Loading...
HomeMy WebLinkAboutCAO-009-26Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Special Council Date of Meeting: August 10, 2026 Report Number: CAO-009-26 Authored By: Mary-Anne Dempster Submitted By: Mary-Anne Dempster, Chief Administrative Officer By-law Number: Resolution Number: File Number: Report Subject: CODEFS Update Recommendations: 1.That Report CAO-009-26, and any related delegations or communication items, be received; 2.That Council recognize the existing Clarington Operations Depot and Fire Station Project will be rescoped to the Clarington Public Works Operations Depot solely; 3.That Council direct the Deputy CAO/Treasurer to return $11,156,100 to the development charges reserve until such time as Council approves the Firehall to be built; 4.That Council direct the Deputy CAO/Treasurer to increase the budget for the Clarington Public Works Operations Depot by $11,932,100 from the development charges reserve; 5.That Council direct the Deputy CAO/Treasurer to establish a Capital Project for the Fire Training Facility with the remaining budget funds within the existing Clarington Operations Depot and Fire Station Project of $6,069,500 to be funded from Development Charges; and 6.That all interested parties listed in Report CAO-009-26, be advised of Council’s decision. C-214-26 Municipality of Clarington Page 2 Report CAO-009-26 Report Overview direction on how to proceed considering the project’s financial and land 1. Background 1.1 In 2021, the Municipality purchased the property at the northeast corner of Liberty Street North and Concession Road 4 for a future Public Works Operations Centre. The acquisition supported municipal planning for anticipated growth under the Province’s Growth Plan and subsequent regional planning for Clarington. The existing Public Works depots are not sufficient to support the staff, fleet, and equipment required to service the roads and infrastructure needed for that growth. 1.2 In 2023, the Municipality advanced planning for a North Bowmanville fire hall to support future growth. Using the municipally owned property avoided a separate land acquisition and offered potential construction efficiencies. Staff also identified an opportunity to co-locate a fire training facility on the site to support training needs in Clarington and surrounding areas, including Ontario Power Generation and local colleges. 1.3 In 2024, following Council direction and budget approval, staff commenced the project. 1.4 Since project approval, staff have worked with multiple levels of government and agencies to advance the project. In June 2026, the final Class A design was completed; however, the anticipated project cost had increased by $11.9 million. 1.5 In June 2026, a CAO memo was taken to Council to request a pause in the project given the financial uncertainty of Development charge cash flow as experienced over the last three years from slowed growth and the introduction of the new Development Charge reduction program. These adjustments may have a material and significant impact on municipal finances and on how funds and debt capacity is managed to maintain long-term financial flexibility. 1.6 In June, the Province requested a meeting to discuss the appropriateness of the build in the Green Belt Plan. Multiple discussions have occurred. The Ministry of Municipal Affairs and Housing do not identify the Firehall and Fire Training Facility as Infrastructure that would be permitted on the site by the Greenbelt Plan. These two components of the project can not proceed on the property. At the time of writing this report, a formal opinion from the Ministry on the Operations Depot has not been received. However, Public Works Operations depots are permitted under the Green Belt Plan, and staff have received a legal opinion that supports Clarington’s position on the Operations depot. Municipality of Clarington Page 3 Report CAO-009-26 2. Project Status 2.1 The table below illustrates the existing project budget, amounts spent/committed to - date and the remaining budget. Project Budget Summary $6,450,000 $11,801,400 $81,214,600 $99,466,000 380,500 645,300 5,324,500 6,350,300 2.2 It is important to note the amounts Spent/committed to -date for the Firehall and Fire training facility are for the design work completed to-date. 2.3 The following table illustrates the budget requirement from the Class A estimate. An increase of $11,932,100 is required to proceed with the entire build on the current location. However, given that the firehall and fire training facility can no t be co-located on the property, each budget component has been illustrated separately. Updated Project Funding Requirement Municipality of Clarington Page 4 Report CAO-009-26 3. Recommended Approach Fire Hall 3.1 Given that the new fire hall is