Item - 2025.GG20.12

The City Solicitor, and the Chief Engineer and Executive Director, Engineering and Construction Services recommend that:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1.

2. City Council authorize the public release of the confidential recommendations contained in Confidential Attachment 1, at the discretion of the City Solicitor, but that the remainder of Confidential Attachment 1 remain confidential as it contains advice which is subject to solicitor-client and litigation privilege.

The City hired WSP Canada Inc. ("WSP" which is inclusive of a predecessor company subsequently amalgamated with WSP) to provide professional consulting services, including preliminary design and detailed design services, for the Rehabilitation of Section 1 of the F.G. Gardiner Expressway (the "Gardiner") from Jarvis Street to Cherry Street (the "Project").

The City alleges that WSP's design was erroneous, incomplete or insufficient in important respects that were discovered during construction (the "Design Errors"). Although these Design Errors were fully addressed during construction for purposes of completing the Project, the City incurred additional costs to rectify the errors and additional costs to accelerate the Project (to avoid, amongst other things, extended lane closures on the Gardiner) because the Design Errors contributed to delays.

Therefore, the City commenced a legal action against WSP to recover the costs it alleges were incurred due to the Design Errors. The City claims that WSP was negligent or breached its contract with the City in its: (a) design of the Project; and / or (b) delivery of engineering services during the Project.

Confidential Attachment 1 contains legal advice from the City Solicitor regarding the litigation.

The financial implications are discussed in Confidential Attachment 1.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.