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CAO 11-23
Report to Council Report Number: CAO 11-23 Date: December 11, 2023 From: Marisa Carpino Chief Administrative Officer Subject: Opportunity for Petticoat Creek Conservation Park -File: A-1440 Recommendation: 1.That Report CAO 11-23 regarding Opportunity for Petticoat Creek Conservation Park be received for information. Executive Summary: Petticoat Creek Conservation Park (PCCP) is owned and operated by the Toronto and Region Conservation Authority (TRCA). The 173 acres park area is strategically located along the waterfront and offers cycling, walking and running along the waterfront trail, picnic areas for families and corporate events, and a wide range of natural features to explore. Throughout the years, the amenities at PCCP have remained static and/or slightly eroded due to lack of financial investment and/or human resources from TRCA. Recognizing the opportunity of the site and the potential PCCP has, the City engaged KPMG to investigate opportunities and discuss the business management models with TRCA that would allow the City to assume responsibility for the maintenance, operations, and potential investment in the necessary capital improvements to revitalize the park. The Park provides the City with a rare opportunity to acquire a crown jewel that is only 15 minutes away for most of Pickering’s population. With the right kind of investment, PCCP also has the capability of becoming a destination park that would attract visitors from the Greater Toronto Area (GTA). Thorough discussions were held with internal stakeholders such as Community Services, Corporate Services, Engineering Services, Finance Department, and Operations Department staff teams. External stakeholders such as the TRCA were also engaged to better understand opportunities and current facility conditions at this site and what can be achieved. Based on the conversations, a review of the financials, and research of other models, KPMG formulated their report, Opportunity for Petticoat Creek Conservation Park (Attachment 1). Findings from KPMG’s report indicate that a potential partnership with TRCA would include: 1.A business management model where the City can optimize control of the property. 2.Enhanced programming to provide residents with a unique experience while ensuring conservation areas are protected. This is best achieved through the development of a formal master plan in collaboration with TRCA. 3.Provincial and Federal government grants to enable the development of infrastructure upgrades and program components. This is best achieved through partnership funding. CAO 11-23 December 11, 2023 Subject: Opportunity for Petticoat Creek Conservation Park Page 2 City staff and TRCA have an alignment on the vision of the park in terms of program enhancements. The purpose of this report is to share the results of KPMG’s analysis regarding the potential partnership of PCCP property between the City and TRCA, the potential for enhanced park amenities and programming, and the projected financial impact to the City of Pickering. Financial Implications: KPMG’s analysis of program improvements indicates that significant financial investment will be required to meet the programming potential, which enables year-round use, and upgrades in road safety and park security. The potential capital investment in PCCP is projected to be $5,400,000 in current infrastructure repairs, $11,500,000 in new pool (design and construction) and $18,900,000 in new capital infrastructure, in 2023 dollars. This represents a total investment over an approximate 10 year forecast of approximately $35.8 million in capital costs, in 2023 dollars. If the City does not replace the pool, it would cost $1,000,000 to remove it, in 2023 dollars. For the new proposed capital infrastructure and programs (including the pool), it is expected that these would add approximately $2.3 million in annual operating costs (maintenance, operating and staffing). This cost is expected to be fully realized beginning in 2029, when all capital infrastructure and programs have been put in place. Discussion: The Petticoat Creek Conservation Park (PCCP) is a significant cultural and natural heritage site within the City. It is a large public green space within our urban area of Pickering that provides residents and visitors alike with the unique opportunity to gather, play, learn, explore, hike, experience nature and so much more. The property is owned and managed by the Toronto and Region Conservation Authority (TRCA) who are reliant on various forms of government and grant funding to sustain the capital. Over the years, various amenities at PCCP have deteriorated or been removed from service due to a lack of financial and/or human resources. For instance, the park’s outdoor aquatic facility has remained closed due to mechanical and infrastructure challenge s. Recognizing the potential that this property has for residents and visitors alike, Council directed staff through Resolution #158/23 (Attachment 2), to explore opportunities to purchase PCCP or enter into a management/lease agreement with TRCA that would enable the City to assume responsibility for the maintenance and day to day operation and invest in the necessary capital improvements. As a result, KPMG was secured for the purpose of developing a Business Case Analysis regarding the business management models, appraisal valuation, and financial operating impacts including asset replacement strategy of PCCP. KPMG’s analysis highlights the distinct potential offered by PCCP for the City, including the ability to oversee a substantial waterfront park and enhance the City's ecological framework by introducing new features, programs, and events for the advantage of Pickering's local communities. CAO 11-23 December 11, 2023 Subject: Opportunity for Petticoat Creek Conservation Park Page 3 A.Programming Potential PCCP has several existing amenities that attract visitors to the park. However, permanent