Loading...
HomeMy WebLinkAboutSeptember 5, 2023 - Special Council Special Council Meeting Agenda September 5, 2023 Electronic Meeting Immediately Following the Executive Committee Meeting For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca Due to the Council Chamber dome roof replacement and in accordance with the City’s Procedure By-law, the City of Pickering is holding electronic Council and Committee Meetings. 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 Due to the Council Chamber dome roof replacement, and the need to meet electronically, members of the public looking to provide a verbal delegation to Members of Council may do so through a virtual connection into the meeting. For more information, and to register as a delegate, visit www.pickering.ca/delegation, and complete the on-line delegation form or email clerks@pickering.ca. The list of delegates who have registered to speak will be called upon one by one by the Chair in the order in which they have registered. Delegates are allotted a maximum of 5 minutes to make their delegation. Please be advised that your name will appear in the public record and will be posted on the City’s website as part of the meeting minutes. 4. Matters for Consideration 4.1 Director, Economic Development & Strategic Projects, Report ECD 05-23 1 William F White International Inc. (Filming Backlot) Location Agreement Recommendation: 1. That consent be given pursuant to Paragraph 2 of the Location Agreement dated June 1, 2021 to an additional use, as more particularly set out in this Report, of the property at 3800 Sideline 32, Pickering, subject to such conditions as are imposed by the Director, Economic Development & Strategic Projects, Director, Corporate Special Council Meeting Agenda September 5, 2023 Electronic Meeting Immediately Following the Executive Committee Meeting For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca Services & City Solicitor, Director, City Development and Chief Administrative Officer; and, 2. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. 4.2 Director, Operations, Report OPS 22-23 11 T2023-6 Construction of the Pickering Heritage & Community Centre Recommendation: 1. That Report OPS 22-23 regarding T2023-6 Construction of the Pickering Heritage & Community Centre (PHCC) be received; 2. That Tender No. T2023-6 for Construction of PHCC be cancelled without award due to all bids exceeding approved budget in accordance with Appendix, item B and Part 3, section 3.6.1, item (l) of the bid document; 3. That staff be directed to explore options to reduce overall project costs for PHCC by: a) Obtaining an updated Class A cost estimate from Hanscomb Quantity Surveyors in the amount of $11,704.00 (HST included), for comparison to the previous Class A cost estimate received from the same firm in December 2022, to be retained as sub- consultants to Hariri Pontarini Architects; b) Working with the project consultants, Hariri Pontarini Architects, to reduce the project scope and related costs, then re-tender the project in time to secure new pricing prior to the approval of the 2024 Capital Budget; 4. That a proposal for additional fees submitted by Hariri Pontarini Architects for consulting and professional services required to reduce the scope of the project to meet budget objectives in the amount of $108,762.50 (HST included) be approved; 5. That the Director, Finance & Treasurer be authorized to finance $97,944.00 (net of HST rebate) for additional consulting fees to Hariri Pontarini Architects and $9,973.00 (net of HST rebate) for Class A Special Council Meeting Agenda September 5, 2023 Electronic Meeting Immediately Following the Executive Committee Meeting For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca cost estimating to Hanscomb Quantity Surveyors from the previously approved PHCC design Capital Budget as follows: a) The sum of $49,642.00 to be funded from the Rate Stabilization Reserve; b) The sum of $4,317.00 to be funded from the City Share DC Reserve; c) The sum of $14,029.00 to be funded from the DC – Parks & Recreations Reserve Fund; d) The sum of $39,929.00 to be funded from the DC – Library Reserve Fund; 6. That the Director, Operations and Treasurer be authorized to award required Stage 4 archeological work to Toronto Region Conservation Authority using uncommitted funds previously allocated for this purpose through Report OPS 03-23; 7. That the Director, Operations and Treasurer be authorized to award required Indigenous monitoring services to the Haudenosaunee Development Institute for additional work required to monitor the Stage 4 archeological work; 8. That the Director, Operations and Treasurer be authorized to award required Indigenous monitoring services to the Huron-Wendat Nation for additional work required to monitor the Stage 4 archeological work; 9. That the Director, Finance & Treasurer be authorized to reallocate uncommitted funds approved in Report OPS 03-23 to complete required Stage 4 archaeological work; 10. That the Director, Finance & Treasurer be authorized to approve up to an additional $113,000.00 (HST included) in funds to complete required Stage 4 archaeological work and finance the net costs of $101,760.00 from the previously approved PHCC construction Capital Budget as follows: Special Council Meeting Agenda September 5, 2023 Electronic Meeting Immediately Following the Executive Committee Meeting For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca a) The sum of $32,492.00 to be funded from the DC – Parks & Recreation Reserve Fund; b) The sum of $2,921.00 to be funded from the DC – Library Reserve Fund; c) The sum of $65,065.00 to be funded from the Rate Stabilization Reserve; d) The sum of $1,282.00 to be funded from the Community Benefit Charge Reserve fund; and, 11. That the appropriate City of Pickering officials be authorized to take the necessary action to give effect hereto. 