Item - 2016.EX20.12

The Executive Committee recommends that:

1.  City Council authorize the Chief Corporate Officer, in consultation with the City Solicitor, to negotiate a scope of work and enter into a non-competitive agreement with Ontario Infrastructure and Lands Corporation (IO), subject to the following conditions:

a.  that the term of the agreement be from January 1, 2017 to June 30, 2018;

b.  that the services as set out in Attachment 1 to the report (November 17, 2016) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer be performed within the timeframe set out in Recommendation 1a above;

c.  that the total cost of the services from January 1, 2017 to June 30, 2018 not exceed $1.65 million (net of HST Recoveries); and

d.  that the agreement be on terms and conditions satisfactory to the Chief Corporate Officer and in a form satisfactory to the City Solicitor.

2.  City Council authorize the Chief Corporate Officer, in consultation with the City Solicitor, to negotiate a scope of work and enter into a non-competitive agreement with Prism Partners Inc. as the Owner's Representative subject to the following conditions:

a.  that the term of the agreement be from January 1, 2017 to June 30, 2018;

b.  that the services as set out in Attachment 2 to the report (November 17, 2016) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer, be performed within the timeframe set out in 2a above;

c.  that the total cost of the services from January 1, 2017 to June 30, 2018 not exceed $561,600 (net of HST Recoveries); and

d.  that the agreement be on terms and conditions satisfactory to the Chief Corporate Officer and in a form satisfactory to the City Solicitor.

3.  City Council authorize the Chief Corporate Officer, in consultation with the City Solicitor, to negotiate a scope of work and enter into a non-competitive agreement with Montgomery Sisam Architects Inc. as Planning, Design and Compliance (PDC) Consultants subject to the following conditions:

a.  that the term of the agreement be from January 1, 2017 to June 30, 2018;

b.  that the services as set out in Attachment 3 to the report (November 17, 2016) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer be performed within the timeframe indicated in 3a above;

c.  that the total cost of the services from January 1, 2017 to June 30, 2018 not exceed $3,103,308 (net of HST Recoveries); and

d.  that the agreement be on terms and conditions satisfactory to the Chief Corporate Officer and in a form satisfactory to the City Solicitor.

4.  City Council direct the Deputy City Manager, Cluster A, and the Deputy City Manager and Chief Financial Officer to report back by the second quarter of 2018 to Executive Committee and Council with a status update.

On July 12, 2016 City Council adopted "George Street Revitalization:  Recommended Procurement and Delivery Strategy" (EX16.13).  Through that report, Council authorized staff to proceed with an Alternative Financing and Procurement (AFP) model for the implementation of the George Street Revitalization (GSR) project using a Design-Build-Finance (DBF) approach.  Council referred the project to the 2017 Capital Budget process.  Council also authorized staff to initiate negotiations towards an agreement with Infrastructure Ontario (IO) as commercial procurement lead and directed staff to report back by December 2016 with a status update.

Staff propose that the GSR project proceed in two phases:  (1) an initial 18-month period (January 1, 2017 to June 30, 2018) during which IO conducts a due diligence review of work completed to date and ensures that the project is AFP-ready, while the two current prime consultants develop the Project Specific Output Specifications (PSOS) with IO's support, and (2) a subsequent implementation and construction phase subject to Council approval of funding and successful negotiations with IO as the procurement lead.  Negotiations with IO for phase two would occur during the first phase.  Staff will report back to Council by the spring of 2018 with recommendations for the second phase.

This report addresses recommendations regarding the proposed first phase, seeking Council authority to enter into three short-term non-competitive agreements.  The contracted firms would be:  IO as AFP advisors, Prism Partners Inc. as Owner's Representative and Montgomery Sisam Architects Inc. as Planning, Design and Compliance (PDC) Consultants.  Staff will continue to negotiate the three scopes of services outlined in this report. Funds for the three contracts total a maximum of $5,314,908 (net of HST Recoveries): $3,543,272 required in 2017 and $1,771,636 required in 2018.  Funds are available in the Shelter, Support and Housing Administration (SSHA) Capital Budget.  City Finance staff are reporting to the December 2016 meeting of City Council on the Interim Capital Estimates for 2017 and include the amount required for the three contracts.