Agenda

Members of Council, City Officials, and members of the public who register to speak will be provided with the video conference details closer to the meeting date.

To provide comments or make a presentation to the General Government Committee:

The public may submit written comments or register to speak to the Committee on any item on the agenda. The public may speak to the Committee in person or by video conference.

Written comments may be submitted by writing to ggc@toronto.ca.

To speak to the Committee, please register by e-mail to ggc@toronto.ca or by phone at 416-392-4666. Members of the public who register to speak will be provided with instructions on how to participate in the meeting.

Special Assistance for Members of the Public: City staff can arrange for special assistance with some advance notice. If you need special assistance, please call 416-392-4666, TTY 416-338-0889 or e-mail ggc@toronto.ca.

Closed Meeting Requirements: If the General Government Committee wants to meet in closed session (privately), a member of the Committee must make a motion to do so and give the reason why the Committee has to meet privately (City of Toronto Act, 2006).

Notice to People Writing or Making Presentations to the General Government Committee: The City of Toronto Act, 2006 and the City of Toronto Municipal Code authorize the City of Toronto to collect any personal information in your communication or presentation to City Council or its Committees and Boards. The City collects this information to enable it to make informed decisions on the relevant issue(s). If you are submitting letters, faxes, e-mails, presentations or other communications to the City, you should be aware that your name and the fact that you communicated with the City will become part of the public record and will appear on the City’s website. The City will also make your communication and any personal information in it - such as your postal address, telephone number or e-mail address - available to the public, unless you expressly request the City to remove it.

Many Committee, Board, and Advisory Body meetings are broadcast live over the internet for the public to view. If you speak at the meeting you will appear in the video broadcast. Video broadcasts are archived and continue to be publicly available.

If you want to learn more about why and how the City collects your information, write to the City Clerk's Office, City Hall, 100 Queen Street West, Toronto ON M5H 2N2 or call 416-392-4666. 

toronto.ca/council

This agenda and any supplementary materials submitted to the City Clerk can be found online at www.toronto.ca/council. Visit the website for access to all agendas, reports, decisions and minutes of City Council and its Committees and Boards.

Declarations of Interest under the Municipal Conflict of Interest Act

Confirmation of Minutes - October 30, 2023

Speakers/Presentations - The speakers list will be posted online at 8:30 a.m. on December 6, 2023.

Communications/Reports

The Controller recommends that:  

1. The General Government Committee approve the apportionment of property taxes in the amounts identified in Appendix A, under the columns titled “Apportioned Tax” and “Apportioned Phase-in / Capping.”

This report deals with 8 apportionment applications made by or to the Treasurer pursuant to Section 322 of the City of Toronto Act. Under this section, Council is authorized to recover unpaid property taxes on land that has been severed and therefore no longer exists by apportioning those outstanding taxes onto the newly- created parcels that arise from the severance. 

The legislation requires that Council make its decision after holding a public meeting, at which applicants and / or property owners may appear or make representations regarding the apportionment application. Council has delegated authority to hear and make final decisions in respect of these matters to the General Government Committee.

Staff have mailed Notices of Hearing to affected taxpayers advising of the upcoming December 6, 2023, General Government Committee Hearing.

Appendix A identify that $2,202 (as of October 17, 2023) in late payment charges (penalty and interest) have been levied and form part of the unpaid taxes that the applicants seek to apportion.

This amount, and late payment charges that will be levied until the applications are decided, will be written off. City Council has granted authority for these write-offs to the Director, Revenue Services. Funding for the write-off of the interest / penalty amount is provided for in the City's Non-Program 2023 Operating Budget under the Tax Penalties Account.

With the exception of the write-off of late payment charges, the apportionment of the unpaid taxes has no financial impact on the City of Toronto and secures the City's revenues.

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

The Controller recommends that:  

1. The General Government Committee approve the individual tax appeal applications made pursuant to Section 323 of the City of Toronto Act, 2006, resulting in tax reductions (excluding phase-in / capping amounts) in the amounts identified in Appendix A.

2. The General Government Committee approve the individual tax appeal applications made pursuant to Section 325 of the City of Toronto Act, 2006 resulting in tax reductions (excluding phase-in / capping amounts) in the amounts identified in Appendix B.

This report deals with tax appeal applications made to the Treasurer pursuant to Sections 323 and 325 of the City of Toronto Act, 2006 (COTA). Section 323 permits Council to cancel, reduce or refund taxes in cases when, during the year, a property undergoes changes such as when it is destroyed by fire or demolished, becomes exempt from taxation, or is reclassified due to a change in use. Under Section 325 of the City of Toronto Act, taxpayers can request a cancellation, reduction or refund of taxes when an error in the assessment roll is identified which results in an overcharge.

The legislation requires Council to make its decision after holding a public meeting at which the applicants and / or property owners may express any concerns. Council has delegated authority to hear and make final decisions in respect of these matters to the General Government Committee.

Staff have mailed Notices of Hearing to affected taxpayers advising of the General Government Committee's upcoming meeting and consideration of this staff report.

The financial impact of approving the individual tax appeal applications (excluding phase-in / capping adjustments), as identified in the attached Appendices A and B, is summarized in Table 1 below.

Table 1: Tax Appeals Summary

Funding for the City’s share of $872,850 is available in the 2023 Operating Budget for Non-Program under the Tax Deficiency Account.  The education share of $1,120,555 will be recovered from the province / school boards, and the Business Improvement Area (BIA) reduction of $49,940 will be funded from the respective Business Improvement Area provision. 

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

The Chief Financial Officer and Treasurer recommends that:

1. City Council direct that the confidential information contained in Confidential Attachment 3 remain confidential in its entirety.

This report provides information on property tax accounts with outstanding receivables of $500,000 or more as of June 30, 2023. The total number of properties with outstanding receivable balances of $500,000 or more is 24, including 20 owned by corporations and four owned by individuals as mentioned above.

The tax arrears identified in this report have been fully provided for in the Non-Program Allowance for Doubtful Tax Receivables Account in prior years. As such, there is no impact on the current year's budget and there are no financial implications arising from this report.

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

The General Manager, Toronto Water and the Chief Procurement Officer, recommend that:

1.  General Government Committee in accordance with Section 71-11.1.C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-Law), grant authority to the General Manager, Toronto Water to amend Purchase Order Number 6041895 with CH2M Hill Canada Limited, for construction administration services for the rehabilitation and upgrades of HVAC at R.C. Harris and Island water treatment plants, to increase the overall value by $314,573 net of all applicable taxes and charges ($320,110 net of Harmonized Sales Tax recoveries).

2.  General Government Committee in accordance with Section 71-11.1.C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-Law), grant authority to the General Manager, Toronto Water to amend Purchase Order Number 6050318 with Alberici Constructors Ltd. for construction services for the rehabilitation and upgrade of HVAC at R.C. Harris and Island water treatment plants, to increase the overall value by $1,300,000 net of all applicable taxes and charges ($1,322,880 net of Harmonized Sales Tax recoveries).

The purpose of this report is to request authority from the General Government Committee to amend purchase orders related to the HVAC rehabilitation and upgrades being carried out at the R.C. Harris and Island Water Treatment Plants (WTP).

These amendments are required for additional construction administration services to accommodate the revised construction schedules submitted by the general contractor.

Since the start of construction, the schedule was extended several times due to change orders issued to address added scope related to unforeseen site conditions and associated design changes. The schedule was further impacted by constraints caused by COVID-19 and longer equipment delivery timelines due to the global supply chain disruption.

Additional scope was required to address unforeseen site conditions (e.g., structural modifications to site facilities, natural gas piping, and asbestos testing and abatement) and additional efforts to solve issues related to heritage site requirements at the R.C. Harris.

The amendments requested total $1,642,990 (net of Harmonized Sales Tax recoveries) and would increase the current value of two (2) purchase orders.

