Item - 2019.GL4.7

The General Government and Licensing Committee recommends that:

1.  City Council amend the 2019-2028 Approved Facilities, Real Estate, and Environment and Energy Capital Budget and Plan by increasing the total project cost of the St. Lawrence Market North Redevelopment (CCA193-01) by $13.959 million and committed cash flows of $13.959 million gross and debt ($7 million in 2020, $6 million in 2021, and $0.959 million in 2022), through the reallocation of project costs and cash flows from the following projects:

a.  60 Queen Street West - Replace windows (CCA251-07): $8.450 million;

b.  246 The Esplanade - Parking garage rehabilitation: $2.662 million;

c.  3 Dohme Avenue - Pavement replacement: $1.600 million; and

d.  Various State of Good Repair work on mechanical and electrical in 2019: $1.247 million.

2.  City Council amend the 2019-2028 Approved Facilities, Real Estate, and Environment and Energy Capital Budget and Plan by converting future-year estimates and approving total project costs and cash flow commitments for the following projects:

a.  246 The Esplanade - Parking garage rehabilitation with total project costs of $2.662 million and cash flow commitments of $0.073 million in 2020 and $2.589 million in 2021, fully funded by debt; and

b.  3 Dohme Avenue - Pavement replacement with total project costs of $1.600 million and cash flow commitments of $0.100 million in 2020 and $1.500 million in 2021, fully funded by debt.

3.  City Council authorize any unspent funding to be utilized on State of Good Repair projects at the end of the St. Lawrence Market North Redevelopment.

4.   City Council award a contract for Tender Call Number 319-2018 for the construction of the new St. Lawrence Market North Building to The Buttcon Limited/The Atlas Corporation in the amount of $91,800,000 net of all taxes ($93,415,680 net of Harmonized Sales Tax recoveries), including all allowances, contingencies, and charges, being the lowest compliant bid in conformance with the Tender requirements.

5.  City Council grant authority to amend Purchase Order Number 6034062 issued to Adamson Associates Architects by an additional amount of $560,142 net of all taxes and charges ($570,000 net of Harmonized Sales Tax recoveries), revising the current Purchase Order value from $5,260,000 to $5,820,142 net of all taxes and charges ($5,922,576 net of Harmonized Sales Tax recoveries), for ongoing contract administration services and expertise for the duration of the construction project.

The General Government and Licensing Committee:

1.  Requested the Interim General Manager, Facilities Management, and the Chief Purchasing Officer to ensure that any future reports seeking additional increased funding for the St. Lawrence Market North Redevelopment include cost-saving strategies.

The purpose of the report is to provide an update on the status of the City of Toronto's St. Lawrence Market North Redevelopment Project and request that City Council approve an increase in the total project cost in the amount of $13.959 million, increasing the total project budget to $116.302 million. These additional costs stem from rescinding the previous construction tender, re-tendering the project, and market conditions over the past year that have significantly increased the cost of construction.

This report further advises on the results of Tender Call Number 319-2018 and to request authority to award a contract to the recommended bidder, The Buttcon Limited/The Atlas Corporation Joint Venture, in the amount of $91,800,000 net of all taxes and charges ($93,415,680 net of Harmonized Sales Tax recoveries) for the supply of all materials, equipment, labour, and supervision necessary for the construction of the new St. Lawrence Market North Building. 

The report also requests that City Council grant authority to amend Purchase Order Number 6034062 issued to Adamson Associates Architects for an additional amount of $560,142 net of all taxes and charges, revising the current Purchase Order value from $5,260,000 to $5,820,142 net of all taxes and charges ($5,922,576 net of Harmonized Sales Tax recoveries), for ongoing contract administration services and expertise. Adamson Associates Architects were required to assist in the updating of the contract documentation in order to facilitate the re-tendering of the project and, as a result, the remaining value of the contract was used to complete that task. The requested amendment will restore sufficient value to the contract to ensure that contract administration services are available for the duration of the construction project.

Approval of the requested budget amendment and the award of the contract will allow construction to begin in the third quarter of 2019, with the Market expected to be completed and operational in 2022. Once complete, the new Market will transform the historical site into a modern public space that will service both residents and visitors alike.