HomeMy WebLinkAboutFebruary 5, 2024 - Special CouncilSpecial Council Meeting Agenda
February 5, 2024 Hybrid Electronic Meeting Council Chambers 1:00 pm
For information related to accessibility requirements please contact: Committee Coordinator
905.420.4611 clerks@pickering.ca
Members of the public may observe the meeting proceedings by viewing the livestream. A recording of the meeting will also be available on the City’s website following the
meeting.
Page
1.Call to Order/Roll Call
2.Disclosure of Interest
3.Delegations
Members of the public looking to provide a verbal delegation to Members of Council maydo so either in person, or through a virtual connection into the meeting. For moreinformation, and to register as a delegate, visit www.pickering.ca/delegation, andcomplete the online delegation form or email clerks@pickering.ca.
The list of delegates who have registered to speak will be called upon one by one by theChair in the order in which they have registered. A maximum of 5 minutes shall beallotted for each delegation.
Please be advised that your name will appear in the public record and will be posted onthe City’s website as part of the meeting minutes.
4.Matters for Consideration
4.1 Director, Finance & Treasurer, Report FIN 03-24 1 Construction of the Pickering Heritage & Community Centre Project -Tender No. T2023-12
Recommendation:
1.That Tender No. T2023-12 submitted by J.R. Certus Construction Co.Ltd. in the amount of $51,953,000.00 (excluding HST) be accepted;
2.That the total gross construction cost of $64,672,456.00 (HSTincluded), including the amount of the tender, construction
contingency, and other associated costs, and the total net constructioncost of $58,239,550.00 (net of HST rebate), be approved;
Special Council Meeting Agenda
February 5, 2024 Hybrid Electronic Meeting Council Chambers 1:00 pm
For information related to accessibility requirements please contact: Committee Coordinator
905.420.4611 clerks@pickering.ca
3.That the Director, Finance & Treasurer be authorized to award a$200,000.00 contract to Toronto and Region Conservation Authority
for Ecosystem Compensation;
4.That the Director, Finance & Treasurer be authorized to award acontract in the amount of $200,000.00 for archeological work to theToronto and Region Conservation Authority;
5.That the Director, Finance & Treasurer be authorized to awardindigenous monitoring services, required to fulfill the City’s duty toconsult;
6.That Council delegate the authority to award the Project Management
Contract services with terms and conditions satisfactory to theDirector, Operations and Director, Finance & Treasurer with a totalvalue of the contract not to exceed $430,000.00 and that the awardingof the contract be in compliance with applicable senior government
trade legislation;
7. That Council approve the proposal for additional fees submitted byHariri Pontarini Architects for contract management through theconstruction phases of the work in the amount up to $596,990.00
(excluding HST) be approved, with terms and conditions satisfactory
to the Director, Operations and Director, Finance & Treasurer;
8.That the Director, Finance & Treasurer be authorized to finance thetotal net construction project costs of $58,239,550.00 as approved
through the 2021 to 2024 budget as follows:
a.The sum of $2,409,243.00 from the DC – Library Reserve Fund;
b.The sum of $8,000,897.00 from the DC – Parks and RecreationReserve Fund;
c.The sum of $12,500,000.00 to be funded from Federal Grants –
Green & Inclusive Community Building Programs;
d.The sum of $4,000,000.00 to be funded from Federal Grants –Canada Cultural Space Fund;
e.The sum of $8,367,000.00, or less, as approved in the 2021 and
2023 Capital Budgets to be financed by the issue of debentures
Special Council Meeting Agenda
February 5, 2024 Hybrid Electronic Meeting Council Chambers 1:00 pm
For information related to accessibility requirements please contact: Committee Coordinator
905.420.4611 clerks@pickering.ca
by The Regional Municipality of Durham over a period not to exceed 20 years;
i)the annual repayment charges of approximately $759,359.00be included in the annual Current Budget for the City ofPickering commencing 2025, or such subsequent year inwhich the debentures are issued, and continuing thereafter
until the debenture financing is repaid;
f.The sum of $16,522,000.00 as approved in the 2021, 2023 &2024 Capital Budgets to be funded from the DC – Parks &Recreation be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed 20
years to address the funding shortfall of the DevelopmentCharges – Parks & Recreation Reserve Fund, and this amount berepaid from future development charges collection;
i)the annual repayment charges of approximately
$1,499,477.00 be included in the annual Current Budget forthe City of Pickering commencing 2025, or such subsequentyear in which the debentures are issued, and continuingthereafter until the debenture financing is repaid from future
development charge collections as the first source of
repayment, and the cost of the annual repayment charges beincluded in the next Development Charges Background Study;
g.The Director, Finance & Treasurer be authorized to make any
changes, adjustments, and revisions to amounts, terms,
conditions, or take any actions necessary in order to effect theforegoing debenture issuances;
h.The sum of $588,628.00 to be funded from the Community
Benefit Charges Reserve Fund;
i.The sum of $4,900,000.00 to be funded from the Senior CentreReserve;
j.The sum of $470,000.00 to be funded from the Library Building
Reserve;
k.The sum of $481,782.00 to be funded from the Casino Reserve;
Special Council Meeting Agenda
February 5, 2024 Hybrid Electronic Meeting Council Chambers 1:00 pm
For information related to accessibility requirements please contact: Committee Coordinator
905.420.4611 clerks@pickering.ca
9.That staff be authorized to execute the amended Contribution
Agreement with the Federal Government for the Canada Cultural
Spaces Fund;
10.That Council direct the Chief Administrative Officer to provideoperational and financial project updates based one the followingschedule: July 2024, January 2025, July 2025, January 2026 and July
2026;
11.That the Director, Finance & Treasurer be authorized to fund any grantshortfall by a transfer from the Casino Reserve;
12.That the draft By-laws attached to this report be enacted; and,
13.That the appropriate officials of the City of Pickering be authorized totake the necessary actions as indicated in this report.