Amendment of Purchase Order Number 6041895 by an additional $314,573 net of all taxes and charges ($320,109 net of Harmonized Sales Tax recoveries), will increase the purchase order value from $1,231,856 to $1,546,429 net of all taxes and charges ($1,253,537 to $1,573,646 net of Harmonized Sales Tax recoveries).

Amendment of Purchase Order Number 6050318 by an additional $1,300,000 net of all taxes and charges ($1,322,880 net of Harmonized Sales Tax recoveries), will increase the purchase order value from $19,558,275 to $20,858,275 net of all taxes and charges ($19,902,501 to $21,225,381 net of Harmonized Sales Tax recoveries).

The requested amendments total $1,642,990 net of Harmonized Sales Tax recoveries. Forecasted expenditures will be funded from the 2023 Approved Capital Budget and 2024-2032 Approved Capital Plan as shown in Table 1 below.

Table 1: Financial Impact Summary (net of Harmonized Sales Tax  recoveries)

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

The Chief Financial Officer and Treasurer, the Deputy City Manager, Corporate Services, and the Chief Procurement Officer, recommend that:  

1. The General Government Committee, in accordance with Section 71-11.1.C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-Law), grant authority to negotiate and amend Purchase Order 6052202 with Deloitte Incorporated for the provision of System Integrator Services for Financial System Transformation Program up to $8,000,000 net of all taxes and charges ($8,140,800 net of Harmonized Sales Tax recoveries), from $43,645,200 net of all applicable taxes and charges ($44,413,356 net of Harmonized Sales Tax recoveries) to a total amount of up to $51,645,200 net of all applicable taxes and charges ($52,554,156 net of Harmonizes Sales Tax recoveries).

The purpose of the report is to seek authority from the General Government Committee to negotiate and amend Purchase Order number 6052202 with Deloitte Incorporated for the provision of System Integrator Services for the Financial System Transformation Program.

The Financial System Transformation Program (the Program) is required as the current version of the City's core financial software is approaching end of life in 2027. In the current state, there are numerous systems with financial information that exist outside of the core financial platform. Extensive manual interventions and workarounds are required in most aspects of financial processes and reporting. The result has been a network of over 70 plus systems that do not meet the City's current needs.

The new version of the core financial platform provides the City with the opportunity to review and build more efficient and effective business processes and consolidate a number of systems, and financial information, which will support an integrated and seamless delivery environment that will be critical for all City financial operations.

So far, the Program has completed the redesigned finance business processes, defined the solution design to enable these business processes and is currently progressing through the implementation of the platform. The negotiations and the impending Purchase Order Amendment are intended to support the continued implementation of the Financial System Transformation Program throughout 2024, and are expected to follow two key drivers, as outlined below:

1- The delivery of critical and complex business processes and integrated testing for successful deployment; and,

2- The alignment of the initial SAP Ariba solution implementation with the leading best practices. This additional scope will better position the City for the Procure to Pay process transformation and the SAP Ariba – S / 4HANA integrated rollout.

The total value of the Purchase Order Amendment being requested is up to $8,000,000 net of all taxes and charges ($8,140,800 net of Harmonized Sales Tax recoveries), revising the current Purchase Order value from $43,645,200 net of all taxes and charges ($44,413,356 net of Harmonized Sales Tax recoveries) to up to $51,645,200 net of all taxes and charges ($52,554,156 net of Harmonized Sales Tax recoveries). Funding is available in the 2023-2032 Approved Capital Budget and Plan for the Office of the Controller under the Financial System Transformation Program.

The General Government Committee 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.

The total Purchase Order Amendment request in this report will increase the total value, subject to negotiations, by up to $8,000,000 net of all taxes and charges ($8,140,800 net of Harmonized Sales Tax recoveries).

Funding is available in the 2023-2032 Approved Capital Budget and Plan for the Office of the Controller under the Financial System Transformation Program.

Table 1: Financial Impact Summary of Recommended Purchase Order Amendment

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the

financial implications as identified in the financial impact information.

The General Manager, Toronto Water and the Chief Procurement Officer recommend that:

1.  City Council receive this report for information.

The purpose of this report is to advise Toronto City Council, pursuant to Chapter 195 of the Toronto Municipal Code, Purchasing By-Law, Section 195-7.4(B), of a non-competitive contract with 1623052 Ontario Ltd. operating as CB Sales Canada, exceeding $500,000.

Purchase orders issued under Non-Competitive Number 9384 include Purchase Order 6047793 in the amount of $181,670 net of all taxes and charges ($184,867 net of Harmonized Sales Tax recoveries) awarded in 2018, and Divisional Purchase Order Number 3627960 for $50,000 net of all taxes and charges ($50,880 net of Harmonized Sales Tax recoveries) on July 31, 2023.  

The issuance of this emergency non-competitive purchase order (Purchase Order 6054521, issued May 16, 2023) for a total value of $325,000 net of applicable taxes and charges ($330,720 net of Harmonized Sales Tax recoveries) was required to replace the scrubber media at the Island Water Treatment Plant. The work was deemed an emergency by the General Manager, Toronto Water under Chapter 195-7.1(G) of the Municipal Code.

The total emergency non-competitive contract, Purchase Order Number 6054521, was issued for a total value of $325,000 net of all applicable taxes and charges ($330,720 net of Harmonized Sales Tax Recoveries) under the emergency provision of the Purchasing By-law.

Funding is available in Toronto Water's Approved 2023 Operating Budget and Approved 2023-2032 Capital Budget & Plan. Funding details are provided in Table 1 below:

Table 1: Financial Impact Summary

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

The Acting Executive Director, Corporate Real Estate Management and the Chief Purchasing Officer recommend that:

1. City Council receive this report for information.

The purpose of this report is to inform Toronto City Council, pursuant to Chapter 195 of the Toronto Municipal Code (Purchasing By-Law, Section 195-7.4) of a non-competitive purchase order with BDA Inc. for the replacement of the existing roof at 291 Sherbourne Street (the “Property”) in the amount of $2,075,000 net of all taxes and charges ($2,111,520 net of Harmonized Sales Tax recoveries). The Property, which is known as Robertson House, is a shelter facility owned by the City of Toronto and operated by Shelter, Support and Housing Administration. The Property is a short-term emergency shelter with a capacity of 74 occupants.

The Property is comprised of several buildings. The main building’s roof requires immediate replacement due to an unforeseen site condition of water leaks that have caused damage to the ceilings, walls, and floors of the interior space. Although the City has an existing competitive purchase order for the replacement of rooftop air conditioning units with the vendor of record, BDA Inc., the scope does not include roof replacement. Engineering reviews were conducted following identification of the unforeseen site conditions and the engineering recommendations were to replace the roof prior to installing new rooftop air conditioning units.

Purchasing and Materials Management Division advised on the appropriate procurement approach and Corporate Real Estate Management entered into an emergency non-competitive purchase order with BDA Inc. to complete the work. Reporting back to City Council is required in accordance with Municipal Code Chapter 195, Purchasing, Article 7, Section 195-7.4(B) where a non-competitive contract over $500,000 is entered into on an emergency basis.

This report identifies a total purchase order value of $2,075,000, net of taxes and charges. The City's total cost is $2,111,520 net of Harmonized Sales Tax recoveries.

Funding for the requested non-competitive purchase order amount of $2,075,000 net of taxes and charges ($2,111,520 net of Harmonized Sales Tax recoveries) is available in the 2023-2032 Council Approved Capital Budget and Plan for Shelter, Support and Housing Administration. Shelter, Support and Housing Administration's 2024 Capital Budget submissions will include funding requests for 2024 as summarized in Table 1.

Table 1 – Financial Impact Summary (Net of Harmonized Sales Tax Recoveries)

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information identified in the Financial Impact section.

