June 26, 1998

  To:Corporate Services Committee

 From:City Clerk

 Re:Funding Sources For Renovations to Toronto City Hall

 Recommendation:

 The Budget Committee on June 25, 1998, recommended to the Corporate Services Committee, the adoption of the report (June 16, 1998) from the Commissioner of Corporate Services.

 Background:

 The Budget Committee on June 25, 1998, had before it a report (June 16, 1998) from the Commissioner of Corporate Services, regarding the funding sources for the renovations to Toronto City Hall.

City Clerk

 Barbara Liddiard/RC/cp

Item No. 12

Attachment

 c.:Chief Administrative Officer

Chief Financial Officer and Treasurer

Commissioner of Corporate Services

Ms. Cathie Macdonald, Project Executive and Interim Lead, Facilities and Real Estate

(Report dated June 16, 1998 addressed to the

Budget Committee from the

Commissioner of Corporate Services)

 Purpose:

 To approve funding sources for Phase 1 of the renovations to be completed by the end of 1998.

 Source of Funds:

 As recommended below.

 Recommendations:

 It is recommended that:

 (1)$5.2 million, approved by City Council on February 4 and 5, 1998, for the renovations to Toronto City Hall be provided from the Transition Reserve Fund, as recommended in the report of the Chief Administrative Officer, entitled "Transition Projects", before the Budget Committee on June 25, 1998;

 (2)$1.14 million, approved by City Council on June 3 and 4, 1998, for improvements, be provided from the Equity Program and Access Improvements for City Owned Buildings Account of the former City of Toronto;

 (3)up to $314,000 for enclosed offices for Councillors' Executive Assistants, be provided from the Transition Reserve Fund or from debt financing; and

 (4)$240,000 for improved lighting on the second floor and improved wayfinding, be provided from the Equity Program and Access Improvements for City Owned Buildings Account of the former City of Toronto, if approved by City Council when it considers the report of the Commissioner of Corporate Services, "Toronto City Hall Renovations - Recommended Actions in Response to Committee and City Council Motions and Additional Phase 1 Budget Requirements", dated June 16, 1998, submitted to the Sub-Committee for the Relocation of All Members of Council to City Hall for its meeting of June 26, 1998.

 Council Reference/Background/History:

 On February 4 and 5, 1998, City Council approved $5.2 million for renovations to City Hall to accommodate the seat of government by the end of the year. On June 3 and 4, 1998, Council approved an additional amount of $1.14 million for improvements, and $314,000 for the provision of enclosed offices for the executive assistants of Councillors. Council also requested that the Commissioner of Corporate Services report through the Corporate Services Committee to the Budget Committee on the sources of funding over the $5.2 million to accommodate additional items requested.

 The Budget Committee is also considering the recommendations of the report from the Chief Administrative Officer on the funding of various matters from the Transition Reserve Fund, including part of the costs associated with the City Hall renovations.

 Comments and/or Discussion and/or Justification:

 (1) Budget Requirements for Phase 1

 The budget requirements for Phase 1 of the renovations are summarized in the budget schedule attached in Appendix A. These are in four steps.

 (a)City Council approval of the Toronto City Hall as the seat of government

 When City Council decided at its meeting in February that the Toronto City Hall should be the seat of government for the new City Council, it approved funding of $5.2 million. This amount was based on the proposals at that time for the necessary renovations to add Councillors' offices, increase the seating for Councillors in the Council Chambers, add walkways from the Council Chambers to the office towers at the podium level, upgrade meeting rooms and improve technology. The $5.2 million is to be provided from the Transition Reserve Fund, as recommended by the Chief Administrative Officer in his report to your Committee.

