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Special Council Meeting Minutes
Monday, July 22, 2019
Council Chambers
9:30 am
Present:
Mayor David Ryan
Councillors:
K. Ashe
M. Brenner
S. Butt
I. Cumming
B. McLean
D. Pickles
Also Present:
T. Prevedel
K. Bentley
P. Bigioni
B. Duffield
J. Eddy
M. Gadzovski
S. Karwowski
C. Rose
S. Cassel
J. Yoshida
M. Guinto
F. Jadoon
V. Plouffe
N. Surti
L. Harker
- Chief Administrative Officer
- Director, City Development & CBO.
- Director, Corporate Services & City Solicitor
- (Acting) Director, Community Services
- Director, Human Resources
- (Acting) Director, Engineering Services
- Director, Finance & Treasurer
- Chief Planner
- City Clerk
- Deputy Fire Chief
- Manager, Public Affairs & Corporate Communication
- Manager, Economic Development & Strategic Projects
- Manager, Facilities Capital Projects
- Manager, Development Review & Urban Design
- Deputy Clerk
1. Disclosure of Interest
No disclosures of interest were noted.
2. Matters for Consideration
2.1 Chief Administrative Officer, Report CAO 07-19
New Pickering City Centre
Memorandum of Understanding ("MOU")
Tony Prevedel, Chief Administrative Officer, appeared before Council to provide
an overview of Reports CAO 07-19 and FIN 15-19. He noted the importance and
significance of the City Centre Project and stated that there has been a high
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Special Council Meeting Minutes
Monday, July 22, 2019
Council Chambers
9:30 am
degree of interest in the Project thus far. Mr. Prevedel indicated that the
Memorandum of Understanding included in Report CAO 07-19 is not a binding
document, but one that will serve as the basis for negotiation and completion of
the binding agreements that would shape and define the various aspects of the
City Centre Project. He indicated that funding for the project will come from casino
revenues, assessment growth and development charges and noted that there may
be further opportunities for funding through sponsorship programs.
Stan Karwowski, Director, Finance & Treasurer, appeared before Council to
provide a high level financial analysis for the City Centre Project which included a
best case, most likely, and worst case scenario. Mr. Karwowski provided an
explanation of the proposed multi-year financial plan and assumptions, and
indicated that the casino revenues will be utilized to pay for the capital costs
associated with the Project and that tax levies will be utilized for the operating
costs of the new municipal facilities. He noted that the estimate for casino
revenues was conservative, as there is no history to calculate from, and further
noted that a conservative approach had been taken overall when conducting the
financial stress test. Mr. Karwowski provided a handout to Members of Council,
which provided further details on the development charges funding, calculation for
the proposed bridge link between the new library and seniors centre and the
Library development charges funding.
A question and answer and discussion period ensued between Members of
Council and Staff regarding:
• connectivity of the buildings in the City Centre and the importance of a
pedestrian friendly environment that offers walkability without the need to
go outside;
• the maximization of commercial spaces and clarification as to their
proposed locations;
• concerns regarding the ingress and egress of the parking garage and the
need to consider the in/out access on a main road such as Kingston Road;
• whether the City Centre Project would utilize all of the casino revenues and
whether funds would still be available for other City initiatives;
• the importance of having an appraiser to ensure fair valuation of the lands
associated with the Project;
• the additional operating savings that will be experienced through the
closure of the East Shore Community Centre and the redirection of these
savings to the operating costs associated with the new facilities;
• the proposed management fee of 4.5% and whether there was the
possibility to negotiate and lower these fees;
• the availability of various government grants for the City Centre project;
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Special Council Meeting Minutes
Monday, July 22, 2019
Council Chambers
9:30 am
• the City owned lands along the Esplanade South and the possibility of
building the City Centre there instead of on the Pickering Town Centre
(PTC) lands;
• impacts on the tax levy outside the City Centre Project should Council
direct an increase in the City's service levels for future budget years;
• the number of seats proposed in the performing arts theatre and whether
this capacity could be increased to accommodate larger and more
significant events;
• the underground parking garage, including the number of floors and parking
spaces proposed, whether any soil testing had been conducted to date and
the breakdown of the associated costs that would be covered by the City
and PTC as well as the sharing of parking revenues;
• the design of the proposed City facilities and the work done thus far with
staff noting that design experts had been engaged to ensure that the best
designs were developed for the needs of each specific facility;
• if Ajax will be contributing revenues from the Casino to the Region of
Durham;
• the importance of a third party peer review to ensure that the City was not
paying too much with a request that staff provide information to Council on
the peer review(s) conducted to date;
• whether the Durham West Arts Centre (DWAC) will be initiating a
fundraising campaign to contribute to the art centre;
• the unknown impacts of Bill 108 as it relates to development charges;
• the cost of debt per capita and the average across the GTA in relation to
the proposed cost per capita for the residents of Pickering; and,
• timelines for reports back to Council on the City Centre Project and target
dates for commencement of the Project.
Council implored Staff to consider the comments noted throughout the meeting so
that they could be addressed in future reports regarding the City Centre Project.
Resolution #115/19
Moved by Councillor Pickles
Seconded by Councillor Butt
1. That the draft Memorandum of Understanding dated July 16, 2019
regarding the construction of new City facilities and the transfer of
certain parcels of land (Attachment No. 1 to this Report) be endorsed;
2. That City staff be directed to negotiate binding agreements to govern
all of the issues set out in the Memorandum of Understanding, and that
such binding agreements be brought to Council for final approval; and,
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Special Council Meeting Minutes
Monday, July 22, 2019
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3. That the appropriate City of Pickering officials be authorized to take the
necessary actions as indicated in this Report.
