Item - 2018.EX33.4

The Executive Committee recommends that:

1.  City Council authorize the Deputy City Manager, Internal Corporate Services, the Acting Deputy City Manager, Cluster A, and the Interim Chief Financial Officer to proceed with issuance of the Request for Qualification (RFQ) and Request for Proposal (RFP) for the implementation of the George Street Revitalization Project using an Alternative Financing and Procurement (AFP) approach and a Design-Build-Finance (DBF) model as approved by Council on July 12, 13, 14 and 15, 2016.

2.  City Council authorize the Deputy City Manager, Internal Corporate Services to negotiate and enter into a Phase Two Agreement with Infrastructure Ontario as Commercial Procurement Lead for the Alternative Financing and Procurement approach (Design-Build-Finance model) through to execution of the contract with the successful proponent and thereafter act as a Project Oversight Partner and Advisor during construction, at a total cost of $9.61 million (net of HST Recoveries), inclusive of $3.0 million for the procurement and management of Alternative Financing and Procurement advisors jointly retained by the City and Infrastructure Ontario, and $6.61 million for Infrastructure Ontario fees, based on the summary statement of services as set out in Attachment 1 to the report (April 3, 2018) from the Deputy City Manager, Internal Corporate Services, the Acting Deputy City Manager, Cluster A and the Interim Chief Financial Officer and performed within the timeframe of July 1, 2018 to December 31, 2024 and that the Agreement be on terms and conditions satisfactory to the Deputy City Manager, Internal Corporate Services and in a form satisfactory to the City Solicitor.

3.  City Council authorize the Deputy City Manager, Internal Corporate Services to negotiate and enter into a non-competitive Agreement with Montgomery Sisam Architects Inc. as Planning, Design and Compliance (PDC) Consultants for a total cost of $10,127,816 (net of HST Recoveries) from July 1, 2018 to December 31, 2024, based on the summary statement of services set out in Attachment 2 to the report (April 3, 2018) from the Deputy City Manager, Internal Corporate Services, the Acting Deputy City Manager, Cluster A and the Interim Chief Financial Officer, and based on terms and conditions satisfactory to the Deputy City Manager, Internal Corporate Services and in a form satisfactory to the City Solicitor.

4.  City Council authorize the Deputy City Manager, Internal Corporate Services to negotiate and enter into a non-competitive Agreement with PRISM Partners Inc. for Project Management Services during the procurement process for a total cost of $918,000 (net of HST Recoveries) from July 1, 2018 to June 30, 2020, based on the summary statement of services set out in Attachment 3 to the report (April 3, 2018) from the Deputy City Manager, Internal Corporate Services, the Acting Deputy City Manager, Cluster A and the Interim Chief Financial Officer, and based on terms and conditions satisfactory to the Deputy City Manager, Internal Corporate Services and in a form satisfactory to the City Solicitor.

5.  City Council direct the Deputy City Manager, Internal Corporate Services and the Acting Deputy City Manager, Cluster A to engage CreateTO as appropriate to provide Project Management Services during the construction phase, based on the summary statement of services set out in Attachment 4 to the report (April 3, 2018) from the Deputy City Manager, Internal Corporate Services, the Acting Deputy City Manager, Cluster A and the Interim Chief Financial Officer.

6.  City Council direct the Deputy City Manager, Internal Corporate Services, the Acting Deputy City Manager, Cluster A, and the Interim Chief Financial Officer to report back to Executive Committee and Council by the second quarter of 2020 on the results of the procurement process for the George Street Revitalization Project and to seek authority to award the contract to the successful proponent.

On December 13, 2016 City Council directed staff to report back by the second quarter of 2018 with a status update on the George Street Revitalization (GSR) Project.  Council also authorized the development of the Project Specific Output Specifications (PSOS) and the continuation of due diligence to ensure that the Project is ready for procurement.  Project funding was approved through the 2018-2027 Capital Budget and Plan.  Due diligence is proceeding well and negotiations are underway with Ontario Infrastructure and Lands Corporation, known as Infrastructure Ontario (IO).  Staff now seek authority to initiate the Alternative Financing and Procurement (AFP) approach using a Design-Build-Finance (DBF) model as previously approved by Council. 

In order to successfully deliver the Project, staff recommend a continuance of three non-competitive Agreements:  Infrastructure Ontario as Commercial Procurement Lead and as Advisor during construction, Montgomery Sisam Architects Inc. as Planning, Design and Compliance (PDC) Consultants, and PRISM Partners Inc. for the provision of Project Management Services during the procurement process. Staff further recommend engaging CreateTO as appropriate to provide Project Management Services during the construction phase.  The duration of the contracts with Infrastructure Ontario and Montgomery Sisam would be from July 1, 2018 to Project close-out which is estimated to be on or before December 31, 2024. The duration of the contract with PRISM would be from July 1, 2018 to the end of the procurement phase which is estimated to be on or before June 30, 2020.

Staff will report back to Council toward the end of the procurement phase of the Project, expected in the second quarter of 2020, seeking authority to award a fixed-price contract to the successful proponent.