Item - 2015.EX8.12
Tracking Status
- City Council adopted this item on September 30, 2015 with amendments.
- This item was considered by the Executive Committee on September 21, 2015 and adopted without amendment. It will be considered by City Council on September 30, 2015.
EX8.12 - F.G. Gardiner Expressway Strategic Rehabilitation Plan Procurement Strategy
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- 5 - Etobicoke-Lakeshore, 6 - Etobicoke-Lakeshore, 13 - Parkdale-High Park, 14 - Parkdale-High Park, 19 - Trinity-Spadina, 20 - Trinity-Spadina, 28 - Toronto Centre-Rosedale, 30 - Toronto-Danforth
City Council Decision
City Council on September 30, October 1 and 2, 2015, adopted the following:
1. City Council approve the incorporation of the future outcome of the Gardiner East Environmental Assessment into the scope of work for the overall rehabilitation of the F.G. Gardiner Expressway as documented in the previously approved Strategic Plan for the Rehabilitation of the F.G. Gardiner Expressway, and now referred to as the Revised Strategic Plan.
2. City Council authorize the Deputy City Manager, Cluster B, and the Deputy City Manager and Chief Financial Officer to proceed with an Alternative Financing and Procurement approach for the implementation of the Revised Strategic Plan, including issuance of the Request For Proposal, using a Design-Build-Finance-Operate-Maintain approach, as described in this Item, subject to the approval of Government of Canada funding of one-third of capital construction costs eligible for funding under the P3 Canada and Infrastructure Canada Programs and that City Council direct the Deputy City Manager and Chief Financial Officer to arrange for the completion of a peer review of the methodology of the Value For Money analysis, conducted by a qualified third party, and to submit a report on the results to the December 1, 2015 meeting of the Executive Committee.
3. City Council direct the City Manager to:
a. submit business cases and such other material as may be required by P3 Canada and Infrastructure Canada to formally request Government of Canada funding for the Revised Strategic Plan; and
b. enter into the necessary contribution agreements.
4. City Council reiterate the City's request to the Province of Ontario to provide matching one-third funding of the capital cost of the Revised Strategic Plan, in recognition of the vital importance of the F.G. Gardiner Expressway to the economy of Ontario as outlined in the executive summary report from HDR Consulting in Attachment 1 to the report (September 4, 2015) from the Deputy City Manager, Cluster B, and the Deputy City Manager and Chief Financial Officer.
5. City Council authorize the Deputy City Manager, Cluster B, and the Deputy City Manager and Chief Financial Officer, in consultation with the City Solicitor, to negotiate and enter into an agreement with Ontario Infrastructure and Lands Corporation, under which Ontario Infrastructure and Lands Corporation would:
a. act as commercial procurement lead for the Alternative Financing and Procurement approach, through to execution of project agreements and financial close, at an estimated cost of $12 million; and
b. retain the necessary professional services required to support the Alternative Financing Procurement procurement at an estimated cost of $40 million, based on the scope of services terms outlined in Attachment 3 to the report (September 4, 2015) from the Deputy City Manager, Cluster B, and the Deputy City Manager and Chief Financial Officer.
6. City Council direct the Deputy City Manager, Cluster B, and the Deputy City Manager and Chief Financial Officer to report back in 2017, to the Executive Committee and Council on the results of the procurement process identified in Part 2 above to seek authority to award the contract to the preferred proponent.
7. City Council direct that the Revised Strategic Plan cash flows, and proposed sources of funding be submitted for Council's consideration as part of the 2016 Budget Process, in accordance with the recommended procurement strategy as described in this Item.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-83714.pdf
(September 21, 2015) Presentation from the Executive Director, Engineering and Construction Services, and the Director, Corporate Finance on F.G. Gardiner Expressway Strategic Rehabilitation Plan Procurement Strategy
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-84008.pdf
Motions (City Council)
That City Council amend Executive Committee Recommendation 2 by adding the following words "and that City Council direct the Deputy City Manager and Chief Financial Officer to arrange for the completion of a peer review of the methodology of the Value For Money analysis, conducted by a qualified third party, and submit a report on the results to the December 1, 2015 meeting of the Executive Committee" so that Recommendation 2 now reads as follows:
2. City Council authorize the Deputy City Manager, Cluster B, and the Deputy City Manager and Chief Financial Officer to proceed with an Alternative Financing and Procurement approach for the implementation of the Revised Strategic Plan, including issuance of the RFP, using a Design-Build-Finance-Operate-Maintain approach, as described herein, subject to the approval of Government of Canada funding of one-third of capital construction costs eligible for funding under the P3 Canada and Infrastructure Canada Programs and that City Council direct the Deputy City Manager and Chief Financial Officer to arrange for the completion of a peer review of the methodology of the Value For Money analysis, conducted by a qualified third party, and submit a report on the results to the December 1, 2015 meeting of the Executive Committee.