structures such as the outdoor swimming pool, buildings/offices, washrooms were developed in 1975. To help reactivate PCCP, investments in these structures are necessary. There are mutual goals between the City and TRCA about leveraging the PCCP site to be more optimally used. To properly prioritize park upgrades, it is essential for the City of Pickering to develop a Master Plan in collaboration with TRCA and establish a vision for the long-term management and use of the park. The main objectives of a PCCP Master Plan would include positioning PCCP as a destination park for Pickering residents and GTA visitors; enhancing programming to the conservation area; extending use of the park to 12 -months of the year; and leveraging large areas as event space that cannot oth erwise be accommodated at Pickering’s greenspaces. Given that PCCP is strategically located in part on environmentally significant areas, the City’s focus on new programming is limited to areas that are open space designations and do not fall within the regulated zone. A thorough assessment of the site would need to be completed before the introduction of any initiatives, however there are a few low hanging fruits that can be accomplished immediately. Further upgrades can be introduced through staged improvements. These include the renovation of washrooms and pavilions; upgrades to parking lots and lighting and launching new facilities/activities on site such as pickleball courts and beach volleyball. Recognizing that PCCP’s potential is vast, the City also aims to maximize opportunities to residents throughout the four seasons by winterizing washrooms and implementing new winter programming that respect the natural elements of the Park such as, snowshoeing and cross country skiing. Enhancement plans for PCCP include the option for newly constructed pool with splash pad too. The Swimming Pool Complex has been repaired several times in the past, however it is now at a state where major replacement is required in the underground piping and machinery. The process and anticipated cost to repair and renovate the existing pool versus rebuilding a new pool is the same with estimated costs coming in at $10 million for each option. For these reasons, repairing the existing pool was considered and dismissed. As such, there are two options remaining: 1.Remove existing pool structure, implement new swimming pool with modern and cost effective design at a cost of approximately $10 million; or 2.Abandon the swimming pool at a cost of $1,000,000 The anticipated capital costs related to the design and implementation of the new swimming pool and other programs amount to approximately $30.4 million. Depending on how the city secures the right to the property, this will help determine if the City has financial capacity to rebuild the pool and/or splashpads. City staff will bring forward a CAO 11-23 December 11, 2023 Subject: Opportunity for Petticoat Creek Conservation Park Page 4 Capital Plan strategy in January 2024 that will include PCCP and other key infrastructure investments for Council’s consideration. Initiatives being proposed must undergo the necessary screenings for environmental sensitivities and habitat considerations. While this may be the case, there is a mutual understanding between City staff and TRCA about placement of upgrades on unregulated zones. Next Steps In January 2024, a Special Council Meeting will be held to review and prioritize key capital projects that Council may request the Mayor to consider for inclusion in the 2024 or future budgets during the current term of office. The PCCP project will be included as an option for Council’s consideration. Attachments: 1.Opportunity for Petticoat Creek Conservation Park 2.Resolution #158/232 Prepared By: Approved/Endorsed By: Farnaz Patel Stan Karwowski Strategic Initiatives & Corporate Priorities Advisor Director, Finance & Treasurer FP:mc Recommended for the consideration of Pickering City Council Marisa Carpino, M.A. Chief Administrative Officer Original Signed By: Original Signed By: Original Signed By: Opportunity forPetticoat Creek Conservation Park City of Pickering Council Meeting –December 11th, 2023 — December 11, 2023 Attachment #1 to Report CAO 11-23 2Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. 01 Executive Summary 3Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. In July 2023, the City of Pickering (the City or Pickering) retained KPMG LLP (KPMG) to conduct a business case analysis on t he merits and associated challenges with a potential acquisition or a partnership with the Toronto and Region Conservation Authority (TRCA)for Petticoat Creek Conservation Park (PCCP) that would enable the City to assume responsibility for the maintenance, including any potential capital improvements, and day to day operations of PCCP. The assessment intends to inform the City regarding the opportunity and how a partnership with TRCA could benefit the City and residents over the long term. This report summarizes the findings and the potential next steps. PCCP is a significant cultural and natural heritage site within the City of Pickering. It is a large public green space within the City that provides residents and visitors alike with the unique opportunity to gather, play, learn, explore, hike, experience nature and so much more. Currently, PCCP is owned and managed by the TRCA who are reliant on various forms of government and grant funding to sustain the capital and ope rating program of the park. Over the years, various amenities at PCCP have deteriorated or been removed from service due to a lack of financial and/or human resources. This has negatively impacted user experience and does not realize the full potential of the park. Our Approach Through discussions with internal and external stakeholders and a review of financial data and a facility condition assessmen t provided by TRCA, KPMG has considered the following three key elements that the City should be considering as part of the business