Item - 2022.GL29.15

The General Government and Licensing Committee recommend that:

1. City Council authorize the re-assignment of the delivery of the new Etobicoke Civic Centre project from CreateTO to Corporate Real Estate Management and authorize the Executive Director, Corporate Real Estate Management to enter into the following contracts for the remaining balance amounts, on terms and conditions satisfactory to the Executive Director, Corporate Real Estate Management and in a form satisfactory to the City Solicitor:

a. Adamson Associates Architects, Henning Larsen Architects and PMA Landscape Architects in the amount of $14,000,000, net of all taxes ($14,246,400 net of Harmonized Sales Tax Recoveries);

b. Finnegan Marshall Incorporated in the amount of $42,746, net of all taxes ($43,498 net of Harmonized Sales Tax Recoveries); and

c. Mills & Mills Consulting Services in the amount of $47,053, net of all taxes ($47,881 net of Harmonized Sales Tax Recoveries).

2. City Council authorize the Executive Director, Corporate Real Estate Management, to enter into an agreement valued at $6,636,600 net of all taxes ($6,753,404 net of Harmonized Sales Tax Recoveries) with Enwave Energy Corporation in order to facilitate the design of a district energy plant, as well as the design and construction of the below grade geothermal boreholes needed to service the Etobicoke Civic Centre Precinct, based on the major terms outlined in Attachment 1 to the report (March 8, 2022) from the Executive Director, Corporate Real Estate Management and the Chief Procurement Officer, Purchasing and Materials Management, as may be satisfactory to the Deputy City Manager, Corporate Services.

The purpose of this report is to seek authority from City Council to re-assign ownership of the delivery of the new Etobicoke Civic Centre project (the Project), including all relevant consulting service agreements from CreateTO to Corporate Real Estate Management. The Project has been under the leadership of CreateTO, the City agency established by the City to manage its real estate portfolio within the new City-wide real estate service delivery model, in conjunction with Corporate Real Estate Management.

In 2017, CreateTO was granted authority by City Council to award the design consulting contract for the new Etobicoke Civic Centre to Adamson Associates Architects, Henning Larsen Architects and PMA Landscape Architects (Adamsons), as well as several other project contracts, including the cost consultant Finnegan Marshall Incorporated and the Indigenous recruitment consultant for public art Mills & Mills Consulting Services. As the Project transitions under management of Corporate Real Estate Management, these contracts, valued collectively at $14,089,799 net of all taxes, will need to be re-assigned from CreateTO to Corporate Real Estate Management.

The Project includes the construction of a low-carbon geothermal district energy plant within the below grade structure of the building, which will provide heating and cooling to the new Etobicoke Civic Centre Precinct. In order to progress with the necessary construction documents of the district energy plant, and as this work is re-assigned from CreateTO to Corporate Real Estate Management, a letter of guarantee valued at $6,636,600 net of all taxes is required to be executed with Enwave Energy Corporation ("Enwave").

The re-assignment of the Project and its corresponding agreements from CreateTO to Corporate Real Estate Management is part of the agreed upon project plan between CreateTO and Corporate Real Estate Management to ensure continuation of the Project.  Funding is included in the Council approved 2022-2031 Capital Budget for Corporate Real Estate Management. The re-assignment will not result in an increase in the overall approved budget and will have no financial impact on the project.