Item - 2019.EX6.17

The Executive Committee recommends that:

1.  City Council authorize an in-year budget adjustment to the 2019 Capital Budget for Toronto Fire Services to increase the project cost for the Station B - Downsview (CFR091-01) project by $0.800 million, increasing the project cost from $10.885 million to $11.685 million, funded by the Development Charge Reserve Fund (XR2118).

2.  City Council authorize an amendment to the budgeted cash flows for the completion of the fire station to reflect the following requirements: 2019 - $0.905 million, 2020 - $5.435 million, 2021 - $1.051 million, and 2022 - $0.020 million.

On November 30, 2018, the City of Toronto's Purchasing and Materials Management Division issued tender number 286-2018 on behalf of Facilities Management and Toronto Fire Services for the construction of a new fire station, located at 2945 Keele Street, Toronto (Station B - Downsview). The tender closed on January 15, 2019. Purchasing and Materials Management Division received five bid submissions. The lowest compliant bid, received from MJ Dixon Construction Limited, totalled $7.208 million, net of HST recoveries.

The 2019 Approved Capital Budget for Toronto Fire Services includes the project cost of $10.885 million for Station B - Downsview, with $6.438 million available for construction. The Bid Panel Award report to recommend the award of this contract is pending the approval of this in-year budget adjustment.

In order to fund the shortfall in the 2019 Budget for the cost of construction determined through the competitive bid process, this report requests that City Council approve an in-year adjustment that will increase the project cost for Station B - Downsview (CFR091-01) by $0.800 million, increasing the project cost from $10.885 million to $11.685 million, and amend the 2019-2022 budgeted cash flows with additional funds provided by Development Charge Reserve Fund (XR2118). The additional funds are available in XR2118, and the increase complies with the funding policy included in the Development Reserve By-law.