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HomeMy WebLinkAboutJuly 22, 2019 - SpecialGCS „f DICKERING 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 DICKERING r,/y6,! 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; r r )¢ DICKERING 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, DICKERING Special Council Meeting Minutes Monday, July 22, 2019 Council Chambers 9:30 am 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; qty PJCKE RiNG Special Council Meeting Minutes Monday, July 22, 2019 Council Chambers 9:30 am 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 DICKERING 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; P1CKER1 NG di„ 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