OFFICE OF THE MAYOR TOWN OF PEACE RIVER

April 25, 2017

Dr. Verna Yui President, Heath Services Seventh Street Plaza 14th Floor, North Tower 10030 – 107 Street NW , Alberta T5J 3E4

Dear Ms. Yui,

It has generally become known that AHS is in negotiations with CanWest Air (the proponent) to provide air ambulance services from several locations throughout the Province. It is not the intention of the Town to advocate for one organization over another nor be obstructionist, but we strongly feel that we need to communicate some important information to AHS.

The Town of Peace River has owned and operated the airport since 1995 as a regional transportation hub that serves residents, commercial business and industry alike. The airport itself runs annual deficits and is subsidized by Town of Peace River taxpayers to ensure its ongoing operation. In 2016, regional partners in the area, which include the Town of Grimshaw, County of Northern Lights, Northern Sunrise County and the M.D. of Peace No. 135 agreed that airport was an important asset and implemented operating funding contributions to the airport based on a prescribed formula. This level of cooperation has finally occurred after many years of discussions and the airport is now known as the Peace River Regional Airport (PRRA.)

We believe that consolidating air ambulance contracts from four providers to two – one of which of those providers covers a significant portion of the Province – poses a risk to patient care in Alberta. It will create conditions that will make it more difficult for carriers to bid on air ambulance services in the future, potentially limit future competition and the ability to achieve satisfactory pricing and cost stabilization long-term. Further, if this carrier were to lose its Operating Certificate and be unable to fulfill their flight duties for any reason or length of time, there are limited resources to call upon to assist in this situation.

Thomas Tarpey Town Administration Office Mayor, Town of Peace River P.O. Box 6600, 9911-100 Street Phone: (780) 625-5393 Peace River, AB T8S 1S4 Email: [email protected] Phone: (780) 624-2574 Fax: (780) 624-4664 Website: www.peaceriver.ca

General Email: [email protected]

CanWest has indicated to the Town several times that it is not interested in providing scheduled service in addition to air ambulance services. While this is their right, the loss of a scheduled service would be catastrophic for the Peace River Regional Airport, and the ability for a different carrier to provide a scheduled service appears slim. Airport certification and the ability to access the federal Airports Capital Assistance Program (ACAP) – which has provided capital funding to the airport in excess of $13.2 million dollars since 2010 – hinges on passenger counts. This could also affect flight (tower) services provided by Nav Canada Services, with the discontinuation of these services a real possibility.

If the PRRA loses its certification, the Town of Peace River would be hard pressed to continue operations at the airport – the operating and especially the capital costs are simply too much for the Town to bear. Closure of the airport would negatively impact many segments of the economy, as well as tourism, general travel, and ultimately patient care. Direct job losses are estimated to be at least fifty persons, and possibly higher when the larger economy is considered.

On behalf of the PRRA, the Town of Peace River questions the ability for the selected proponent to achieve in a timely fashion some of the deliverables identified in the RFP, specifically mentioned under Section 3.1.1.:

(e) provision of appropriately maintained Base Locations, Aircraft and properly installed Included Medical Equipment;

(f) hangar storage for Aircraft and provisions to accommodate ground support vehicle parking and storage of medical supplies necessary to support the Air Ambulance Program;

We have indicated to the proponent several times – December 2016, March 2017 and April 2017 – that there are no facilities or serviced lots currently available at the airport, as these lots are under lease with long-term tenants. The only proponent that meets these above requirements is .

We feel it is also important to point out that, in 2013, CanWest secured short-term leases on two unserviced lots at the PRRA. For this RFP period they were not able to, nor do we feel they attempted, prior to December 2016, to secure space at the PRRA.

To put it as clearly as possible, the Town fails to see how CanWest will be able to achieve the deliverables identified above in a timely fashion as there are no vacant facilities or lots available at the PRRA. Based on this information alone, the Town is unable to see how CanWest would be able to deliver on these technical items and we respectfully insist CanWest be removed from further consideration for the delivering air ambulance service in Group #2 (Peace River and .)

We would also like to bring to your attention that CanWest Air has been engaging in unacceptable practices including harassing airport staff and indicating to our management that Peace River can be served from alternate Base Locations; these communications and threats have concerned staff at the Town.

OFFICE OF THE MAYOR Page 2 of 4 Town of Peace River

This long process is having an unintentional effect with all the air ambulance providers in that the uncertainty of the awards and jobs, pilots from the air ambulance companies are now applying in large numbers to WestJet and . Every seven years these major carriers conduct a large recruitment drive and this is the year that the process has been initiated, with new positions coming open at these major carriers. The longer this RFP is unfulfilled, the greater the likelihood of a shortage of pilots for all air ambulance providers because of the uncertainty of having a positon, thus indirectly putting patient safety at risk. To mitigate uncertainty and patient risks the Town again is insisting that AHS move to an applicant that meets the criteria of the RFP immediately.

Finally, the Town also wishes some items of clarification from AHS regarding the RFP and evaluation.

1. That Peace River Regional Airport will always continue to be used as a Base Location, and will not be temporarily served from any other Base Location.

2. Can AHS share their evaluation of the technical scoring as identified in Appendix B of the RFP.

3. Can AHS confirm the timeframe or deadline that the proponent has to achieve all the deliverables identified in the RFP.

Thank you for your attention and consideration of this matter. If you require additional information or clarification, please feel free to contact me at my cell (780) 625-5393 or my work number at (780)-624- 7070.

Sincerely,

Tom Tarpey, Mayor Town of Peace River

cc: Minister Sarah Hoffman Town of Peace River Council Mr. Darren Sandbeck, Chief Paramedic Town of Grimshaw County of Northern Lights Municipal District of Peace No. 135 Northern Sunrise County OFFICE OF THE MAYOR Page 3 of 4 Town of Peace River

OFFICE OF THE MAYOR Page 4 of 4 Town of Peace River