HomeMy WebLinkAboutFIN 14-24
Report to Council
Report Number: FIN 14-24
Date: July 25, 2024
From: Stan Karwowski
Director, Finance & Treasurer
Subject: Pickering Soccer Dome Rebuild Project
- File: F-1000-001
Recommendation:
1. That Report FIN 14-24 regarding Pickering Soccer Dome Rebuild project be received;
2. That Council authorize the Director, Finance & Treasurer to finance the Pickering Soccer
Dome Rebuild project total net HST project cost of $2,833,300 as follows;
a) the sum of $2,365,000 to be funded from the settlement agreement reached with
Aviva Insurance Company of Canada and Zurich Insurance Company Ltd. (subject
to Councils’ acceptance of the settlement agreement);
b) the additional sum of $468,300 be funded as follows to cover the remaining over
expenditure:
i) $241,294 from the settlement agreement reached with Aviva Insurance
Company of Canada and Zurich Insurance Company Ltd. (subject to Councils’
acceptance of the settlement agreement);
ii) $108,395 from the Rate Stabilization Reserve;
iii) $118,611 from the Pickering Football Club (PFC); and,
3. That the appropriate City of Pickering officials be given authority to take the necessary
actions to give effect thereto.
Executive Summary: The purpose of this report is to obtain Council’s authority to fund the
Pickering Soccer Dome Rebuild project total net HST project cost of $2,833,300 as the project is
now completed.
On January 16th and 17th of 2022, the City of Pickering was blanketed with approximately 55
centimeters (21.6 inches) of snow. It was more snowfall than Pickering had experienced in
January, February and March 2021 combined. The result of this snowfall was the collapse of the
soccer dome on January 17, 2022. The contractor hired by the City’s insurers decided to wait until
after the snow and ice had melted before inflating the dome. On the week of April 11th, The Farley
Group started to inflate the dome. Unfortunately, there was either a hole in the cover or one of the
cover panels had a weakened seal that caused the dome cover to collapse a second time. When
the cover fell the second time, it hit a fire hose cabinet that caused extensive flooding and
FIN 14-24 July 25, 2024
Subject: Pickering Soccer Dome Rebuild Project Page 2
damaged the turf field. The option of repairing the roof was investigated; however, the contractor
would not provide a warranty or guarantee their workmanship. This option was not acceptable to
City staff for obvious reasons. City staff determined that both the Soccer Dome cover and turf
must be replaced.
During the next several months in 2022, senior staff worked with the City’s insurers to obtain the
“green light” to start the “rebuild process”. The existing dome was around eight years old and
product improvements had occurred during this time period. The issue of the potential damage
that was hidden by the collapsed dome cover was also discussed. Until the old dome cover was
removed, City staff would not know if there had been any damage to the HVAC, turf field base or
any other equipment.
Price quotes were obtained for the Soccer Dome cover and turf field replacement which were
provided to the insurers for their review. City staff were cautiously optimistic that, within the near
future, the insurers would approve the expenditure to replace the dome cover and turf field for the
full amount. However, in order for the building to be operational on March 1, 2023, the contract for
the dome replacement had to be issued immediately.
At the August 18, 2022 Council meeting (Resolution #972/22), Council gave approval for staff to
start the “rebuild process” by awarding contracts to construct and install the Soccer Dome cover
and soccer field while insurance funding details/responsibilities were to be finalized. Council also
approved changing the soccer pitch field configuration to create space to construct a permanent
hard surface court to accommodate pickleball courts and futsal courts. These courts were an
upgrade or betterment to the Soccer Dome and were to be funded from the City’s Rate
Stabilization Reserve. Therefore, the Soccer Dome Rebuild project consisted of two funding
strategies: replacements (insurance funded) and the enhancements/improvements components
(City funded). As expected, there are usually “grey areas” where it is difficult or not clear to
determine what is a replacement in contrast to an enhancement or improvement. During the
rebuild phase, new building components were installed to replace the old items that had by
default, enhancement functionality or capability.
Demolition of the Soccer Dome commenced shortly after the Council meeting of August 18, 2022.
Various minor repairs and demo works were ongoing until the new concrete slab, as part of the
hard courts upgrade, was poured in November 2022. Erection of the new dome cover began in
January 2023. The facility resumed operations in April 2023, with various minor works and
deficiencies taking several additional months to resolve.
