Item - 2019.GL1.3

The General Government and Licensing Committee recommends that:

1.  City Council receive the report (December 27, 2018) from the Interim General Manager, Facilities Management, and the Chief Purchasing Officer for information.

This report advises City Council, pursuant to Chapter 195 of the Toronto Municipal Code (Purchasing By-law, Section 195-7.4), of the non-competitive contract with Steelcore Construction Limited to procure emergency construction services for the completion of shelter infrastructure.

Facilities Management is managing a project to convert a former motel at 3306 Kingston Road into a fully functional shelter for Shelter Support and Housing Administration program requirements. For this purpose, award of Tender Call Number 276-2017 was made to Steelcore Construction Limited on January 17, 2018. During renovations, it was determined that the site required extensive remedial work due to site conditions that could not have been foreseen prior to purchase. The unforeseen remedial work significantly increased the scope of the project, requiring the addition of contract value.

To accommodate this unforeseen increase in scope, an emergency non-competitive contract was issued to the general contractor (Steelcore Construction Limited, Purchase Order 6048109) on November 28, 2018 in the amount of $3,250,000 ($3,307,200 net of Harmonized Sales Tax recoveries).

The issuance of a contract to complete planned renovation work and unforeseen remedial work was deemed a matter of extreme urgency necessary to address an immediate risk to the health, safety, and security of the City's residents. Once work is complete, the building will accommodate 95 residents, including 60 elderly individuals currently residing at Birchmount Residence at 1673 Kingston Road.

The Kingston Road property is planned for redevelopment. The City cannot extend the lease for Birchmount Residence and is required to vacate the site by the end of February 2019.