Item - 2018.PW27.2

The Public Works and Infrastructure Committee:

1. In accordance with Section 195-8.4A of Toronto Municipal Code Chapter 195 (Purchasing By-Law), granted authority to award Contract 17ECS-MI-04DC, Tender Call 221-2017, for the construction of the Coxwell Bypass Tunnel to North Tunnel Constructors ULC in the amount of $ 397,269,000 net of all applicable taxes and charges ($ 404,260,934 net of HST recoveries) having submitted the lowest compliant bid and meeting the specifications in conformance with the Tender requirements. The awarded amount includes a contingency allowance of $62,509,000.

2. In accordance with Section 71-11.1.C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-Law), granted authority to amend Purchase Order No. 6041404 with Marsh Canada Limited, by an amount of $6,000,000 net of all taxes ($6,480,000 including PST), revising the current value from $15,124,898 to $21,124,898 net of all taxes ($22,814,890 including PST) to allow for the City to purchase an Owner Controlled Insurance Program specific to the Project.

3. Requested the General Manager, Toronto Water, in collaboration with the Chief Engineer and Executive Director, Engineering and Construction Services, to report back through the 2019 Capital Budget process on the degree to which the implementation of the Don River and Central Waterfront Project components which include: a) Stage 2 (Taylor-Massey Creek Tunnel); b) construction of the Ashbridges Bay Treatment Plant Landform; and c) High Rate Treatment Facility at the Ashbridges Bay Treatment Plant, can be accelerated; and on the associated capital funding implications.

The purpose of this report is to advise of the results of Tender Call 221-2017 issued for Contract No. 17ECS-MI-04DC for the construction of the Coxwell Bypass Tunnel between the Ashbridges Bay Treatment Plant and Coxwell Ravine Park, and to request the authority to award this contract to North Tunnel Constructors ULC in the amount of $397,269,000 net of all applicable taxes and charges ($404,260,934 net of HST recoveries). This contract represents the first phase of the implementation of the Don River and Central Waterfront Project, and is aimed at improving water quality conditions in the Lower Don River and Inner Harbour, while providing security of operation of the Coxwell Sanitary Trunk Sewer.

Authority is also being requested to amend Purchase Order No. 6041404 with Marsh Canada Limited, for the procurement, maintenance and payment of insurance premiums associated with an Owner Controlled Insurance Program (OCIP) for the Coxwell Bypass Tunnel construction project by an amount of $6,000,000 net of all taxes ($6,480,000 including PST), revising the current value of the Purchase Order from $15,124,898 to $21,124,898 net of all taxes ($22,814,890 including PST).