The Chief Engineer and Executive Director, the Engineering and Construction Services and the Chief Procurement Officer, Purchasing and Materials Management recommend that:

1.  City Council receive this report for information.

The purpose of this report is to advise Toronto City Council, pursuant to Chapter 195 of the Toronto Municipal Code (Purchasing By-Law, Section 195-7.4), of a non-competitive contract with EllisDon Civil Limited, to procure construction services to repair damaged elements of the temporary Dufferin Street bridges over the Metrolinx rail corridor, south of Springhurst Avenue, for a total value of $1,320,000 excluding Harmonized Sales Tax ($1,343,232 net of Harmonized Sales Tax recoveries).

The issuance of this non-competitive contract was a matter of urgency to accelerate the work required to re-open Dufferin Street following an emergency closure on July 13, 2023, due to damage to the bridge structures.

This contract addresses the remediation of temporary bridges installed a decade ago. At that time, the existing permanent bridges needed replacement. These temporary bridges, designed to last only 10 years, were meant to give Metrolinx time to finalize plans for the rail corridor beneath them and to provide the City with the necessary specifications for the new permanent bridges. Despite considerable design efforts over the past ten years, Metrolinx has not yet finalized the required design specifications. Therefore, it is necessary to repair the temporary bridges, which remain in use as an interim measure until the design and construction of permanent bridge structures can proceed. The City will seek to recoup two-thirds of the repair costs from Metrolinx for their share of the emergency repair work.

This repair was deemed an emergency by the former Interim Chief Engineer and Executive Director, Engineering and Construction Services, under Chapter 195-7.1 (G) of the Municipal Code. Reporting back to City Council is required in accordance with Municipal Code Chapter 195, Purchasing Article 7, Section 195-7.4 (B) when a non-competitive contract exceeds $500,000.

The total value of the emergency non-competitive contract, (Purchase Order 6055014), was issued for a total value of $1,320,000 net of all applicable taxes and charges and $1,491,600 including Harmonized Sales Tax and applicable charges. The total cost to the City is $1,343,232 net of Harmonized Sales Tax recoveries.

The emergency contract is funded from the 2023-2032 Approved Capital Budget and Plan for Transportation Services as summarized in Table 1 below:

Table 1: Financial Impact Summary

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

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

1. City Council receive this report for information. 

The purpose of this report is to advise pursuant to Chapter 195 of the Toronto Municipal Code (Purchasing By-law, Section 195-7.4), of a non-competitive contract with Toronto Drydock Limited for the non-exclusive supply of all labour, equipment, materials, services, apparatus, transportation, lay days, permits and incidentals required for the dry docking shop repair services and / or onsite ship repair services which may include, any electrical, structural and mechanical repairs for the Ongiara vessel, for a total value of $5,350,656 net of all applicable taxes and charges ($5,444,828 net of Harmonized Sales Tax Recoveries). 

The City operates a fleet of five ferry vessels providing service to and from Toronto Island. In order to ensure service continuity and safety, the City must comply with Transport Canada Marine Safety requirements and maintenance and repair work must occur to satisfy these requirements.

The Ongiara vessel is the only vessel in the fleet that can carry vehicles and operate in icy water conditions. While in dry dock, undergoing regularly scheduled maintenance and inspections, the initial inspection revealed that approximately 45 per cent of the vessel's hull does not meet the minimum safety standard for Transport Canada requirements. The substantial hull repair exceeds the volume of work and cost anticipated.

The issuance of this non-competitive contract was considered urgent as the repairs to the vessel are required to ensure compliance with Transport Canada's safety requirements and within a suitable timeframe that allows for safe winter ferry service continuity.

Work was authorized to proceed on an emergency basis by the Acting General Manager, Parks, Forestry and Recreation and Chief Procurement Officer under Chapter 195-7.1(G) of the Municipal Code.

Reporting back to City Council is required in accordance with Municipal Code Chapter 195, Purchasing, Article 7, Section 195-7.4(B) where a non-competitive contract over $500,000 was entered into on the basis of emergency. 

The total emergency non-competitive contract identified in this report is $5,350,656 net of all applicable taxes and charges ($5,444,828 net of Harmonized Sales Tax Recoveries). 

Emergency work will be undertaken in 2023 with funding from Parks, Forestry and Recreation's 2023 Council Approved Capital Budget and 2024-2032 Capital Plan in the Special Facilities Buildings and Structures project (CPR126-49).

Table 1: Financial Impact Summary

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information identified in the Financial Impact section.

The Chief of Toronto Paramedic Services and the Chief Procurement Officer recommend that:

1. The General Government Committee, in accordance with Section 195-8.5 of Toronto Municipal Code Chapter 195 (Purchasing By-Law) authorizes the Chief, Toronto Paramedic Services to award and enter into an agreement with Crestline Coach Ltd., being the lowest bidder meeting the specifications of Request for Quotations Ariba Document Number 3763162663, for the non-exclusive supply and delivery of new ambulances, in the amount of $73,430,567 net of all applicable taxes and charges, ($74,722,945 net of Harmonized Sales Tax recoveries) and in accordance with the Request for Quotation requirements.

The purpose of this report is to advise of the results of Request for Quotation Ariba Document Number 3763162663 for the non-exclusive supply and delivery of new ambulances for the Toronto Paramedic Services Division and seek authority to award a contract to the lowest bidder. The total potential contract value exceeds the $20 million limit of the Bid Award Panel to award.

The Request for Quotation Ariba Document Number 3763162663 was posted for a competitive procurement for the non-exclusive supply and delivery of new ambulances for the Toronto Paramedic Services Division, for an initial one-year term, with the option to renew the Contract for four (4) additional separate optional years at the sole discretion of the City and subject to budget approval(s). Should the optional year(s) be exercised then the Chief of Toronto Paramedic Services will request the Chief Procurement Officer to process the renewals under the same terms and conditions.

Toronto Paramedic Services’ fleet experiences significant wear involving mechanical, electrical, and interior components as a result of the 24/7 nature of the division’s operations. This wear has been amplified by the inability to regularly replace ambulances due to parts shortages and supply chain issues experienced during the COVID-19 pandemic.

These parts shortages and supply chain issues have now been resolved to the point where orders for new ambulances can be fulfilled by manufacturers. Therefore, Toronto Paramedic Services is requesting authorization to enter into an agreement with Crestline Coach Ltd. for the non-exclusive supply and delivery of new ambulances to replace existing vehicles, and ensure the continued safety and reliability of Toronto Paramedic Services’ fleet.

The potential contract award identified in this report for Toronto Paramedic Services  including all option years is $73,430,567 net of all applicable taxes and charges and $82,976,540 including all applicable taxes and charges. The total potential cost to the City including all option years is $74,722,945 net of Harmonized Sales Tax recoveries.

For the initial term, funding is included in the 2023 Approved Capital Budgets and 2024-2032 Approved Capital Plans for Fleet Services and Toronto Paramedic Services.  Should the City choose to exercise the option(s) to renew for an additional four (4) separate one (1) year periods, the appropriate additional funding will be requested in the 2025-2028 annual Capital and Operating Budget Submissions for Fleet Services and Toronto Paramedic Services, as part of the annual budget review process.

The cost calculations for the Option Years reflect, where required, an estimated annual 5 percent increase as per the Industrial Product Price Index (IPPI).

Table 1: Financial Impact Summary of Recommended Contract (Net of Harmonized Sales Tax Recoveries, including 20 percent for miscellaneous items):

The Interim Chief Financial Officer and Treasurer has reviewed this report and agrees with the information included in the Financial Impact section.

The Acting Executive Director, Corporate Real Estate Management, and the Acting General Manager, Parks, Forestry and Recreation, recommend that:

1. City Council authorize the City to enter into a sublease agreement and a sublicence agreement (collectively, the “Agreements”) with Centennial Park Golf Centre Inc. for the operation of the Centennial Park Golf Course (the “Tenant Operator”) located at the property municipally known as 550 Centennial Park Boulevard, substantially on the terms and conditions set out in Attachment 1, with such other terms and conditions as may be acceptable to the Acting Executive Director, Corporate Real Estate Management in consultation with the Acting General Manager, Parks, Forestry and Recreation and in a form acceptable to the City Solicitor.