case for realizing the full potential of PCCP and the City’s role in achieving that objective. Executive Summary –Background and Purpose KPMG has been retained by the City of Pickering to conduct a business case analysis on the merits of a potential partnership with TRCA for the Petticoat Creek Conservation Park. Business Model Enhanced Programming Funding 4Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. About PCCP PCCP is located in the southwestern end of Pickering and borders Lake Ontario. The park is owned and operated by the TRCA. Executive Summary –A Unique Opportunity Petticoat Creek Conservation Park overlooks Lake Ontario and is one of the largest green spaces in Pickering’s urban area. Moving forward, the City has a unique opportunity to work together with the TRCA to develop a vision for the long -term management and use of the park. The opportunity to acquire or manage PCCP is a unique one. In order to properly prioritize park upgrades, the City has indicated that it will aim to develop a master plan and establish a vision for the long-term management and use of the park in collaboration with TRCA. The main objectives of a PCCP master plan are to: Position PCCP as a destination park for not only City residents, but to attract visitors from the wider GTA to introduce them to Pickering tourism Bring new programming and activities to the conservation area Extend use of the park and seasonal use to 12-months of the year Leverage large areas as event space that cannot be accommodated at Pickering’s Esplanade Park 5Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Current Infrastructure Requires Maintenance The buildings at PCCP were constructed in 1975, so in addition to the investment required for the swimming pool complex, a third party facility condition assessment completed in 2021 for PCCP found that there are other facilities within the PCCP that are overdue for maintenance. The findings from the third-party facility condition assessment as well as a breakdown of anticipated costs required for repairs can be found on page 17. The backlogged repairs are short term solutions to aging assets, so the City has considered the replacement of some of these assets entirely (new maintenance building, winterized washrooms and road paving) in the anticipated new capital investments identified on page 29. Therefore these backlogged costs may not all be applicable and should be further investigated. Executive Summary –Enhancing Public Use There are a significant number of improvements that the City can make within the PCCP to enhance existing use, increase visitor traffic and generate revenue. Estimated Remaining Maintenance Costs: $5.4 million (2023$)1 Opportunities to Reimagine the Swimming Pool PCCP has historically been popular for it’s large outdoor swimming complex. Due to the age of the main pool structure, the complex is in a state of disrepair and has been closed since 2019. In addition to being in relatively poor condition, the shape and design of the pool is very difficult to operate and lifeguard. To repair and renovate the existing pool would require excavating the bed of the pool to reinstate soil conditions, essentially the same process and anticipated costs as building an entirely new pool. For these reasons, repairing the existing pool was considered and dismissed. As such, there are two options for the City to consider: 1.Remove existing pool structure, implement new swimming pool with modern design at a cost of $10 million, plus approximately 15% in design costs 2.Abandon the swimming pool and remove the existing pool structure at a cost of $1 million, and use the space for other programs Estimated New Pool Design and Capital Costs:$11.5 million (2023$) 1 This estimate is in 2023 dollars and is a sum of the recommended maintenance costs between 2021 and 2030 that were not completed by TRCA. 6Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Financial Investment The challenge facing the City with respect to expanded programming is the large financial investment required to deliver the infrastructure needed for the new programming, enable winter use, and improve road safety and park security. Detailed capital cost estimates for program implementation and park enhancements are discussed on page 29. The City has provided input on the capital improvement timelines, where implementation could begin in 2026 and continue to the end of 2029. Executive Summary –Expanded Programming The City of Pickering wants to position PCCP as a destination park by introducing activities and programming that are inclusive and can appeal to a wide demographic. Pickleball Improved Programming To make PCCP a destination park, PCCP requires other programs or facilities that would help attract new visitors. There is a shared vision among City stakeholders to introduce new park features and programs to help reinvigorate PCCP. By providing capital support, the City can implement the following programming or provide enhancements to existing amenities for the residents of Pickering and the wider GTA to enjoy: Picnic Areas Day Camps Nature Education Winterized Washrooms Hiking Trails Paved Roads Estimated New Capital Costs $ 30.4 million (one time) (2023$) Estimated New Operation and Maintenance Costs:$ 2.3 Million (per year) (2023$) New Outdoor Pool It has been noted that funding from other levels of government could be available to support the construction of some of the new programs and facilities. There may also be interest from private sector partnerships to fund or operate the new programs (e.g., volleyball and pickleball organizations). It is the City’s intention to pursue these grants in partnership with TRCA to help alleviate financial burdens. 7Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. TRCA Involvement PCCP is a watershed area that is owned and managed by the TRCA. As a conservation park, it offers a unique natural corridor for wildlife to live or travel along the creek towards Lake Ontario, therefore there are various ecological factors to consider, if the City were to implement new infrastructure in the park. In order to continue to protect the natural heritage on site, the focus of new programming should be located in the area highlighted in blue on the map on the right. Business Management Models There are various amenities at PCCP that have eroded over time due to a lack of financial and/or human resources. The City is exploring opportunities to either purchase PCCP or enter into a management/lease agreement with TRCA to enable the City to assume responsibility for the maintenance and day to day operation and potentially invest in the necessary capital improvements to revitalize and reactivate the park. Given the limited financial position of TRCA, we don’t believe they are in a position to make meaningful contributions to operating or capital costs. Executive Summary –Collaborate with TRCA PCCP is a conservation area that is owned and managed by the TRCA, who relies on various forms of government and grant funding to sustain the capital and operating program. Entering into a partnership with TRCA for the management of PCCP may result in sharing of costs. 8Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Safety Improvements PCCP is currently open daily between 9 am and 8 pm from mid-May to early September and weekends only from early September to October. As part of the City’s new vision for the park, PCCP would remain open throughout all four seasons and remain accessible and safe for all visitors. Road safety and informal parking lots have been identified as a major concern, where streets are narrow and unfenced. If extending the hours of use, the City plans to install street lighting to ensure visibility after sunset. Extending operation into the colder months will also require new winterized washrooms and snow removal equipment. Open Space for Events and Recreation With significant growth anticipated in Pickering in the coming years, the City is looking to enhance recreational programming and greenspaces to sufficiently serve the needs of the growing population. The City sees opportunity to use PCCP as new program space for Day Camps to help reduce pressure on existing recreation facilities, where many programs are currently at capacity. Executive Summary –Municipal Requirements If PCCP were to be managed and operated by the City of Pickering, there are a number of essential changes that will need to be made to improve the safety and usability of the park. Moreover, as the Pickering City Centre project unfolds and existing outdoor event spaces (i.e., City Hall and Glenanna Park) will undergo renovations, a new large-scale event space will be required to serve the community for events like the annual food truck festival. 9Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. 02 Project Background and Understanding 10Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Petticoat Creek Conservation Area Background Petticoat Creek Conservation Park (PCCP) is located in the southwestern end of Pickering and borders Lake Ontario. The park is owned and operated by the Toronto and Region Conservation Authority (TRCA). Petticoat Creek Conservation Park Area, Pickering About Petticoat Creek Conservation Park •Petticoat Creek Conservation Park (PCCP) provides a large public green space within the urban area of Pickering that provides residents and visitors with the opportunity to gather, play, learn, explore, hike and experience nature. •PCCP offers a unique natural corridor for wildlife to live or travel along the creek towards Lake Ontario. It is home to 69 types of trees, such as willows, oak, birch and pine, and a wide variety of wildlife, notably white-tail deer, foxes, red tailed hawks, rabbits and squirrels. TRCA Involvement •Toronto and Region Conservation Authority (TRCA) is a registered charity, established under the Conservation Authorities Act and aims to enhance the region’s natural environment and protect land, water and communities. •TRCA owns about 40,000 acres of land in the Toronto region. •PCCP is owned and managed by the TRCA and TRCA relies on various forms of government and grant funding to sustain the capital and operating program. •Various amenities at PCCP have eroded over time and some have been removed from service due to a lack of financial and/or human resources. This has impacted user experience and does not realize the full potential of the property. 11Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. 03 Location Overview 12Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Overview of Area Surrounding Pickering Pickering has a population of approximately 100,000 people with 231 square kilometres of area that borders communities such as Toronto, Ajax and Whitby and has Lake Ontario to the south. •Pickering is located in Southern Ontario, Canada, immediately east of Toronto in Durham Region. •The City has a population of approximately 100,000 people and covers an area of 231 square kilometres. •Pickering is anticipated to be one of the most rapid growing areas in the GTA in the next 20 years, with a population projected to double during that time. •Toronto, Markham, and Rouge Park border Pickering on the west; Ajax and Whitby border Pickering on the east; Uxbridge borders to the north; and Lake Ontario forms Pickering's southern boundary. Pickering Toronto Ajax Whitby Lake Ontario Markham Petticoat Creek Conservation Park 13Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. TRCA Greenspace in Pickering Pickering is home to four conservation properties that are managed by the TRCA. ★Petticoat Creek Conservation Park: The 173 acres of park area offers cycling, walking and running along the waterfront trail, picnic areas for families and corporate events, a wide array of flora and fauna to explore, and views of the bluffs. 1. Greenwood Conservation Area: The park is located in both the City of Pickering and the Town of Ajax, separated by Fifth Concession Road. The Trans Canada Trail passes through the park. The park provides opportunity for activities such as hiking, cross country skiing, fishing, bird watching and camping. 