5.By-laws
5.1 By-law 8080/24
Being a by-law to authorize the Construction of the Pickering Heritage &
Community Centre project in the City of Pickering and the issuance of
debentures in the amount of $8,367,000.00. [Refer to Item 4.1 Report FIN 03-24]
5.2 By-law 8081/24
Being a by-law to authorize the Construction of the Pickering Heritage & Community Centre project in the City of Pickering and the issuance of debentures in the amount of $16,522,000.00 for Development Charges-Parks and Recreation Reserve Fund for the funding for the Construction of
the Pickering Heritage & Community Centre project, and that the first
source of repayment for this debt is future development charges collections. [Refer to Item 4.1 Report FIN 03-24]
6.Confirmatory By-law
7.Adjournment
13
16
Report to Council
Report Number: FIN 03-24
Date: February 5, 2024
From: Stan Karwowski
Director, Finance & Treasurer
Subject: Construction of the Pickering Heritage & Community Centre Project
-Tender No. T2023-12
-File: A-1440
Recommendation:
1.That Tender No. T2023-12 submitted by J.R. Certus Construction Co. Ltd. in the amount
of $51,953,000.00 (excluding HST) be accepted;
2.That the total gross construction cost of $64,672,456.00 (HST included), including the
amount of the tender, construction contingency, and other associated costs, and the total
net construction cost of $58,239,550.00 (net of HST rebate), be approved;
3.That the Director, Finance & Treasurer be authorized to award a $200,000.00 contract to
Toronto and Region Conservation Authority for Ecosystem Compensation;
4.That the Director, Finance & Treasurer be authorized to award a contract in the amount
of $200,000.00 for archeological work to the Toronto and Region Conservation Authority;
5.That the Director, Finance & Treasurer be authorized to award indigenous monitoring
services, required to fulfill the City’s duty to consult;
6.That Council delegate the authority to award the Project Management Contract services
with terms and conditions satisfactory to the Director, Operations and Director, Finance &
Treasurer with a total value of the contract not to exceed $430,000.00 and that the
awarding of the contract be in compliance with applicable senior government trade
legislation;
7.That Council approve the proposal for additional fees submitted by Hariri Pontarini
Architects for contract management through the construction phases of the work in the
amount up to $596,990.00 (excluding HST) be approved, with terms and conditions
satisfactory to the Director, Operations and Director, Finance & Treasurer;
8.That the Director, Finance & Treasurer be authorized to finance the total net construction
project costs of $58,239,550.00 as approved through the 2021 to 2024 budget as follows:
a.The sum of $2,409,243.00 from the DC – Library Reserve Fund;
b.The sum of $8,000,897.00 from the DC – Parks and Recreation Reserve Fund;
c.The sum of $12,500,000.00 to be funded from Federal Grants – Green & Inclusive
Community Building Programs;- 1 -
FIN 03-24 February 5, 2024
Subject: Tender for Construction of the Pickering Heritage & Page 2
Community Centre Project
d. The sum of $4,000,000.00 to be funded from Federal Grants – Canada Cultural
Space Fund;
e. The sum of $8,367,000.00, or less, as approved in the 2021 and 2023 Capital
Budgets to be financed by the issue of debentures by The Regional Municipality of
Durham over a period not to exceed 20 years;
i) the annual repayment charges of approximately $759,359.00 be included in the
annual Current Budget for the City of Pickering commencing 2025, or such
subsequent year in which the debentures are issued, and continuing thereafter
until the debenture financing is repaid;
f. The sum of $16,522,000.00 as approved in the 2021, 2023 & 2024 Capital Budgets
to be funded from the DC – Parks & Recreation be financed by the issue of
debentures by The Regional Municipality of Durham over a period not to exceed 20
years to address the funding shortfall of the Development Charges – Parks &
Recreation Reserve Fund, and this amount be repaid from future development
charges collection;
i) the annual repayment charges of approximately $1,499,477.00 be included in the
annual Current Budget for the City of Pickering commencing 2025, or such
subsequent year in which the debentures are issued, and continuing thereafter
until the debenture financing is repaid from future development charge
collections as the first source of repayment, and the cost of the annual
repayment charges be included in the next Development Charges Background
Study;
g. The Director, Finance & Treasurer be authorized to make any changes,
adjustments, and revisions to amounts, terms, conditions, or take any actions
necessary in order to effect the foregoing debenture issuances;
h. The sum of $588,628.00 to be funded from the Community Benefit Charges Reserve
Fund;
i. The sum of $4,900,000.00 to be funded from the Senior Centre Reserve;
j. The sum of $470,000.00 to be funded from the Library Building Reserve;
k. The sum of $481,782.00 to be funded from the Casino Reserve;
9. That staff be authorized to execute the amended Contribution Agreement with the Federal
Government for the Canada Cultural Spaces Fund;
- 2 -
FIN 03-24 February 5, 2024
Subject: Tender for Construction of the Pickering Heritage & Page 3
Community Centre Project
10. That Council direct the Chief Administrative Officer to provide operational and financial
project updates based one the following schedule: July 2024, January 2025, July 2025,
January 2026 and July 2026;
11. That the Director, Finance & Treasurer be authorized to fund any grant shortfall by a
transfer from the Casino Reserve;
12. That the draft By-laws attached to this report be enacted; and
13. That the appropriate officials of the City of Pickering be authorized to take the necessary
actions as indicated in this report.