2. City Council authorize the Acting Executive Director, Corporate Real Estate Management and the Director, Transaction Services severally to execute and deliver the Agreements and any related documents contemplated thereunder on behalf of the City of Toronto.

3. City Council authorize the Acting Executive Director, Corporate Real Estate Management, in consultation with the Acting General Manager, Parks, Forestry and Recreation, to administer and manage the Agreements including the provision of any amendments, consents, approvals, waivers, notices, and notices of termination, provided that the Acting Executive Director, Corporate Real Estate Management may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

This report seeks to authorize the City to enter into sublease and sublicence agreements (collectively, the “Agreements”) with Centennial Park Golf Centre Inc. (the “Tenant Operator”) for Centennial Park Golf Course located at 550 Centennial Park Boulevard (the “Subleased and Sublicenced Areas”). The Agreements have an initial term of seven years, with an option, in favour of the City, to extend by four years, and a further option to extend for up to an additional six years, provided the Tenant Operator is not in default of the Agreements and the City extends the existing terms of the head lease and the head licence with the Province of Ontario (the “Province”). The Subleased and Sublicenced Areas are owned by the Province and licenced and leased by the City under two long-term agreements ending December 31, 2030 and December 31, 2034 respectively.

The Tenant Operator was selected through a Request for Proposals (RFP) process conducted by Parks, Forestry, and Recreation in collaboration with Corporate Real Estate Management, as directed by Purchasing and Materials Management Division. The Request for Proposal was issued in summer 2023 to ensure an operator was in place ahead of the 2024 golf season.

The City provides access to high-quality and affordable golf at seven golf courses, five of which are City-operated, and two of which are leased-out to private third-party operators. Centennial Park Golf Course is one of these two golf courses.  

Under the Agreements, the Tenant Operator will pay an annual base rent of $350,000 with percentage rent of 8 per cent of gross revenue (net of Harmonized Sales Tax) in excess of $3,000,000 annually. This new arrangement is an improvement from the previous Agreements which was $75,000 Minimum Rent with 13 per cent percentage rent for gross revenue in excess of $1,000,000. From 2018 to 2022, the City received $128,000 - $262,000 annually from the Tenant Operator. For 2023, projected revenue is anticipated to be $308,000 under the previous Agreements. The average revenue to the City from 2018 to 2023 is $225,000.

The new Agreements are expected to provide more stable and predictable rent to the City, while improving revenue by approximately $125,000 compared to average revenue to Parks, Forestry and Recreation.  Additional revenue from the Tenant Operator will be included in the 2024 Operating Budget submission for Parks, Forestry and Recreation as part of the 2024 Budget process.

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

The General Manager, Transportation Services, and the Chief Procurement Officer recommend that:  

1. City Council authorize the General Manager, Transportation Services to negotiate and execute a non-competitive agreement with Imtech Corporation doing business as Activu Corporation from April 1, 2024 to March 31, 2029 with two (2) additional separate one (1) year option periods in the amount of $362,273 USD net of all applicable taxes and charges ($368,649 net of Harmonized Sales Tax recoveries), on terms and conditions satisfactory to the General Manager, Transportation Services, in a form satisfactory to the City Solicitor.

The purpose of this report is to seek City Council authority to enter into a new Non -Competitive contract with Imtech Corporation doing business as Activu Corporation for the continuation of the maintenance and support of the City's Traffic Operations Centre Activu Video Wall Systems at 703 Don Mills Road. The term of the contract is expected to be for a period of three (3) years commencing April 1, 2024 to March 31, 2027, with two (2) additional separate one (1) year option terms for a total cumulative term of five (5) years that would end on March 31, 2029, with a value of $362,273 United States Dollar (USD) net of all applicable taxes and charges ($368,649 net of Harmonized Sales Tax recoveries).

The Activu software that is installed and currently running at the City of Toronto's Traffic Operations Centre at 703 Don Mills Road is designed and developed by Imtech Corporation doing business as Activu Corporation. Based on the exclusive rights letter provided by Activu, it states that Activu does not resell the software through any distribution channels, and there are no trained or licensed resellers or organizations that are capable of integrating, supporting, troubleshooting, and repairing the Activu software.

City Council approval is required in accordance with Municipal Code Chapter 195- Purchasing, where the current request exceeds the Chief Purchasing Officer's authority of the cumulative five-year commitment for each supplier, under Article 7, Section 195- Non-Competitive Contract Imtech Corporation doing business as  Activu Corporation 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.   

The total potential value identified in this report, including the option years is $362,273 USD net of all applicable taxes and charges ($485,445 Canadian Dollar (CAD)[1] net of all applicable taxes and charges). The total potential cost to the City including the option years is $493,989 CAD net of Harmonized Sales Tax recoveries.

Funding is available in the 2023 Approved Operating Budget for Transportation Services, and additional funding for the balance of the initial contract period will be included in their 2024-2027 Operating Budget Submissions. Should the City exercise the two (2) one-year optional periods, then additional funding will be included in Transportation Services' 2027-2029 Operating Budget Submissions. Additional funding details follow in Tables 1 and 2.

Table 1: Financial Impact

[1] The monthly exchange rate used is October 2023 - 1 USD = 1.34 CAD

Table 2: Financial Impact - Initial Term

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information included in the Financial Impact section.

The City Clerk and the Chief Procurement Officer recommend that:  

1. City Council grant authority to the City Clerk to enter into a non-competitive agreement with WorkDynamics Technologies Inc. for maintenance and support services for the City Clerk's Office Correspondence Management System, for an initial period of two (2) years commencing from December 15, 2023, with the option to renew for three (3) additional one (1)-year periods, at the sole discretion of the City Clerk and subject to budget approval, in the total potential amount of $37,913 net of Harmonized Sales Tax ($38,580 net of Harmonized Sales Tax recoveries), on terms and conditions satisfactory to the City Clerk and in a form satisfactory to the City Solicitor.

The purpose of this report is to request City Council authority to enter into a non-competitive contract with WorkDynamics Technologies Inc., to provide maintenance and support for the City Clerk's Office Correspondence Management System. The contract will be for an initial period of two (2) years commencing from December 15, 2023, with three (3) additional one (1)-year optional renewals, in the total amount of $37,913 net of Harmonized Sales Tax ($38,580 net of Harmonized Sales Tax recoveries).

The City Clerk's Office Correspondence Management system enables City Clerk's staff to log, distribute and track official correspondence received by the City Clerk on behalf of the City of Toronto. The City Clerk's Office utilizes a system called ccmEnterprise, a proprietary product from WorkDynamics Technologies Inc. This solution is supported and maintained by City Clerk's IT, independently of Technology Services Division.

The current maintenance and support Purchase Order Number 6053501 with WorkDynamics Technologies Inc., expires on December 14, 2023. To ensure support of the system, a new non-competitive contract with WorkDynamics Technologies Inc. is required.

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 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.

The total potential contract award identified in this report including all option years is $37,913 net of Harmonized Sales Tax. The total potential cost to the City is $38,580 net of Harmonized Sales Tax recoveries.

Funding in the amount of $7,266 net of Harmonized Sales Tax recoveries is available in the 2023 Approved Operating Budget of the City Clerk’s Office. Funding in the amount of $7,485 net of Harmonized Sales Tax recoveries will be included in the 2024 Operating Budget  Submission for the City Clerk’s Office.

Should the City choose to exercise its option to renew for three (3) additional separate one (1) - year periods, then appropriate additional funding will be included in the 2025-2027 annual Operating Budget submissions of the City Clerk’s Office.