5. Confirmatory By-law 6. Adjournment Report to Council Report Number: ECD 05-23 Date: September 5, 2023 From: Fiaz Jadoon Director, Economic Development & Strategic Projects Subject: William F White International Inc. (Filming Backlot) Location Agreement -File: D-1600-002 Recommendation: 1.That consent be given pursuant to Paragraph 2 of the Location Agreement dated June 1, 2021 to an additional use, as more particularly set out in this Report, of the property at 3800 Sideline 32, Pickering, subject to such conditions as are imposed by the Director, Economic Development & Strategic Projects, Director, Corporate Services & City Solicitor, Director, City Development and Chief Administrative Officer; and, 2.That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: William F. White International Inc. is seeking additional use to be permitted to accommodate a Halloween-themed event at the filming backlot located at 3800 6LGHOLQH LQSDUWQHUVKLSZLWK(OO¶(YHQWV$SXEOLFHYHQWRIVXFKQDWXUHLVQRWSHUPLWWHG XQGHUWKH executed Location Agreement (Resolution # 582/21) and requires prior written consent of the City. The event, Haunting of Hexwood, is scheduled to take place throughout October and attract up to 2,000 attendees per day. It is a haunted town attraction setting with sets, actors, and special effects. The event will feature haunts, corn maze, store front displays, licensed bar area, pumpkin patch, carnival games, food trucks, and additional entertainment vendors. Staff recommend that Council approve the ad ditional use of the property for this event, on the condition that William F. White International is able to provide the necessary documentation for review and/or approval to the appropriate City of Pickering official s from Building Services, Municipal Law Enforcement Services, Fire Services, the City Solicitor, and Finance Department. Financial Implication: Not applicable to this report. Discussion: In June 2021, City of Pickering executed a location agreement with William F. White International Inc. for the exclusive use of both the real and personal property located at 3800 Sideline 32, Pickering ON, L0H 1J0 (Part of Lots 33 and 34, Concession 6, being Part 4, Plan 40R-28722). According to Paragraph 1, Premises and Uses, the Location Agreement - 1 - ECD 05-23 September 5, 2023 Subject: William F. White International (Filming Backlot) Location Agreement Page 2 provides ³access for the purposes of (a) erecting, maintaining, using and removing temporary sets and structures, (b) storing equipment, (c) photographing and filming the Premises, including any and all portions thereof (including, without limitation, the inter ior and exterior designs of the Premises, sets, structures and furniture items), recording sound in connection with any such filming, and (e) any uses or purposes related or incidental to any of the foregoing (collectively, the "Uses")´. As per paragraph 2 , ³there shall be no further uses granted by the City to the User and permitted by this Location Agreement without the prior written consent of the City, which consent may be withheld by the City in its sole discretion ´. William F. White, in partnership wi WK (OO¶(YHQWV KDYH SURSRVHG WKH XVH RI a public Halloween - themed event, The Haunting of Hexwood , at the filming backlot . Refer to Attachment 1 for :LOOLDP ) :KLWH¶V request of additional use. Due to union strikes in the Film & TV industry, the company is seeking methods to recuperate some losses during these extended strike periods that are taking place during peak season for the industry. The event will be taking place on 18 dates between October 6 to 31 , 2023 from 7 pm to 12 am. The event will consist of walk -thru haunts, town square bar, food trucks, and live entertainment. The charitable partner for this event is Epilepsy Toronto. The event is expected to attract nearly 1,500 to 2,000 attendees per day. Five sets will be activated to be a walk through haunt experience with staff p resent at entrance and exit doors to limit the number of individuals inside each set. There is also an emergency exit at each of the five sets. Six additional sets will be decorated as a pop -up store. All sets except one will be accessibility-friendly. The event will also have a corn maze as a walk -through experience and carnival games. The event will include: x Food trucks and a licensed bar area will be on