HomeMy WebLinkAboutCAO 06-25Report to Council
Report Number: CAO 06-25
Date: May 26, 2025
From: Marisa Carpino
Chief Administrative Officer
Subject: Seaton Recreation Complex & Library Project
Scaled Down Schematic Design
File: A-1440-001
Recommendation:
1. That Report CAO 06-25 regarding the Seaton Recreation Complex & Library Project be
received;
2. That Council direct staff to complete additional design work for the Seaton Recreation
Complex & Library at a cost not to exceed $250,000.00 funded from the project
contingency that results in an alternative design and reduced project cost option not
exceeding $200 million, and for the alternative design and reduced project cost option to
be returned to Council in September, 2025;
3. That naming rights for any part of the Seaton Recreation Complex & Library project be
deferred until Council has approved the final design and a construction contract for the
project has been awarded; and
4. That the appropriate officials of the City of Pickering be authorized to take the necessary
actions as indicated in this report.
Executive Summary: The purpose of this report is to obtain Council authorization to
complete additional design work on the Seaton Recreation Complex & Library (SRCL) required
to provide a scaled down reduced cost option for the project by September 2025. Spending on
the project design was paused by Report CAO 05-25 (Resolution #698/25) in late April due to
broad economic uncertainty.
As per Resolution #698/25, staff were directed to provide a project update to Council, including
the consolidated base program schematic design concept, updated financial information and
project recommendations in September 2024. Council made it clear in approving Report CAO
05-25, that the SRCL project remained a high priority. Authorization is therefore requested to
complete additional design work , spending $250,000.00 from the previously approved project
consulting contingency budget to also provide for Council’s consideration in September 2025
with an alternative, scaled down schematic design concept that removes the twin pad arena.
Relationship to the Pickering Strategic Plan: The recommendations in this report respond
to the Pickering Strategic Priorities to Champion Economic Leadership & Innovation; Advocate
for an Inclusive, Welcoming, Safe & Healthy Community; Advance Innovation & Responsible
CAO 06-25 May 26, 2025
Subject: Seaton Recreation Complex & Library Project Page 2
Planning to Support a Connected, Well-Serviced Community; Lead & Advocate for
Environmental Stewardship, Innovation & Resiliency; Strengthen Existing & Build New
Partnerships; and Foster an Engaged & Informed Community.
Financial Implications: The Consulting Services for the SRCL w ere awarded to Perkins &
Will Canada Inc. in June, 2024 (Resolution #523/24) in the amount of $7,150,000.00 (HST
excluded), with a total net project cost of $9,021,024.00 (net of HST rebate). The awarded
project includes contingency of $700,000.00. Perkins & Will have confirmed the cost to
develop a scaled down option that removes the twin-pad arena from the design, not to exceed
$250,000.00 (net HST), including the development of an updated cost estimate for the scaled
down option to be completed by August, 2025. This cost is funded from the approved project
contingency.
There are no new financial implications resulting from the recommendations in this report.
Discussion: The purpose of this report is to obtain Council authorization to complete
additional design work for the SRCL required to provide an alternative, reduced cost option for
the project by September 2025, including related work . Spending on the project was paused by
Report to Council CAO 05-25 (Resolution #698/25) in late April 2025 due to broad economic
uncertainty and its potential impacts on the City’s ability to fund the project.
1. Decision 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 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.
d. 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
CAO 06-25 May 26, 2025
Subject: Seaton Recreation Complex & Library Project Page 3
projects within the next ten years. The findings of the completed public engagement
process were also provided.
e. Report CS 06-25 (Resolution #709/25) awarded consulting services for geotechnical
and hydrological reports and environmental investigation for the SRCL to DS
Consultants Ltd. Backfill operations of 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 as site backfilling had begun.
2. While a project pause was approved in April (Resolution #698/25), staff recommend
further design work be completed to present a scaled down option to Council in
September .
At the April 22, 2025 Special Council Meeting, Council approved pausing further design of the
SRCL Project. A project pause was recommended due to the ongoing tariff war between
Canada and the United States which may result in significant economic repercussions. A
short-term pause can help mitigate risks associated with the unknown potential impacts of
tariffs and other economic disruptors. The pause also allows the City to reassess the project
design and construction plans in light of the economic environment and corresponding high
cost and debt charges. Staff indicated in Report CAO 05-25 that limited expenditures related to
time-sensitive site preparations, including geotechnical and hydrological studies would proceed
to ensure that the SRCL site is transferred to the City in a suitable condition for construction
without requiring extensive and expensive re-work.
Perkins & Will were awarded consulting services for SRCL, per Report OPS 12-24, and are
best positioned to help the City develop the alternative design as part of their existing contract.
Much of the design work on SRCL completed to date can be re-used, including stakeholder
consultation results.
It is equally important to note that the existing pool at the Chestnut Hill Developments
Recreation Complex (CHDRC) is also nearing the end of its serviceable life, with major
renovations expected to be required in five years. Should construction of SRCL not be
completed by that time, the City risks a significant potential reduction in aquatic programming,
as Dunbarton Pool is too small and also at capacity, preventing it from accommodating any
displaced demand if the CHDRC pool were to close. If design work for the SRCL project were
to be deferred beyond 2025, it would be unlikely that the new facility could be opened in time.
