Item - 2023.GG8.14

The General Government Committee submits item GG8.14 to City Council without recommendations, as no motions carried.

The purpose of this report is to seek City Council authority to enter into a non- competitive contract with N. Barry Lyons Consultants for professional services to conduct a land economics study of the economic viability and impacts on residential property values of multi-tenant houses. The study also seeks to assess the economic viability of other residential units and housing types in comparison to multi-tenant houses under the new multi-tenant houses policy and regulatory framework. The expected term of the contract is anticipated to be for a period of 16 weeks commencing from the date of award and would end on March 31, 2024, with a value $48,500 net of all taxes and charges ($49,354 net of Harmonized Sales Tax recoveries).

In October 2021 and December 2022, through items 2021.PH25.10 and 2023.CC2.1, City Council directed the Chief Planner and Executive Director, City Planning, the Executive Director, Municipal Licensing and Standards, the Executive Director, Housing Secretariat, the Chief Communications Officer, the Executive Director, Toronto Building, and the Fire Chief and General Manager, Toronto Fire Services to report to Planning and Housing Committee on various matters throughout the implementation period for the new multi-tenant houses Regulatory Framework.

This direction includes reporting to Council on the results of a land economics study related to multi-tenant housing permissions as introduced, including their economic viability and impacts on residential property values, and the economic viability of other residential units and housing types in comparison to multi-tenant houses. As part of the overall implementation reporting work, City Planning proposes to retain N. Barry Lyon Consulting to complete the Land Economics Study through a non-competitive fixed price contract with a value of $48,500 ($49,354 net of harmonized sales taxes).

The proposed non-competitive procurement will cause the cumulative value of contracts between City Planning and N. Barry Lyon Consulting to exceed the staff authority threshold, as discussed below.

The Chief Planner and Executive Director, City Planning, entered into a contract with N. Barry Lyon Consulting in 2018 to provide professional services in land economics research and analysis to evaluate the financial impacts of a range of inclusionary zoning requirements on the housing market in support of the City's Inclusionary Zoning framework. The final value of this contract was $491,307 ($499,954, net of Harmonized Sales Tax recoveries) and it was awarded through Purchase Order 6048042 resulting from non-competitive procurement number 9327, with subsequent amendments to address changing provincial legislative requirements and additional Council direction. That contract remains open with an unspent value of $95,214 relating to work that is currently on hold pending announced provincial regulatory changes.

Procurement for the multi-tenant houses Land Economics Study with a value of $48,500 ($49,354 net of harmonized sales taxes) will therefore bringing the cumulative value of non-competitive contracts between City Planning and N. Barry Lyon Consulting to $539,807 exclusive of all taxes and charges.

City Council approval is required in accordance with Municipal Code Chapter 195- Purchasing, where the current request exceeds the Chief Purchasing Official's authority of the cumulative five-year commitment for each supplier, under Article 7, Section 195-7.3 (D) of the Purchasing By-Law or exceeds the threshold of $500,000 net of Harmonized Sales Tax allowed under staff authority as per the Toronto Municipal Code, Chapter 71- Financial Control, Section 71-11A.