site for sale of alcohol and food. x Portable washrooms for attendees. x Limited parking on site for attendees. Tickets will be sold with or without access to parking to allow for a predetermined number of vehicles on site. A traffic management team will also be retained. x Attendees will be encouraged to park ten minutes away at Mount Joy GO Station in Markham and take a free shuttle to the site. x A First-Aid Company will be present. Attachment 2 includes further event details. The structures are not buildings as defined under the Ontario Building Code, which considers all of the necessary fire and life safety components for buildings which are to be used by the public. Currently, the backlot is deemed to be functioning as a workplace (as governed under the Occupational Health and Safety Act (OH&S)), with no public access. While Building Services staff are not in a position to provide approvals for these sets, staff may exercise the right to review the certified drawings and reports prepared by the applicable consultants (i.e. structural engineer) and advise of any concerns. - 2 - ECD 05-23 September 5, 2023 Subject: William F. White International (Filming Backlot) Location Agreement Page 3 Staff recommend Council approve the additional use of the property to be valid from October 6 ± November 1, 2023 , on the condition that William F. White International is able to provide documentation below for review and /or approval from staff. The requirements include but are not limited to the following: x Copy of agreement with the event company x Fire and safety plan (including site visit by Fire Services) x Certificate of Insurance x Indemnity on terms satisfactory to the City Solicitor x Food/Refreshment Vehicle License x Parking plan x Noise mitigation plan (including neighbourhood notification letter) x Architect/Engineer drawings and certification x AGCO Non-Objection Letter x Site Plan x On-site contact list A written consent letter will be provided to William F. White upon satisfying all the conditions. Attachments:  William F. White International Location Agreement Additional Use Letter  (OO¶(YHQWV,QF(YHQW'HWDLOs ______________________________________________________________________________ Prepared By: Approved/Endorsed By: Laraib Arshad Fiaz Jadoon Manager, Economic Development & Marketing Director, Economic Development & Strategic Projects FJ:la 2ULJLQDOVLJQHGE\ 2ULJLQDOVLJQHGE\ - 3 - ECD 05-23 September 5, 2023 Subject: William F. White International (Filming Backlot) Location Agreement Page 4 Recommended for the consideration of Pickering City Council 2ULJLQDOVLJQHGE\ Marisa Carpino, M.A. Chief Administrative Officer - 4 - © 2022 William F. White International Inc. August 23, 2023 Good afternoon, We are writing to request approval from the Town of Pickering to host a Halloween themed public event, ƉƌŽĚƵĐĞĚĂŶĚ ŵĂŶĂŐĞĚďLJ ůů͛ǀĞŶƚƐ at our WFW Backlot site located at 3800 Sideline 32, Locust Hill, ON. We are requesting a one-time use permit for this event. The ůů͛ǀĞŶƚƐƚĞĂŵ is set to start preparations on site beginning September 15th , 2023. The event itself will run for the month of October 2023 (currently planning to be open Thursdays to Sundays). Wrap out of the project is scheduled to be completed by November 7th , 2023. This event titled ͞The ,ĂƵŶƚŝŶŐŽĨ,ĞdžǁŽŽĚ͟ ǁŝůůďĞƌƵŶďLJůů͛ǀĞŶƚƐ͕ĂƉƌŽĨĞƐƐŝŽŶĂůĞǀĞŶƚƐĐŽŵƉĂŶLJ ǁŝƚŚover 18 years of event management, production, and marketing experience. The ůů͛Events team has strong ties to the film and TV production world and will be renting exclusively WFW equipment which makes this an all- encompassing event for our multiple lines of business. In addition, there will be filmed aspects of this event and the company hires paid actors as part of the performance. This event is vital to our business as it comes at a time when the film industry in Toronto is struggling under the various strikes currently happening in the industry. An event of this caliber is crucial to provide continued revenue for our Backlot location. We are working closely with Jeff Archbold, the engineer who originally assessed and approved the Backlot set ƐƚƌƵĐƚƵƌĞƐ͘ůů͛ǀĞŶƚƐŝƐworking with Jeff to provide his approval for areas of the site to be used by the public as well as any safety concerns to be addressed. His consultation is planned for Sunday, August 27th with documentation to follow shortly after. Jeff is fully aware of the scope of this event, and its intended use for the public. The original engineering documents produced by Jeff Archbold and his firm have been included in our package as well. Epilepsy Toronto is a partner in the event and emphasizes the importance of the financial output they receive which helps the charity provide their critical services to those suffering from this affliction. The charity under the guidance of it is Executive Director Geoff Bobb, has used events as a major source of fundraising for over 20 years. Being a part of events is important for Epilepsy from many perspectives, firstly, funds raised are used to support the important services they provide to their clientele, secondly, the events raise awareness about those living