In September 2023, the City submitted its claim, with supporting invoices, to the City’s property
insurers to be reimbursed for its construction and installation costs incurred to replace the
Pickering Soccer Dome cover and soccer turf and related costs. City staff have reached a final
settlement agreement with the City’s insurers for Council’s consideration.
Relationship to the Pickering Strategic Plan: The recommendations in this report respond
to the Pickering Strategic Plan Corporate Key to Deliver on Good Governance – Fiscal Prudence.
FIN 14-24 July 25, 2024
Subject: Pickering Soccer Dome Rebuild Project Page 3
Financial Implications:
1. Actual Project Costing Summary
Soccer Dome Rebuild Project (Insurance Funded Component)
Construction and Installation Costs (Net HST)
Soccer Dome Cover
Soccer Dome Field
Project Management
Unforeseen/unanticipated repair expenses
Total Net Project Cost
$1,404,445.00
494,635.00
141,857.00
792,363.00
$2,833,300.00
2. Approved Source of Funds
Total Net HST Project Cost
Funding:
Insurance Payment
Budget Shortfall
Shortfall Funding Strategy:
Additional Insurance Payment
City’s Contribution
(Rate Stabilization Reserve)
Pickering Football Club Payment
Total
$2,833,300.00
2,365,000.00
$468,300.00
$241,294.00
108,395.00
118,611.00
$468,300.00
Discussion: The purpose of this report is to obtain Council’s authority to fund the Pickering
Soccer Dome Rebuild project total net HST project cost of $2,833,300 as the project is now
completed
The City’s current property insurance policy is underwritten by two insurers; Aviva Insurance
Company of Canada (60%) and Zurich Insurance Company Ltd (40%). This method of
underwriting is called “concurrent insurance underwriting” where the risk of a significant claim or
loss is shared among multiple insurers. Therefore, any insurance settlement payout will be shared
between the two insurers.
On January 17, 2022, the Pickering Soccer Dome cover collapsed due to a multi-day snow event.
This large snowfall was described in the news media “as a 50-year snowstorm”. There were
approximately 18 other domes in Ontario that collapsed during this snowstorm.
FIN 14-24 July 25, 2024
Subject: Pickering Soccer Dome Rebuild Project Page 4
After the dome cover collapsed, the City’s insurers’ priority was to remove the snow and ice that
had accumulated around the dome parameter and on the collapsed dome fabric in advance of re-
inflating the air supported structure. The insurers’ also arranged for electrical inspections before
attempting to reinflate the dome. Despite their best efforts of the insurers’ contractor, the
continuous winter weather conditions forced them to postpone the process until the spring. Once
weather conditions allowed it, the specialist dome contractor was able to make repairs to the
dome fabric in advance of a full re-inflation. A total of $191,756 in costs (net of HST) was incurred
to enable the dome to be re-inflated, and the City fully recovered these costs from its insurers,
less the $25,000 insurance deductible. The City paid 100 percent of the insurance deductible
without any contribution from the Pickering Football Club (PFC).
During the week of Easter, the dome was re-inflated. Unfortunately, due to strong wind conditions
and a combination of unforeseen weakness in the fabric and seals, the dome was unable to
sustain pressure and collapsed on April 16, 2022. When the cover collapsed the second time, it
struck and dragged across a fire hose cabinet causing a pipe fracture below grade that flooded
the field turf. An on-site visual inspection revealed that mould was forming on sections of the
collapsed roof cover.
After the roof collapsed a second time, the option of repairing the roof was investigated. The
outside contractor provided a quote of approximately $850,000, however, the contractor for this
project would not provide a warranty or guarantee for their workmanship. This option was not
acceptable to City staff for obvious reasons. City staff determined that both the Soccer Dome
cover and turf must be replaced.
During the next several months, senior staff had worked with the insurers to obtain the “green
light” to start the “rebuild process”. The key principle was to “rebuild like for like”. The existing
dome was around eight years old and product improvements had occurred during this time period.
The issue of the potential damage that was hidden by the collapsed dome cover was also
discussed. Until the old dome cover was removed, City staff would not know if there had been any
damage to the HVAC, turf field base or any other equipment.
Senior City staff working with the insurers’ adjuster obtained two price quotes for the dome
replacement. The City hired its own dome consultant to undertake a full comparison of the two
proposals with the principle of ensuring that both bids provide or meet the functionality of the
previous dome roof. In other words, the project goal for this stage is “like for like” City staff
provided the insurers with all of the documentation related to the replacement of the dome cover
and turf field. The insurers’ own dome consultant was reviewing these documents and senior City
staff were waiting for their comments and/or decisions. City staff were cautiously optimistic that,
within the near future, the insurers would approve the expenditure to replace the dome cover and
turf field for the full amount. However, in order for the building to be ready on March 1, 2023, the
contract for the dome replacement had to be issued immediately.