2. Claremont Nature Centre: An area of 395 acres with the Duffins Creek running through the property. It includes the Claremont Field Centre School which offers outdoor education programs for school, Scouts, Guides and other general interest groups. Although the Field Centre is not open to the general public, the site is open for hiking. 3. Altona Forest: An area of 131 acres that was designated as environmentally significant as it serves as an essential habitat for a large number of plants and animals native to southern Ontario. These include many migratory and songbirds, foxes, coyotes, hawks and rare amphibians. Permitted activities in the forest include hiking, bird watching and wildlife photography. Altona Forest Petticoat Creek Conservation Park Greenwood Conservation Area 1 3 2 Claremont Nature Centre 14Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Overview of Major Greenspaces in Pickering The City of Pickering places importance on operating and maintaining high quality parks and greenspaces for its residents. Pickering sees its recreation and parks system as essential to the well-being of its residents. City of Pickering –Recreation & Parks Master Plan 2017 Parks Legend City Boundary The City of Pickering developed a master plan for recreation and parks services to keep pace with the anticipated growth of the City. The Vision set out for parks and recreation services in Pickering is: We are active, cohesive, sustainable, and enjoy community pride in Pickering through our participation in recreation, parks and special events. The map on the right illustrates the vast amount of parks and greenspace (denoted in light blue) the City of Pickering manages for its’ residents. 15Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. 04 Description of Subject Property and Asset Condition 16Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Amenities and Programming at PCCP PCCP has a number of existing amenities that attract visitors to use the park. Overview of Petticoat Creek Conservation Park •Open daily between 9 am to 8 pm from May 20 –September 4, 2023 and weekends only from September 2 –October 9, 2023 •The park is approximately 173 acres in size. •Permanent structures at PCCP were initially developed in 1975. The pool complex has been significantly renovated since. •The main structures (assets) in PCCP include: 1.Outdoor Swimming Pool; 2.Swimming Pool Building; 3.Lifeguard Office; 4.Maintenance Shop/Office; 5.Public Washrooms (Pleasant Point Washroom and Rogers Acres (Lakeview) Washroom; and 6.Other Miscellaneous Structures (e.g., wooden shed, entrance gate booth, picnic shelters and other site infrastructure). Photo source: TRCA, 2021 17Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Current Condition of Park Infrastructure and Facilities A facility condition assessment was completed in 2021 by FCAPX a Division of Roth IAMS Ltd. (detailed in Appendix B) and found a number of capital repairs required over the next five years. These are summarized at a high level below. Note: The rating information and costing data presented has been summarized from the facility condition assessment report pre pared by FCAPX. The estimated costs of repairs on this slide are as at 2021, determined at the time of the assessment. The estimated costs do not account for inflation. Swimming Pool The Facility is not functioning as intended; must be dealt with without delay Cost of outstanding repairs: $5.4 million (2021$) Swimming Pool Building The Facility is not functioning as intended; must be dealt with without delay Cost of outstanding repairs: $856k (2021$) Lifeguard Office The Facility are functioning as intended; minimal repairs anticipated within the next five years. Cost of outstanding repairs: $30k (2021$) Maintenance Office The Facility is not functioning as intended; must be dealt with without delay Cost of outstanding repairs: $193k (2021$) Washroom Buildings The facility is not functioning as intended; repairs required within the next year to restore functionality. Cost of outstanding repairs: $196k (2021$) Site Infrastructure The maintenance of park facilities and infrastructure include paved roadways, walkways, water and sewage. Cost of outstanding repairs: $5.9 million(2021$) 18Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. 05 Programming Potential 19Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Programming in Other Conservation Areas and Parks In addition to seeking staff input, other conservation areas and parks in Ontario were reviewed to inform opportunities for programs. Further information about Byng Island and Heart Lake are outlined in this report due to similarities in size and existing features of these parks. Photo Source: Tourist Places Springwater Conservation Area Byng Island Conservation Area Heart Lake Conservation Area Jack Darling Memorial Park Photo Source: Grand River Conservation Authority Photo Source: BlogTOPhoto Source: Ontario Conservation Areas Rouge National Urban Park Photo Source: City of Toronto Oshawa Lakeview Park Photo Source: Oshawa Express 20Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Byng Island Park Conservation Area Byng Island is a conservation area located in Dunnville, Ontario. The park is owned and managed by the Grand River Conservation Authority and offers visitors a chance to explore the Grand River and Lake Erie. The conservation area is 470 acres in size and is open daily from May 1 to October 15. Features and Activities •The largest outdoor swimming pool in Canada (max. capacity: 1,000) people, includes a wading area and splash pad. •380 campsites, 134 of which are serviced (electricity and water) •Pavilion with full kitchen and washrooms (for events e.g., weddings) •Three concrete boat launches to accommodate sailing, boating, fishing •Picnic tables •Two sand volleyball courts •A baseball field •Carolinian