with epilepsy and about the services the charity provides. Finally, events provide job opportunities for the clients of the charity (those lŝǀŝŶŐǁŝƚŚƉŝůĞƉƐLJͿǁŚŝĐŚ ŝƐĂǀŝƚĂůƉĂƌƚŽĨƉŝůĞƉƐLJdŽƌŽŶƚŽ͛ƐŵĂŶĚĂƚĞ͘ The event will be fully insured as required by our location agreement and company policy. As an added layer, there will be liability waivers for the guests of the event. There is an event emergency preparedness plan included which covers security, fire, noise, and safety. Parking management has also been taken into consideration. Additionally, the upcoming event is not just about entertainmentͶit is a catalyst for economic growth and prosperity in the heart of Pickering. By creating over 100 job opportunities and partnering with more than a $WWDFKPHQWWR5HSRUW(&' - 5 - © 2022 William F. White International Inc. dozen regional suppliers, we are actively fostering a thriving ecosystem of collaboration and support within the community. As ůů͛ǀĞŶƚƐ welcomes over 30,000 attendees to our event, we are also ushering in a substantial infusion of resources into the local economy. From hospitality and retail to transportation and hospitality services, the ripple effect of increased foot traffic will be felt across various sectors. This influx of visitors translates into boosted revenues for local businesses and increased economic activity. Your support and willingness to work with tŝůůŝĂŵ&͘tŚŝƚĞͬ^ƵŶďĞůƚĂŶĚůů͛ǀĞŶƚƐon such short notice is immensely appreciated. We look forward to your reply. Tammy Forbes Director, Studios William F. White International Inc. - 6 - EVENT DETAILS The Haunting of Hexwood is a premier haunted town attraction offering a meticulously designed setting with elaborate sets, talented actors, and cutting-edge special effects to create an atmosphere of suspenseful fun. We attract a diverse audience of Halloween enthusiasts, families with older children, and groups of friends. Estimated Attendance 1500-2000 attendees daily, capacity will be limited through ticket sales maximums ATTRACTIONS Feature Haunts •5 Haunted Walk-Throughs: We have selected 5 buildings that have an existing entrance and separate exit door to create a walk-through haunted experience. Each of the buildings also has an additional existing door to be used as an emergency exit. These buildings will create a short distance walk-through experience lasting no more than 5-10 minutes each. •Corn maze: We have created a corn maze with a local farmer to be utilized as a walk-through experience. The maze is directly on the property in the center of town and will be plowed and lighted accordingly to ensure patron safety Store Haunts •6 stores will be utilized as a walk in and out store with an interactive photo-op display. Store Front Displays The remaining stores will be locked but a haunted window display will be featured or the windows will be blacked out. NOTES – Utilization of Buildings for Patrons Detailed layout plans will be provided. All but 3 of the buildings will be used without any structural alterations other than the addition of flooring. Three of the buildings will have temporary free-standing walls added to create a maze-like experience. These will be installed by professional carpenters. Licensed Bar Area 1.Beverage Service Protocol: Bar operations will adhere to a meticulous beverage service protocol. All bartenders and servers will undergo comprehensive training that covers responsible alcohol service, recognizing signs of intoxication, and proper handling of customers. 2.ID Verification and Age Restriction: Prior to serving any alcoholic beverages, all patrons will be required to present valid identification to $WWDFKPHQWWR5HSRUW(&' - 7 - confirm their legal drinking age. Our staff will issue wristbands to ensure accuracy and prevent underage access to alcoholic beverages. 3.Standard Drink Measurements: To maintain control over alcohol consumption, our bar area will strictly adhere to standardized drink measurements. This will help prevent over-pouring and promote consistent serving sizes, contributing to the responsible consumption of alcohol. 4.Security and Crowd Management: Trained security personnel will be present to monitor the crowd and ensure that alcohol is being consumed responsibly. Any instances of disorderly conduct or potential over-intoxication will be addressed promptly and professionally. 5.Responsible Marketing: Our marketing and promotional materials will emphasize responsible alcohol consumption. We are offering a shuttle service for guests to travel safely to and from the event. By implementing these measures, we will ensure that the licensed bar area aligns with responsible alcohol service practices, prioritizing the safety and well-being of all patrons. This approach is aimed at fostering a secure and enjoyable environment while upholding the highest standards of compliance with relevant laws and regulations. Pumpkin Patch Pumpkins will be offered for purchase, carving and pumpkin smashing. Carnival Games A variety of carnival games will be available for pay per play including balloon pop and knock-a-pumpkin. Food Vendors •4 Food Trucks will be parked by the