At the August 18, 2022 Council meeting, Council approved the recommendations in RTC FIN 14-
22 for the Soccer Dome Enhancement Project. The recommendations gave City staff the authority
to start the “rebuild process” by awarding contracts to construct and install the Soccer Dome cover
and soccer field while insurance funding details/responsibilities were finalized. Council also
approved changing the soccer pitch field configuration resulting in the creation of space to
FIN 14-24 July 25, 2024
Subject: Pickering Soccer Dome Rebuild Project Page 5
construct a permanent hard surface court to accommodate pickleball courts and futsal courts.
These courts were an upgrade or betterment to the Soccer Dome and were to be funded from the
City’s Rate Stabilization Reserve (i.e. these costs were not to be recovered from the insurers).
Demolition of the soccer dome commenced shortly after the August 18, 2022 Council meeting at a
total cost of $286,123 (net HST) and the City fully recovered these costs from its insurers. Various
minor repairs and demo works were ongoing until the new concrete slab was poured in November
2022 as part of the hard courts upgrade. Erection of the new dome cover began in January 2023.
The facility resumed operations in April 2023, with various minor works and deficiencies taking
several additional months to resolve.
The actual costs (net of HST) to construct and install the Soccer Dome cover and soccer field and
related costs exceeded the $2,365,000 pre-budget amount approved by Council by $468,300. The
reasons for the over-expenditures are explained below.
Staff initiated broad due diligence reviews of the collapsed dome immediately following Council’s
approval of Report FIN 14-22 for the Soccer Dome Enhancement Project on August 18, 2022.
Prior investigations had been completed by agents of the City’s insurers and were found to be
lacking key details. The dome fabric was still on the field preventing assessment of any goods or
materials that had remained covered since the collapse. Structural, mechanical and electrical
engineers and other specialty consultants (dome, turf, geotechnical, architectural) were retained to
inspect and report on the condition of all key building systems and determine whether they had
also been damaged. A summary of additional costs incurred is summarized below:
• Several components from the original dome were identified by the insurers to be re-used. They
were reviewed and found to be corroded and had to be replaced, including all exterior airlock
doors and jacketed steel cables.
• The original support netting system could not be reused as the posts were all damaged and
had to be removed along with the corresponding netting. The new dome was installed with
only a single upright post that can be tilted downward to prevent spearing of the dome fabric in
case of a collapse. All other cable anchor points are now part of the dome fabric to eliminate
the need for other upright supports.
• Most of the dome’s existing electrical wiring is located in hand wells, below grade, and was
found to have been sitting in water for six months. It had to be completely replaced.
• Minor mechanical component replacements in the inflation plant. The units were otherwise
serviced and checked, then restored to operation.
• The running track, concealed beneath the collapsed dome, was heavily damaged and had to
be stripped down to base asphalt and reinstalled.
• To expedite the rebuilding of the Soccer Dome, the project was managed directly by City staff
using a construction management model. The Major Capital Projects team had not yet been
created, so a third-party project management consultant was retained to provide the necessary
support.
• A variety of trades were required to repair and adapt the connecting airlock linking the existing
clubhouse to the new dome. The old airlock was physically ripped out of the back of the
clubhouse during the dome’s collapse.
• The dome inflation control system could not be tested until it was re-inflated, when it was
discovered to have failed beyond repair and had to be completely replaced. This system
FIN 14-24 July 25, 2024
Subject: Pickering Soccer Dome Rebuild Project Page 6
upgrade includes remote alerting functionality, informing Soccer Dome staff of any issues or
alarms and enabling them to troubleshoot them remotely. Contract security personnel had to
be kept present on site overnight to manually monitor the dome to mitigate the risk of another
collapse until the new control system was installed.
In September 2023 the City submitted its claim, with supporting invoices, to the City’s insurers to
be reimbursed for its construction and installation costs and related costs to replace the Pickering
Soccer Dome cover and soccer field. City staff have reached a final settlement agreement with the
City’s insurers for Council’s consideration.
Attachment: None.
Prepared By: Approved/Endorsed By:
Original Signed By: Original Signed By:
James Halsall Stan Karwowski
Division Head, Finance Director, Finance & Treasurer
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer