Item - 2015.EX5.6

Tracking Status

  • City Council adopted this item on May 5, 2015 without amendments.
  • This item was considered by the Executive Committee on April 22, 2015 and adopted without amendment. It will be considered by City Council on May 5, 2015.

EX5.6 - Scarborough Subway Extension - Project Delivery Options

Decision Type:
ACTION
Status:
Adopted
Wards:
35 - Scarborough Southwest, 37 - Scarborough Centre, 38 - Scarborough Centre, 41 - Scarborough-Rouge River, 42 - Scarborough-Rouge River

City Council Decision

City Council on May 5, 6 and 7, 2015, adopted the following:

 

1.  City Council direct the City Manager, in consultation with the Chief Executive Officer, Toronto Transit Commission and the Deputy City Manager and Chief Financial Officer to report to City Council by the first quarter of 2016 with a recommendation on whether to proceed with a Design-Bid-Build or Design-Build-Finance option for project procurement; such report to also include recommendations with respect to project management, delivery and governance.

 

2.  City Council authorize the Deputy City Manager and Chief Financial Officer to retain the services of Infrastructure Ontario, and such other advisors that are required to complete the Procurement Options Analysis, at a total cost not to exceed $500,000.

 

3.  City Council request the Toronto Transit Commission Board to continue to structure any contracts for design or other preparatory work for the Scarborough Subway Extension so as to preserve the ability to proceed with whichever procurement and delivery model is recommended to Council following completion of the Procurement Options Analysis.

Background Information (Committee)

(April 8, 2015) Report and Appendices 1 and 2, from the City Manager and the Deputy City Manager and Chief Financial Officer on Scarborough Subway Extension - Project Delivery Options
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-79228.pdf
(April 8, 2015) Report from the City Manager on Scarborough Subway Extension - Project Delivery Options - Notice of Pending Report
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-78853.pdf

Communications (Committee)

(April 17, 2015) E-mail from Don Ferguson (EX.Supp.EX5.6.1)
(April 21, 2015) E-mail from Sharon Yetman (EX.Supp.EX5.6.2)
(April 21, 2015) E-mail from Moya Beall (EX.Supp.EX5.6.3)
(April 21, 2015) E-mail from John Liss (EX.Supp.EX5.6.4)
(April 21, 2015) E-mail from Hamish Wilson (EX.New.EX5.6.5)

Motions (City Council)

Motion to Adopt Item (Carried)

Vote (Adopt Item) May-06-2015 12:15 PM

Result: Carried Majority Required - EX5.6 - Adopt the item
Total members that voted Yes: 31 Members that voted Yes are Michelle Berardinetti, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Joe Cressy, Vincent Crisanti, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, Mary Fragedakis, Mark Grimes, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mike Layton, Giorgio Mammoliti, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Jaye Robinson, David Shiner, John Tory, Kristyn Wong-Tam
Total members that voted No: 6 Members that voted No are Maria Augimeri, Janet Davis, John Filion, Josh Matlow, Gord Perks, Anthony Perruzza
Total members that were Absent: 8 Members that were absent are Paul Ainslie, Ana Bail„o, Paula Fletcher, Rob Ford, Chin Lee, Pam McConnell, Ron Moeser, Michael Thompson

Point of Privilege by Councillor Jim Karygiannis

Councillor Karygiannis, rising on a Point of Privilege, stated that Speaker Nunziata should withdraw the remarks she made about Scarborough when calling upon this agenda Item.

Ruling by Speaker Frances Nunziata
Speaker Nunziata accepted the Point of Privilege ruled that she was just commenting on the previous discussion.

EX5.6 - Scarborough Subway Extension - Project Delivery Options

Decision Type:
ACTION
Status:
Adopted
Wards:
35 - Scarborough Southwest, 37 - Scarborough Centre, 38 - Scarborough Centre, 41 - Scarborough-Rouge River, 42 - Scarborough-Rouge River

Committee Recommendations

The Executive Committee recommends that:

 

1.  City Council direct the City Manager, in consultation with the Chief Executive Officer of the Toronto Transit Commission and the Deputy City Manager and Chief Financial Officer to report back to City Council by the first quarter of 2016 with their recommendation on whether to proceed with a Design-Bid-Build or Design-Build-Finance option for project procurement and that such report also include recommendations with respect to project management, delivery and governance.

 

2.  City Council authorize the Deputy City Manager and Chief Financial Officer to retain the services of Infrastructure Ontario, and such other advisors that are required to complete the Procurement Options Analysis, at a total cost not to exceed $500,000.

 

3.  City Council request that the Board of the Toronto Transit Commission continue to structure any contracts for design or other preparatory work for the Scarborough Subway Extension so as to preserve the ability to proceed with whichever procurement and delivery model is recommended to Council following completion of the Procurement Options Analysis.

Origin

(April 8, 2015) Report from the City Manager and the Deputy City Manager and Chief Financial Officer

Summary

This report responds to a direction from Council (EX4.17) to examine potential options for the delivery of the Scarborough Subway Extension project (the "SSE").

 

In particular, the report focuses on an assessment of potential project procurement options. This high-level assessment indicates that the most appropriate procurement approach will be either a traditional Design-Bid-Build ("DBB") approach or a Design-Build-Finance ("DBF") form of Alternative Finance and Procurement ("AFP"). The participation of a private partner in the operations of the project has been ruled out as it is impractical in an extension of an existing subway line.

 

The existing Collective Bargaining Agreement with TTC unions also explicitly precludes the contracting out of those maintenance activities that are normally undertaken by TTC employees. However, the consideration of some scenarios for the lifecycle maintenance by the private partner of major structural elements of the project may be incorporated within a P3 (Public Private Partnership) screen required as a condition of the federal funding commitment being provided through the New Build Canada Fund. This report recommends that Infrastructure Ontario be retained to advise on the preparation of a POA.

 

‎In addition to addressing procurement, the report sets out the process that will lead to decisions with respect to the appropriate form of project management and delivery for each stage of the SSE project.

 

Finally, this report also requests that the Board of the Toronto Transit Commission continue to structure any new contracts for design or other preparatory work for the project so as to preserve the ability to proceed with whichever procurement mode is recommended as a result of the POA. This will allow the project to proceed with no delays during the time the POA is being carried out.

Background Information

(April 8, 2015) Report and Appendices 1 and 2, from the City Manager and the Deputy City Manager and Chief Financial Officer on Scarborough Subway Extension - Project Delivery Options
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-79228.pdf
(April 8, 2015) Report from the City Manager on Scarborough Subway Extension - Project Delivery Options - Notice of Pending Report
https://www.toronto.ca/legdocs/mmis/2015/ex/bgrd/backgroundfile-78853.pdf

Communications

(April 17, 2015) E-mail from Don Ferguson (EX.Supp.EX5.6.1)
(April 21, 2015) E-mail from Sharon Yetman (EX.Supp.EX5.6.2)
(April 21, 2015) E-mail from Moya Beall (EX.Supp.EX5.6.3)
(April 21, 2015) E-mail from John Liss (EX.Supp.EX5.6.4)
(April 21, 2015) E-mail from Hamish Wilson (EX.New.EX5.6.5)

Speakers

Brenda Thompson
Herman Rosenfeld
Joell Vanderwagen
Jessica Bell
Hamish Wilson
Bill Reno
Vincent Puhakka, Scarborough Transit Action
Jessie Macaulay
Councillor Janet Davis
Councillor Glenn De Baeremaeker
Councillor Josh Colle

Motions

1 - Motion to Adopt Item moved by Councillor Denzil Minnan-Wong (Carried)
Source: Toronto City Clerk at www.toronto.ca/council