Executive Summary: In accordance with Council Resolution #259/23 approving Report
OPS 22-23, the staff project team reviewed existing bid documents issued as part of Tender
T2023-6 for the construction of the Pickering Heritage & Community Centre and identify
opportunities for cost savings. Required modifications were made within the available
schedule, which required bids to be received before January 2024, so that new bid results
could be included for consideration as part of Report FIN 01-24 and the setting of the City’s
Capital Project Priorities. Per Council Resolution #379/24 from Report FIN 01-24, Council
identified construction of the Pickering Heritage & Community Centre to be funded in 2024 as
an approved priority capital project.
Tender T2023-12 was posted on the City’s bids&tenders portal on October 24, 2023, and
closed on December 13, 2023. Three bidders were pre-qualified and invited to bid in
accordance with RFSQ2023-4. All three pre-qualified bidders submitted bids. Subject to receipt
and approval of all submittals required by the tender documents, the lowest compliant bid
submitted by J.R. Certus Construction Co. Ltd. in the amount of $51,953,000.00 (excluding
HST) is recommended for approval. The total gross project cost for construction is estimated to
be $57,232,262.00 (excluding HST) and the total net project cost is estimated at
$58,239,550.00 (net of HST rebate).
Relationship to the Pickering Strategic Plan: The recommendations in this report
respond to all six Pickering Strategic Plan Priorities including Champion Economic Leadership
& Innovation; Advocate for an Inclusive, Welcoming, Safe & Healthy Community; Advance
Innovation & Responsible Planning to Support a Connected, Well-serviced Community; Lead &
Advocate for Environmental Stewardship, Innovation & Resiliency; Strengthen Existing & Build
New Partnerships; and Foster an Engaged & Informed Community.
- 3 -
FIN 03-24 February 5, 2024
Subject: Tender for Construction of the Pickering Heritage & Page 4
Community Centre Project
Financial Implications: The table below shows the detailed budget approvals for this
project.
Budget Approvals
Expenditure: 2018 2019 2020 2021 2023 2024 Total
Design $41,507,578 $ - $ - $ - $ - $ - $1,507,578
Construction - - - 29,080,000 9,809,000 21,541,000 60,430,000
Archeological
1 Survey - - 50,000 - - - 50,0001
Project Management - - 450,000 - - - 450,000
FFE2 - - - - - 345,000 345,0002
Total Expenditure $1,507,578 $ - $500,000 $29,080,000 $ 9,809,000 $21,886,000 $62,782,578
Financing: 2018 2019 2020 2021 2023 2024 Total
Grant - CCSF $ - $ - $ - $ 4,000,000 $ - $ - $ 4,000,000
Grant - GICB - - - - 12,500,000 - 12,500,000
Grant - ICIF - - 300,000 - - - 300,000
Debt (City) - 20Yr - - - 11,391,900 (3,024,376) - 8,367,524
Debt (DC) - 20Yr - - - - - 14,134,152 14,134,152
RF - DC Parks &
Rec 200,046 - 42,630 7,993,700 4,422,248 - 12,658,624
RF - DC Library 551,208 - 30,870 5,694,400 (4,577,898) 1,491,898 3,190,478
RF - CBC - - - - 489,026 148,274 637,300
R - Rate
Stabilization 695,079 - 50,000 - - - 745,079
R - City DC Share 61,245 - 76,500 - - - 137,745
R - Senior Centre - - - - - 4,900,000 4,900,000
R - Library Building - - - - - 470,000 470,000
R - Casino - - - - - 741,676 741,676
Total Financing $1,507,578 $ - $500,000 $29,080,000 $9,809,000 $21,886,000 $62,782,578
1 Total archaeological expenditures approved through Council through Reports OPS 03-23 and OPS 22-23 total $430,191.00
2 FFE forecast for 2025 includes an additional $540,000.00
The Pickering Heritage & Community Centre has been an ongoing project from a design
perspective since 2018. As of the end of 2023, the total costs incurred to date for this project is
approximately $1,693,473.00 (before construction). Please see below for a breakdown of the
costs incurred to date:
- 4 -
FIN 03-24 February 5, 2024
Subject: Tender for Construction of the Pickering Heritage & Page 5
Community Centre Project
Expenses to Date
Type Amount
Design & Project Management $1,437,870
Archaeological Services 194,334
Consulting for GICB Grant 61,270
$1,693,473
This report is seeking Council’s approval to award the tender so that construction can start.