forests, the river, provincially significant wetlands and creeks for unique bird watching and fishing opportunities. •A two-kilometer nature trail Byng Island is a comparable conservation area located in Dunnville, Ontario, that features a swimming pool among other public use amenities. Photo Source: Ontario Conservation Areas Photo Source: Grand River Conservation AuthorityPhoto Source: Grand River Conservation Authority 21Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Heart Lake Conservation Area Heart Lake Conservation Area occupies 418 acres in the Etobicoke Creek watershed, within the City of Brampton. Its diverse ecosystem includes two kettle lakes, the headwaters for Spring Creek, and provincially significant wetlands. Features and Activities •Aquatic facility –fully accessible 840 sqm heated swimming pool and splash pads •Over 30 wetland-themed water features •Day camps •Picnic areas –10 picnic site throughout the park •Fitness trail –outdoor fitness stations for strength training, enhanced stretching, cardio activities •Treetop Trekking –eight course, 10 zip lines, and 75 aerial games •Fishing –including a “Learn to Fish” program •Hiking trails –including a treecaching trail activity •Medicine Wheel Garden Energy and Water Efficiency A system controller ensures that the aquatic playground features only use water when activated by a user pushing an activation button located in the playground. The features are pre-programmed to follow various sequences once activated. Washrooms and the pump house feature energy efficient light fixtures and low flow toilets and faucets. Heart Lake is a TRCA-owned conservation area located in Brampton, Ontario, that features two kettle lakes, an outdoor swimming pool among other public use amenities. Photo Source: TRCA 22Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. PCCP Master Plan In discussions with City staff and TRCA, a number of programming improvement objectives and considerations to increase visitor footfall have emerged as key opportunities to help reactivate PCCP. PCCP is a large waterfront park located in Pickering and is one of the largest green spaces in the City’s urban area. Discussions with TRCA to date have been collaborative in envisioning a future PCCP. As a result, the City wants to develop a master plan to establish a vision for the use of the park. The main objectives of the PCCP master plan are: •To position PCCP as a destination park for not only Pickering residents, but to attract visitors from the wider GTA; •Bring new programming and activities to the conservation area; •Extend use of park and seasonal use to 12-months of the year; and •Leverage large areas as event space that cannot be accommodated at Pickering’s Esplanade Park. Some of the high level considerations and requirements to realize this master plan include: •Safety and security related to parking –e.g., lighting, formal parking lots; •Widen existing roads to improve safety and access, and allow for the use of snow plows in winter; and •Improve back-of-house facilities to support operations and enhanced programming. Additional assumptions made to achieve this long-term vision would require the City to be responsible for repairing and maintaining the existing facilities. The City would also construct and own any new program infrastructure, e.g., pickleball court. 23Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Overview –Master Plan Opportunities As PCCP is a conservation area, TRCA recommends that future development and programming be located in the blue area in the map to ensure risks to natural habitats and natural hazards risks are minimized. Appendix C contains detailed maps demonstrating the various natural hazards and ecological factors to consider in the master plan of PCCP, including: •Environmentally significant areas; •Floodplains; •Wetlands; •And others. Given the now-closed pool, TRCA recommends that future development opportunities should be focused on its footprint and the surrounding manicured grass areas and parking lots. This is highlighted in blue on the map to the right. Any redevelopment in the north section should take the form of more passive, minor recreational uses. This will ensure that existing ecological functions are maintained within the natural features on and adjacent to the site. TRCA recommends uses such as picnic shelters, high ropes courses (e.g., treetop trekking) day camp facilities, play structures, expanded water- play facilities, community gardens or a skate trail. These uses can be flexible to the shape and size of available space, and would avoid impacts to natural features. 24Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Key Opportunities –Swimming Pool Current Conditions •The current state of the Swimming Pool Complex is poor, where the facility has been closed to the public since 2019 •The outdoor swimming pool has been repaired numerous times in the past, and is now at a state where major replacement is required in the underground piping and machinery –essentially a new swimming pool is required •The capital cost for this repair is high, with the facility condition assessment indicating that many repairs are required. Underground work to support a new swimming pool structure is required and the anticipated design and capital costs are estimated to be $11.5 million in 2023 dollars. •The current shape of the pool is irregular with many potential blind spots for lifeguards. The City anticipates additional staffing would be required if current shape of pool is retained •TRCA indicated that the splash pads within the swimming complex should be operational, as the underground infrastructure (e.g., piping and filtration) is separate from the main pool. However, the splash pads are overdue for approximately $700k in repairs that may require further assessment. Considerations •City staff is seeking Council direction as to whether to rebuild as a completely new modern pool (rectangular with accessible beach entry and lane swimming