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HomeMy WebLinkAboutCS 10-26 Report to Council Report Number: CS 10-26 Date: April 27, 2026 From: Laura Gibbs Director, Community Services Subject: Seaton Recreation Complex & Library Project Management Services File: A-1440-001 Recommendation: 1. That the proposal submitted by Colliers Project Leaders Inc. in response to Request for Proposal No. RFP2026-3 for Project Management Support Services of the Seaton Recreation Complex & Library project, in the amount of $965,500.00 (net HST) or $1,091,015.00 (including HST), be accepted; 2. That the total gross project cost of $1,220,965.00 (including HST) and the total net project cost of $1,099,517.00 (net HST rebate) be approved and funded from the Seaton Recreation Complex & Library project budget; 3. That the Director, Community Services be authorized to execute the Form of Agreement with Colliers Project Leaders Inc., pursuant to Request for Proposal No. RFP2026-3; and, 4. That the appropriate officials of the City of Pickering be authorized to take the actions necessary to implement the recommendations in this report. 1.0 Executive Summary: The purpose of this report is to award Project Management Support Services for the Seaton Recreation Complex & Library (SRCL) project. In accordance with Council direction through Report CAO 14-25 (Resolution #828/25), staff were directed to retain a third-party project management consultant to supplement internal resources and support delivery of this large and complex capital project. The SRCL project is currently in the design development phase and progressing toward the preparation of contract documents this summer and fall, and tender in 2027. Request for Proposal No. RFP2026-3 was advertised on the City’s bids&tenders portal on Thursday, January 15, 2026, and closed Wednesday, February 18, 2026. Eight proponents submitted proposals. The evaluation committee consisting of staff from Community Services, CS 10-26 April 27, 2026 Page 2 including the Director, Community Services, and the Director, Finance & Treasurer. The committee reviewed and evaluated the proposals received using criteria outlined in the request for proposal documents. Subject to receipt and approval of all pre-conditions of award required in accordance with the bid document, the top-ranked proposal submitted by Colliers Project Leaders Inc., in the amount of $965,500.00 (net HST) or $1,091,015.00 (HST included), is recommended for approval. Given the scale of the project and associated financial pressures, external project management support is critical to ensuring effective cost control, independent cost verification, and identification of efficiencies throughout design and construction. 2.0 Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan Priority of: 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; Foster an Engaged & Informed Community. 3.0 Financial Implications: 1. RFP Amount Proposal RFP2026-3 $965,500.00 HST (13%) 125,515.00 Total Gross Proposal Cost HST Rebate (11.24%) Total Net Proposal Cost $1,091,015.00 (108,522.00) $982,493.00 2. Estimated Project Costing Summary Proposal RFP2026-3 $965,500.00 Contingency 115,000.00 Total Project Cost 1,080,500.00 HST (13%) 140,465.00 Total Gross Project Costs $1,220,965.00 HST Rebate (11.24%) (121,448.00) Total Net Project Cost $1,099,517.00 CS 10-26 April 27, 2026 Page 3 3. Approved Source of Funds Approved Code Source of Funds Approved Budget YTD Actuals + Commitments Balance Available Funds Required C10260.2101 (2024) Trf fr DC- P&R OB RF $17,760,659 $0 $17,760,659 $1,077,527 C10260.2101 Seaton FIA Reserve Fund 389,341 0 389,341 21,990 Total Funds $18,150,000 $0 $18,150,000 $1,099,517 Sufficient funds are available within previous budget approvals to support the engagement of the Project Management consultant, without requiring separate or additional funding. 4.0 Discussion: The purpose of this report is to award Project Management Support Services for the Seaton Recreation Complex & Library (SRCL) project. 4.1 Background and Council Direction Report FIN 01-24 (Resolution #379/24) identified the Seaton Recreation Complex & Library (SRCL) as Council’s highest capital project priority. On September 29, 2025, Council approved Report CAO 14-25 (Resolution #828/25) and authorized staff to proceed with the design development and contract document project phases of the Seaton Recreation Complex & Library project, including the retention of a third-party project management consultant to supplement internal resources and support delivery of this large and complex capital project. Council further directed that the external project manager be engaged to support the ongoing design and construction of the project and to identify potential efficiencies and cost savings. 