Diner •Picnic Benches will be added to the exterior of the Diner for seating •1 Corn Vendor will be situated near the town square •Food Truck Vendors include -Coffee Break (coffee/tea/hot drinks & pastries/baked goods) -Real Empanada (empanadas and salsas) -Ontario Corn Roasters (roasted corn/yams & lemonade) -Happy Twist (fried twisted potatoes/taro/yam, soup, steamed buns, and hot dogs) -**One more main food vendor to be confirmed •All food vendors will fill out a Durham Region Public Health vendor form which will be submitted to Durham Public Health more than 15 days prior to the event start as per their request. An organizer form will also be submitted to Durham Public Health for permitting. - 8 - Non-Food Vendor Stores Three to four stores will be utilized for Non-Food Vendors •Psychic & Crystal Store •Face Painting & Body Art •Costume Jewellery FENCING MAP FOR SPACE MANAGEMENT - 9 - EVENT PRODUCTION COMPANY The Ell'Events team has over 18 years of event management, production, and marketing experience. Blending creativity with innovation and flawless delivery, we expertly plan and manage seasonal and public events. Our team coordinates and designs each event from start to finish including the event marketing and promotions, along with event delivery and execution. Above all, event production is our true passion, and we thrive off creating authentic and engaging event experiences each and every time. Past Events with similar run dates: Halloween Nights of Lights – 3rd Annual 2022 Attendance: 68,000 Holiday Nights of Lights – 3rd Annual 2022 Attendance: 45,000 Sugar Rush Toronto 2021 Attendance: 87,000 CHARITABLE PARTNER This event is partnered with a charitable organization, EPILEPSY TORONTO, Canada’s leading source of support for people living with epilepsy and their families. Dedicated to the promotion of independence and quality of life, the organization provides critical counselling and advocacy services to those in crisis, seizure accommodation strategies, and epilepsy awareness in the public at large. - 10 - Report to Council Report Number: OPS 22-23 Date: September 5, 2023 From: Brian Duffield Director, Operations Subject: T2023-6 Construction of the Pickering Heritage & Community Centre -File: A-1440 Recommendation: 1. That Report OPS 22-23 regarding T2023-6 Construction of the Pickering Heritage & Community Centre (PHCC) be received; 2. That Tender No. T2023-6 for Construction of PHCC be cancelled without award due to all bids exceeding approved budget in accordance with Appendix, item B and Part 3, section 3.6.1, item (l) of the bid document; 3. That staff be directed to explore options to reduce overall project costs for PHCC by: a)Obtaining an updated Class A cost estimate from Hanscomb Quantity Surveyors in the amount of $11,704.00 (HST included), for comparison to the previous Class A cost estimate received from the same firm in December 2022, to be retained as sub-consultants to Hariri Pontarini Architects; b)W orking with the project consultants, Hariri Pontarini Architects, to reduce the project scope and related costs, then re-tender the project in time to secure new pricing prior to the approval of the 2024 Capital Budget; 4.That a proposal for additional fees submitted by Hariri Pontarini Architects for consulting and professional services required to reduce the scope of the project to meet budget objectives in the amount of $108,762.50 (HST included) be approved; 5.That the Director, Finance & Treasurer be authorized to finance $97,944.00 (net of HST rebate) for additional consulting fees to Hariri Pontarini Architects and $9,973.00 (net of HST rebate) for Class A cost estimating to Hanscomb Quantity Surveyors from the previously approved PHCC design Capital Budget as follows: a) The sum of $49,642.00 to be funded from the Rate Stabilization Reserve; b)The sum of $4,317.00 to be funded from the City Share DC Reserve; c)The sum of $14,029.00 to be funded from the DC – Parks & Recreations Reserve Fund; d)The sum of $39,929.00 to be funded from the DC – Library Reserve Fund; - 11 - OPS 22-23 September 5, 2023 Subject: Tender T2023-6 Construction of the Pickering Heritage & Community Centre Page 2 6. That the Director, Operations and Treasurer be authorized to award required Stage 4 archeological work to Toronto Region Conservation Authority using uncommitted funds previously allocated for this purpose through Report OPS 03-23; 7. That the Director, Operations and Treasurer be authorized to award required Indigenous monitoring services to the Haudenosaunee Development Institute for additional work required to monitor the Stage 4 archeological work; 8. That the Director, Operations and Treasurer be authorized to award required Indigenous monitoring services to the Huron-Wendat Nation for additional work required to monitor the Stage 4 archeological work; 9. That the Director, Finance & Treasurer be authorized to reallocate uncommitted funds approved in Report OPS 03-23 to complete required Stage 4 archaeological work; 10. That the Director, Finance & Treasurer be authorized to approve up to an additional $113,000.00 (HST included) in funds to complete