1.Tender Amount
Tender No. T2023-12 $51,953,000.00
HST (13%)
Total Gross Tender Cost
6,753,890.00
$58,706,890.00
2.Estimated Project Costing Summary - Construction
Tender T2023-12 $51,953,000.00
HPA Contract Administration Costs 596,990.00
Project Management Costs 428,272.00
Exterior Signage Consulting Costs (2025) 60,000.00
TRCA Ecosystem Fee 200,000.00
TRCA Archaeological Costs 200,000.00
Final Air Leakage Blower Test 50,000.00
Construction Contingency 3,744,000.00
Total Project Costs (excluding taxes) $57,232,262.00
HST (13%) 7,440,194.00
Total Gross Additional Costs $64,672,456.00
HST Rebate (11.24%) (6,432,906.00)
Total Net Additional Costs $58,239,550.00
3.Approved Source of Funds - Construction
Approved Code Source of Funds Budget (2021-2024) Funds Required
C10220.2011 DC – Parks & Rec $12,415,948.00 $8,000,897.00
C10220.2011 DC – Library 2,608,400.00 2,409,243.00
C10220.2011 Federal Grants (GICB) 12,500,000.00 12,500,000.00
- 5 -
FIN 03-24 February 5, 2024
Subject: Tender for Construction of the Pickering Heritage & Page 6
Community Centre Project
C10220.2011
C10220.2011
C10220.2011
C10220.2011
C10220.2011
C10220.2011
Federal Grants (CCSF)
Debt 20YR – City
Debt 20YR – DC (P&R)
RF – CBC
R – Senior Centre
R – Library Building
4,000,000.00
8,367,524.00
14,134,152.00
637,300.00
4,900,000.00
470,000.00
4,000,000.00
8,367,000.00
16,522,000.00
588,628.00
4,900,000.00
470,000.00
C10220.2011 R – Casino 396,676.00 481,782.00
Total Construction: $60,430,000.00 $58,239,550.00
Construction Project Cost under (over) approved funds by $2,190,450.00
The 2024 Capital Budget added an additional $21,541,000.00 for the construction of this
project, bringing the total construction budget to $60,430,000.00.
The below table shows the prior Council Report approvals:
Reports to Council
Report
Approved Amount
(net of HST) Notes
CS 19-18 $852,871.00 Design (Res. #455/18)
CS 34-18 $650,908.00 Design (Res. #08/18)
CS 27-21 $126,691.00 Additional consulting for Grant application (Res. #612/21)
OPS 17-22 -
Reallocate remaining design funds for net zero design
(Res. #970/22)
OPS 03-23 $328,431.00 Archaeological work (Res. #79/23)
OPS 22-23 $101,760.00
Archaeological work (Res. #259/23)
Reallocate design funds for new design
The annual debenture cost for the City debt and DC debt are approximately $759,359.00 and
$1,499,477.00 respectively, assuming a 6.5 percent interest rate. Finance staff have
undertaken a financial exercise to understand the volume or number of housing units that are
required to fund the DC debt obligation. Using the historical data from 2023, and based on
housing structure type, the City would need to collect DC payments from approximately 130
units in order to meet its debt obligations for the annual DC PHCC debt. For 2023, the housing
structure volume was 1,150 units which indicates that the City’s historical volume of activity is
sufficient to meet the PHCC DC debt obligation.
- 6 -
FIN 03-24 February 5, 2024
Subject: Tender for Construction of the Pickering Heritage & Page 7
Community Centre Project
Please find below, the estimated revised debt picture for the City (2024).
Current Estimated
Debt PHCC Debt
Outstanding Debt Outstanding
DC Debt $13,969,793 $ 16,522,000 $ 30,491,793
Taxpayer Debt * 38,483,441 8,367,000 46,850,441
Total $52,453,234 $ 24,889,000 $ 77,342,234
*Includes $10.41 million of prior approved capital projects where the project hasn’t started but is planned to commence this year.
The PHCC project will increase the City’s outstanding debt by 47.45 percent that represents a
substantial increase in debt obligations. At this current time, interest rates are high and
therefore, the financial plan is to wait until the end of 2025 or early 2026 to obtain debt
financing when it is anticipated interest rates will be lower. It should be understood that with
this project’s increased debt load, it represents an opportunity cost and potentially limits
flexibility to address future initiatives, and/or corporate priorities. Maintaining the flexibility for
future unknowns represents a prudent approach to managing the municipality’s financial affairs
with a view to the future.
