Item - 2020.GL15.7

The General Government and Licensing Committee recommends that:

1. City Council authorize the Executive Director, Corporate Real Estate Management to negotiate and enter into a non-competitive Agreement with B+H Architects as Planning, Design and Conformance Consultants for a total cost of $7,505,027, net of Harmonized Sales Tax ($7,637,115, net of Harmonized Sales Tax recoveries) based on terms and conditions satisfactory to the Executive Director, Corporate Real Estate Management and in a form satisfactory to the City Solicitor.

2. City Council direct the Executive Director, Corporate Real Estate Management, to report back to the Executive Committee and City Council by the first quarter of 2021 on the updated project schedule for the George Street Revitalization Project.

On April 24, 2018, City Council authorized the Deputy City Manager, Corporate Services, to negotiate and enter into a Phase Two Project Agreement with the Planning, Design, and Conformance consultant for the George Street Revitalization Project. The agreement covers the alternative procurement process through the construction phases of the project. The agreement must be on terms and conditions satisfactory to the Deputy City Manager, Corporate Services, and in a form satisfactory to the City Solicitor.

After extensive negotiations, staff recommend that the City enter into a non-competitive Agreement with B+H Architects (B+H) in the amount of $7,505,027, net of Harmonized Sales Tax ($7,637,115, net of Harmonized Sales Tax recoveries) to act as Planning, Design, and Conformance consultant for Phase Two of the George Street Revitalization Project. A shared agreement on the scope work, satisfactory to the City's requirements and those of the Alternative Procurement and Financing model, could not be reached with the previous vendor. Additionally, B+H's experience in the development of the updated Project Specific Output Specification template in partnership with Infrastructure Ontario would better place B+H to deliver Phase Two of the George Street Revitalization project. This would also allow B+H to continue and expand upon their current due diligence role of Specification Writer, and present the City a cost avoidance savings of $2,622,789 (net of Harmonized Sales Tax). The savings are calculated based on the difference between the previously approved value of non-competitive Agreement with Montgomery Sisam Architects Inc. per EX33.4, at $10,127,816 (net of Harmonized Sales Tax), and the currently proposed amount of $7,505,027 (net of Harmonized Sales Tax).

City Council approval is required in accordance with Municipal Code Chapter 195- Purchasing, where the current request exceeds the Chief Purchasing Official's authority of the cumulative five year commitment for each vendor, under Article 7, Section 195-7.3 (D) of the Purchasing By-Law or exceeds the threshold of $500,000 net of HST allowed under staff authority as per the Toronto Municipal Code, Chapter 71- Financial Control, Section 71-11A.