Real property activities: Standing Committee on Government Operations and Estimates—April 29, 2022
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Federal building management during COVID-19
In this section
Key messages
- Public Services and Procurement Canada is committed to providing healthy and productive work environments in line with the latest public health guidance and global best practices in property management
- Although occupancy levels are currently reduced, our buildings remain operational and all mandatory maintenance and life safety system testing continue on our regular schedule, ensuring that essential government functions can be delivered in a safe environment
- COVID-19 protocols remain in place for all leased and crown-owned assets, including:
- Augmented cleaning of high touch points
- Flushing of building water systems in low occupancy spaces for continued water potability
- Heating, Ventilation and Air Conditioning measures to increase outdoor air and maximize filtration
- Specialized disinfection services for suspected/confirmed cases of COVID-19
Key data points
- PSPC’s real property portfolio is comprised of approximately 1500 leased and crown-owned assets
- Base building cleaning costs have increased throughout the pandemic by almost 28% across PSPC’s crown-owned portfolio
Background
Mandatory vaccinations
In alignment with the federal public service mandate, all supplier personnel (including subcontractor personnel and private sector landlord personnel) who access federal government workplaces and commercial tenants operating inside secure areas are required to be fully vaccinated against COVID-19. This requirement entered into effect on November 15, 2021.
In leased assets, the policy is applicable to federal workspaces only (almost 1100 assets). While there is no contractual recourse for mandatory vaccination in existing lease agreements, PSPC has successfully secured almost 90% positive attestations with the remaining 10% being followed up.
Publicly accessible space does not fall under the requirements of the vaccination policy.
Heating, ventilation and air conditioning
PSPC’s Heating, Ventilation and Air Conditioning (HVAC) systems are designed, installed, operated and maintained to meet or exceed the requirements set out in the Canada Labour Code and the Canada Occupational Health and Safety Regulations, as well as reflect the guidance on ventilation published by the Canadian Centre for Occupational Health and Safety and the Public Health Agency of Canada during the COVID-19 pandemic.
PSPC has implemented supplemental HVAC measures to promote occupant wellness in its buildings and facilities, related to ventilation and filtration.
Cleaning costs
Base building cleaning costs have increased throughout the pandemic due to augmented cleaning protocols, seeing an increase of almost 28% in the crown-owned portfolio. These costs will continue to increase as occupancy increases.
Utility costs
While reduced occupancies may suggest lower utility costs, the reality is that utility costs have remained stable when compared to pre-pandemic costs due to continued operations, projects, and COVID-19 protocols related to HVAC and water flushing.
Parking revenue
PSPC parking revenue has decreased by approximately 77% since the beginning of the pandemic due to the majority of the federal public service working remotely. Flexible parking arrangements have been introduced to support hybrid work arrangements.
Next steps
The department continues its engagement with central agencies, clients, industry and bargaining agents to collaborate on guidance to advance procedures for the easing of restrictions and planning a safe return to the workplace.
Greening Public Services and Procurement Canada’s portfolio
In this section
Key messages
- The government is taking action to reduce greenhouse gas emissions from its buildings
- In 2020 to 2021, Public Services and Procurement Canada (PSPC) reported a 57.6% reduction in greenhouse gas emissions from its own buildings compared to the 2005 to 2006 baseline
- These reductions came from improvements in buildings’ energy efficiency, electricity grid improvements and the procurement of renewable energy credits
Key data points
- A decrease of 19% of the remaining emissions is expected by 2025 through the national clean electricity initiative
- A decrease of 40% of the remaining emissions is expected by 2025 through the Energy Services Acquisition Program
- Target is over 82% greenhouse gas emissions reductions by 2025 and net-zero carbon by 2030 for the Crown-owned portfolio
Background
National clean electricity initiative
PSPC has been working with the Treasury Board Secretariat Centre for greening government to develop a strategy to procure 100% clean electricity where available, as was identified in the 2019 Minister of Public Services and Procurement mandate letter. PSPC will purchase electricity from new renewable infrastructure, in provinces where it is available, and will procure renewable energy certificates to displace greenhouse gas emitting electricity in locations where new infrastructure development is not presently available.
In 2018 to 2019, the Government of Canada consumed approximately 2,692,500 megawatt-hour (MWh) of electricity. Approximately 80% of the electricity procured for use in the Crown-owned building portfolio (excluding housing) comes from clean sources. The remaining 20% (532,000 MWh) will be addressed through the national clean electricity initiative.
Energy Services Acquisition Program
The Energy Services Acquisition Program is modernizing the National Capital Region District Energy System, which provides heating services to 80 buildings and cooling services to 67 buildings (1.6M m2 of floor space), accommodating 55,000 occupants. Implementation of smart plants and smart buildings measures, along with the modernisation of the district energy infrastructure, will result in a 63% (67,000 tonnes) reduction in greenhouse gas emissions by 2025, compared to the 2005 to 2006 baseline of 106 kt CO2e per year for this asset.