Discussion: Explanation of Key Recommendations is as follows:
Award $200,000 contract to TRCA for Archeological Work – Recommendation 4.
The PHCC site is located on land that has shown previous evidence of being the land of early
setters. This required the City to conduct an archaeological assessment of these lands. The
City has completed up to stage 3 of this assessment and the funds being requested for Stage
4 of this assessment is included in this report.
Archaeological surveying and assessments costs were first approved in the 2020 Capital
Budget for $50,000.00. Since then, additional archaeological were required on the PHCC site
and funding for this was approved through Reports OPS 03-23 and OPS 22-23 for the
additional archaeological assessments needed.
To date, approximately $194,334.00 has been spent on archeological costs and this report is
requesting and additional $200,000.00 to be awarded to TRCA to complete the remaining
archeological work needed to ensure construction for this project.
Canada Cultural Space Fund (CCSF) $4.0 Million – Recommendation 8 d.
In the fall of 2023, Federal Government staff informed City employees that they were going to
re-allocate the City’s CCSF grant to address other cost pressures from other grant recipients.
However, the Federal employees did state that the City would be eligible for another CCSF
grant (from their 2025/26 budget estimates) if the City approved the construction tender by the
- 7 -
FIN 03-24 February 5, 2024
Subject: Tender for Construction of the Pickering Heritage & Page 8
Community Centre Project
end of February 2024. City staff have followed up with Federal Government employees
regarding the probability of the grant funding being available for the time period 2025/26. There
is a “risk” that due to the fact that these funds are coming from a future budget estimate, that
the grant funding conditions or the Federal Government’s ability to fund these programs may
change. City staff followed up with the Federal Government employees regarding this issue
and Federal staff have given assurances that these dollars would be available but these
dollars are not guaranteed.
If Council approves the awarding of the construction contract at a Special Meeting of Council in
February 2024, the City would have to sign a revised contract that would commit the Federal
Government to provide the funds. In this agreement, under section “ANNEX B Financial
Conditions subsection 2.1” there is a clause whereby the Federal Government has the right to
reduce or cancel the agreement at the Minister’s discretion that in-turn negates the binding
agreement and eliminates the Federal Government’s liability for this project. Additional
information provided by the Federal staff state that they have never seen a commitment
cancelled. City staff want to bring this information to the attention of Council, so that Council is
aware of the current situation and the possible risk. Recommendation 10, will provide the
Treasurer the authority to fund any grant shortfall.
Senior Centre Reserve - $4.9 Million – Recommendation 8 i.
For the last few years, the City has been allocating $700,000 to a new Senior Centre Reserve
and this reserve has a balance of $4.9 million. At the Council Meeting of January 18, 2024,
Council passed a recommendation that the Pickering City Centre Project – Phase Two be
deferred to 2028. With the Pickering City Centre Project – Phase Two now paused, and to
reduce the City’s debt, it was appropriate to consider other funding sources as it related to the
PHCC project. The use of this reserve will reduce the City’s debt.
PHCC Progress Reports to Council – Recommendation 9.
From a financial perspective, the PHCC project is the largest capital project that the City has
undertaken. With a total cost of $58.2 million (net of HST) and with the construction deadline of
March 31, 2026 due to the Federal Green & Inclusive Community Buildings Fund grant, it is
important that Council be informed of the project’s progress both from a construction and
financial perspectives. This Council reporting model will also be used for other major capital
projects such as the Seaton Recreation Complex & Library.
From a financial lens, this report will identify costs to-date and any other cost pressures actual
or challenges. In addition, this report will track adjustments to the Purchase Order and explain
any significant dollar “Changes” as defined as over $100,000. This report will also provide
additional information as it relates to the 1 percent special levy (2026) for the opening and
ongoing costs for this facility. The goal of this reporting strategy is to keep Council 100 percent
informed of the project and to identify if there are any challenges or opportunities.
- 8 -
FIN 03-24 February 5, 2024
Subject: Tender for Construction of the Pickering Heritage & Page 9
Community Centre Project
2024 Budget
The PHCC tender closed in December 2023, and as a result of this process, the City had to
increase the project’s budget by $21.886 million. Pickering’s 2024 Budget is being prepared
under Part VI.1 of the Municipal Act. This means that the 2024 Budget process and
corresponding adoption will follow the legislation and at the end the process the “Budget” will
be deemed to be adopted. The budget is deemed adopted after the expiry periods end for
amendments, vetoes, and overrides of the vetoes. Pickering’s 2024 Budget is being presented
on January 30th, and the clock starts on January 31st for the 30 day amendment period. The
amendment period ends on February 29th unless Council passes a resolution to shorten that
time period.