Vote (Adopt Item as Amended) Oct-01-2015 12:26 PM
| Result: Carried | Majority Required - EX8.12 - Adopt the item as amended as it pertains to Executive Committee Recommendation 1 |
|---|---|
| Total members that voted Yes: 36 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Michelle Berardinetti, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Jaye Robinson, David Shiner, John Tory, Kristyn Wong-Tam |
| Total members that voted No: 4 | Members that voted No are Joe Cressy, John Filion, Mary Fragedakis, Joe Mihevc |
| Total members that were Absent: 5 | Members that were absent are Rob Ford, Giorgio Mammoliti, Ron Moeser, Anthony Perruzza, Michael Thompson |
Vote (Adopt Item as Amended) Oct-01-2015 12:27 PM
| Result: Carried | Majority Required - EX8.12 - Adopt the item as amended as it pertains to Executive Committee Recommendation 2 as amended |
|---|---|
| Total members that voted Yes: 30 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Michelle Berardinetti, Jon Burnside, John Campbell, Christin Carmichael Greb, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Chin Lee, Josh Matlow, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Jaye Robinson, David Shiner, John Tory, Kristyn Wong-Tam |
| Total members that voted No: 10 | Members that voted No are Shelley Carroll, Joe Cressy, Janet Davis, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Pam McConnell, Joe Mihevc, Gord Perks |
| Total members that were Absent: 5 | Members that were absent are Rob Ford, Giorgio Mammoliti, Ron Moeser, Anthony Perruzza, Michael Thompson |
Vote (Adopt Item as Amended) Oct-01-2015 12:28 PM
| Result: Carried | Majority Required - EX8.12 - Adopt the item as amended as it pertains to Executive Committee Recommendation 3 |
|---|---|
| Total members that voted Yes: 33 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Michelle Berardinetti, Jon Burnside, John Campbell, Christin Carmichael Greb, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Mary Fragedakis, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Jaye Robinson, David Shiner, John Tory, Kristyn Wong-Tam |
| Total members that voted No: 7 | Members that voted No are Shelley Carroll, Joe Cressy, Janet Davis, Paula Fletcher, Mike Layton, Joe Mihevc, Gord Perks |
| Total members that were Absent: 5 | Members that were absent are Rob Ford, Giorgio Mammoliti, Ron Moeser, Anthony Perruzza, Michael Thompson |
Vote (Adopt Item as Amended) Oct-01-2015 12:29 PM
| Result: Carried | Majority Required - EX8.12 - Adopt the item as amended as it pertains to Executive Committee Recommendation 4 |
|---|---|
| Total members that voted Yes: 37 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Michelle Berardinetti, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Mary Fragedakis, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Jaye Robinson, David Shiner, John Tory, Kristyn Wong-Tam |
| Total members that voted No: 3 | Members that voted No are Joe Cressy, Paula Fletcher, Joe Mihevc |
| Total members that were Absent: 5 | Members that were absent are Rob Ford, Giorgio Mammoliti, Ron Moeser, Anthony Perruzza, Michael Thompson |
Vote (Adopt Item as Amended) Oct-01-2015 12:29 PM
| Result: Carried | Majority Required - Ex8.12 - Adopt the item as amended as it pertains to Executive Committee Recommendation 5 |
|---|---|
| Total members that voted Yes: 27 | Members that voted Yes are Paul Ainslie, Ana Bailão, Michelle Berardinetti, Jon Burnside, John Campbell, Christin Carmichael Greb, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Chin Lee, Josh Matlow, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Jaye Robinson, David Shiner, John Tory |
| Total members that voted No: 13 | Members that voted No are Maria Augimeri, Shelley Carroll, Joe Cressy, Janet Davis, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mike Layton, Pam McConnell, Joe Mihevc, Gord Perks, Kristyn Wong-Tam |
| Total members that were Absent: 5 | Members that were absent are Rob Ford, Giorgio Mammoliti, Ron Moeser, Anthony Perruzza, Michael Thompson |
Vote (Adopt Item as Amended) Oct-01-2015 12:30 PM
| Result: Carried | Majority Required - EX8.12 - Adopt the item as amended as it pertains to Executive Committee Recommendation 6 |
|---|---|
| Total members that voted Yes: 39 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Michelle Berardinetti, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Joe Cressy, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Mary Fragedakis, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Jaye Robinson, David Shiner, John Tory, Kristyn Wong-Tam |
| Total members that voted No: 1 | Members that voted No are Paula Fletcher |
