Item - 2023.EX10.19

The Executive Committee recommends that:

1. City Council authorize staff to proceed with Phase Four of the Major Capital Project Approval Process - Construction Award related to the new Etobicoke Civic Centre project as outlined in Attachment 2 to the report (November 21, 2023) from the Acting Executive Director, Corporate Real Estate Management and the Chief Procurement Officer.

2. City Council authorize Chief Procurement Officer to award negotiated Request for Proposal (nRFP) No.: Doc3768637145, for the delivery of General Contracting Services for the new Etobicoke Civic Centre project to Multiplex Construction Canada Limited ("Multiplex"), in the amounts outlined in Confidential Attachments 1 and 2 to the report (November 21, 2023) from the Acting Executive Director, Corporate Real Estate Management and the Chief Procurement Officer and including the major terms and conditions outlined in Confidential Attachment 2 to the report (November 21, 2023) from the Acting Executive Director, Corporate Real Estate Management and the Chief Procurement Officer, and such other or amended terms and conditions satisfactory to the Executive Director, Corporate Real Estate Management, and in a form satisfactory to the City Solicitor.

3. City Council authorize the Executive Director, Corporate Real Estate Management to negotiate, approve and execute, on behalf of the City any agreements, including amendments, with Multiplex, including the major terms and conditions outlined in Confidential Attachment 2 to the report (November 21, 2023) from the Acting Executive Director, Corporate Real Estate Management and the Chief Procurement Officer, funded through the approved project cost for the Etobicoke Civic Centre project subject to the annual budget process, and such other or amended terms and conditions satisfactory to the Executive Director, Corporate Real Estate Management, and in a form satisfactory to the City Solicitor. 

4. City Council, in accordance with Section 71- 11.C of the City of Toronto Municipal Code Chapter 71, Financial Control By-law, authorize the amendment of Purchase Order Number 6053353 issued to Adamson Associates Architects, increasing the current purchase order value by $5,734,074.50 plus Harmonized Sales Tax ($5,834,994 net of Harmonized Sales Tax recoveries), revising the current Purchase Order value from $14,500,000 plus Harmonized Sales Tax ($14,755,200 net of Harmonized Sales Tax recoveries) to $20,234,074 plus Harmonized Sales Tax ($20,590,194 net of Harmonized Sales Tax recoveries) funded through the approved project cost for the Etobicoke Civic Centre project for continued services tied to the construction phase, enhanced site representation and office fit-up and furniture design for the new Etobicoke Civic Centre project based on terms satisfactory to the Executive Director, Corporate Real Estate Management.

5. City Council authorize the public release of Confidential Attachment 1 to the report (November 21, 2023) from the Acting Executive Director, Corporate Real Estate Management and the Chief Procurement Officer, once adopted by City Council.

6. City Council direct that Confidential Attachment 2 to the report (November 21, 2023) from the Acting Executive Director, Corporate Real Estate Management and the Chief Procurement Officer remain confidential in its entirety, as it contains confidential financial information and confidential outcomes of negotiation strategies.

This report represents over three decades of City planning and development work, and brings together several City Council adopted strategies, including the HousingTO Action Plan, TransformTO Net-Zero Strategy, and the Office Optimization Plan. The report seeks City Council authority to proceed with Phase Four of the Major Capital Project Approval process, Construction Award and in doing so, to award the negotiated Request for Proposal No. Doc3768637145, "General Contracting Services for the New Etobicoke Civic Centre", to proceed with the Six Points development within Etobicoke Centre. The total value of the contract award is described in detail in Confidential Attachment 1, and including the major terms and conditions outlined in Confidential Attachment 2. The construction of the new Etobicoke Civic Centre ("new ECC") includes community infrastructure such as a recreation centre, library, childcare centre, community spaces and a public square and supports a development that includes urgently needed housing in the city and aligns with the recently adopted report, 2023.EX.9.3 "Generational Transformation of Toronto’s Housing System to Urgently Build More Affordable Homes".

Within Etobicoke Centre sits the Bloor-Kipling Area ("Six Points") that includes the former Westwood Theatre Lands. To date, the City has invested $77 million to reconfigure the Six Points interchange, and to prepare Six Points to be a complete community.  Aligned with City Council adopted strategic initiatives and priorities, Six Points is designed to be a complete community that focuses on housing, is transit-oriented, and planned to be a near net-zero community. Six Points will contribute approximately 2,700 residential units, with Block 1 of the development to commence construction in the first quarter of 2024; occupancy is planned for 2027. The new ECC is to be the anchor and heart of Six Points, and its construction will bring critical community services to enable the creation of a complete community.

Further, the construction of the new ECC enables the City Council adopted Office Optimization Plan ("the Plan"), that drives cost savings through the efficient use of municipal office spaces. A key principle of the Plan is higher mobility ratios that allow more staff to work in a smaller office footprint, freeing up underutilized City assets, and reducing the use of office leases overall. The new ECC will have an average mobility ratio of 1-1.7, meaning, on average, 10 workstations will be available for every 17 employees, and is in alignment with the City's Hybrid Work Policy. Ultimately, the Plan will allow for the consolidation of over 4,600 staff across 40 locations into five modernized primary office facilities (one of which is the new ECC). This will result in $30 million in annual savings, with the new ECC being a critical enabler of this Plan.

In addition, the report seeks City Council authority to increase Purchase Order No. 6053353 for prime consultant Adamson Associate Architects (Adamson) to perform construction contract oversight services associated with the construction of the new ECC. The total Purchase Order amendment being requested is $5,734,074.50 + H.S.T. ($5,834,994 net of H.S.T. recoveries), revising the current Purchase Order value from $14,500,000 + H.S.T. ($14,755,200 net of H.S.T. recoveries) to $20,234,074.50 + H.S.T. ($20,590,194 net of H.S.T. recoveries).