After February 29th, the Mayor has 10 days after the expiry of the amendment period to veto
any amendment(s). This takes us to March 10th unless the Mayor shortens this time period by
way of a written Mayoral Decision. If the Mayor does not veto any of the amendments, the
budget is deemed adopted at the end of the expiry period for the veto (or the shortened period
if the Mayor has provided that in writing). If the Mayor did exercise his veto rights, Council has
15 days to attempt to override the Mayor’s veto. This takes us to March 25th unless Council
shortens this time period by resolution. After this time period ends, the budget is deemed
adopted.
Currently it appears that March 25th will be the date for the 2024 Budget to be adopted unless
some of the timeframes are shortened as noted above. In a perfect world, if there were no
amendments proposed to the 2024 Budget, it would be deemed adopted once the 30 days
amendment period expired (February 29) or the shortened time period that Council would have
to set through resolution.
Background
PHCC is a hybrid facility combining community program space, archival and collection storage,
administrative offices and related support areas. It would be the first staffed City community
facility north of Finch Avenue, and able to directly serve growing neighborhoods in and around
Seaton. PHCC includes event and program spaces that would be available for shared use,
including: museum programming, library services, community use and rentals, replacing those
functions in other aging and underused remote City facilities, such as the Greenwood
Community Centre. A variety of archival storage needs have also been consolidated, offering
dedicated temperature and humidity controlled spaces for the museum collection, municipal
records and library heritage archives. PHCC would also be the City’s first net-zero carbon
design building, reaffirming the City’s commitment to sustainable initiatives and innovation, as
reflected in the newly adopted Strategic Plan.
As previously noted in Report OPS 22-23, design of PHCC began with the approval of Report
CS 19-18 on June 18, 2018 through Resolution #455/18, and was originally envisioned as a
phased project. Report CS 34-18, approved on December 10, 2018 through Resolution #08/18
expanded the project scope to include design of the entire facility for construction as a whole.
Council further approved Report CS 20-19 through Resolution #72/19 on April 23, 2019,
- 9 -
FIN 03-24 February 5, 2024
Subject: Tender for Construction of the Pickering Heritage & Page 10
Community Centre Project
endorsing a grant application to the Canadian Cultural Spaces Fund (CCSF) grant program,
ultimately securing $4.0 million towards the project.
Although the design work for the project started in August 2018, there were two significant
factors that delayed its initial tender until June 2023. The first was the onset of Covid-19 and
general economic uncertainty of that time. The project was formally paused by Council, as per
Resolution 283/20. Report FIN 05-20 explained the deferral of this and other select capital
projects, recognizing the disruption of workplace closures, supply chain upheaval and labour
shortages. At the time of this pause of work, the design was approximately 80 percent
complete.
A second delay to the project occurred in June 2021, in order to pursue a major grant funding
opportunity through the Green and Inclusive Community Buildings (GICB) fund, which would
require major revisions to the project design to meet the conditions of the grant application,
including redesign to meet the Net Zero sustainable design standard. On June 3, 2021,
Council approved Report CS 27-21 through Resolution #612/21, endorsing additional funds for
the preparation and application for funding from the GICB grant program. The City was notified
of its successful $12.5 million GICB grant application in June 2022. Additional funds were
subsequently approved through Report OPS 17-22 through Resolution #970/22 on July 11,
2022, to convert existing designs to meet the Net-Zero carbon design requirements associated
with this grant.
Initially tendered as T2023-6 in the summer of 2023, the low bid received was $56,309,000.00
(excluding HST), exceeding available budget. Report OPS 22-23 informed Council of the bid
results, cancelled tender T2023-6 and directed staff to explore options for cost savings and re-
tender the project in time to receive new bids by the end of the year. An updated project cost
estimate was obtained and the project team reviewed and revised the bid documents to the
fullest extent possible within the available schedule.
Overall costs to date (as of 2023) on the PHCC project total approximately $1.7 million (net
HST rebate), and are reflected in the financial implications summarized in the tables above.
Previously approved consulting fees have been repurposed several times throughout the
history of the work to address changes in scope and direction. Additional costs shown for Hariri
Pontarini Architects (HPA) and Project Management reflects fees required for contract and
project management through the construction phases of the work. The current work plan is to
commence the RFP process for the Project Management function. The City continues to
actively negotiate with TRCA regarding acquisition of the required portions of their Greenwood
Lands, and expects this to be resolved in the coming months with no impact to the construction
schedule. A small area at the northwest corner of the site also requires further archaeological
study and was identified as such in the tender documents. Construction can proceed on the
rest of the site while this study is completed, and will be performed by TRCA’s in-house
archaeological staff in order to help facilitate swift approval and clearances, and as a portion of
the affected area is currently within the TRCA’s lands.
- 10 -
FIN 03-24 February 5, 2024
Subject: Tender for Construction of the Pickering Heritage & Page 11
Community Centre Project
This report has been brought forward for Council approval in February 2024 (as per Resolution
#379/24) and is in quick succession to Report FIN 01-24 in order to proceed immediately with
clearing of vegetation and topsoil on the property, which must be completed before March 31,
2024 in order to avoid potential environmental impacts, such as the nesting grounds of
sensitive species known to be in the area. The City will provide TRCA with financial
compensation for tree removals, in accordance with its Tree Compensation requirements, as
there was insufficient open space available to offset the full extent of removals on the site.
TRCA uses such fees to initiate replanting and other similar initiatives on its lands to offset the
loss, and could focus these efforts in the adjacent Greenwood Conservation Area at its
discretion. Other listed project costs include a provision for the design of exterior signage,
which was excluded from the tender package as the City will pursue opportunities for naming
rights. ‘PHCC’ has always been a working project title, rather than the intended final name of
the facility, and no final name has yet been determined. Blower test costs relate to construction
quality assurance and commissioning, and serve as a performance test on the project net-zero
carbon design (tightness) requirements for the building. If multiple tests are required to meet
performance targets, the City will only be required to pay for the final and passing test.
Tender T2023-12 was posted on the City’s bids and tenders portal on October 24, 2023, and
closed on December 13, 2023. Three bidders were pre-qualified and invited to bid in
accordance with RFSQ2023-4. All three pre-qualified bidders submitted bids. Subject to receipt
and approval of all submittals required by the tender documents, the lowest compliant bid
submitted by J.R. Certus Construction Co. Ltd. in the amount of $51,953,000.00 (excluding
HST) is recommended for approval. The total gross project cost is estimated to be
$57,232,262.00 (excluding HST) and the total net project cost is estimated at $58,239,550.00
(net of HST rebate).
Attachments:
1.Being a by-law to authorize the Construction of the Pickering Heritage & Community Centre
project in the City of Pickering and the issuance of debentures in the amount of
$8,367,000.00
2.Being a by-law to authorize the Construction of the Pickering Heritage & Community Centre
project in the City of Pickering and the issuance of debentures in the amount of
$16,522,000.00 for Development Charges-Parks and Recreation Reserve Fund for the
funding for the Construction of the Pickering Heritage & Community Centre project, and
that the first source of repayment for this debt is future development charges collections.
- 11 -
FIN 03-24 February 5, 2024
Subject: Tender for Construction of the Pickering Heritage & Page 12
Community Centre Project
Prepared By: Prepared By:
Original Signed By: Original Signed By:
Brian Duffield James Halsall
Director, Operations Division Head, Finance
Original Signed By: Original Signed By:
Vince Plouffe, OAA, MRAIC Jason Bekramchand
Division Head, Operations Services Senior Financial Analyst – Capital &
Debt Management
Original Signed By:
Cathy Bazinet
Manager, Procurement
Approved/Endorsed By: Approved/Endorsed By:
Original Signed By: Original Signed By:
Stan Karwowski Laura Gibbs
Director, Finance & Treasurer (Acting) Director, Community Services
Original Signed By:
Jackie Flowers
CEO/Director of Public Library
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer
- 12 -
Attachment #1 to Report FIN 03-24
The Corporation of the City of Pickering
By-law No. 8080/24
Being a by-law to authorize the Construction
of the Pickering Heritage & Community Centre
project in the City of Pickering and the
issuance of debentures in the amount of
$8,367,000.00.
Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower-tier
municipality may pass by-laws respecting matters within the spheres of jurisdiction
described in that Section;
Whereas Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a
municipality may incur a debt for municipal purposes, whether by borrowing may or in
any other way;
Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a
lower-tier municipality in a regional municipality does not have the power to issue
debentures;
Whereas The Regional Municipality of Durham has the sole authority to issue
debentures for the purposes of its lower-tier municipalities including The Corporation of
the City of Pickering (the “City”);
Whereas the Council of the City wishes to proceed with debenture financing for the
Construction of the Pickering Heritage & Community Centre project;
Whereas before authorizing the Construction of the Pickering Heritage & Community
Centre project in the City of Pickering, the Council of the City had the Treasurer update
the City’s Annual Repayment Limit, the Treasurer calculated the estimated annual
amount payable in respect of such project and determined that such annual amount
would not cause the City to exceed the updated limit and therefore, the Ontario Land
Tribunal (OLT) approval is not required as per Section 401 of the Municipal Act, 2001,
as amended, and the regulations made thereunder; and,
Whereas after determining that Ontario Land Tribunal approval is not required, the
Council of the City approved report FIN 03-24 on the date hereof and approved the
Construction of the Pickering Heritage & Community Centre project in the City of
Pickering;
- 13 -
By-law No. 8080/24 Page 2
Now therefore the Council of The Corporation of the City of Pickering hereby enacts as
follows:
1.That the City proceed with the project referred to as “Construction of the Pickering
Heritage & Community Centre”;
2.That the estimated costs of the project in the amount of $58,239,550.00 be financed
as follows:
a). the sum of $8,367,000.00 or less be financed by the issue of debentures by
The Regional Municipality of Durham over a period not to exceed 20 years;
b). the sum of $16,522,000.00 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed 20 years to
address the funding shortfall of the Development Charges-Parks and