Funding details are shown in Table 1.

Table 1: Financial Impact Summary of Contract (Net of Harmonized Sales Tax Recoveries)

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

The Chief Planner and Executive Director, City Planning and the Chief Procurement Officer recommend that:

1. City Council grant authority to the Chief Planner and Executive Director, City Planning to negotiate and enter into a non-competitive agreement with N. Barry Lyon Consultants in the amount of $48,500 net of all taxes and charges ($49,354 net of Harmonized Sales Tax) to complete a land economics study of the effects of multi-tenant housing permissions, on terms and conditions satisfactory to the Chief Planner and Executive Director, City Planning and in a form satisfactory to the City Solicitor.

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.

The contract has a total value of $48,500 net of all taxes and charges ($49,354 net of Harmonized Sales Tax) and is fixed for the term of the contract.

The funds required for this contract are available in the 2023-2032 Approved Capital Budget and Plan for City Planning as summarized in Table 1 below.

Table 1: Financial Impact Summary

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

The Controller recommends that:  

1. City Council pass a by-law pursuant to Section 252 of the City of Toronto Act, 2006, providing authority to:

a. enter into a Municipal Capital Facility Agreement with Bridlewood Mall Management Incorporated., the landlord, which will lease approximately 19,425 square feet at 2900 Warden Avenue (the "Leased Premises") to the City of Toronto, used for public libraries; and

b. exempt the Leased Premises from taxation for municipal and school purposes, with the tax exemption being effective from the latest of:

- the commencement date of the lease;

- the date the Municipal Capital Facility Agreement is entered into; and

- the date the Tax Exemption By-law is enacted.

2. City Council direct the City Clerk to give written notice of the By-law to the Minister of Finance, the Municipal Property Assessment Corporation, the Toronto District School Board, the Toronto Catholic District School Board, le Conseil scolaire Viamonde and le Conseil scolaire catholique MonAvenir.

This report seeks City Council's authority for the adoption of the necessary by-law to designate a portion of the property owned by 2366829 Ontario Limited leased to the City of Toronto on behalf of Toronto Public Library, Bridlewood Branch as a Municipal Capital Facility, and to provide an exemption for municipal taxes and education taxes. The Municipal Capital Facility agreement authorized by the by-law will provide an exemption for Unit 230 which is approximately 19,425 square feet at 2900 Warden Avenue. 

A new Municipal Capital Facility agreement is required as the Bridlewood Branch Library will be relocating from their existing space of approximately 8,000 square feet at Bridlewood Mall into a new expanded space within the mall at 2900 Warden Avenue. The current Municipal Capital Facility agreement will expire with the existing lease on August 31, 2024.

The Toronto Public Library, Bridlewood Branch currently has a Municipal Capital Facility agreement in a location at 2900 Warden Avenue. This agreement provides an exemption for 8,000 square feet representing an estimated $39,057 of annual property taxes that is not collected by the City. This agreement will be terminated when the lease expires on August 31, 2024, and the exemption will no longer apply.

The annual property taxes on 19,425 square feet of space (currently taxable) to be occupied by the Toronto Public Library, Bridlewood Branch are estimated at $94,728, comprised of a municipal portion of $56,310 and a provincial education portion of $38,418, based on 2023 Current Value Assessment and 2023 tax rates. A new agreement in the expanded space will create an additional 11,425 square feet of space to be exempted from property taxes. Table 1 below summarizes the further financial impact of exempting the newly leased space, in addition to the currently leased space that was previously made exempt as a municipal capital facility

Table 1: Property Taxes for Bridlewood Library Branch – 2900 Warden Avenue

As shown in Table 2 below, providing a property tax exemption for 19,425 square feet at 2900 Warden Ave will result in a net annual reduction in property tax revenue to the City of approximately $56,310, representing the municipal portion of taxes that is currently payable that will no longer be collected once the Leased Premises are designated as a Municipal Capital Facility. The provincial education portion of the property taxes of $38,418 will no longer be required to be remitted to the Province once the exemption for the Leased Premises takes effect.

Table 2: Financial Implication of Property Tax Exemption - 2900 Warden Avenue

As the City currently funds the Toronto Public Library the cost of rent (which normally excludes property taxes as a result of Municipal Capital Facility agreement) on the existing leased space through an annual budget allocation, there is no net impact on the Toronto Public Library 2023 Budget resulting from Municipal Capital Facility exemption for the new space to be leased. The savings from the designation as a Municipal Capital Facility for the location identified in Table 1 above have been accounted for and included in the 2023 Council Approved Operating Budget for the Toronto Public Library.

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

The Controller recommends that:  

1.  City Council pass by-laws pursuant to Section 252 of the City of Toronto Act, 2006, providing authority to:

a. enter into Municipal Capital Facility Agreements with the landlords of each of the three properties with whom Corporate Real Estate Management has a lease on behalf of the City Councillors (the "Leased Premises"), with respect to approximately 3,163 square feet of combined space, for the purposes of providing municipal capital facilities related to the provision of facilities used by City Councillors located at:

- 641B The Queensway (Ward 3)

- 329 Parliament Street / 0 Regent Street (Ward 13)

- 895 Lawrence Avenue East (Ward 16); and

b. exempt the Leased Premises from taxation for municipal and school purposes, with the tax exemption being effective from the latest of:

1. the commencement date of the Lease,

2. the date the Municipal Capital Facility Agreement is entered into, and

3. the date the Tax Exemption By-law is enacted.

2.  City Council direct the City Clerk to give written notice of the By-law to the Minister of Finance, the Municipal Property Assessment Corporation, the Toronto District School Board, the Toronto Catholic District School Board, le Conseil scolaire Viamonde, and le Conseil scolaire catholique MonAvenir.

This report seeks Council's authority for the adoption of the necessary by-laws to designate portions of three properties leased by the City of Toronto for use as City Councillor's constituency offices as Municipal Capital Facilities and to provide exemptions for municipal taxes and education taxes. The municipal capital facility agreements authorized by the by-laws will provide tax exemptions for approximately 3,163 square feet in total of combined space. The three properties and their respective square footage are provided below.

641B The Queensway, Ward 3: 1,592 square feet

329 Parliament Street / 0 Regent Street, Ward 13: 919 square feet

895 Lawrence Avenue East, Ward 16: 652 square

The annual property taxes on the 3,163 square feet of combined space (currently taxable) leased by the City of Toronto and used as City Councillors' constituency offices are estimated at approximately $15,800, comprised of a municipal portion of $9,392 and a provincial education portion of $6,408, based on 2023 Current Value Assessment (CVA) and 2023 tax rates.

As shown in Table 1 below, providing property tax exemptions for the 3,163 square feet of combined space at 641B The Queensway, 895 Lawrence Avenue East and 329 Parliament Street / 0 Regent Street would result in a net annual reduction in property tax revenue to the City of approximately $9,392, representing the municipal portion of taxes that is currently payable that will no longer be collected once the Leased Premises are designated as Municipal Capital Facilities.  The provincial education portion of property taxes of $6,408 will no longer be required to be remitted to the Province once the exemptions for the Leased Premises takes effect.

Table 1: Annual Financial Implication of Property Tax Exemption - 641B The Queensway, 895 Lawrence Avenue East, and 329 Parliament Street / 0 Regent Street

As the City currently funds the Councillors' constituency office cost of rent (which includes property taxes) on any leased space as an eligible constituency office expense, there is no net financial impact on the municipal portion of taxes from the Municipal Capital Facility exemption, as the decrease in municipal tax revenue is offset by a corresponding reduction in the actual lease expenditure to be incurred for City Council. There is a net annual savings on the education portion of property taxes of $6,408 as the City will no longer be required to remit this portion of the property taxes to the Province.