Carried Unanimously on a Recorded Vote
2.2 Director, Finance & Treasurer, Report FIN 15-19
Civic Centre Project & Multi -Year High Level Financial Analysis
Resolution #116/19
Moved by Councillor Pickles
Seconded by Councillor Butt
1. That Report FIN 15-19 of the Director, Finance & Treasurer be
received;
2. That Council direct staff to proceed with the Civic Centre project based
on a fixed price contract model that includes the construction of the
following: Senior & Youth Centre approximately (63,000 square feet);
Performing Arts Centre (approximately 37,000 square feet); Central
Library (approximately 43,000 square feet with a roof terrace),
underground parking (350 spots), associated landscaping and the
required relocation of services: sanitary sewers, storm sewers, utilities
and water mains;
3. a) That Council direct that for financial planning purposes, the total
cost of the Civic Centre project be $124,054,246 (net HST)
excluding the costs for the bridge link between the Library and •
Seniors Centre, the relocation of service costs and any related fees
and if the total contract price increases over 2 per cent, further
Council approval is required to proceed;
b) That the total cost of the bridge link noted above, at $5,375,357 be
added to the total project cost within the report with appropriate DC
funding, and that staff make appropriate adjustments to the financial
plan;
4. That Council approve to single source the construction of the Civic
Centre municipal buildings, underground parking lot and the relocation
of services to Pickering Town Centre/OPB Realty;
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Special Council Meeting Minutes
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5. That Council direct that the cost sharing principles for the relocation of
services and oversizing of pipes be based on the principle that the
direct benefiting property owners are responsible for their proportionate
share of costs;
6. That Council endorse the principle for financial planning purposes for
the existing term of Council that Casino revenues are to be first applied
to fund the construction and related servicing costs for the Civic Centre
project and the remaining funds are to be transferred to operational
capital reserves or reserve funds (vehicle, major equipment, facilities,
roads and bridges, stormwater) that in -turn reduces the City's use of
five year internal loans and eventually all internal loans;
7. That Council authorize staff to apply to all major senior government
grants that are available and applicable, under the grants criteria, and
that the Arts Centre project be designated as the top grant candidate;
8. That the Director, Finance & Treasurer be authorized to begin the
process to amend the Development Charges By-law 7595/17 to
increase the development charge fees that are required to fund the
development charges share of the Civic Centre project based on the
financial plan and that Council approve the engagement of the firm
Watson & Associates Economists Ltd. to undertake this work;
9. That Council approve the additional fees as proposed by Sabourin
Kimble & Associates Ltd. in the amount of $380,000 plus HST for an
increase in scope to undertake the necessary project management,
detailed design, utility relocation coordination and the transportation
planning for phase 1 in accordance with the purchasing policy 10.03
(c), as the assignment is above $50,000;
10.That Council approve the total revised gross project consulting cost for
Sabourin Kimble & Associates Ltd. in the amount of $994,400
(including HST), and the total revised net project cost of $895,488 (net
of HST rebate) to be funded from the Rate Stabilization Reserve;
11.That Council lift the hold on the hiring of the Manager, Arts Centre
position and that staff initiate the process of hiring for the position as
identified in the 2019 budget; and,
12: That the appropriate City of Pickering officials be authorized to take the
necessary actions as indicated in this report.
Carried Unanimously on a Recorded Vote
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Special Council Meeting Minutes
Monday, July 22, 2019
Council Chambers
9:30 am
2.3 Chief Administrative Officer, Report CAO 06-19
Municipal Servicing 407 Corridor Lands Phase One
Tender No. T-12-2019
Resolution #117/19
Moved by Councillor Ashe
Seconded by Councillor Brenner
1. That Tender No. T-12-2019 Municipal Servicing 407 Corridor Lands
Phase One as submitted by TACC Construction Ltd. in the total
tendered amount of $6,702,841.28 (HST included) be accepted;
2. That Council approve the hiring of Sabourin, Kimble & Associates Ltd.
to provide contract administration and inspection services and other
associated costs in the amount of $365,000.00 (HST excluded) for
Tender No. T-12-2019 Municipal Servicing 407 Corridor Lands Phase
One, in accordance with Purchasing Policy 10.03 (c) as the assignment
is over $50,000.00;
3. That the total gross project cost of $9,029,319.00 (HST included),
including the tendered amount and other associated costs, and the
total net project cost of $8,131,181.00 (net of HST rebate) be
approved;
4. That Council authorizes the Director, Finance & Treasurer to front fund
the total net project cost in the amount of $8,131,181.00 as follows:
a) the sum of $7,625,722.00 as approved for in the 2019 Finance and
Taxation Capital Budget to be funded by Third Party Contribution
Reserve Fund;
b) the sum of $400,000.00 as provided for in the 2019 Finance and
Taxation Capital Budget be increased to $505,459.00 to be funded
by a transfer from the Rate Stabilization Reserve;
c) the 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;
5. That Council direct staff to fully recover all front funding costs less
City's share of $505,459.00 from Kubota and future benefiting land
owners;
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Special Council Meeting Minutes
Monday, July 22, 2019
Council Chambers
9:30 am
6. That the City's recoverable costs be subject to annual indexing to take
effect July 1st and that the non-residential building construction price
index be used for purposes of indexing or a rate of 2 per cent,
whichever is higher; and;
7. That the appropriate officials of the City of Pickering be authorized to
take the necessary actions as indicated in this report.
Carried
3. Confirmation By-law
By-law Number 7709/19
Councillor McLean, seconded by Councillor Cumming moved for leave to introduce a By-
law of the City of Pickering to confirm the proceedings of July 22, 2019.
4. Adjournment
Moved by Councillor McLean
Seconded by Councillor Cumming
That the meeting be adjourned.
The meeting adjourned at 11:20 am.
Dated this 22nd day of July, 2019.
Suss n Cassel, City Clerk
Carried
Carried