, Whitby, Oshawa, Clarington, and Scugog. Additionally, Uxbridge features a satellite site at the Markham-Stouffville Hospital, and Whitby is home to Ontario Shores Centre for Mental Health Sciences. As such, the addition of a hospital site in Pickering would fill a void in the Region of Durham that meets the basic needs of the community and supports the growth expected in Seaton and Northeast Pickering. HOK and Deloitte’s services span decades of experience across hundreds of international and high-profile clients. The degree and quality of expertise provided by these two firms will benefit the City of Pickering’s position in the site selection process. It is therefore recommended that the proposals submitted by HOK and Deloitte LLP for the combined total amount of $316,880.25 (HST included) be accepted, and that HOK and Deloitte LLP be retained to undertake the response to the anticipated RFP release for a new hospital by Lakeridge Health. In support of this initiative, the North East Pickering Landowners Group Inc. is prepared to fund 50 per cent of the project cost, in the amount of $158,440.00 (HST included) to facilitate the retention of consultants and preparation of the proposal. Note that the net project cost to the City is $285,360.00 (as per Recommendation 2) and gross project cost is $316,880.25 (13 per cent HST included). The North East Pickering Landowners Group is obligated to pay the 13 p er cent HST, therefore, their share of 50 per cent is equal to $158,440.00 (13 p er cent HST included). Financial Implications: 1.Project Costing Summary HOK Proposal $195,000.00 Deloitte LLP Proposal 85,425.00 Total Project Costs (excluding HST) $280,425.00 HST (13%) 36,455.25 Total Gross Project Costs $316,880.25 HST Rebate (11.24%) (31,520.00) Total Net Project Costs $285,360.00 2. Source of Funds –Current Budget (Unbudgeted) Account Code Source of Funds Amount 2126.2392.0000 Property Taxes (General Government) $142,680.00 North East Pickering Landowners Group 142,680.00 Total Funds $285,360.00 Discussion: The proposed development of a new hospital in Durham Region is a major component of Lakeridge Health’s Master Plan, which serves as a roadmap for the future of health care delivery in Durham Region. Based on evidence and growth projections, Lakeridge Health is planning for inpatient bed growth of almost 1,000 beds to meet projected demand over the next 25 years. In moving forward with the process to identify and protect a site for a proposed new hospital in Durham Region, Lakeridge Health announced in June 2021 the members who were selected for the Independent Expert Panel. The Panel is made up of a diverse group of professionals who bring many years of leadership experience and expertise in health care and real estate development to this site selection process. The Panel members were selected based on a skillset that the Board’s Site Selection Committee approved, and have the experience necessary to lead all aspects of the independent and transparent process to identify the right site. To ensure the independence of the process, the Panel is made up of professionals with no employment, residency, or financial ties to Durham Region. The site selection process is expected to be completed by the end of 2021. For the first phase, Lakeridge Health launched a public survey to give members of the community an opportunity to provide input on the site selection criteria used to assess potential sites for the proposed future hospital. It is currently unknown what the RFP deliverables will be until the release of the documents, which is expected soon. At present, three municipalities in Durham Region have expressed interest in being considered to be the host of the new hospital. The City of Pickering, Town of Whitby, and City of Oshawa are expected to submit an official response to the Request for Proposal from Lakeridge Health. It is critical to start the analysis and concept development in preparation of the RFP release. For this reason, the services of HOK and Deloitte LLP are required to conduct early analysis and concept development, working alongside City staff, in order to be prepared and meet the quick turnaround period for the proposal. The two firms combined bring a wealth of knowledge, expertise, and resources, which will be key in preparing a comprehensive submission in response to the RFP. In addition to working on high profile projects, the companies also bring experience specific to attracting hospitals to communities. HOK has specialized in planning and design of healthcare facilities for more than 40 years. In the past 10 years, they completed projects exceeding $10 billion in construction costs, including more than 500 projects in