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

The Controller recommends that:  

1. City Council authorize the Controller to enter into an agreement with the University of Toronto to extend the existing agreement pursuant to which the University makes voluntary payments to the City on its revenue-producing properties, on substantially the same terms as the existing agreement, including the following:

a. that the University agree to continue to make voluntary payments to the City on all revenue producing properties for which it collects payments on account of taxes;

b. that the term of the agreement be for 10 years, covering the taxation years 2024 to 2033, inclusive; and

c. such other terms and conditions satisfactory to the City Solicitor and the Controller, and in a form satisfactory to the City Solicitor.

2. City Council request that the Minister of Finance and the Minister of Colleges and Universities review the legislation governing exemptions from taxation and the treatment of tenants occupying university lands that would otherwise be taxable to ensure that the assessment and taxation provisions are consistent, both within Toronto and across Ontario

This report seeks authority to extend an existing agreement with the University of Toronto (the "University") regarding voluntary payments to be made by the University on its revenue-producing properties, substantially on the same terms as the previous agreement approved by Council in 2013.

If the recommendations in this report are adopted, such that the City and the University enter into a further extension agreement with respect to voluntary payments made by the University related to its revenue-producing properties (i.e., properties that are owned by the University but leased to third parties, including commercial tenants and / or tenants that would otherwise be liable for property taxation), the voluntary payment that the University would make for the years 2024 to 2033, inclusive, would total approximately $4 million (or approximately $398,000 per year) based on payments received from the University in 2022. The City has yet to receive the voluntary payment for 2023 from the University due to the timing of this report.

The calculation of the voluntary payment is determined using a list of revenue producing properties, as determined by the University, together with the current value assessment (CVA) and total tax levy for those properties, as confirmed by the City. If the whole property is revenue producing, the university will make a voluntary payment equivalent to 100 percent of the taxes that would have been levied if the property were taxable. Where only a portion of the property is occupied by revenue producing tenants, the University calculates the amount payable based on the percentage of space occupied by the revenue producing portion of the property in comparison to the total square footage of the property.

In addition to the voluntary payment amounts received from the University of Toronto, Section 285 of the City of Toronto Act, 2006 allows the City to levy an annual amount (the Heads and Beds levy) for universities and colleges. The Heads and Beds levy is based on $75 per resident space under Ontario Regulation 121 / 07. The annual Heads and Beds levy on University of Toronto properties for 2023 is $5.6 million.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact section.

The Interim Executive Director, Corporate Real Estate Management recommends that:

1. City Council authorize the initiation of expropriation proceedings for fee simple interests in the lands illustrated as Part 1 to 9 on the draft reference plan attached as Attachment A (the "Properties"), for the purposes of constructing a multi-use trail along the east side of Brimley Road, from Barkdene Hills south to Bluffers Park Road.

2. City Council grant authority to serve and publish the Notices of Application for Approval to Expropriate Land for the Property, to forward to the Ontario Land Tribunal any requests for hearings received, to attend the hearing(s) to present the City's position, and to report the Ontario Land Tribunal's recommendations to City Council for its consideration.

This report seeks authority to initiate expropriation proceedings for fee simple interests in portions of the properties municipally known as 32, 34, 36, 38, 40, 44, 46, 48, and 50 Larwood Boulevard, for the purpose of the installation of a multi-use trail to improve pedestrian and cyclist safety on the east side of Brimley Road South, from Barkdene Hills to Bluffers Park Road.

This is Stage 1 of the expropriation process. Should City Council adopt the recommendations in this report, staff will serve and publish the Notices of Application for Approval to Expropriate in accordance with the Expropriations Act (the "Act"). Owners will have 30 days to request a hearing into whether the City's proposed taking is fair, sound and reasonably necessary.

Staff will report back to City Council with a Stage 2 report, providing details on property values and other costs, and if a hearing is requested, the report of the Ontario Land Tribunal. The proposed expropriation would only be affected after adoption by City Council (as approving authority) of the Stage 2 report, and by registration of an expropriation plan, which would then be followed by the service of further notices as required by the Act.

Before the City could take possession of the expropriated property, offers of compensation based on appraisal reports must be served on each Registered Owner as defined in the Act.

The costs to serve and publish the required Notices of Application for Approval to Expropriate, together with any costs related to attendance at the hearing(s), if any, will be funded from Cost Centre CTP817-05.

Before proceeding with the expropriation, staff will report to City Council through the General Government Committee for approval of the expropriation (the "Stage 2 Report"). The Stage 2 Report will identify the estimated funding requirement and the funding source for the market value of the Properties, as well as any other anticipated costs including disturbance damages, legal and appraisal costs, land transfer tax costs, and all other associated costs stipulated under the Act.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact section.

The Executive Director, Customer Experience Division, recommends that:

1. The General Government Committee receive this report for information.

City Council, the Customer Experience Division (CXD), and 311 Toronto's (311) integrated service divisions (ISDs) have expressed an interest in better understanding satisfaction levels for 311 service users and improving how the City closes the service loop with customers. In response to these interests, Customer Experience Division is in the process of establishing a survey capability proof of concept (POC) that will enable the collection, analysis, and utilization of customer insights from key moments within the customer journey to enhance the customer experience.

The purpose of this report is to provide background information and progress on the development of the proof of concept.

There is no financial impact from the adoption of the recommendation in this report.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the Financial Impact Statement.

The Manager, Fair Wage Office, recommends that:

1. City Council amend Municipal Code Chapter 67 - Fair Wage, including Schedule A, as set out in Attachment “1” to this report, effective January 1, 2024 (the “Effective Date”);

2. City Council amend Schedule C to Municipal Code, Chapter 67, by replacing the current Schedule C with the Schedule contained in Attachment “2” to this report, as the new Schedule C to Chapter 67, effective as of the Effective Date.

The purpose of this report is to recommend revisions to Toronto Municipal Code Chapter 67, Fair Wage (the "By-Law") and all three of the By-Law's schedules:

The By-Law and Schedule A, Fair Wage Policy (the “Policy”), changing purpose and intent, application, responsibilities, administration, and enforcement;

Schedule B, Labour Trades Contractual Obligations in the Construction Industry (the "Labour Trades"), changing the name to the "Labour Trades Contractual Obligations in the Construction Industry Policy";

Schedule C, Fair Wage Schedule, 2016-2019 ("Schedule C"), updating Schedule C, such that it reflects the most current prevailing wages for the industries in which the City procures services. The details are outlined in greater detail below:

The By-Law and Schedule A

- Adding definitions;

 - Delegating explicit authority to the Manger, Fair Wage Office to order work to be stopped that is suspected of exposing the City to liability, and;

- Refining Policy application provisions regarding "owner operators" and grant agreements,

- Contractor and sub-contractor responsibilities regarding Fair Wage compliance declarations on accounts rendered for payment, displaying copies of the Policy, and permitting workers to work overtime hours have been modernized or removed to reflect current operational and business practices.

- Attachment "1" is a red-line document showing recommended changes to the current By-Law and the Policy.

Schedule B

- The only revision proposed for the Labour Trades is to change the name to the "Labour Trades Contractual Obligations in the Construction Industry Policy", for clarity.

Schedule C

- Comprised of six classifications of work: General Classifications, Heavy Construction work; Industrial, Commercial, Institutional (I.C.I.) work; Road Building work; Sewer and Watermain Construction work; and Utility work.

- An updated Schedule C is recommended to Council for approval every three years. The current Schedule covers 2019 to 2022 and must be updated to reflect 2022 to 2024 rates. The updated Schedule C set out in Attachment "2" reflects wage increases recognized by the construction labour markets. This report recommends that the updated Schedule C takes effect for all new City procurements issued on or after January 1, 2024. All City contracts or procurement documents issued before January 1, 2024 will use the Fair Wage rates set out in the current Schedule C (2019 to 2022). In order to maintain a record of historic wages, The Fair Wage Office will maintain copies of the former Fair Wage Schedules at the Fair Wage Office and on the Fair Wage Office website.

