Item - 2023.GG5.14

The General Government Committee recommends that:

1. City Council receive the report (June 21, 2023) from the General Manager, Toronto Water and the Chief Procurement Officer, for information.

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 an amendment to Purchase Order Number 6050742, issued to CIMA Canada Inc. (CIMA+), for additional contract administration related to emergency repairs to raw water valves at F. J. Horgan Treatment Plant in amount of $530,503 net of all taxes and charges ($539,840 net of HST recoveries), revising the current Purchase Order value from $536,514 net of all taxes and charges ($545,957 net of HST recoveries) to $1,067,017 net of all taxes and charges ($1,085,796 net of HST recoveries).

In addition, this report advises of an amendment to Purchase Order Number 6053360, issued to WSN Construction Inc. (WSN), for the emergency repairs to the raw water valves in the amount of $1,096,113 net of all taxes and charges ($1,115,405 net of HST recoveries), revising the current Purchase Order value from $2,786,867 net of all taxes and charges ($2,835,915 net of HST recoveries) to $3,882,980 net of all taxes and charges ($3,951,320 net of HST recoveries).

Toronto Municipal Code, Chapter 195, Purchasing, defines an emergency as, “Any situation of extreme urgency brought about by unforeseeable events that makes the procurement of goods and services necessary to address an immediate risk to health, safety, security, property, the environment or other public interests of the City”.

F.J. Horgan Water Treatment Plant provides water to customers in the east end of the City and the Region of York. It produces approximately 20% of Toronto’s drinking water and employs eight (8) raw water pumps to draw water from Lake Ontario. Repairs to raw water valves are required to ensure adequate drinking water supply is available to address health and safety risks and have four (4) of the raw water pumps back in service to meet the high-capacity requirements of the summer months. During the summer months, a 50% increase in production is needed at the F.J. Horgan Water Treatment Plant and a 25% increase in production is needed for the entire system to ensure an adequate drinking water supply is available.

Additional work was authorized to proceed on an emergency basis by the General Manager, Toronto Water and Chief Procurement Officer under Chapter 195-7.1(G) of the Municipal Code. Reporting back to City Council through the General Government Committee is required in accordance with Municipal Code Chapter 195, Purchasing, Section 195-7.4(B) where the potential value of the non-competitive contract exceeds $500,000.

Through these emergency procurement activities, Toronto Water was able to expand existing contracts to include the additional and urgent work required at rates comparable to tender prices received for work of similar scope and scale.