required Stage 4 archaeological work and fin ance the net costs of $101,760.00 from the previously approved PHCC construction Capital Budget as follows: a) The sum of $32,492.00 to be funded from the DC – Parks & Recreation Reserve Fund; b) The sum of $2,921.00 to be funded from the DC – Library Reserve Fund; c) The sum of $65,065.00 to be funded from the Rate Stabilization Reserve; d) The sum of $1,282.00 to be funded from the Community Benefit Charge Reserve fund; and, 11. That the appropriate City of Pickering officials be authorized to take the necessary action to give effect hereto. Executive Summary: A Request for Supplier Prequalification (RFSQ2023-4) was issued on the City’s bids&tenders portal on January 25, 2023 and closed on February 16, 2023. Three bidders were pre-qualified for a subsequent Tender. Tender No.T2023-6 for Construction of the Pickering Heritage & Community Centre was issued on the City’s bids&tenders portal on June 9, 2023 and closed on July 27, 2023. Only bids submitted by pre-qualified bidders were accepted. Three bids were received for T2023-6. The lowest compliant bid submitted was in the amount of $57,300,084.00 (net HST rebate), resulting in a total net project cost of approximately $64,600,000.00. Total available budget for the project is $38,560,569.00. If approved, the City’s share cost excluding DC funding and $16.5 million in secured grant funding, would be approximately $19.2 million, which would need to be financed by debt. The estimated annual repayment costs would be approximately $1.5 million (principal and interest) - 12 - OPS 22-23 September 5, 2023 Subject: Tender T2023-6 Construction of the Pickering Heritage & Community Centre Page 3 over 20 years, with the current market interest rates. The City share debt charges related to this project would translate into a 1.80 percent levy increase for the 2024 budget. Given the broad range of other financial priorities, staff do not recommend awarding the project at this price. Should the project be cancelled outright, the City also risks losing $4.0 million in secured grant funding from the Canadian Cultural Spaces Fund (CCSF) and $12.5 million in secured grant funding from the Green and Inclusive Community Buildings (GICB) program. Staff instead recommend that the existing tender not be awarded, and that efforts be made to reduce the scope and cost in an effort to re-tender the project to the same pre-qualified bidders later in the year and in time to receive new pricing prior to approval of the 2024 Capital Budget. Financial Implications: 1. Project Rescoping - Cost Summary Hariri Pontarini Additional Fees (Design Budget) Hanscomb Quantity Surveyors (Design Budget) $96,250.00 9,800.00 Stage 4 Archeological Work Additional Fees (Construction Budget) 100,000.00 Total Project Costs (excluding taxes) $206,050.00 HST (13%) 26,787.00 Total Gross Additional Costs $232,837.00 HST Rebate (11.24%) (23,160 .00) Total Net Additional Costs $209,677.00 2. Approved Source of Funds Approved Code Source of Funds Funds Available Funds Required Design Budget C10220.2011 Rate Stabilization Res $105,148.00 $49,642.00 C10220.2011 City Share DC Res 9,793.00 4,317.00 C10220.2011 DC – Parks & Rec 32,643.00 14,029.00 C10220.2011 DC – Library 78,190.00 39,929.00 Design Total: $225,774.00 $107,917.00 Construction Budget C10220.2011 DC – Parks & Rec $12,315,777.00 $32,492.00 C10220.2011 DC – Library 1,107,634.00 2,921.00 C10220.2011 Federal Grants (GICB) 12,500,000.00 0.00 C10220.2011 Federal Grants (CCSF) 4,000,000.00 0.00 C10220.2011 Debt – 20 Year 8,152,073.00 0.00 - 13 - OPS 22-23 September 5, 2023 Subject: Tender T2023-6 Construction of the Pickering Heritage & Community Centre Page 4 Approved Code Source of Funds Funds Available Funds Required C10220.2011 Rate Stabilization R 0.00 65,065.00 C10220.2011 CBC Reserve Fund 485,085.00 1,282.00 Construction Total: $38,560,569.00 $101,760,00 Total Design and Construction: $38,786,343.00 $209,677.00 Design Project Cost under (over) approved funds by $117,857.00 Construction Project Cost under (over) approved funds by $38,458,809.00 PHCC design budget was approved in the 2018 Capital Budget at $1,503,779.00. To date, the total costs incurred towards the design is approximately $1,278,005.00 (net of HST rebate), including the net-zero re-design. When you add the costs associated with Recommendation 5, the total year-to -date cost will be $1,385,922.00, resulting in a residual design remaining balance of $117,857.00. As per Resolution #79/23 (Report OPS 03-23) Council approved funding $328,431.00 (net of HST rebate) from PHCC construction budget for Stage 3 archaeological work, and included allowances for Stage 4 work, if required. This report is requesting an additional $101,760.00 (net of HST rebate) for Stage 4 archaeological work. As referenced above, the project budget for construction is $38.56 million and the lowest submitted bid was $57.3 million representing a variance of $18.74 million or 48.60 percent. As the City undertakes the next step to reduce the project’s cost by revising the building’s footprint size, Council should be aware that in this