The report recommends revisions to all three schedules of By-Law including the policy in Schedule A, to change the purpose and intent, application, responsibilities, administration, and enforcement, a name change to Schedule B and update to Schedule C such that it reflects the most current prevailing wages for the industries in which the City procures services.

 Adoption of this report may result in future financial impacts due to increased costs of wages and benefits associated with new City procurements issued on or after January 1, 2024. These cost increases may have an impact on cash flow funding requirements of applicable capital projects. At the initiation of future procurements, the financial impacts including full contracted expenditures and funding will be identified in the relevant contract and / or procurement document.

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

The Chief Procurement Officer recommends that:

1. City Council amend Municipal Code Chapter 195, Purchasing, as set out in Attachment 1 to this report, effective July 1, 2024 (the “Effective Date”).

2. City Council direct the Chief Procurement Officer to report back to City Council prior to the Effective Date on updates to Council-approved policies that are required to implement the recommended changes.

3. City Council direct the Chief Procurement Officer to review the role of the Bid Award Panel and report on recommendations for improving its function and oversight in the procurement process.  

4. City Council repeal the Procurement Activities of the Printing and Distribution Unit into Technical Compliance with Chapter 195 policy, which will become redundant as a result of the adoption of the other recommendations in this report.

The purpose of this report is to recommend amendments to Toronto Municipal Code Chapter 195, Purchasing (the Purchasing Bylaw). This report also responds to a request from City Council to report on the possibility of adopting the Open Contracting Global Principles and the role of an Inspector General.

The Purchasing Bylaw was last reviewed in 2016, and the current Purchasing Bylaw was enacted on January 1, 2017. In accordance with Chapter 195, Section 3.1(R), the Bylaw is required to be reviewed every five years. The review, which had been scheduled for 2020 and 2021, was delayed due to the COVID-19 pandemic. Purchasing and Materials Management Division (PMMD) initiated a review in 2022 and this report recommends a number of changes resulting from that review:

- Renaming the Toronto Municipal Code Chapter 195 to Procurement

- Increasing Chief Procurement Officer and division head authority to process limited solicitations

- Clarifying the beginning of the Blackout Period during the procurement process

- Extending the Chief Procurement Officer's authority to cancel a procurement

- Clarifying the need for appropriate consultation, authority and responsibility to negotiate certain provisions in contracts;

- Administrative or 'housekeeping' amendments for a more concise and easier to interpret bylaw

There are no financial implications arising from this report.

Funding approval for procurement processes is contemplated through the annual Operating and Capital Budgets.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information presented in the Financial Impact Section.

The City Solicitor recommends that:

1.  City Council adopt the confidential instructions to staff in Confidential Attachment 1.

2.  City Council authorize the public release of the confidential recommendations contained in Confidential Attachment 1, at the discretion of the City Solicitor, but that the remainder of Confidential Attachment 1 remain confidential as it contains advice which is subject to solicitor-client privilege and relates to litigation or potential litigation by the City.

This report provides an update to members of the General Government Committee on their request for the City Solicitor, in consultation with the Chief Engineer and Executive Director, Engineering and Construction Services, to report back on options to recover costs related to the emergency non-competitive contract associated with the rescue of the micro-tunneling boring machine used on Contract 20ECS-LU-01FP in the vicinity of Old Mill Drive.

The financial implications are discussed in Confidential Attachment 1.

The Deputy City Manager, Corporate Services and the Controller recommend that:

1. The General Government Committee receives this report for information.

In May 2021 Council approved a three-year contract with PayIt Inc. with options to extend up to two additional years, which was signed on June 3, 2021.  The partnership with PayIt was meant to improve residents' payment experience and provide access to digital payment alternatives compared to traditional channels, while increasing efficiencies for the City.  More specifically, the objectives of the partnership are: 

1.  Accelerate digital services leveraging a purpose built and cloud-based platform to scale faster and benefit from continuous improvements; 

2.  Offer integrated and modern payment features as well as more payment options for residents and businesses; 

3.  Drive internal efficiencies from reducing paper mail outs to financial processing, reporting and reconciliation supporting the goal of revenue process standardization and centralization; 

4.  Utilize a different business model whereby the City pays fees based on adoption instead of capital investment by shifting risk of implementation and ongoing product enhancements to vendor;

5.  Revenue share from future growth and adoption by other public sector organizations. 

This report for information provide an update on Phase 1 (Revenue Services) of MyToronto Pay (MTP),a City-branded and customized version of PayIt, as the work with Revenue Services Division (RSD) nears completion which included the launch of Property Tax, Utilities, e-Billing, and Pre-Authorized Payments (phase 1) on the platform.  Included are updates on the approach taken with PayIt, key performance metrics and evaluation of various aspects of the partnership against the contract.

In summary, the approach implemented with PayIt was more measured and less ambitious than detailed in the approved report May 2021. There were four reasons for this; a) efforts required to integrate and customize the PayIt platform, b) City capacity and prioritization vis a vis other priority initiative, c) City's evolving strategy towards a 'One TO' experience and how PayIt fits in, d) responding to concerns from Council, specifically vendor-lock-in.

A summary of analysis from five Strategic Value Drivers shows objectives outlined in the May 2021 Report against progress and experience to date.

Table 1.1 Strategic Value Drivers and 2023 Status

(See Table in the Report (November 22, 2023) from the Interim Deputy City Manager, Corporate Services and the Controller)

Conclusions and Next Steps

As the analysis of Key Performance Indicators demonstrates the results are a mix of positive achievements, underperforming on targets and more generally unrealized potential.  While there is room for PayIt to improve aspects of its platform, ensuring vendor(s) are successful and City outcomes are achieved will require greater alignment on the City's digital payment approach and requirements. 

To support this, the Customer Experience Division (CXD) will lead analysis between now and Quarter 2 2024 to summarize lessons learned from the experience with PayIt and develop a City-wide understanding of digital payments requirements.  This work will engage our Technology Services team and key divisions with payments and be augmented by resident engagement and hiring of a third party to help conduct a market analysis and scan to inform a renewed procurement approach. 

Staff will report back to council in Quarter 2 of 2024 to update on this work and recommend a go-forward plan with respect to an extension of the PayIt contract, permitted as part of the original contract terms, and a plan to go back to market through a competitive RFP following this period.  During this period the PayIt platform will not be expanded to other divisions beyond Revenue Services Division.

Once the pre-authorized pay feature for property tax is implemented early in 2024 there will be no further expansion of services on the PayIt platform until the City has completed the competitive procurement referenced above.

There is no financial impact from the adoption of the recommendations in this report.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact statement.

The City Manager and the Chief Procurement Officer recommend that:

1. General Government Committee receive this report for information.

In March 2021, City Council directed the City Manager to report on how City staff respond to unsolicited proposals. This report outlines the City policy and processes that staff follow when responding to unsolicited quotations or proposals.

The City’s Unsolicited Quotations or Proposals Policy was adopted by Council in 2007 and provides Division Heads with a framework to respond to unsolicited quotations or proposals in a manner that ensures transparency, fairness, and best value for the City. The Policy provides guidance to vendors on the submission of unsolicited quotations or proposals to the City. The Policy is supported by a Process for Receiving and Reviewing Unsolicited Quotations and Proposals that sets out a framework through which unsolicited quotations and proposals are submitted and reviewed.

Additionally, a Procedure for Conducting a Swiss Challenge Request for Proposal was established in 2008. The purpose of the Swiss Challenge Request for Proposal is to obtain counter proposals to an unsolicited proposal through a specialized procurement process that is distinct from the City’s typical Request for Proposal procedure. The procedure provides guidance in preparing, issuing, receiving, evaluating, negotiating (if required) and awarding a counter proposal. In 2021, City staff updated this Procedure to provide further clarity.

