Item - 2024.GG16.11

The General Government Committee recommend that: 

1. City Council grant authority to the Executor Director, Corporate Real Estate Management to amend Non-Competitive Blanket Contract Number 47019415 with Toronto Hydro Electric Systems Ltd., by increasing the total Blanket Contract target value by $2,000,000 net of all taxes and charges ($2,035,200 net of Harmonized Sales Tax Recoveries), revising the current Blanket Contract value from $400,536 net of all taxes and charges ($407,585 net of Harmonized Sales Tax Recoveries) to $2,400,536 net of all taxes and charges ($2,442,785 net of Harmonized Sales Tax Recoveries), and to extend the expiry date from December 31, 2031 to March 31, 2038.

The purpose of this report is to request authority from City Council to amend Non-Competitive Blanket Contract Number 47019415, issued to Toronto Hydro Electric Systems Ltd. (“Toronto Hydro”), for operations and maintenance costs for co-owned solar photovoltaic systems.

In 2011, the City entered into a partnership with Toronto Hydro to design, construct, own and operate solar photovoltaic projects on the roofs of suitable City facilities. The partnership with Toronto Hydro advances the City’s 2021 Net Zero Carbon Plan as the solar installations on City-owned buildings help generate low-carbon electricity in the City of Toronto. Transitioning to low-carbon energy is also a key factor of TransformTO.

The original 2015 contract was created to cover the shared maintenance costs of 10 solar photovoltaic locations completed in 2013 as part of the solar photovoltaic partnership. Since the creation of the blanket contract, an additional 12 co-owned systems were installed in 2016 and 2018. In consultation with Purchasing and Materials Management, staff are seeking an amendment to the blanket contract to account for these additional systems and future annual maintenance costs.

The total value of the amendment being requested is $2,000,000 net of all taxes and charges ($2,035,200 net of Harmonized Sales Tax Recoveries), revising the overall contract value from $400,536 net of all taxes and charges ($407,585 net of Harmonized Sales Tax Recoveries) to $2,400,536 net of all taxes and charges ($2,442,785 net of Harmonized Sales Tax Recoveries).

Additionally, it is requested that the expiry date of the blanket contract be extended by 6 years and 3 months (from December 14, 2031 to March 31, 2038), to align with the expiry of the agreements for the sites added in 2018.

City Council approval is required in accordance with Municipal Code Chapter 195, Purchasing, where the current request exceeds the Chief Procurement Officer's authority of the cumulative five-year commitment limit for each vendor 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 71-11.1.