Item - 2022.GL28.3

The General Government and Licensing Committee:

1. In accordance with Section 71-11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control), authorized an amendment to Purchase Order Number 6052242 issued to Century Group Inc. for the construction of the new Fleet Maintenance Garage located at 1050 Ellesmere Road, in the amount of $14,563,929 net of all taxes ($14,820,254 net of Harmonized Sales Tax recoveries), revising the current purchase order value from $34,643,115 net of all taxes ($35,252,834 net of Harmonized Sales Tax recoveries) to $49,207,044 net of all taxes ($50,073,088 net of Harmonized Sales Tax  recoveries), to account for additional scope requirements to install a crash barrier, and for COVID-19 related supply chain issues and volatile material cost increases.

This report is seeking authority for the Executive Director, Corporate Real Estate Management to amend Purchase Order Number 6052242 issued to Century Group Inc. for the construction of the new Fleet Maintenance Garage located at 1050 Ellesmere Road (the "Project").

As a result of the authorities that have jurisdiction for the Ontario Line and City Planning requirements, $2,500,000 net of all taxes ($2,544,000 net of Harmonized Sales Tax recoveries) is needed to install a crash barrier between the property and the adjacent rail line. An additional $10,063,929 ($10,241,054 net of Harmonized Sales Tax recoveries) is needed due to COVID-19 related supply chain issues and cost increases, including volatile increases in the price of metals, steel and other materials. To account for future expected increases in material costs, a $2,000,000 (2,035,200 net of Harmonized Sales Tax recoveries) increase to the Project contingency budget is also being requested through this amendment.

The total value of the requested amendment is $14,563,929 net of all taxes ($14,820,254 net of Harmonized Sales Tax recoveries), revising the current purchase order value from $34,643,115 net of all taxes ($35,252,834 net of Harmonized Sales Tax recoveries) to $49,207,044 net of all taxes ($50,073,088 net of Harmonized Sales Tax recoveries).