This request for authorization to proceed with an alternative, reduced scope option, aims to
avoid that scenario.
3. A reduced scope option with a total project budget of $200 million for SRCL is
proposed to be presented as part of the Report to Council for September, 2025.
Report CAO 05-25 recommended a total pause to the project in light of the looming threat of
tariffs, potential impacts to international trade, and the corresponding rising risk of economic
CAO 06-25 May 26, 2025
Subject: Seaton Recreation Complex & Library Project Page 4
recession. Council agr eed with the pause, but m ade it clear that the SRC L project remains a
high priority, including revising recommendation 4 of that report to advanc e the scheduled
update report from Q 4 , 2025 to September 2024.
As per Resolution #698/25, staff w ere directed to provide a project update to Council, including
the consolidated base program schematic design concept, updated financial information and
project recommendations in September 2024. At this time, authorization is requested to
undertak e further design and ex pend up to $250,000.00 from the previously approv ed project
consulting budget, per Report OPS 12-24 (Resolution #523/24), enabling staff to provide an
alternate, scaled down and less costly design option for the project for Council’s consideration in
September 2024.
4. The scaled down option will remove the twin pad arena from the facility amenities
Removing the twin-pad arenas from the SRCL sc ope of w ork is the most likely means to
reduc e the project’s cost, that in turn, reduces property tax levy funded annual debt charges.
(An estimated levy increase of 5.20% was required to fund the annual debt charges for the ice
pads.). However, employing this strategy will require Don Beer Arena to remain open. Don
Beer Arena was recommended to close w hen SRCL opened, in keeping with the
recommendations of the Parks & Recreation 10-Year Plan. The City has been limiting capital
reinvestment in this aging facility as its older rinks near their anticipated end of life, with Rink 1
having been constructed in 1970, and Rink 2 in 1973.
In April 2025, through Report CAO 05-25, staff pr ovided a summary of the SRC L project based
on a total project cost of $241,396,829. The project cost is comprised of $167,142,223 funded
from Development Charges, or 69.24 percent of the total funding and $74,254,606 funded from
the City, or 30.76 percent of the total funding. The total cost of the two NHL-sized ice pads,
estimated at $68.5 m illion, are 100 percent taxpayer funded sinc e the construction of the arena
is not considered a growth project as it is assum ed to replac e the D on Beer Arena. An
increase to property taxes to fund the SRC L would be largely driv en by the debt charges
associated with the two twin pads.
In 2024, the City completed an Arena Strategy that was approv ed by Council (Resolution
#514/24). The strategy identified that based on current use and demand, that a provision of
four indoor ic e pads is required currently and a total of fiv e ic e pads is required by 2034. As the
City has fiv e ic e pads presently, there is a surplus of ic e available. This strategy con firm ed that
the construction of tw o new ic e pads at the SRC L would not be growth related, rather intended
to replac e the aging D on Beer Arena. The fact that the arenas are not related to new growth
makes them ineligible for D evelopment Char ge funding.
Without the new twin-pad arena at the SRCL, the City will need to operate Don Beer Arena to
continue to provide the existing level of service. The continued operations of D on Beer Arena
includes an annual net operating expense of around $594,000, and an estimated $19,451,248
in deferr ed maintenanc e capital cost required over the next ten years. These costs are based
on like-f or-lik e replacement of the existing assets and exclude any potential upgrades that m ay
be requested or required.
CAO 06-25 May 26, 2025
Subject: Seaton Recreation Complex & Library Project Page 5
5.It is recommended that facility naming be explored during the construction stage of
the project
In addition to the considerations above, at the Council meeting on September 3, 2024, Report
CS 26-24 was submitted to recommend that staff be directed to explore the naming of the
gymnasium at the future Seaton Community Centre and Library as the Wayne Arthurs
gymnasium.
Resolution #473/24, included direction for staff to:
1)explore the naming of the gymnasium in the Seaton Community Centre and Library as
the Wayne Arthurs gymnasium subject to undertaking the work outlined in the City
Property Naming Procedure (ADM 110-006) and report back with the final
recommendations in Q2, 2025; and
2)that Council grant staff the authority to solicit public comment on the proposed name, as
set out in section 03.02 of City Property Naming Procedure (ADM 110-006).
Due to the pause to the project, staff recommend deferring any community engagement
regarding the City Property Naming for SRCL until such time that the final design has been
approved and construction has started. This will allow the community to give a more informed
response as well as become re-engaged with the project.
Attachment: None.
Prepared By: Approved/Endorsed By:
Original Signed By Original Signed By
Vince Plouffe, OAA, MRAIC Stan Karwowski, MBA, CPA, CMA
Division Head, Facilities Management Director, Finance & Treasurer
& Construction
Original Signed By
Laura Gibbs, MBA, MSc.
Director, Community Services
M C:vp
CAO 06-25 May 26, 2025
Subject: Seaton Recreation Complex & Library Project Page 6
Recommended for the consideration
of Pickering City Council
Original Signed By
Marisa Carpino, M.A.
Chief Administrative Officer