Major projects
PSPC is ensuring that all new buildings and major building retrofits prioritize low-carbon and climate resilience with investment decisions based on total cost of ownership. Environmental impacts beyond carbon, such as waste, water and biodiversity are also considered.
Procurement of electric vehicles
Key messages
- As the government’s common service purchaser for vehicles, the department has established procurement tools for light duty vehicles that includes zero emission and hybrid light-duty vehicles
- In addition, the department is working to make other electric vehicles available, such as buses and medium and heavy commercial electric trucks
- PSPC continues to support departments and agencies with their conversion of fleets with procurement instruments to facilitate adoption of hybrid and zero emission vehicles
Key data points
- 1,255 green vehicles procured in the last 3 years
- 262 charging stations installed at 73 Crown-owned and leased locations
- Increase of 50% in light-duty green vehicles available in procurement instruments for regular fleet; increase of 30% in the executive vehicle fleet
Background
Public Services and Procurement Canada is the service provider for purchasing electric vehicles as well as electric vehicle charging stations. These vehicles are made available to all federal departments as fleet vehicles and as executive vehicles for cabinet ministers, ministers of State, secretaries of State and eligible deputy heads. The government also encourages employees to use low-carbon forms of transportation to reduce emissions from employee commute.
Charges related to the charging stations are funded by the users, with the exception of executive vehicles.
Two suppliers have been awarded procurement instruments for electric shuttle buses. Public Services and Procurement Canada also recently posted tender documents to procure electric commuter buses. The department is also engaging companies and suppliers as it seeks to move forward with the procurement of electric medium and heavy trucks.
Lac-Mégantic rail bypass, reconstruction
Key messages
- The Government of Canada is proceeding with an open, transparent and equitable process to acquire the properties needed to build the rail bypass
- Public Services and Procurement Canada is collaborating and communicating regularly with Transport Canada in order to move quickly on this file while ensuring a fair acquisition process for property owners
- The Government of Canada is pursuing negotiations aimed at reaching agreements that are satisfactory to all parties
Key data points
- 105 parcels of land are to be acquired
Background
Transport Canada (TC) has mandated PSPC to acquire the properties and to manage the technical contracts related to the acquisition process. Therefore, PSPC is responsible for surveying and appraising the properties, meeting with the owners to explain the acquisition process, negotiating with them by mutual agreement when possible and, ultimately, implementing the expropriation process in the event of an impasse during the mutual negotiation process.
The property appraisal process began in the fall of 2019. On August 26, 2020, AECOM, the consultant appointed to design a route for the bypass, submitted its final design development report. The right-of-way submitted was technically reviewed by Central Maine and Quebec Railway (CMQ) and TC. PSPC received the final version of the route on May 28, 2021, with subsequent changes being received until December 14, 2021.
On May 25, 2021, federal parliamentarians unanimously passed a motion calling for work to be completed in 2023 in accordance with the schedule. On May 27, 2021, TC, as part of an agreement with CMQ, committed to taking possession of the properties in the winter of 2022.
Two virtual information sessions, organized by TC and attended by PSPC, were held in summer 2021 to inform the property owners that an expropriation process has become unavoidable.
On October 22, 2021, the negotiation process began after offer letters were sent to the owners.
On December 22, 2021, a meeting took place to discuss the status of the project and acquisition process. PSPC, TC, the mayors of Lac-Mégantic, Frontenac and Nantes, the Honourable Marie-Claude Bibeau, as well as other federal members of Parliament (MPs) and representatives of the ministère des Transports du Québec were in attendance. On January 13, 2022, a second meeting took place between PSPC, the municipalities' mayors, TC, and the MP for Mégantic—L'Érable to discuss the project's technical elements.
On January 27, 2022, TC representatives organized 2 public, virtual information sessions as part of the public consultations held by the Canadian Transportation Agency. Members of the public also had the opportunity to submit written comments to TC, during a longer consultation period taking place from January 21 until February 4, 2022.
On February 4, 2022, TC received a letter co-signed by the mayors of the 3 municipalities affected by the project, in which 7 requests are made directly to the Government of Canada. Among them is the request to extend the negotiation period with owners by an additional 3 months. On March 24, 2022, TC announced the granting of a 3-month extension of the negotiation period, giving property owners until August 12, 2022 to negotiate with PSPC.
However, even if mutual negotiations are concluded, legal action by the Fédération de l'Union des producteurs agricoles-Estrie currently prevents 36 landowners from selling their lands to the Government of Canada. The hearing for this motion, which was scheduled on April 6, 2022, has been postponed to a later, undetermined date to allow the attorney general of Quebec to decide if he wishes to intervene in the case.
As of February 15, 2022, 43 offers have been submitted.