capabilities) or to focus on operating the splash pads only –as those are in good condition •Maintain operations of the washroom/changeroom space in Complex for splash pad use and for camps The City of Pickering wants to position PCCP as a destination park by introducing activities and programming that are inclusive and can appeal to a wide demographic. In discussion with City staff and TRCA, the key opportunities on this slide have emerged as priorities. Swimming Pool Complex 25Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. The three swimming pool options are summarized below. In all three options, it is assumed that the splash pads will continue to operate and require staffing and renovations will be made to upgrade the pool washroom/changerooms. Swimming Pool Options Analysis Close Renovate Existing Build New (Preferred Option) Strategy Fill in existing pool and consider using surface for new programming Dig out pool, fix below grade soil to carry load, replace pool in same shape, fix all connecting piping Dig out pool, fix below grade soil to carry load, design and install new pool with modern design and new piping New asset N/A No Yes Primary users N/A Casual users Casual users + swim lessons, races and team practices Primary benefit Low cost option Re-open historic layout Brand new rectangular modern pool with accessible beach entry and water features, broader user group Primary concern Loss of key City asset Essentially the same cost as building new pool and poor layout with comparatively higher operating costs Cost to design and build Est. cost $1 million $10 million $10 million # of staff required to operate No additional lifeguards 14-16 lifeguards 8-10 lifeguards Total operation costs annually N/A ~$834k (2023$)~$578k (2023$) Due to the high cost of removing and repairing the residual infrastructure and poor layout, “Renovate Existing” has been deemed a non- feasible option with potentially minimal cost savings and high operating costs compared to a “Build New” option. 26Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Programming –Key Opportunities 1/2 •The City currently offers pickleball lessons and pickleball drop- in at four City-run facilities. With the growing popularity of pickleball across the community, there is interest in constructing pickleball courts at PCCP •Set up beach volleyball infrastructure near the water •Explore moving Pickering’s existing cricket field to open areas in PCCP The City of Pickering wants to position PCCP as a destination park by introducing activities and programming that are inclusive and can appeal to a wide demographic. In discussion with City staff and TRCA, the key opportunities on this slide have emerged as priorities. Sports •The City could explore opportunities to expand picnic concepts in the park to welcome more visitors, e.g., additional picnic shelters of different sizes and styles to support smaller groups and parties •Consider charging fees for advanced booking of picnic areas and provide Pickering residents with priority booking •Consider installing accessible sheltered viewing decks to create safe lookout points over the water Picnic Areas •The City would install new playground infrastructure that can be used by different age groups •The destination playground may incorporate a design that highlights the natural environment in PCCP Destination Playgrounds •Enhance the existing main waterfront trail by adding additional side trails and programming to support education about nature in the park •Explore Tree Top Trekking partnership for the public to participate in physical activities in nature and potentially use climbing or ziplining equipment to navigate the treescape Hiking and Education 27Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Programming –Key Opportunities 2/2 The City of Pickering wants to position PCCP as a destination park by introducing activities and programming that are inclusive and can appeal to a wide demographic. In discussion with City staff and TRCA, the key opportunities on this slide have emerged as priorities. •Extend hours of operation •Add streetlighting to ensure safety of visitors in the evening •Use park for large event space (e.g., Ribfest, Canada Day), introduce food trucks during weekends –continue smaller events in Esplanade Park Expanded Public Use •The current condition of the existing maintenance shop/office facilities is poor and presents a risk to its users. The building requires immediate repairs and renovations to ensure safe use •With the additional programming discussed, enhanced back -of-house facilities and essentially a new operations building will be required to accommodate staff e.g., larger staff rooms, washrooms, storage rooms •If PCCP is successful in attracting more visitors, road widenings and additional road infrastructure may be required to improve safety and access Operational CapacityWinter Programming •Extend seasonal use of the park and keep PCCP open during all months of the year •Operation in winter months would require winterizing the public washrooms •Implement new winter programming for City of Pickering residents that respect the natural elements of the Park such as, snowshoeing and cross country skiing •The City could take over the operation of the on-site day camps •Include PCCP as part of the City’s summer camp offering to increase capacity Camps 28Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Programming –Considered but Discarded The programming opportunities on this slide have been considered by the City but have been discarded due to costs, lack of alignment with PCCP as a conservation area and/or similar offerings at other facilities in Pickering. •The open space in PCCP should not be considered for soccer fields or baseball diamonds •The City does not intend to build winter domes that would increase seasonal use as there are similar facilities offered in other parts of Pickering (e.g., Chestnut Hill Developments Recreation Complex) Team Sports Connection to Lake •City staff