By Claude & Parth on 2026-04-09, City: Toronto, View Transcript
The General Government Committee held its 28th meeting to review procurement contracts and service agreements. The most significant discussion focused on four non-competitive contracts supporting Toronto’s ferry operations, including new electric ferries expected to arrive in December. Committee members also questioned the City’s reliance on U.S.-based technology vendors during debate on a non-competitive Microsoft Canada contract, and heard an update on delays and deficiencies at the Etobicoke Civic Centre project. The committee approved the major items, and also adopted a supplementary motion requesting a report to council on ferry fleet capital and operating costs, including the costs and savings associated with electrification.
The committee approved four non-competitive agreements tied to ferry operations and the incoming electric vessels: Lloyd’s Register (over $300,000 annually for two new vessels), Bureau Veritas (about $200,000 annually for certification work), Ontario Shipyards (described by staff as the only facility able to service the new ferries’ “size, breadth and weight”), and AKA Energy Systems (a $2,025,000 one-time spare parts cost plus about $1.2 million annually for charging infrastructure).
A staff presenter described the agreements as “mandatory specialized and vessel specific contracts intended to reduce the regulatory risk, operational downtime and safety concerns.” Abby Thomson, General Manager of Fleet Services, said the non-competitive approach was necessary because “there’s a capability constraint in the local marketplace,” adding that “Ontario shipyards is the only authorized warranty repair provider aligned with the vessel builder Damen.”
Councillor Thompson said he requested additional public discussion to address confidence and safety concerns stemming from earlier issues in the ferry electrification program. He said the goal was “to ensure public confidence and public safety overall and to ensure that everything that is needed to be done is actually being done.”
Councillor Holiday pressed staff for a clearer picture of total program costs, referencing the last comprehensive figures he recalled—“$92 million for two vessels plus $42 million for shoreside work”—and sought more context for approving additional contracts. Holiday moved a supplementary motion requesting a report to council detailing ferry fleet capital and operating costs and identifying “specific costs or savings from electrification.” The motion carried.
The committee considered a five-year non-competitive contract with Microsoft Canada for M365 software licenses and cloud subscriptions. Councillor Chang questioned whether Canadian data residency is sufficient protection given geopolitical uncertainty, saying that “even if the data is in Canada it doesn’t preclude… we really don’t know what exposure there is,” particularly “when the rule of law is no longer something we can stand on.”
Chang argued the City should plan for reduced dependency on U.S. big tech, stating: “As the largest city in Canada, I think we also should be playing a role and planning forward in for ways that our city can operate without the increased security risk that come with dependency on US big tech.”
The committee heard updates on project issues at the Etobicoke Civic Centre, including delays and deficiencies tied to contractor performance. Lisa Bahosu, Director of the Project Management Office, said: “We have deficiencies through lack of performance from the general contractor and I’m limited on what I can expand on that because we’re currently on litigation.” Staff indicated the City has mechanisms to pursue recovery of deficiency-related costs and associated consultant costs.
The committee also discussed a public art purchase for the Etobicoke Civic Centre through Jordan Suk Studios. Staff explained the purchase is funded through the City’s public art allocation tied to construction budgets, and that the selection process included a community jury and public input gathered through an online survey.
Councillor Holiday raised concerns that procurement listings often lack enough detail for councillors or residents to understand what is being purchased. Citing a Bell Canada procurement for rooftop cameras, Holiday said it “was really hard for me to figure out other than a sentence what that procurement was.” He added: “I wish it was in the report, but I’m glad I could ask the question.”
Staff agreed to improve the descriptions included in procurement records. The committee held the procurement summary item and then carried it with an undertaking to expand procurement descriptions.
Staff told the committee that ferry operational readiness work has been completed, stating: “All of our check systems, all of the requirements for full operational for these fairies are have been done.” Staff also noted that training is included as part of the new vessel support arrangements: “The new contract is for two vessels… the contract includes training as well.”