| Total members that were Absent: 5 | Members that were absent are Rob Ford, Giorgio Mammoliti, Ron Moeser, Anthony Perruzza, Michael Thompson |
Vote (Adopt Item as Amended) Oct-01-2015 12:31 PM
| Result: Carried | Majority Required - EX8.12 - Adopt the item as amended as it pertains to Executive Committee Recommendation 7 |
|---|---|
| Total members that voted Yes: 37 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Michelle Berardinetti, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Mary Fragedakis, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Jaye Robinson, David Shiner, John Tory, Kristyn Wong-Tam |
| Total members that voted No: 3 | Members that voted No are Joe Cressy, Paula Fletcher, Joe Mihevc |
| Total members that were Absent: 5 | Members that were absent are Rob Ford, Giorgio Mammoliti, Ron Moeser, Anthony Perruzza, Michael Thompson |
Councillor Di Ciano, rising on a Point of Order, stated that Councillor Mihevc's remarks were not related to the item but rather he was making comments related to Item PW4.1, previously considered by Council. Councillor Di Ciano requested that Speaker Nunziata request Councillor Mihevc to speak to the item before Council.
EX8.12 - F.G. Gardiner Expressway Strategic Rehabilitation Plan Procurement Strategy
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- 5 - Etobicoke-Lakeshore, 6 - Etobicoke-Lakeshore, 13 - Parkdale-High Park, 14 - Parkdale-High Park, 19 - Trinity-Spadina, 20 - Trinity-Spadina, 28 - Toronto Centre-Rosedale, 30 - Toronto-Danforth
Committee Recommendations
The Executive Committee recommends that:
1. City Council approve the incorporation of the future outcome of the Gardiner East Environmental Assessment into the scope of work for the overall rehabilitation of the F.G. Gardiner Expressway as documented in the previously approved Strategic Plan for the Rehabilitation of the F.G. Gardiner Expressway, and now referred to as the Revised Strategic Plan.
2. City Council authorize the Deputy City Manager, Cluster B, and the Deputy City Manager and Chief Financial Officer to proceed with an Alternative Financing and Procurement approach for the implementation of the Revised Strategic Plan, including issuance of the RFP, using a Design-Build-Finance-Operate-Maintain approach, as described herein, subject to the approval of Government of Canada funding of one-third of capital construction costs eligible for funding under the P3 Canada and Infrastructure Canada Programs.
3. City Council direct the City Manager to:
a. submit business cases and such other material as may be required by P3 Canada and Infrastructure Canada to formally request Government of Canada funding for the Revised Strategic Plan; and
b. enter into the necessary contribution agreements.
4. City Council reiterate the City's request to the Province of Ontario to provide matching one-third funding of the capital cost of the Revised Strategic Plan, in recognition of the vital importance of the F.G. Gardiner Expressway to the economy of Ontario as outlined in the executive summary report from HDR Consulting in Attachment 1 to the report (September 4, 2015) from the Deputy City Manager, Cluster B, and the Deputy City Manager and Chief Financial Officer.
5. City Council authorize the Deputy City Manager, Cluster B, and the Deputy City Manager and Chief Financial Officer, in consultation with the City Solicitor, to negotiate and enter into an agreement with Ontario Infrastructure and Lands Corporation (IO), under which IO would:
a. act as commercial procurement lead for the Alternative Financing and Procurement (AFP) approach, through to execution of project agreements and financial close, at an estimated cost of $12 million; and
b. retain the necessary professional services required to support the AFP procurement at an estimated cost of $40 million, based on the scope of services terms outlined in Attachment 3 to the report (September 4, 2015) from the Deputy City Manager, Cluster B, and the Deputy City Manager and Chief Financial Officer.
6. City Council direct the Deputy City Manager, Cluster B, and the Deputy City Manager and Chief Financial Officer to report back, in 2017, to Executive Committee and Council on the results of the procurement process identified in Recommendation 2 above to seek authority to award the contract to the preferred proponent.
7. City Council direct that the Revised Strategic Plan cash flows, and proposed sources of funding be submitted for Council's consideration as part of the 2016 Budget Process, in accordance with the recommended procurement strategy as described herein.