National Capital Region bridges
Key messages
- My department is working closely with the National Capital Commission, the cities of Ottawa and Gatineau, and other partners, to ensure federal bridges in the National Capital Region are safely and effectively serving Canadians
- Planning activities, including the impact assessment process, are underway to replace the Alexandra Bridge with construction of the new bridge scheduled to begin in 2028. In the meantime, inspections and repair work continue to ensure the bridge remains safe and accessible until it is replaced
- The National Capital Commission has approved a Long-Term Integrated Interprovincial Crossing Plan developed in close collaboration with all its partners to support decision-making on any future crossings. The study provides a number of important considerations that the dedicated sixth Interprovincial Crossing Office will consider
Key data points
- There are 5 interprovincial crossings in the National Capital Region
- Public Services and Procurement Canada manages and operates the:
- Alexandra Bridge (built in 1901)
- Chaudière Crossing (with the Union Bridge built in 1919 being the oldest of the 8 structures)
- Macdonald-Cartier Bridge (built in 1965)
- National Capital Commission manages and operates the:
- Champlain Bridge (built in 1928)
- Portage Bridge (built in 1973)
- Public Services and Procurement Canada manages and operates the:
Background
Budget 2019 provided funding $490 million for the replacement of the Alexandra Bridge, the rehabilitation and ongoing maintenance of the Macdonald-Cartier Bridge, and the Chaudière Crossing. It also provided direction to refresh technical studies on a potential sixth interprovincial crossing in the National Capital Region (NCR) and to develop a Long-term Integrated Interprovincial Crossings Plan.
Sixth crossing
Budget 2019 directed the National Capital Commission to “Address the demonstrated need for an additional National Capital Region crossing by refreshing existing studies and developing a long-term integrated interprovincial crossing plan with both provincial governments and the cities of Gatineau and Ottawa.”
The National Capital Commission, in collaboration with Public Services and Procurement Canada, refreshed existing studies on the 3 top rated corridors for a potential sixth crossing, including cost estimates and the evaluation of the corridors established in 2013. The refreshed studies were completed and accepted as final versions by the National Capital Commission’s Board of Directors in June 2020. In addition, the Long-term Integrated Interprovincial Crossings Plan was completed and approved by the board in January 2021.
Budget 2021 mandated Public Services and Procurement Canada to establish a dedicated project office responsible for addressing the need for an additional National Capital Region crossing, jointly with the National Capital Commission. The project office was established in fall 2021 and will continue to grow as the project progresses. The project office is proceeding with project planning, gathering initial geotechnical information, and development of a business case.
Alexandra Bridge
While the Alexandra Bridge is designated as a national historic civil engineering site by the Canadian Society for Civil Engineering, the bridge is over 120 years old and is nearing the end of its lifecycle. A 2018 third-party life-cycle cost assessment determined that replacing the bridge would be less disruptive to the public, as well as more economical, than attempting to maintain the existing bridge. The planning and impact assessment process for this replacement project are underway. The project team will continue to publish studies proactively as the project progresses.
With regard to the Alexandra Bridge replacement, current activities include public and stakeholder consultations and engagement with Indigenous partners which will inform the impact assessment. The impact assessment agency posted the initial project description, the first step of the impact assessment process, on its website on March 24, 2022.
Chaudière Crossing works
Construction is underway and includes the widening of the Hull Causeway and a major rehabilitation for the 100 year old Union Bridge. The work started in July 2021 and will continue until Summer 2023. A positive outcome of this work will be the addition of dedicated cycling lanes on the entire length of the Chaudière Crossing.
Leases and contracts related to the St-Bernard-de-Lacolle border crossing
Key messages
- On behalf of the Canada Border Services Agency (CBSA), Public Services and Procurement Canada negotiated leases for temporary space to receive refugee claimants and process their claims in Saint-Bernard-de-Lacolle, Quebec
- Given the location of the property and its proximity to the border, this was an ideal location for this purpose
- Generally, PSPC is not able to unilaterally disclose certain details of lease agreements given that some information may be commercially confidential; however, I can confirm that the government paid fair market value for the leases
Key data points
- March 2017: With PSPC’s support, the CBSA put in place a first, sole-sourced lease with Importations Guay Ltée to help accommodate an increase in asylum seekers at the St-Bernard-de-Lacolle border crossing
- 2017: Various lease agreements (for example, lease for office space, land lease, contracts for use of the hotel adjacent to the border crossing) were concluded with companies owned by Pierre Guay
- These agreements have been renewed until June 30, 2022
- In 2021, 2 new lease agreements were put in place with Importations Guay Ltée, both running from April 1, 2022, to March 31, 2027
Background
On October 12, 2021, following a news release, CBSA received a media request regarding the value of the agreements between the Government of Canada and Importations Guay Ltée. This request was denied on the basis of confidentiality and contractual clauses.
On December 7, 2021, PSPC received a media request from La Presse requesting the value of the agreements between the Government of Canada and companies owned by Pierre Guay. PSPC did not disclose the value of the agreements signed with Pierre Guay’s companies due to reasons of commercial confidentiality. On December 7, 2021, PSPC also received an access to information request concerning the lease and all related information, citing a 2004 Federal Appeal Court decision arguing the department must make the value of the lease public.
[Redacted]
On March 10, 2022, PSPC received a media request from La Presse regarding all the leases and contracts that the department has with companies owned by Pierre Guay. This information has been disclosed, except for the amounts of the contracts.
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