have concerns about installing a staircase to provide beach access due to concerns of the waterfront being a secluded area •Installing infrastructure along the waterfront may bring additional challenges related to ownership (TRCA or Federal), environmental stewardship mandate challenges and potential liabilities for the City Off-leash Dog Park •There are off-leash dog area established within close vicinity to the park, so this is deemed low priority for the City Tennis Court •There are public tennis courts within close vicinity to the park, so this is deemed low priority for the City Skate Park / Ice Skating •As a large concrete installation, the TRCA is opposed to additional infrastructure in the park that may conflict with PCCP’s status as a conservation area 29Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. The anticipated capital costs of designing and constructing a new pool and other programs described on the previous pages amounts to $30.4 million in 2023 dollars. These estimates do not account for staffing costs or other operations and maintenance costs. Anticipated Capital Costs of New Pool and Programs The following capital and operating costs are estimates that were prepared jointly in a workshop between the City and KPMG fo r the purposes of the analysis. The following costs are in 2023 dollars before tax, and include design costs which are considered 15% of the capital cost for the pool and splash pads, and 10% of the capital cost for the other programs. Additional costing is recommended to determine a more detailed estimate. #Element Name Initial Capital Cost (2023$) $ 18,900,000 $ 30,400,000 $ 11,500,000 Total Capital Costs Total Pool Capital Costs Total New Programs Capital Costs 30Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. 2023 Roadmap Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Pre-development Phase 1 City Council Decision 2 Contract Preparation and Signing 3 Assessment and Preliminary Master Plan (baseline studies) 4 Stakeholder and Community Engagement 5 Master Plan Completion 7 Design and Construction of Pool 8 Design and Construction of Other Park Amenities 202920242025202620272028 Based on our assumptions for decision-making timelines, required stakeholder engagement and related planning, construction is anticipated to begin in 2026. Following this timeline, the new pool is expected to launch in the summer of 2028. Program Improvements Timeline Council Approval The following timeline anticipates the negotiations and planning required in producing a master plan for the park. Taking the new program opportunities discussed on pages 27 and 28, the City can begin to develop concepts and engage external designers. For activities in row 8, the upfront development should prioritize key infrastructure items like road improvements and winterized washrooms to allow the p ark to be open for winter use. Beyond 2028, the City can continue to invest in remaining park improvements, where the timing of construction cos ts will be based on available funding. 31Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. 06 Summary and Conclusion 32Document Classification: KPMG Public © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent me mber firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Considerations for Future Operation Model The considerations have been presented below to demonstrate their impact as either a benefit or a challenge based on the results of the analysis. KPMG recommends the City to engage in a detailed due diligence process to quantify the potential impact of the key risks highlighted below before further engaging in partnership discussions with TRCA. Enhance Public use Expand ProgrammingUnique Opportunity Municipal RequirementsCollaborate with TRCA Free resident entry Challenges: •High costs to replace and operate pool •Overdue maintenance on existing facilities Challenges: •Financial investment (new infrastructure) Challenges: •Acquisition costs •Unique partnership model/contract Challenges: •Governance restrictions •Protection of natural heritage Challenges: •Road safety •Informal parking Opportunities: •Rapid impact •Introduce new public amenities Opportunities: •Rapid implementation •Attract new visitors •Introduce new programming Opportunities: •Destination park •Large lakefront property Opportunities: •Share costs •Partnerships with TRCA •Education on natural heritage and conservation Opportunities: •New event space •New program space and reduce pressure on existing recreation facilities Document Classification: KPMG Public home.kpmg/ca The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. © 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. Legislative Services Division Clerk’s Office Directive Memorandum April 28, 2023 To: Marisa Carpino Chief Administrative Officer From: Susan Cassel City Clerk Subject: Direction as per Minutes of the Meeting of City Council held on April 24, 2023 Petticoat Creek Conservation Park – TRCA Council Decision Resolution #158/23 Please take any action deemed necessary. Susan Cassel Copy: Director, Finance & Treasurer Now therefore be it resolved, that the Council of The Corporation of the City of Pickering: 1.Directs Staff, through the Office of the CAO, to enter into discussions with Toronto and Region Conservation Authority (TRCA) regarding the potential acquisition of Petticoat Creek Conservation Park by the City or Management Agreement of said property between the City and TRCA; 2.That $50,000 be added to the 2023 Current Budget in General Government, Consulting account (502230) to be funded by Rate Stabilization Reserve, for the purpose of securing consulting services for a Business Case Analysis regarding the acquisition, appraisal valuation financing strategy, financial operating impacts including asset replacement strategy and/or Management Agreement of Petticoat Creek Conservation Park; 3.That Staff report back to Council, regarding the status of discussions with TRCA, by Q3 2023. Attachment #2 to Report CAO 11-23