The City of Toronto provides year-round ferry services for residents, passengers and vehicles traveling to and from Toronto Island. Due to the aging ferry fleet, City Council directed Parks, Forestry and Recreation to advance the Ferry Fleet Replacement Strategy, beginning with the construction of two new, fully electric ferry vessels: a new passenger and vehicle vessel and new passenger vessel. The delivery of the two new vessels will increase the City's ferry capacity by over 400 passengers per trip for the passenger and vehicle vessel and nearly 1,000 passengers per trip for the passenger vessel. Delivery of the new vessels will also enhance the passenger experience with contemporary ferry designs and amenities, reduce anticipated repair costs of the current fleet, and significantly reduce greenhouse gas emissions as the ferry fleet transitions from diesel to electric. City Council initiated the Ferry Fleet Replacement Strategy with preliminary funding allocated in 2015. During the course of the design process, in 2022, City Council established the objective of constructing fully electric vessels (rather than hybrid diesel-electric vessels). The recommended design responds to this direction and input received through community engagement. Delivery of the new vessels is targeted to occur in the fall of 2026 and spring of 2027. The purpose of this report is to advise on the status of the Negotiated Request for Proposals for the construction, delivery, commissioning, and warranty of two new fully electric ferry vessels, and the intention of staff to continue negotiations with the preferred proponent. A supplemental report, with full details on the recommended contract award, delivery schedule and financial impact, will be submitted to General Government Committee for its meeting of July 2, 2024. Consideration of this report at July 2024 City Council is essential to preserve the current planned delivery schedule for the new vessels.