not required for approximately 7 to 10 years, the remaining budget of $11,156,115 should be released back to the Development Charges Reserve until the project is approved. The current funding relates only to the building and does not include the land acquisition, equipment, or staffing costs that would be required to proceed with the fire hall. 3.2 The development charge funding spent provided a shovel ready Class A design. These funds have not been wasted. There will be minor costs incurred to finish the building as it was connected to the operations depot and training facility and there were economies of scale recognized from co-located bathrooms. However, this design will be used as the standard moving forward for Clarington firehalls as it is anticipated that a new firehall in South Courtice will also be required to support the anticipated growth and OPGs new SMR build. 3.3 Having a detailed shovel ready design provides the opportunity to apply for Federal and Provincial grant funding. More common than not, grant opportunities require the project to be shovel ready. 3.4 Proceeding with building a firehall in north Bowmanville requires the acquisition of land. Council may direct staff to begin looking for property to support the addition of a new firehall. Within the urban boundary, which is where public facilities are expected to be built is approximately $1.2 million an acre in employment areas. Based on existing Station 01 (Bowmanville) a new firehall will require approximately 2.5 acres. A new funding source will be required as the existing land acquisition reserve has been allocated to land acquisitions on the Bowmanville waterfront. Public Works Operations Depot 3.5 The Public Works Operations Depot is considered Infrastructure and complies with the Green Belt Plan. 3.6 The depot is required now as the existing facilities are no longer sufficient. 3.7 The existing budget requires an increase of $11,932,100 to support the Class A estimate. The additional funding is required at this stage to issue the tender. 3.8 Given that the firehall is not recommended to proceed, the cash flow concerns of increasing the project budget from Development Charges, is no longer a concern. 3.9 An increase to this budget has no impact on municipal property taxes. 3.10 It is staff’s recommendation to proceed with the project’s reduced scope and increase the budget accordingly from the development charges rese rve. Municipality of Clarington Page 5 Report CAO-009-26 Fire Training Facility 3.11 The fire training facility will support the training and development needs of the growing Clarington Fire Services as well as other entities and municipalities who do not currently have their own. 3.12 The project has received a provincial grant in the amount up to $3,216,384. Staff are optimistic from conversations with the Province that as long as the timeline is met, the grant will be honored. 3.13 The Municipality has reviewed several properties that will meet the land size, servicing and zoning requirements for the training facility. However, Staff will require a budget to procure the land. The closed session report discusses this further. 3.14 There may be a possibility to co-locate with a third party for a shared training facility in Clarington. If this is feasible it may eliminate the cost of land procurement, significantly decreasing the cost of the facility. 3.15 Staff are seeking Council support to continue with the Fire Training Facility project and to allocate the remaining budget of $6,069,500 to a separate project solely for the construction of a Fire Training Facility in Clarington. 4. Financial Considerations 4.1 The Clarington Operations Depot requires a budget increase of $11,932,100 with funding from Development Charges, financing through debentures has already been approved by Council and will occur in 2027. 5. Strategic Plan Not Applicable. 6. Climate Change Not Applicable. 7. Concurrence This report has been reviewed by the Deputy CAO, Planning and Infrastructure and the Deputy CAO/Treasurer, Finance and Technology who concur with the recommendations. Municipality of Clarington Page 6 Report CAO-009-26 8. Conclusion It is respectfully recommended that the Clarington Operations Depot project proceed with the increased budget requirement. The Firehall shovel ready design be shelved until such time as a grant becomes available or growth reaches the necessity for the build and that the funds associated with this component of the project be returned to the development charges reserve. The Fire training facility proceed under a separate project and the funds anticipated for the build be provided. Staff Contact: Mary-Anne Dempster, CAO Attachments: Not Applicable Interested Parties: There are no interested parties to be notified of Council's decision.