Item - 2022.EC27.9

The Economic and Community Development Committee:

1.  In accordance with Section 195-8.4A(4) of City of Toronto Municipal Code Chapter 195, Purchasing, authorized the General Manager, Shelter, Support and Housing Administration to enter into and execute an agreement with the successful proponent below who has satisfied all requirements set out in Request for Proposal Document Number 3002340572 for the provision of short-term accommodations for shelter clients through the use of hotel/motel services for operated shelters, on terms and conditions set out in the Request for Proposal and satisfactory to the General Manager, Shelter, Support and Housing Administration and in a form satisfactory to the City Solicitor, as follows:

a.  Silver Hotel Management Inc. for an initial term of one year from the date of award in the amount of $11,000,000 excluding all taxes ($11,193,600 net of Harmonized Sales Tax recoveries), with the option to renew for four separate additional one-year periods in the amount of $11,000,000 each excluding all taxes ($11,193,600 net of Harmonized Sales Tax recoveries), for a total potential contract value of $55,000,000 excluding all taxes ($55,968,000 net of Harmonized Sales Tax recoveries).

2.  Requested the General Manager, Shelter, Support and Housing Administration and the Chief Procurement Officer to report back to the March 24, 2022 meeting of the Economic and Community Development Committee, prior to the award of the contract to New Lido Inc., on how to address cleanliness, security and safety of the property and proposed improvements before entering into an agreement with New Lido Inc.

3.  Requested the General Manager, Shelter, Support and Housing Administration to review and report back on amendments to Section 11.3, Facilities Management of the Toronto Shelter Standards, as needed, to be applicable to shelter hotel and motel settings and to ensure that such standards be included in all future Requests for Proposals issued for short-term shelter accommodations by the City of Toronto.

The purpose of this report is to advise of the results of Request for Proposal (RFP) Document Number 3002340572 for the provision of short-term accommodations for shelter clients through the use of hotel, motel and/or approved equivalent operator services for operating shelters and to request authority for the General Manager of Shelter, Support and Housing Administration to enter into and execute separate contracts with New Lido Inc. and Silver Hotel Management Inc. for a period of one (1) year from the date of award with the option to renew contracts for four (4) separate additional one (1) year periods. Should the option(s) be exercised, then the General Manager of Shelter, Support and Housing Administration will request the Chief Procurement Officer to process the renewals under the same terms and conditions.

The total potential contract award, including all option years, is up to $60,000,000 excluding all taxes and $67,800,000 including all applicable taxes. The total potential cost to the City is $61,056,000 net of HST recoveries.