Decision Advice and Other Information
The Executive Director, Engineering and Construction Services and the Director, Corporate Finance gave a presentation on F.G. Gardiner Expressway Strategic Rehabilitation Plan Procurement Strategy.
Origin
Summary
This report provides an overview of the financing and procurement options for the implementation of the Revised Strategic Plan for the Rehabilitation of the F.G. Gardiner Expressway. An Alternative Financing and Procurement (AFP) approach is being recommended for the implementation of the Plan and authorization to pursue funding from the federal government is being requested.
AFP is the term used by the Province of Ontario for Public-Private-Partnerships (P3). AFP is not a funding source, but rather a project procurement and delivery model, designed to provide better cost, quality and scheduling results for complex infrastructure projects. The recommended approach involves a 30-year operations and maintenance concession period, adding significantly to the amount of the contract. It does not involve the transfer of ownership or sale of the highway, nor the rights to any future tolling or other highway related revenues. It is also important to note that the operations and maintenance component for the Gardiner is currently largely contracted out.
The basis for the recommended procurement approach is an analysis that concludes that the City can save at least 16% or an estimated $500 million over the life of a 30 year rehabilitation and maintenance contract as compared to the costs that would be expected under a traditional procurement. In addition, the proposed procurement process is expected to lead to a further significant compression of the construction period, plus add value in terms of maintenance quality and asset durability.
The Revised Strategic Plan for the Rehabilitation of the F.G. Gardiner Expressway is a complex infrastructure project. The Plan addresses the rehabilitation needs of the Expressway, extending from Highway 427 to the eastern limit at Logan Avenue, including the "at-grade" and "elevated" sections identified in the Strategic Rehabilitation Plan approved by City Council in April 2014; and incorporates the change of scope for the rehabilitation of the elevated section of the Expressway east of Jarvis Street, based on the future outcome of the Gardiner Expressway and Lake Shore Boulevard East Reconfiguration Environmental Assessment.
In adopting the Strategic Rehabilitation Plan in April 2014, Council approved an Accelerated Bridge Construction approach, using pre-fabricated segments, for rehabilitation of the elevated section of the Expressway. This approach requires a higher upfront capital investment, however it reduces the overall construction related traffic restrictions from 20 years to 12 years, representing a significant reduction in associated traffic impacts, and road user costs. Furthermore, the use of pre-fabricated sections provides for a higher quality structure with a longer service life, and lower annual maintenance costs. Based on feedback received from the industry, the implementation of the Plan could be further accelerated by up to 6 years by using Alternative Financing and Procurement approach. In addition, the use of this procurement approach pre-qualifies the project for Federal funding of up to one third of the eligible costs through the P3 Canada Fund and New Building Canada Fund, subject to the submission of successful business case applications.
Regardless of the method of project delivery that is chosen, the F.G. Gardiner Expressway will continue to be publicly owned, and the City will continue to ensure that the Expressway is maintained in a safe and operable condition.
Background Information
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-83714.pdf
(September 21, 2015) Presentation from the Executive Director, Engineering and Construction Services, and the Director, Corporate Finance on F.G. Gardiner Expressway Strategic Rehabilitation Plan Procurement Strategy
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-84008.pdf
Speakers
Councillor Pam McConnell
Motions
That City Council take the position that both the Don Valley Parkway and the F.G. Gardiner Expressway are not appropriately city roads and should be King's Highways similar to the existing 400 series highway system.
Vote (Amend Item (Additional)) Sep-21-2015
| Result: Lost | Majority Required |
|---|---|
| Total members that voted Yes: 6 | Members that voted Yes are Ana Bailão, Michelle Berardinetti, Denzil Minnan-Wong, Cesar Palacio, James Pasternak, Jaye Robinson |
| Total members that voted No: 7 | Members that voted No are Paul Ainslie, Gary Crawford, Frank Di Giorgio, Mary-Margaret McMahon, David Shiner, Michael Thompson, John Tory (Chair) |
| Total members that were Absent: 0 | Members that were absent are |
Vote (Adopt Item) Sep-21-2015
| Result: Carried | Majority Required |
|---|---|
| Total members that voted Yes: 13 | Members that voted Yes are Paul Ainslie, Ana Bailão, Michelle Berardinetti, Gary Crawford, Frank Di Giorgio, Mary-Margaret McMahon, Denzil Minnan-Wong, Cesar Palacio, James Pasternak, Jaye Robinson, David Shiner, Michael Thompson, John Tory (Chair) |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 0 | Members that were absent are |