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HomeMy WebLinkAboutCAO 03-26Report to Executive Committee Report Number: CAO 03-26 Date: March 2, 2026 From:Marisa Carpino Chief Administrative Officer Subject: Seaton Recreation Complex & Library Project Update File: A-1440-001 Recommendation: 1. That Report CAO 03-26 regarding the Seaton Recreation Complex & Library Project Update be received for information. 1.0 Executive Summary: The purpose of this report is to provide Council with a semi-annual status update on the Seaton Recreation Complex & Library (SRCL) project, in accordance with Recommendation 4 of Report OPS 12-24 (Resolution #523/24). This report outlines progress on the implementation of Council’s directives, including advancement of the design development phase, issuance of the Request for Proposal (RFP) for project management services, stakeholder consultation activities, cost verification and budget control measures, and the anticipated procurement sequencing. The project is currently advancing as planned and remains on track with the approved schedule and scope. This report is intended to demonstrate how Council’s direction is being implemented and to provide transparency on next steps as the project progresses in detailed design. 2.0 Relationship to the Pickering Strategic Plan: The information contained in this report supports the Pickering Strategic Priorities to Champion Economic Leadership & Innovation; Advocate for an Inclusive, Welcoming, Safe & Healthy CAO 03-26 March 2, 2026 Page 2 Community; Advance Innovation & Responsible Planning to Support a Connected, Well- Serviced Community; Foster an Engaged & Informed Community; Strengthen Existing & Build New Partnerships; Champion Economic Leadership & Innovation; and Lead & Advocate for Environmental Stewardship, Innovation & Resiliency. 3.0 Financial Implications: There are no immediate financial implications associated with this report. Consulting services are being undertaken within the project funding and contingencies previously approved by Council (Resolution #523/24). 4.0 Discussion: The purpose of this report is to provide Council with a semi-annual status update on the Seaton Recreation Complex & Library (SRCL) project, in accordance with Recommendation 4 of Report OPS 12-24 (Resolution #523/24). 4.1Decision History a) Report FIN 01-24 (Resolution #379/24) was presented to Council in January 2024 regarding capital project priorities. The SRCL was approved as the first Capital Budget priority at an estimated total project cost of $242.97 million (design, construction, and furniture & fixtures). b) Report OPS 12-24 (Resolution #523/24) was presented to Council in June 2024 to award the consulting services for the SRCL to Perkins & Will, with a total net project cost for design of the SRCL of $9,021,024.00. c) Report CS 26-24 (Resolution #473/24) was presented to Council in September 2024. Council approved that staff explore the naming of the gymnasium in the SRCL as the Wayne Arthurs gymnasium subject to undertaking the work outlined in the City Property Naming Procedure (ADM 110-006). d) Report CS 30-24 (Resolution #578/24) was presented to Council in September, 2024. Council approved that staff make a capital funding grant application to the Green and Inclusive Community Building (GICB) Program: New Build Project for the SRCL. The GICB funds up to 50% of eligible costs for new build projects that exceed $10 million in total eligible expenses. The City submitted an application in October 2024 requesting $25 million toward the project. CAO 03-26 March 2, 2026 Page 3 e) Report CAO 06-24 (Resolution #632/24) was presented to Council for information in December 2024 and provided a semi-annual project update including an update on site works and land acquisition, completed community engagement activities, and the operating budget and programming model. By December 2024, three schematic design options were developed by Perkins & Will Inc. A community engagement campaign was launched for a five-week period to collect feedback on the three schematic design options. f) Report CAO 05-25 (Resolution #698/25) was presented to Council in April 2025 and paused the approval and further development of proposed design of the project due to a challenging economic climate. In addition, the City’s Treasurer also identified the high level of debt and corresponding high annual debt charges that the City would be responsible for when considering this project and other debt financed projects within the next ten years. The findings of the completed public engagement process were also provided. g) Report CS 06-25 (Resolution #709/25) was presented to Council in April 2025 and awarded consulting services for geotechnical and hydrological reports and environmental investigation for the SRCL to DS Consultants Ltd. Backfill operations of the 25-acre site, where the SRCL will be located, commenced in 2024. Rough grading, bearing performing targets and soil quality requirements were provided by Perkins & Will and issued to the contractor completing the backfill work. The geotechnical and hydrological reports and environmental investigation services are required to ensure the quality of the site materials and was timely to protect the City’s interests as site backfilling had begun by the developer who currently owns the property. h) Report CAO 06-25 (Resolution #738/25) was presented to Council in May 2025. Staff recommended additional design work be completed to create an alternative design and reduced project cost option not exceeding $200,000,000.00 (in 2025 $CAD), and for the alternative design and reduced project cost option to be returned to Council in September 2025. The alternative design would remove the twin pad arena from the project scope. This recommendation was not approved by Council. i) Report CAO 14-25 (Resolution #828/25) was presented to Council in September 2025. Council approved the preferred base program schematic design for the SRCL and authorized staff to proceed to the design development and contract document phases of the project. CAO 03-26 March 2, 2026 Page 4 4.2 Design Development On September 29, 2025, Council endorsed the preferred base program schematic design and authorized staff to proceed to design development and production of contract documents per Recommendation 2 of Report CAO 14-25 (Resolution #828/25). The project is currently in the design development phase and remains on track for its completion by June 2026 whereafter the project will move into the production of contract documents. Engagement with staff took place from October 2025 to February 2026. Additional stakeholder engagement is scheduled from March to June 2026, focusing on sports user groups, the Pickering Public Library Board, and the City’s advisory committees. Feedback received through this consultation process will be reviewed and incorporated into the design, where appropriate and subject to the assessment of any associated budgetary impacts. Prior to completing the design development phase, two independent cost estimates will be obtained: one prepared by the project architect and one prepared by a contracted project management support service consultant. These estimates will be reviewed, analyzed, compared, and reconciled to confirm alignment with the Council-approved project budget and scope. Should the reconciled cost estimates indicate that the project exceeds the approved budget, additional design revisions and value optimization could be required to bring the project cost into financial compliance. 