Overall, the policy and processes provide guidelines for staff in responding to unsolicited proposals including criteria for proposals to be considered, information to be included for assessment, roles and approach of the evaluation team, timelines, communications, and steps to confirm awards.

There are no financial implications arising from this report.

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

The Chief Engineer and Executive Director, Engineering and Construction Services recommends that:

1. The General Government Committee receive this report for information.

The purpose of the report is to respond to GG3.22 - Review and Recommendations on Underground Locates. The report summarizes the current processes and challenges related to underground locates and outlines a series of improvements to be implemented both immediately and over the long-term.

What you find under the streets of Toronto is as complex and old as the city itself. Unknown underground infrastructure presents a significant challenge in construction, particularly in older cities like Toronto where some of the infrastructure dates back more than 150 years. While the current City and its pre-amalgamation entities installed a considerable amount of underground infrastructure, so did City agencies such as the Toronto Transit Commission, as well as private and third-party utility companies like Bell, Rogers, Enbridge and Toronto Hydro. This was all done over a long period of time, with different record-keeping systems and practices.

When construction teams inadvertently encounter unknown underground infrastructure, it can lead to dangerous situations posing a threat to worker and public safety, impact the environment, disrupt essential services to the community and it almost always causes delays, leading to extended timelines, increased costs, prolonged traffic disruptions and public frustration.     

Significant resources and substantial efforts have been invested by the City of Toronto in identifying and mapping underground utilities. While progress has been made, the issue of unintentionally encountering underground infrastructure remains a problem for large, older municipalities across North America. However, new processes and technologies are continuing to emerge, which may provide a viable option for the City of Toronto to explore, learn from, and implement for a better outcome.

This staff report outlines how underground locates and utility mapping are currently being undertaken, some of the most significant challenges, and proposes a plan to improve the process including:

- Obtaining and mapping as-built information. (Second Quarter 2024)

- A new risk evaluation matrix. (Second Quarter 2024)

- Staff training and development. (Fourth Quarter 2024, on-going)

- Implementing advanced Subsurface Utility Engineering processes. (Fourth Quarter 2025)

- Develop a tieback-specific database and policy. (Third Quarter 2024)

- Ongoing best practice research.

- Monitoring and coordination.

This report highlights specific measures to address the identification and management of underground infrastructure, however, neither the issue nor the solutions should be isolated from the broader project delivery process. For example, allocating sufficient time for planning and designing a project, aids in resolving this and other issues encountered during the capital delivery process.

There is no direct financial impact resulting from the adoption of the recommendations in this report. However, the adoption of the immediate actions will have future financial impacts relating to additional utility investigations completed and the potential new tools and technology to do this. These costs may be offset in part or whole by a reduction in construction costs, change orders and / or project delays.

Additional costs will be included for consideration as part of the future Capital Budget and Plan submissions for Transportation Services and Toronto Water.

The Chief Financial Officer and Treasurer recommend that:

1. General Government Committee receive this report for information.

The purpose of this report is to provide an update on Purchasing and Materials Management Division's Category Management and Strategic Sourcing (CMSS) team's engagement with City Divisions, in response to direction from City Council to report on completed and planned discussions.

Category Management and Strategic Sourcing work was initiated in 2021. The Category Management and Strategic Sourcing team has been fully operational without any involvement of outside consultants since June 2022 and is working collaboratively with all City Divisions. During the years 2022 and 2023, Category Management and Strategic Sourcing achieved an estimated financial benefit of $206 million in the form of a combination of cost savings and cost avoidance, through the application of a strategic approach to high value and highly complex procurements.

Overall, within the last three years of the Category Management and Strategic Sourcing rollout, engagement across the organization has increased. Divisions are actively identifying large, high-risk and highly complex projects and are requesting the procurement to be conducted strategically through Category Management and Strategic Sourcing. This has led to a strong relationship between Purchasing and Materials Management Division and Divisions, which will contribute to future outcomes and increased benefits associated with strategic sourcing through Category Management and Strategic Sourcing.

During the years 2022 and 2023, Category Management and Strategic Sourcing achieved estimated financial benefits of $206 million (2022 realized financial benefits of $95.6 million and 2023 estimated financial benefits of $111.3 million), in the form of a combination of cost savings and cost avoidance, through the application of a strategic approach to high value and highly complex procurements. Benefits achieved from strategic sourcing procurements were in the form of either operating or capital budget cost reduction or cost avoidance.

The Category Management and Strategic Sourcing team, together with Divisions, is working on various large complex projects for the 2024 pipeline which will potentially result in additional financial benefits for the City. The City is well positioned to continue realizing financial benefits associated with strategic sourcing initiatives on an ongoing basis with gained expertise and skill sets developed within the Category Management and Strategic Sourcing team.

The Chief Engineer and Executive Director, Engineering and Construction Services, and the Chief Procurement Officer, Purchasing and Materials Management, recommend that:

1. The General Government Committee receive this report for information.

This report provides an update to members of the General Government Committee on the following three Council directions:

- GG3.21 - Request for Review of Engineering Services Capital Delivery Models

- IE6.7 - Military Trail Road Reconstruction

- MM11.10 - Establishing an Enforceable Enhanced Code of Conduct for Construction

City staff currently manage construction contractors through compliance, budget management, project oversight, and administration, using tools like the Contractor Performance Evaluation. However, the increasing scope, bundling and sheer volume of projects have led to more complex construction processes, impacting residents, businesses and the general public. This growing complexity of project delivery has driven changes and highlighted the need for a re-evaluation of consultant and contractor management across all project phases.

To address the issues highlighted in these three separate motions, all pertaining to various aspects of construction consultant and contractor management, staff from various divisions have formed a working group to gather information.

To advance this work, Engineering and Construction Services, has partnered with Purchasing and Materials Management to develop a Design-Build contract delivery model which provides opportunities to better align project risks with the contractor and the owner. Recruitment of a new Quality Assurance manager is also underway. It is expected that this position will further strengthen established processes for design review and contract oversight.  

The working group also recommends initiating the following activities:

- Hire an external consultant to research and consult with industry stakeholders, with a report in late 2024.

- Explore alternative construction procurement methods and ways to enhance collaboration on capital projects.

There is no financial impact resulting from the adoption of the recommendations in this report.

The General Manager, Fleet Services will give an overview presentation on Fleet Services.

Councillor Paul Ainslie recommends that:

1.  City Council direct the Executive Director, Customer Experience, in consultation with the Parking Enforcement Unit of Toronto Police Services, to review and report on the possible use of 311 Toronto as an intake channel for service requests for issues related to parking infractions.

2.  City Council direct the Executive Director, Customer Experience to report back to Council no later than end of 2024, on the possibility of an integration strategy with the Customer Experience Division, 311 Toronto and the Toronto Police Service.

Residents of the City of Toronto currently have the convenience of reporting various issues to the City through our 311 app. I would like to suggest an extension of this functionality to address the prevalent issues of parking and bike infractions.

The proposal is to develop a user-friendly feature within the existing 311 app that allows residents to report parking and bike infractions directly to the city and relevant enforcement authorities. This streamlined reporting process has the potential to significantly improve the efficacy of enforcement efforts and contribute to the overall safety of our streets.

Benefits of such an enhancement include:

1. Ease of Reporting: Residents can conveniently report incidents in real-time through the app, eliminating the need for traditional reporting methods.
2. Increased Reporting: A user-friendly app is likely to encourage more residents to report incidents, leading to a higher volume of valuable data for enforcement purposes.
3. Efficient Enforcement: With timely and accurate reports, enforcement authorities can respond promptly, addressing violations and enhancing overall safety.
4. Public Awareness: The app can serve as an educational tool, raising awareness about parking and bike regulations, fostering a culture of compliance.

I believe that implementing this feature would be a proactive step towards fostering a safer road environment.

The General Government Committee will introduce confirming bills.