Item - 2024.IE16.2

City Council considered the following Items together:

IE16.2 headed "Enhancing Capital Infrastructure Program Coordination"; and

IE16.4 headed "Congestion Management Plan 2023 - 2026 - Fall Update”.

The Infrastructure and Environment Committee recommends that:

1. City Council increase the 2024 Operating Budget for Policy, Planning, Finance and Administration by $550,000 gross, $0 net and eight (8) new temporary positions for a term of 2 years, fully funded from the 2024 - 2033 Capital Budget and Plan for Transportation Services and 2024 - 2033 Capital Budget and Plan for Toronto Water for the implementation of the first phase of a new Strategic Capital Coordination Office to provide senior level oversight and accountability for the integration of the current capital delivery coordination program for infrastructure projects across the City.

2. City Council request the Mayor to include the required resources for an additional seven (7) positions under Policy, Planning, Finance and Administration through the 2025 Budget Process for consideration to support the full development of the Strategic Capital Coordination Office with full recovery from the 10-Year Capital Budget and Plan for Transportation Services and Toronto Water.

3. City Council request the City Manager to report, by the first quarter of 2025, on whether the Bid Award Panel provides sufficient value to the city to justify the delays that it creates in city capital projects.

The Infrastructure and Environment Committee considered this item together with item IE16.4.

Will Johnston, Deputy City Manager, Infrastructure Services, Jennifer Graham Harkness, Chief Engineer and Executive Director, Engineering and Construction Services, Judy Tse, Director, Strategic Policy and Programs, and Roger Browne, Director, Traffic Management, gave a presentation on Enhancing Capital Infrastructure Program Coordination.

Toronto continues to experience unprecedented growth and development at the same time that the City focuses on building affordable housing and expanding our transit networks across the City. To support this activity, there is a need to deliver the necessary infrastructure upgrades and invest in aging infrastructure. The construction coordination process that is currently in place has been challenged to keep pace with this rapid growth and complexity of infrastructure work.

The present five-year capital coordination process does not typically consider longer-term capital projects (5 to 10 years) that are forecasted to support areas of intense growth. Similarly, current capital construction coordination processes have difficulty adjusting to and accommodating emergency requests to conduct last-minute works. It is important that all capital construction projects are properly coordinated, sequenced and bundled, taking into consideration criteria that include safety and traffic congestion in order to minimize impacts to communities. These challenges have created an opportunity to enhance and strengthen the coordination of the City's capital infrastructure program while, at the same time, support the City's efforts to better manage congestion.

To advance and support the necessary work to improve coordination and integrate longer-term, near-term and last-minute capital projects across the City, a new Strategic Capital Coordination Office was established in April of this year within the office of the Deputy City Manager, Infrastructure Services. The creation of this new office was supported and informed by the findings of a management consultant's review and a staff led Capital Delivery Improvements Review; both completed in 2023.

The overall goal of this new Strategic Capital Coordination Office is to:   

- Provide strategic senior-level oversight of the City's capital coordination process to enable more timely resolution of emerging issues such as schedule conflicts and management of community impact

- Drive accountability among those involved in the planning, coordination and delivery of construction projects across the city

- Strengthen collaboration between internal divisions, City agencies and external partners such as utilities and developers with work that impacts the City's right of way

- Expand the capital program process to integrate coordination of longer-term plans (5 to 10 years) to maximize bundling and sequencing opportunities of construction projects

- Enhance communication and engagement with Councillors and the public to keep everyone informed on upcoming construction activities, community impacts, mitigating measures, and any changes during construction

The staff team within Engineering and Construction Services that are responsible for coordination of the Toronto Water and Transportation Services' annual five-year capital plan, were transitioned into the new Strategic Capital Coordination Office in April 2024. As work continues to expand and strengthen the role of this office, additional staff are required to provide strategic coordination of capital projects across the City. Eight new temporary positions to support the implementation of the Strategic Capital Coordination Office, fully funded by the capital budget, are being requested for 2024. An additional seven positions will be requested through the 2025 Budget Process to complete the Strategic Capital Coordination Office.

The report also responds to the City Council direction with report IE7.2 of the November 8, 2023 City Council meeting, directing the Deputy City Manager, Infrastructure Services to report back with an approach on the enhancement and expansion of the existing capital coordination programs.