Item - 2015.GM5.19
Tracking Status
- City Council adopted this item on July 7, 2015 without amendments.
- This item was considered by Government Management Committee on June 15, 2015 and was adopted with amendments. It will be considered by City Council on July 7, 2015.
GM5.19 - Union Station Revitalization Project - Status Update
- Decision Type:
- ACTION
- Status:
- Adopted
- Ward:
- 28 - Toronto Centre-Rosedale
City Council Decision
City Council on July 7, 8 and 9, 2015, adopted the following:
1. City Council increase the Facilities Management and Real Estate 2015 – 2024 Capital Budget for the Union Station Revitalization project in the amount of $4.3 million, with funding outlined in the financial impact section of the report from the Chief Corporate Officer and the Director, Purchasing and Materials Management.
2. City Council award a contract for Tender Call No. 75-2015 for the Union Station Revitalization Project Stages 2 and 3 to Bondfield Construction Company Limited in the amount of $178,542,180 net of HST, including all allowances, contingencies and charges, being the lowest compliant bid in conformance with the Tender requirements.
3. City Council direct that the design costing for the completion of the Northwest PATH be undertaken and that the Chief Corporate Officer report during the 2018 budget process.
4. City Council authorize the Chief Corporate Officer to continue negotiations with Metrolinx on funding options for the Northwest PATH connection and to defer completion of phase 2 of this scope of work until appropriate funding is obtained.
5. City Council direct staff to seek alternate funding sources and cost recoveries for the Union Station Revitalization Project, inclusive of further divestitures and strata sales, lease agreements, and funding contributions from other levels of government and report to City Council to adjust the funding sources for the project accordingly should any funding become available.
6. City Council authorize the Chief Corporate Officer and the City Solicitor to execute an amendment to the following retainer (excluding all recoverable HST), in accordance with the details as specified below:
a. Osler, Hoskin & Harcourt LLP in the additional amount of up to $6,800,000 (net of all applicable taxes), revising the current contract value to $8,300,000 (net of all applicable taxes) to continue to provide construction law support and litigation services and other related consulting expertise through the construction duration, including representing the City with respect to project claims.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2015/gm/bgrd/backgroundfile-81488.pdf
(June 1, 2015) Report from Chief Corporate Officer on Union Station Revitalization Project - Status Update - Notice of Pending Report
https://www.toronto.ca/legdocs/mmis/2015/gm/bgrd/backgroundfile-81489.pdf
Communications (City Council)
https://www.toronto.ca/legdocs/mmis/2015/cc/comm/communicationfile-53916.pdf
Motions (City Council)
Vote (Adopt Item) Jul-08-2015 9:54 AM
| Result: Carried | Majority Required - GM5.19 - Adopt the item |
|---|---|
| Total members that voted Yes: 30 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Raymond Cho, Gary Crawford, Joe Cressy, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Stephen Holyday, Jim Karygiannis, Norman Kelly, Chin Lee, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, David Shiner, Kristyn Wong-Tam |
| Total members that voted No: 2 | Members that voted No are Rob Ford, Ron Moeser |
| Total members that were Absent: 13 | Members that were absent are Michelle Berardinetti, Josh Colle, Justin J. Di Ciano, Frank Di Giorgio, John Filion, Mark Grimes, Mike Layton, Giorgio Mammoliti, Josh Matlow, Anthony Perruzza, Jaye Robinson, Michael Thompson, John Tory |
GM5.19 - Union Station Revitalization Project - Status Update
- Decision Type:
- ACTION
- Status:
- Amended
- Ward:
- 28 - Toronto Centre-Rosedale
Committee Recommendations
The Government Management Committee recommends that:
1. City Council approve an increase in the Facilities Management and Real Estate 2015 – 2024 Capital Budget for the Union Station Revitalization project in the amount of $4.3 million, with funding outlined in the financial impact section of the report from the Chief Corporate Officer and the Director, Purchasing and Materials Management.
