Item - 2025.TTC2.4

The Toronto Transit Commission:

1. Authorized the award of Contract C82PB24097, Bloor-Yonge Capacity Improvements Progressive Design-Build Development Phase, to Kenaidan Murphy Joint Venture, in the upset amount of $154,600,000.00, inclusive of HST, on the basis of highest total weighted score.

2. Approved the following cashflow adjustments to the TTC’s 2025-2034 Capital Budget and Plan for the Bloor-Yonge Capacity Improvements project by accelerating cashflow funding in 2025 by $38.3 million and in 2026 by $73.1 million, offset by reducing cashflow funding in years 2030 to 2033 inclusively by $111.4 million total, with no debt impact, to align with the estimated project delivery schedule.

3. Subject to recommendation 2 above, authorized the recommended budget adjustments to the TTC’s 2025-2034 Capital Budget and Plan to be included in the TTC’s Capital Variance Report submission to the City of Toronto for the four months ended April 30, 2025, for City Council consideration and approval.

4. Approved a contract amendment with Blake, Cassels & Graydon LLP for the provision of Legal Services for the Bloor-Yonge Capacity Improvements project, increasing the upset limit by $1,695,000, inclusive of HST, to a revised total of $4,390,000 inclusive of HST.

6. Adopted the recommendation set out in Confidential Attachment 1 and authorized that the information remain confidential as it contains information about a position, plan, procedure, criteria or instruction to be applied to any negotiations carried on by or on behalf of the TTC.

7. Requested the TTC CEO and the Progressive Design Build contractor to identify during the development phase, the costs for individual elements of the design, to allow the TTC to make recommendations to the Board, on which design elements may need to be omitted to keep the project within the current budget without impacting the project benefits.

8. Requested that TTC staff give a presentation at the next TTC Board meeting that provides a detailed financial update for the Bloor-Yonge Capacity Improvements Project, including projected costs, actual costs, and variances for different elements of the project, including design, legal, and land acquisitions year-to-date.

The TTC Board received a presentation on this item. 

The purpose of this report is to obtain authorization to award the Progressive Design-Build Development Phase Agreement for the Bloor-Yonge Capacity Improvements (BYCI) project to Kenaidan Murphy Joint Venture (KMJV) in the amount of $154,600,000.00, inclusive of HST, on the basis of highest total weighted score. The scope of this contract includes the supply of all labour, equipment, and materials to:

• Establish a joint project delivery office and team consisting of TTC and the Progressive Design-Builder to collaboratively develop the design of the Bloor-Yonge Capacity Improvements project to approximately 70% during the Development Phase of a Progressive Design-Build (PDB) project delivery model; and
• Negotiate a Project Agreement and target price between the TTC and the Progressive Design-Builder for the Implementation Phase of a PDB project delivery model to complete the design, undertake construction, and closeout of the project (subject to subsequent Board approval at a future date).

The work during the Development Phase will be carried out on a cost-reimbursable basis over a period of approximately two years, in accordance with the terms of the Development Phase Agreement. The project delivery model of Progressive Design-Build was previously approved by the Board at its meeting on December 8, 2021, as part of the approval of Stage Gate 3 for the Bloor-Yonge Capacity Improvements project.

Upon completion of the Development Phase including 70% project design and negotiation of the target price, schedule and Project Agreement, Board approval will be required to enter into the Project Agreement and begin the Implementation Phase to complete the design to 100% and undertake construction. Completion of the Development Phase is expected in Q1, 2027.

In order to ensure continued external legal assistance in the negotiation and finalization of the PDB – Project Agreement throughout the Development Phase, approval is being requested to amend the contract by $1.695 million with the TTC’s external Legal Services provider in support of the BYCI project, bringing the total amendment of this contract to $2.695 million, which exceeds the CEO’s delegated authority threshold of $2.5 million for contract amendments. The original contract amount of $1.695 million, previous amendment of $1.0 million, and this second contract amendment of $1.695 million resulted in a revised total of $4.39 million, inclusive of HST, for the Legal Services contract.