 (b)Improvements to the original proposals

 City Council, at its meeting of June 3 and 4, 1998 approved improvements to the original proposals to better accommodate Councillors and staff and to replace the proposed walkways with bridges to improve accessibility to the Chamber. These changes were a result of review of operational needs by the Mayor, councillors, and staff, and of design improvements, and were incorporated into revised plans by the Project Architect, Kuwabara, Payne, McKenna and Blumberg. These changes added $1.14 million to the budget, and this addition was approved by City Council in June. The Equity Program and Access Improvements for City Owned Buildings Account of the former City of Toronto is available to cover this increase by adjusting the allocation of funding so that accessibility and equity improvements to the City Hall building renovations, including increased washroom capacity and improved access by the bridge links. Therefore, $1.14 million is to be provided for the Phase 1 renovations from the Equity Program and Access Improvements for City Owned Buildings Account.

 (c)Enclosing the offices for executive assistants within the Councillors' offices

 City Council, at its June 3 and 4, 1998 meeting also approved the option of enclosing of the offices of the Councillors' executive assistants, at an additional cost of $314,000. The original plans were for open offices. This additional funding should come from the Transition Reserve Fund or from debt financing. It should be noted that the motion made at the June City Council meeting to include this amount in the base $5.2 million budget was required at that time, because it would allow for the spending of funds for this purpose prior to the additional funding being approved. This early approval was needed so that the special demolition plan required for the enclosed offices could proceed in a cost effective way in advance of Budget Committee approval of the additional funding, in order to meet the tight schedule for construction.

(d)Additional items proposed at the meeting of City Council in June

 At the June 1998 Council meeting, a number of motions were made to propose changes to the approved plans and further enhancements, which were referred to the Commissioner of Corporate Services and the Project Architect for further reports. The subsequent report to the Relocation Sub-Committee, "Toronto City Hall Renovations - Recommended Actions in response to Committee and City Council Motions and Additional Phase 1 Budget Requirements," dated June 16, 1998, from the Commissioner of Corporate Services, which recommends additional items to be funded in Phase 1, will be before the Sub-Committee on June 26, 1998 and therefore that report is submitted to your Committee for information in conjunction with this report. The June 16, 1998 report recommends adding two items to the Phase 1 renovations - the increased lighting on the second floor and the improvements to wayfinding, which will cost an additional $240,000. If Council approves this additional work at its meeting of July 8, 9 and 10, 1998 funding should come from the Equity Program and Access Improvements Account.

 (2)Additional Items

 The June 16, 1998 report to the Relocation Sub-Committee lists a number of matters with associated costs that will be reported on further, including:

• a glass partition for the Press Gallery space in the Council Chamber, at a cost of approximately $20,000;
• a projection screen at the front of the Council Chamber and installation of a corporate logo, with costs to be determined;
• improvements to the outside roof area surrounding the Council Chamber, with the cost still to be determined; and
• an escalator or curved stair to provide better access from the first floor to the second floor of City Hall, with approximate costs of $150,000 and $95,000 respectively.

 Funds are already requested in the Transition Reserve Fund report to the Budget Committee of June 25, 1998 to cover certain costs associated with establishing the seat of government at City Hall, and a further $1 million for additional staff relocations throughout city buildings.

 Conclusions:

 The basic cost of renovating the Toronto City Hall to accommodate the seat of government of $5.2 million has increased as a result of improvements to the original proposal to better accommodate Council and its operations, at the cost of $1.14 million and approved by City Council. The additional funding of $554,000 required to meet the needs of City Council as a result of further proposals by Council and Councillors, is recommended to come from the Transition Reserve Fund or debt financing, and from the Equity Program and Access Improvements for City Owned Buildings Account of the former City of Toronto. The normal capital maintenance budget for this building will also contribute to improving the building, as well as special funds such as for energy efficiency, if available.

 Contact Name:

Cathie Macdonald, Project Executive and Interim Lead, Facilities & Real Estate: Phone 392-0449, fax 392-0029 (bc98097.wpd)

Commissioner of Corporate Services

APPENDIX A

 REVISED COSTS ABOVE $5.2 MILLION FOR PHASE 1 CITY HALL RENOVATIONS