4.3 Transition to Contract Documents Following satisfactory completion of the design development phase, the project will proceed into the production of contract documents in July. At this stage, the overall building and site designs will be substantially fixed to allow for preparation of the technical drawings, and specifications required to obtain a building permit and to tender the project for construction. Significant changes should be avoided beyond the design development phase, as various disciplines and systems become progressively more integrated and coordinated. Modifications during the construction documents phase will ripple much more broadly, increasing the risk to the overall schedule and budget. Two additional costing reviews will be undertaken during the construction documents phase, following the same process outlined above. Course corrections will be made mid-process as required to ensure budget compliance. CAO 03-26 March 2, 2026 Page 5 4.4 Procurement Schedule and Tender Readiness The SRCL project is anticipated to be tender-ready in Q1 2027. To support a competitive and efficient procurement process, pre-qualification of contractors is planned to commence in September 2026. Prequalification helps to ensure that only qualified contractors confirmed to have suitable workload capacity, technical capability, staffing and financial resources are eligible to submit a bid to undertake a project of this scale and complexity. 4.5 Site-Specific Zoning By-law Amendment City Development staff, in coordination with the consultant team, are advancing work to address zoning non-compliances identified through the design process. Preparation of a site-specific implementing zoning By-law amendment is underway. Based on statutory timelines, a Report to Council is anticipated by Q3 2026. 4.6 Project Management Support Services In accordance with Council direction, the City issued a Request for Proposal (RFP2026- 3) for project management support services on January 15, 2026, with submissions received on February 18, 2026. Project management support services will provide additional support required to complete the design development, contract documents, procurement, construction, and post-construction phases of the SRCL project. The issued RFP expressly requires the external project management firm to identify efficiencies and cost savings and to provide budget management services, including the engagement of a cost consultant. This independent cost estimate will be prepared in addition to the cost estimate provided by the project architect, allowing the two estimates to be compared and reconciled as part of the City’s cost control and due diligence process. 4.7 Don Beer Arena Decommissioning and Surplus Declaration Preparatory work to support the future decommissioning and declaration of Don Beer Arena as surplus once the SRCL is operational will be undertaken in 2026. A property valuation of Don Beer Arena will be completed prior to the SRCL project being tendered for construction. 4.8 Grant Funding and Financial Assistance Council authorized staff to submit an application to the GICB program in September 2024 via Report CS 30-24 for $25 million toward the SRCL. In 2024, MP O’Connell was CAO 03-26 March 2, 2026 Page 6 notified of the City’s application and in 2025, MP Nathan was notified of the City’s application. On February 4, 2026, the City received official notification from Housing, Infrastructure and Communities Canada indicating that the City’s application was not selected for funding. An interdepartmental SRCL Grants Coordination Committee was established in October 2025 to review available funding opportunities and develop funding strategies. The following activities have taken place: a) Staff met with Parliamentary Secretary McKelvie, MP Nathan, and Ryan Spero, Senior Special Assistant – Regional Advisor, Ontario for Minister Gregor Robertson on December 18, 2025, to provide an update on the SRCL project and to request one third Federal government funding toward the project. b) Staff met with MPP Bethlenfalvy on February 6, 2026, to provide an update on the SRCL project and to request one third Provincial government funding toward the project. c) Staff are updating the valuation for SRCL naming rights opportunities to reflect current market conditions. The pursuit of facility naming for the SRCL project is planned to begin in spring 2027, subject to the project has been awarded for construction. d) The SRCL Grants Coordination Committee is assembling information in preparation for grant opportunities that are anticipated to be announced this spring. Exploration of additional revenue opportunities related to the SRCL project will continue, as directed by Council. Staff continue to advance the SRCL project in accordance with Council’s direction, with a focus on cost control, scheduled management, and stakeholder engagement. Further reports will be brought forward as key milestones are achieved, including the award of the Project Management support services RFP and confirmation of tender readiness. Attachment: None. Prepared By: Diana Poida, M.Arch., OAA, Senior Project Manager Prepared By: Vince Plouffe, OAA, MRAIC, Division Head Facilities Management & Construction CAO 03-26 March 2, 2026 Page 7 Approved/Endorsed By: Laura Gibbs, MBA, MSc., Director, Community Services Approved/Endorsed By: Richard Holborn, P. Eng., Director, Engineering Services Approved/Endorsed By: Stan Karwowski, MBA, CPA, CMA, Director, Finance LG:dp Recommended for the consideration of Pickering City Council By: Marisa Carpino, M.A. Chief Administrative Officer