Recreation Reserve Fund (“DC-Parks & Recreation RF”), and that this amount
be repaid from future development charge collections as the first source of
repayment;
c). the sum of $2,409,243.00 be funded from the Development Charges-Library
Reserve Fund;
d). the sum of $8,000,897.00 to be funded from the Development Charges-Parks
and Recreation Reserve Fund;
e). the sum of $12,500,000.00 to be funded by the Green & Inclusive Community
Building Programs Federal Grant;
f). the sum of $4,000,000.00 to be funded by the Canada Cultural Space Fund
Federal Grant;
g). the sum of $588,628.00 to be funded from the Community Benefit Charges
Reserve Fund;
h). the sum of $4,900,000.00 to be funded from the Senior Centre Reserve;
i). the sum of $470,000.00 to be funded from the Library Building Reserve;
j). the sum of $481,782.00 to be funded from the Casino Reserve; and,
3.That the funds to repay the principal and interest of the debentures be provided for
in the annual Current Budget for the City commencing in 2025 or such subsequent
year in which the debentures are issued and continuing thereafter until the
debenture financing is repaid;
- 14 -
Page 3
By-law passed this 5th day of February, 2024
___________________________________
Kevin Ashe, Mayor
___________________________________
Susan Cassel, City Clerk
By-law No. 8080/24
- 15 -
Attachment #2 to Report FIN 03-24
The Corporation of the City of Pickering
By-law No. 8081/24
Being a by-law to authorize the Construction of
the Pickering Heritage & Community Centre
project in the City of Pickering and the issuance
of debentures in the amount of $16,522,000.00
for Development Charges-Parks and Recreation
Reserve Fund for the funding for the Construction
of the Pickering Heritage & Community Centre
project, and that the first source of repayment for
this debt is future development charges
collections.
Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower-tier
municipality may pass by-laws respecting matters within the spheres of jurisdiction
described in that Section;
Whereas Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a
municipality may incur a debt for municipal purposes, whether by borrowing may or in
any other way;
Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a
lower-tier municipality in a regional municipality does not have the power to issue
debentures;
Whereas The Regional Municipality of Durham has the sole authority to issue
debentures for the purposes of its lower-tier municipalities including The Corporation of
the City of Pickering (the “City”);
Whereas the Council of the City wishes to proceed with debenture financing for the
Construction of the Pickering Heritage & Community Centre project;
Whereas before authorizing the Construction of the Pickering Heritage & Community
Centre project in the City of Pickering, the Council of the City had the Treasurer update
the City’s Annual Repayment Limit, the Treasurer calculated the estimated annual
amount payable in respect of such project and determined that such annual amount
would not cause the City to exceed the updated limit and therefore, the Ontario Land
Tribunal (OLT) approval is not required as per Section 401 of the Municipal Act, 2001,
as amended, and the regulations made thereunder; and,
- 16 -
Page 2
Whereas after determining that Ontario Land Tribunal approval is not required, the
Council of the City approved report FIN 03-24 on the date hereof and approved the
Construction of the Pickering Heritage & Community Centre project in the City of
Pickering.
Now therefore the Council of The Corporation of the City of Pickering hereby enacts as
follows:
1.That the City proceed with the project referred to as “Construction of the Pickering
Heritage & Community Centre”;
2.That the estimated costs of the project in the amount of $58,239,550.00 be financed
as follows:
a). the sum of $8,367,000.00 or less be financed by the issue of debentures by
The Regional Municipality of Durham over a period not to exceed 20 years;
b). the sum of $16,522,000.00 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed 20 years to
address the funding shortfall of the Development Charges-Parks and
Recreation Reserve Fund (“DC-Parks & Recreation RF”), and that this amount
be repaid from future development charge collections as the first source of
repayment;
c). the sum of $2,409,243.00 be funded from the Development Charges-Library
Reserve Fund;
d). the sum of $8,000,897.00 to be funded from the Development Charges-Parks
and Recreation Reserve Fund;
e). the sum of $12,500,000.00 to be funded by the Green & Inclusive Community
Building Programs Federal Grant;
f). the sum of $4,000,000.00 to be funded by the Canada Cultural Space Fund
Federal Grant;
g). the sum of $588,628.00 to be funded from the Community Benefit Charges
Reserve Fund;
h). the sum of $4,900,000.00 to be funded from the Senior Centre Reserve;
i). the sum of $470,000.00 to be funded from the Library Building Reserve;
j). the sum of $481,782.00 to be funded from the Casino Reserve; and,
3.That the funds to repay the principal and interest of the debentures be provided for
in the annual Current Budget for the City commencing in 2025 or such subsequent
By-law No. 8081/24
- 17 -
Page 3
year in which the debentures are issued and continuing thereafter until the
debenture financing is repaid;
By-law passed this 5th day of February, 2024
___________________________________
Kevin Ashe, Mayor
___________________________________
Susan Cassel, City Clerk
By-law No. 8081/24
- 18 -