4.2 Project Status The SRCL project is currently in the design development phase, with completion targeted for June 2026. Following this phase, and upon confirmation that the project’s estimated cost remains at or under budget, the project will advance into the preparation of construction documents and procurement for construction, with tender anticipated in early 2027. CS 10-26 April 27, 2026 Page 4 The current phase is critical in confirming all essential elements of the project scope, coordinating design disciplines, and establishing cost certainty prior to advancing to the next stage of the project. 4.3 Procurement Process Request for Proposal No. RFP2026-3 was advertised on the City’s bids&tenders portal on Thursday, January 15, 2026, and closed Wednesday, February 18, 2026. Eight proponents submitted a proposal. The evaluation committee consisting of staff from Community Services, including the Director, Community Services, and the Director, Finance & Treasurer, reviewed and evaluated the proposals received using criteria outlined in the request for proposal documents. Subject to receipt and approval of all pre-conditions of award required in accordance with the bid document, the top-ranked proposal submitted by Colliers Project Leaders Inc., in the amount of $965,500.00 (net HST) or $1,091,015.00 (HST included), is recommended for approval. 4.4 Role of the Project Management Consultant The external Project Management consultant will provide advisory and support services throughout all remaining phases of the project, including: • final stages of design development; • preparation of contract documents; • procurement and tendering; and, • construction and post-construction. Key responsibilities will include: • budget tracking and financial reporting; • review and validation of project costs; • preparation of meeting minutes and tracking of related action items; • coordination and review of independent cost estimates; • change order review and cost control; • maintaining contract administration logs throughout construction; • schedule monitoring and risk management; and, • identification of efficiencies and cost-saving opportunities. The consultant will work alongside city staff in a support capacity, with final decision-making authority remaining solely with the City. CS 10-26 April 27, 2026 Page 5 4.5 Cost Control and Independent Cost Verification Given the scale and financial significance of the SRCL project, robust cost control measures are critical to maintaining alignment with the project budget. As part of this approach, cost estimates will be prepared at various key milestones for the project by A.W. Hooker, the cost consultant engaged through Perkins&Will, and Ingersoll and Associates Inc. engaged through Colliers Project Leaders Inc. These cost estimates will be compared and analyzed for completeness and consistency and reconciled to identify variances and underlying assumptions. This dual-estimate approach provides an important layer of financial due diligence and supports informed decision-making by ensuring that project costs are cross-validated through independent sources. Where discrepancies are identified, adjustments and value optimization measures can be implemented early, reducing the risk of cost escalation in later phases of the project. 4.6 Importance of External Project Management Support The SRCL project represents one of the largest and most complex capital projects undertaken by the City and carries significant financial implications, including impacts on debt financing and property taxes. In this context, the engagement of an experienced external Project Management consultant is essential to: • strengthen financial oversight and cost control; • provide independent verification of project costs; • support proactive risk management; • improve coordination across multiple disciplines; • identify opportunities for efficiencies and cost savings; and, • ensure project management support is available for city staff. Colliers Project Leaders Inc. has demonstrated extensive experience managing large-scale municipal and institutional projects of similar size and complexity. Their expertise in project delivery, cost management, and construction administration services will provide valuable support to the City throughout the remaining phases of the project. The inclusion of external project management support is consistent with Council direction and represents a key measure to help ensure the successful delivery of the SRCL project within the approved scope, schedule, and budget. CS 10-26 April 27, 2026 Page 6 Attachments: None. Prepared By: Diana Poida, M.Arch., OAA, Senior Project Manager Vince Plouffe, OAA, MRAIC, Division Head, Facilities Management & Construction Approved/Endorsed By: Laura Gibbs, MBA, MSc., Director, Community Services Cathy Bazinet, CPPB, NIGP-CPP, Manager, Procurement Stan Karwowski, MBA, CPA, CMA, Director, Finance & Treasurer LG:vp Recommended for the consideration of Pickering City Council By: Marisa Carpino, M.A. Chief Administrative Officer