acute and ambulatory care. HOK is able to draw upon the resources and experiences of an international firm while simultaneously providing localized personal knowledge. In addition, Deloitte’s advisory practice is the pre-eminent healthcare and public sector professional services firm in its field. The Infrastructure & Capital Project team has advised Canada’s largest hospitals on its complex planning, procurement, implementation, financing and strategic financing initiatives with a combined capital value in excess of $11 billion. Clearly, considering the tight deadline and lack of internal resources and expertise, the consulting services of HOK and Deloitte would assure that a detailed and quality proposal is being submitted by the City of Pickering. The total cost of retaining HOK and Deloitte LLP to develop a comprehensive proposal for the City is $316,880.25 (HST included). The City will share the cost of the consultants with the North East Pickering Landowners Group Inc. The Group has formally confirmed their 50 per cent funding in the amount of $158,440.00 (HST included). HOK will be focusing on two main areas: 1. Research and Analysis; and 2. Design and Urban Planning Deloitte will be focusing four main areas: 1. Provide the City with advice and best practices regarding its development of a strategy and value add proposition to enhance its RFP Response; 2. Assist in documenting the City’s RFP Response; 3. Graphic and Communications Package; and 4. Work with other advisors, such as HOK, and stakeholders as appropriate. The City’s Public Affairs & Corporate Communications Division has also engaged the services of NKPR to render public relations and marketing services to drive community-wide awareness of the need for a new hospital. Members of Council approved the hiring of NKPR at the June 2021 Council meeting. The services of NKPR, at the cost of $35,000.00 (plus HST), include: 1. Strategic PR and social media counsel; 2. Key media materials development; 3. Media relations – proactive and reactive; 4. Influencer relations; 5. Content integrations into NKPR’s social media channels; and 6. Regular reporting. Attachments: 1. Letter from North East Pickering Landowners Group Prepared By: Original Signed By: Laraib Arshad Senior Economic Development Officer Approved/Endorsed By: Original Signed By: Fiaz Jadoon MPM, Ec.D.. CEcD. Director, Economic Development & Strategic Projects Original Signed By: Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer FJ:la Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Chief Administrative Officer Attachment #1 to Report # CA0 05-21 August 8, 2021 Sent Via Email City of Pickering One The Esplanade Pickering, ON L1V 6K7 Dear Mayor Ryan and Members of Council: RE: North East Pickering Landowners Group Inc. Lakeridge Health – New Durham Hospital – Site Selection Request for Proposals We are writing to you in our capacity as the Group Manager on behalf of the North East Pickering Landowners Group Inc. (NEPLG). The NEPLG includes the below landowners: •Dorsay (Pickering) Limited (Dorsay Development Corp.) •Stonelake Developments Inc. (Tribute) •Canelli Heights Development Inc. & Gladesbrook Pine Estates Corp. (Trinison Management Corp.) •Cougs (Lakeridge) Ltd. (Coughlan Homes) •2750 Hwy 7 Inc. (Clark/Ravi) •Pinebrown Salem Lands Ltd. (The Brown Group) •Trinipark Developments (BT) Corp. (Armland Group) The NEPLG understands that Lakeridge Health is proceeding with a site selection process to identify a potential site for a new hospital within Durham Region. The NEPLG are supportive of a site within Northeast Pickering and understand that the City of Pickering will be preparing a proposal to Lakeridge Health. In order to prepare such proposal, it is understood that the City will be retaining several consultants to develop a comprehensive proposal for the City. Recognizing the importance of the proposed hospital to the City, the NEPLG would like to formally confirm that we are prepared to fund 50% of the City’s $280,425.00 + HST proposed project costs, ($140,212.50 + HST NEPLG share) to facilitate the retention of consultants and preparation of the proposal. The NEPLG are prepared cooperate with the City through the proposed process by sharing background reports/studies and related information that the NEPLG has prepared to date. On behalf of the NEPLG, we look forward to working with the City on this exciting project! Michael May, P. Eng., General Manager Delta Urban Inc., North East Pickering Landowners Group Inc. – Group Manager cc: M. Carpino, Chief Administration Officer F. Jadoon, Director of Economic Development & Strategic Projects K. Bentley, Director of Planning North East Pickering Landowners Group Inc.