Item - 2026.GG27.13

The General Manager, Parks and Recreation, and the Chief Procurement Officer recommend that:

1. City Council authorize the General Manager, Parks and Recreation to extend the existing licence agreement with Carla Construction & Maintenance Ltd., to operate and maintain the trackless train service in High Park for two operating seasons from approximately April 1, 2026 and ending on October 31, 2027 with two optional renewal terms of up to one operating season each, exercisable at the General Manager’s sole discretion, substantially on the terms and conditions set out in Attachment 1 to this report, and on such other terms and conditions satisfactory to the General Manager, Parks and Recreation and in a form satisfactory to the City Solicitor.

This report seeks City Council authority to enter into a non-competitive agreement with Carla Construction & Maintenance Ltd., to continue operations and maintenance of the trackless train amusement service in High Park.

In November 2024, Parks and Recreation issued a Request for Proposals for the operation and maintenance of a passenger transportation shuttle service for High Park and other potential parks, consistent with the High Park Movement Strategy. Carla Construction & Maintenance Ltd., was identified as the preferred supplier. Following Request for Proposal award, the proponent declared that it would not be able to meet the obligations they set through their response to the Request for Proposal, specifically procurement of an accessible electric shuttle vehicle that can safely meet the needs in High Park. Following consultation with the Chief Procurement Officer and Legal Services, the Request for Proposal was cancelled.

With the cancellation of the competitive procurement and the need to ensure continuity of people-moving services for the 2026 operating season, staff reviewed available short-term options. Beginning in 2026, the Toronto Transit Commission will extend service dates of the bus route within High Park, providing a more affordable, accessible, and higher-capacity transportation option for park users. To complement the expanded TTC service and to maintain a long-standing and popular amenity for families and visitors, Parks and Recreation recommends a short-term extension of the existing trackless train amusement service.  Council authority is required for the extension since the extension term for the licence is beyond what was approved by City Council in 2023 and the duration is beyond the delegated authority of General Manager, Parks and Recreation under Toronto Municipal Code Chapter 608.

Carla Construction & Maintenance Ltd., is the only supplier currently able to mobilize equipment and commence service in April 2026, and has an established operating history within High Park. Given the time required to procure vehicles and mobilize a new supplier, there is insufficient time to undertake a new competitive process without risking a gap in this well-enjoyed feature of High Park.

The proposed non-competitive procurement is permitted under Toronto Municipal Code Chapter 195, Procurement, as an exception following the cancellation of the competitive solicitation, which created time constraints. City Council approval is required because the cumulative term of the contract exceeds staff authority limits.

As expanded TTC service provides a more consistent and affordable transportation option within High Park, staff will assess the future role of third-party amusement services prior to any future procurement. In addition, TransformTO objectives related to the use of electric vehicles in the park may become more achievable as the industry matures, enabling a broader range of options to be considered through a future competitive process.

The previous annual licence fee for the trackless train service was approximately $10,200 plus Harmonized Sales Tax. Under the proposed agreement, the licence fee payable to the City will be approximately $10,500 plus Harmonized Sales Tax in 2026 and $10,800 plus Harmonized Sales Tax in 2027. Annual licence fees will increase by three per cent to account for inflationary impacts.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial information as presented.