Item - 2023.GG2.14

The General Government Committee recommends that:

1. City Council receive the report (February 16, 2023) from the Chief Engineer and Executive Director, Engineering and Construction Services and the Chief Procurement Officer, Purchasing and Materials Management, for information.

The General Government Committee recessed its public session to meet in closed session to consider this item as it relates to a matter about litigation or potential litigation that affects the City of Toronto.

The General Government Committee requested the City Solicitor, in consultation with the Chief Engineer and Executive Director, Engineering and Construction Services, to review the circumstances arising from the Micro-Tunneling Boring Machine on Old Mill Drive and to report back to the April 20, 2023 meeting of the General Government Committee on options available to recover the costs incurred by the City.

The purpose of this report is to advise Toronto City Council, pursuant to Chapter 195 of the Toronto Municipal Code (Purchasing By-law, Section 195-7.4), of a non-competitive contract with Clearway Construction Limited, to procure construction services to rescue a micro-tunnelling boring machine on Old Mill Drive (north of Bloor Street), for Assignment 5-01 under the Basement Flooding Protection Program Phase 4, for a total value of $8,997,161 excluding HST ($9,155,511 net of HST recoveries).

The issuance of this non-competitive contract was a matter of extreme urgency, as there was a significant health and safety hazard to the public. The micro-tunnelling boring machine which was being used to construct a new 900 millimetre diameter storm sewer along Old Mill Drive, was ensnared by unforeseen steel tiebacks which had been used to previously brace shoring from two mid-rise development excavations. The integrity of the roadway, nearby subway tunnel and surrounding infrastructure was undermined as a result of ground movement around the micro-tunnelling boring machine due to excessive ground water and poor soil conditions. This ground instability further led to the creation of a sinkhole in the work zone.

The non-competitive contract was required to allow the contractor, Clearway Construction Limited, to review the impacted area and safely proceed with the micro-tunnelling boring machine rescue operations, including de-stressing and removing steel tiebacks; and jet and compaction grouting to stabilize the ground.

This repair was deemed an emergency during Council Recess under Chapter 195-7.1 (G) of the Municipal Code. Reporting back to City Council is required in accordance with Municipal Code Chapter 195, Purchasing, Article 7, Section 195-7.4(B) where an emergency non-competitive contract exceeds $500,000.