Item - 2021.IE26.1

The Infrastructure and Environment Committee:

1. In accordance with Section 71-11.1.C of the City of Toronto Municipal Code Chapter 71 (Financial Control), authorized an amendment to Purchase Order Number 6050693 with Ecosystem Energy for the Comprehensive Energy Retrofit Project at Emergency Services Headquarters in the  amount of $841,345 net of all taxes and charges  ($856,153 net of Harmonized Sales Tax recoveries),  revising the current purchase order value from $5,772,800 net of all taxes and charges ($5,874,401 net of Harmonized Sales Tax recoveries) to $6,614,145 net of all taxes and charges ($6,730,554 net of Harmonized Sales Tax recoveries).and to extend the Purchase Order delivery date to December 31, 2024.

The purpose of this report is to request authority to amend Purchase Order Number 6050693 issued to Ecosystem Energy, as a result of Request for Proposal Number 9118-19-5058 for a Comprehensive Energy Retrofit Project at Emergency Services Headquarters, 4330 Dufferin Street Toronto.

The Purchase Order Amendment is required due to unanticipated COVID-19 related cost increases, mainly due to increase in the price of steel and other equipment. In addition, the purchase order delivery date also needs to be amended to December 31, 2024 to account for the two years of Monitoring and Verification and Training work that will occur post-construction. This project is funded by the City's Sustainable Energy Plan Financing program, and the overall increased purchase order amount will still meet the Sustainable Energy Plan Financing requirements of a positive NPV and payback under 20 years.

The total value of the Purchase Order amendment being requested is $841,345 net of all taxes and charges ($856,153 net of Harmonized Sales Tax recoveries), revising the current purchase order value from $5,772,800 ($5,874,401 net of Harmonized Sales Tax recoveries) to $6,614,145 net of all taxes and charges ($6,730,554 net of Harmonized Sales Tax recoveries).