current high cost construction environment, that even after the additional efforts, the total project cost may still be challenging for the City. The City’s current capital plan consists of a long list of major new capital projects in conjunction with a backlog of required asset management infrastructure investments that is now negatively impacted from a financial lens regarding the current high cost construction environment and high interest rates. Currently, there are several valuable capital projects (new and asset infrastructure renewal), that cannot be accommodated in the next few years. The recommended strategy is to take the “list” (new and renewal) with the corresponding high dollar value and re-allocate the projects into a more manageable “size” and timeframe both from a financial resource and workload perspective. After each major project is completed, it would be recommended that the priority list be reviewed to accommodate perhaps new needs and or possible senior level grant funding opportunities. In other words, the “list” is not static—it is adapting to community needs and financial opportunities. The current work plan is for the Director, Finance & Treasurer, in consultation with senior management, to bring forward a capital strategy report in early 2024. This report would recommend major new capital projects for the next four years for Council’s consideration and would also consider the City’s debt strategy in the context of the Provincially legislated Annual - 14 - OPS 22-23 September 5, 2023 Subject: Tender T2023-6 Construction of the Pickering Heritage & Community Centre Page 5 Repayment Limit or (ARL). Included in this report would be results of the revised tender for PHCC. While staff remain optimistic that the revised building footprint strategy will bring the cost down to an affordable amount, Council should be aware that there is a risk that the project may not proceed if the revised cost still remains challenging in the context of considering the financial demands of the new and existing infrastructure asset management dollar “asks”. Under this scenario, staff would recommend that a $6.0 million capital expenditure be added to the draft 2024 Capital Budget for the construction of a basic museum administration building. Discussion: 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, 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 the eventual tender release date to June 9, 2023. The first delay occurred in March 2020 due to of the City’s response to the onset of Covid-19 and the economic uncertainty at that time. The actions taken to pause capital projects underway was authorized by Council, as per Resolution 283/20. Report FIN 05-20 described a deferral of select capital projects recognizing the disruption of workplace closures, supply chain disruptions and labour shortages. At the time of this pause of work, the design was approximately 80 percent complete on the pre-tender phase of the design deliverables. The second delay to the project occurred in June 2021, in order to pursue GICB grant funding which required major revisions to the project design to meet the conditions of the grant application including a 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. A formal Class A estimate was obtained from Hanscomb Quantity Surveyors in December 2022, which is typically considered to be accurate within five to ten percent and included a five percent design contingency for final pre-tender revisions as well as an additional five percent inflation allowance anticipating tender by the summer of 2023. The project was tendered in accordance with this schedule. Total construction cost was estimated at $37.2 million (pre-tax). Additional funding was allocated in the 2023 Capital Budget to account for contingencies and other related City costs, for a total estimated project cost of approximately $38.9 million (net HST rebate). The low compliant bid result from Tender No. T2023-6 for construction costs only was $56.3 million (pre-tax). - 15 - OPS 22-23 September 5, 2023 Subject: Tender T2023-6 Construction of the Pickering Heritage & Community Centre Page 6 The results of Tender No. T2023-6 were not predictable and budgets were set on sound project management principles. Upon approval, staff will seek an updated project cost estimate to assist in the value engineering exercise to best target potential cost savings. The PHCC project includes the redevelopment of the entire upper site of the Pickering Museum Village (PMV) located at 2365 6th Concession road, located at the western edge of the Hamlet of Greenwood. The scope of work includes construction of a new ~52,000 square foot (~4,800m2) hybrid facility including shared program, administration, archival storage, heritage resource space and their related support spaces. The PHCC is intended to consolidate community services currently provided by third party lease agreements with local community groups that operate several small northern facilities not staffed by the City. It would also provide a needed upgrade to existing museum program delivery spaces, enabling year-round operations, as well