2. City Council grant authority to award a contract for Tender Call No. 75-2015 for the Union Station Revitalization Project Stages 2 and 3 to Bondfield Construction Company Limited in the amount of $178,542,180 net of HST, including all allowances, contingencies and charges, being the lowest compliant bid in conformance with the Tender requirements.
3. City Council direct that the design costing for the completion of the Northwest PATH be undertaken and that the Chief Corporate Officer report during the 2018 budget process.
4. City Council authorize the Chief Corporate Officer to continue negotiations with Metrolinx on funding options for the Northwest PATH connection and to defer completion of phase 2 of this scope of work until appropriate funding is obtained.
5. City Council direct staff to seek alternate funding sources and cost recoveries for the Union Station Revitalization Project, inclusive of further divestitures and strata sales, lease agreements, and funding contributions from other levels of government and report to City Council to adjust the funding sources for the project accordingly should any funding become available.
6. City Council authorize the Chief Corporate Officer and the City Solicitor to execute an amendment to the following retainer (excluding all recoverable HST), in accordance with the details as specified below:
a. Osler, Hoskin & Harcourt LLP in the additional amount of up to $6,800,000 (net of all applicable taxes), revising the current contract value to $8,300,000 (net of all applicable taxes) to continue to provide construction law support and litigation services and other related consulting expertise through the construction duration, including representing the City with respect to project claims.
Origin
Summary
The purpose of the report is to advise on the status of the City of Toronto's Union Station Revitalization Project, recommend a revision to the capital budget and funding necessary to complete the renovation / restoration, and to recommend the award of Tender 75-2015 to Bondfield Construction Company Limited.
When the project was approved the initial budget of $640.2 million was based on an overall design completion of 20-30%. The current budget of $796.4 million includes updated cost estimates and scope changes realized since the initial budget was approved. The results of tendering Stage 2 and 3 of the Union Station project, combined with the latest estimates to complete Stage 1 require additional net funding of $20 to $23 million ($59 million gross, excluding the potential cost of claims) to complete the Union Station Revitalization Project, after the recommended deferral of phase 2 of the NW PATH extension. The revised project cost is now $800.7 million, net of proposed offsets.
With respect to budget and financing, the Federal Government has stated that it will not provide additional grant funding and discussions with Metrolinx and the Province are continuing. However, the Province has not committed additional funding for increases identified for the NW PATH or general construction of the Revitalization project.
The City has not accepted legal responsibility for certain construction claims filed by the contractor and its subcontractors. Claims in a project of this size require careful legal and technical analysis to protect the City's interests. The cost of claims are not known at this time and are therefore not included in this report.
The Union Station Revitalization Project is now scheduled for substantial completion in 2017. Union Station is by far the largest and busiest transportation hub in the country handling 65 million passengers per year which is expected to grow to 130 million passengers per year by 2031. There are a number of projects in and surrounding the Station, including UP Express Terminal and GO Transit train shed, with re-investment and re-vitalization by all levels of government and organizations estimated at over $1.5 billion. These transit projects are an investment in the City's infrastructure that will promote transit oriented growth in the long term.
As the project has progressed, it is becoming evident that the Station will also act as a commercial retail hub and a destination for culture, entertainment and dining experiences, and will connect the community to the south currently under significant development.
Background Information
https://www.toronto.ca/legdocs/mmis/2015/gm/bgrd/backgroundfile-81488.pdf
(June 1, 2015) Report from Chief Corporate Officer on Union Station Revitalization Project - Status Update - Notice of Pending Report
https://www.toronto.ca/legdocs/mmis/2015/gm/bgrd/backgroundfile-81489.pdf
Motions
That City Council direct that the design costing for the completion of the Northwest PATH be undertaken and that the Chief Corporate Officer report during the 2018 budget process.
That Recommendation 4 be amended by deleting the words ""further divestitures and strata sales" so that it now reads:
4. City Council direct staff to seek alternate funding sources and cost recoveries for the Union Station Revitalization Project, inclusive of lease agreements, and funding contributions from other levels of government and report to City Council to adjust the funding sources for the project accordingly should any funding become available.