Item - 2021.IE20.1

The Infrastructure and Environment Committee recommends that:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (March 9, 2021) from the General Manager, Toronto Water, the Chief Purchasing Officer and the City Solicitor.

2. City Council direct that Confidential Attachment 1 to the report (March 9, 2021) from the General Manager, Toronto Water, the Chief Purchasing Officer and the City Solicitor remain confidential in its entirety, as it contains advice that is subject to solicitor-client privilege and pertains to litigation or potential litigation.

The Infrastructure and Environment Committee:

1. In accordance with Section 71-11.1.C of the City of Toronto Municipal Code Chapter 71 (Financial Control), authorized an amendment to Purchase Order Number 6031221 with Unit A Architecture Incorporated for professional services, contract administration and site inspection services during construction of the Process Control Building at Highland Creek Treatment Plant, Request for Proposal Number 9117-09-7264 and additional amount of $647,455 net of all taxes and charges ($658,850 net of Harmonized Sales Tax recovery), revising the current total value from $1,983,789 net of all taxes and charges ($2,018,704 net of Harmonized Sales Tax recovery) to $2,631,244 net of all taxes and charges ($2,677,554 net of Harmonized Sales Tax recovery) and to extend the delivery date to December 31, 2024.

The purpose of this report is to request authority to amend the value and extend the term of Purchase Order Number 6031221 issued to Unit A Architecture Incorporated for professional services during construction of the Process Control building project at Highland Creek Treatment Plant, awarded under Request for Proposal 9117-09-7264.

There have been significant delays in the completion of this project and remediation of deficiencies due to difficulties experienced with the general contractor together with mitigation measures that were required to be taken by the City as a result. An amendment to the purchase order is required to extend the professional services, contract administration and site inspection services provided by Unit A Architecture Incorporated to December 31, 2024 and to revise the value by $647,455 from $1,983,789 to $2,631,244 net of all taxes and charges.

The general contractor for this project, Aplus General Contractors Corporation commenced a legal action against the City for amounts invoiced by it and not paid by the City. The City has defended the action and commenced a counterclaim for damages it alleges are attributable to Aplus. Confidential Attachment 1 contains legal advice from the City Solicitor regarding the litigation that has arisen from this Project.