as replacing inadequate administrative and support spaces. PHCC would also provide consolidated humidity and temperature controlled collections and record storage for PMV’s historical artifacts, Pickering Public Library’s Local History collection and the City’s administrative records archive. Each area currently stores these materials in poor conditions that have become compromised over time as needs have exceeded available capacity. Pickering Public Library will also provide services at PHCC and there will be access to curated collections, comfortable spaces, materials pick-up and drop-off, and computers and printers. Both sources of grant funding secured for the project require its completion by March 31, 2026. Should construction not proceed in early 2024, it will no longer be feasible to meet these deadlines and the $12.5 million in grant funding from GICB and $4.0 million in grant funding from CCSF may be lost. Conditions associated with the GICB grant required modification of the previous design to meet Net-Zero-Carbon Design (version 2) as established by Canadian Green Building Council (CaGBC). Council approved the re-design of the project as part of Report 17-22 through Resolution #970/22 on July 11, 2022. In addition to being the City’s first Net-Zero facility, PHCC would also be the first new community centre constructed in Pickering in over twenty-five years, and be the first such facility opened to directly service the Seaton lands. City staff have met with staff from both granting organizations and the change in project scope as proposed in this report will not affect eligibility for either grant program. In order to also ensure that the project schedule can be maintained, it will be necessary to complete ongoing archaeological work along the boundary at the northwest corner of the PMV site, partially including lands currently owned by the TRCA. Stage 3 archaeological work was completed this past spring and has identified a need for localized Stage 4 work. The Stage 3 work was completed by Archaeological Services Inc., as approved by Report OPS 03-23 on February 27, 2023. Their work included both City and TRCA lands, as agreed upon by both parties. TRCA has since expressed interest in completing the Stage 4 work with its own archaeological forces. The Stage 4 area also straddled both properties. TRCA has confirmed that they have teams capable of completing this work before the end of 2023, minimizing related risks to the project. Work cannot proceed within the affected area, plus a surrounding - 16 - OPS 22-23 September 5, 2023 Subject: Tender T2023-6 Construction of the Pickering Heritage & Community Centre Page 7 buffer zone, until all clearances have been obtained. Construction of the PHCC facility could still proceed while the archaeological work is underway, but related siteworks cannot be fully completed without eventual access to the area. The City is separately negotiating the purchase of the required portion of lands from TRCA and requires completion of the archaeological work in order for TRCA to provide an Access to Enter agreement that would help facilitate construction activities for the rest of the project while the land purchase is finalized. Momentum must be maintained on these initiatives to prevent the development of any further risks, should Council decide to award the construction of a modified PHCC project in early 2024. A window of opportunity exists wherein the scope of work included in Tender No. T2023-6 could be modified to reduce overall project costs. Council would first need to authorize that Tender No. T2023-6 be cancelled without award for exceeding available budget. In accordance with Part 3, Section 3.6.1, item (l) of the bid document, the City reserves the right to cancel the RFT process at any stage and issue a new RFT for the same or similar deliverables. Staff would then work to reduce the physical footprint, finishes and other provisions included in a new tender to be issued around the end of October 2023. This would enable pricing to be received around December 2023, in time for review and consideration ahead of Council approval of the 2024 Capital Budget. Approval of additional consulting fees in the sum of $97,944.00 (net HST rebate) to Hariri Pontarini Architects will be required in order to modify the construction documents prepared for Tender No. T2023-6 to be readied for re- tender in accordance with the schedule outlined above. Attachment: None. Prepared By: Approved/Endorsed By: Original Signed By: Original Signed By: Brian Duffield Stan Karwowski, MBA, CPA, CMA Director, Operations Director, Finance & Treasurer Original Signed By: Original Signed By: Vince Plouffe, OAA, MRAIC Sarah Douglas-Murray Division Head, Operations Services Director, Community Services - 17 - OPS 22-23 September 5, 2023 Subject: Tender T2023-6 Construction of the Pickering Heritage & Community Centre Page 8 Original Signed By: Jackie Flowers CEO / Director of Public Libraries Original Signed By: Cathy Bazinet, CPPB, NIGP-CPP Manager, Procurement BD:vp Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Chief Administrative Officer - 18 -