Cleaning and Cement Mortar Lining of
Existing Water Mains, North York District -
Completion of Contract No. 97-709
The Works and Utilities Committee recommends the adoption of the following report (August24, 1998) from the
Commissioner of Works and Emergency Services:
Purpose:
The purpose of this report is to authorize the City to enter into a takeover/construction completion agreement with the
surety company for Contract No. 97-709 for the cleaning and cement mortar lining of existing cast and ductile iron water
mains throughout various locations within the City of Toronto, North York District, to allow the successful completion of
the project.
Funding Sources, Financial Implications and Impact Statement:
Funding for this work was included in the approved 1998 Capital Budget.
Recommendations:
It is recommended that:
(1)the City of Toronto enter into the takeover/construction completion agreement with the Employers Insurance of
Wausau, a Mutual Company, to allow the completion of Contract No. 97-709; and
(2)the appropriate City officials be authorized to take the necessary action to give effect thereto.
Council Reference/Background/History:
This contract was called in 1997, and the tender closed on September 3, 1997, with Spiniello Construction Company
having submitted the lowest bid of $2,032,134.37. Spiniello Construction was owned by Spiniello Construction Company
of New Jersey, USA. The contract was signed and executed on September 24, 1997.
Work on this project was discontinued in November 1997 due to the onset of winter. Construction activity resumed in June
1998, and work has continued to date.
Comments and/or Discussion and/or Justification:
On June 12, 1998, the City of Toronto was informed that Spiniello Construction Company sought protection under Chapter
11 of the United States Bankruptcy Court.
On June 29, 1998, an Order from the United States Bankruptcy Court indicated that a settlement had been reached.
Spiniello Construction Company's surety, the Employers Insurance of Wausau, acting through The Guaranty Company of
North America, has assumed control of the situation. In addition, a new company called Spiniello Companies was formed,
and an arrangement with Wausau and Spiniello was established to perform the remaining work on all outstanding contracts.
In order to ensure the successful completion of all outstanding works, all activities must now be coordinated through
Wausau, which requires the City to enter into a takeover/construction completion agreement.
The takeover/construction completion agreement has been reviewed by Legal Department staff and found to be appropriate
and in order. Please find attached the form of agreement.
Conclusions:
It is concluded that the City enter into the takeover/construction completion agreement with the Employers Insurance of
Wausau, for Contract No. 97-709 for the cleaning and cement mortar lining of existing cast iron water mains at various
locations within the City of Toronto, North York District.
Contact Name:
Mr. Mario Crognale, P. Eng.
Director of Water and Sewer Operations
Phone: (416) 395-6219; Fax: (416) 395-6200
E-Mail: mcrognal@city.north-york.on.ca.
(A copy of the Takeover Agreement referred to in the foregoing report has been forwarded to all Members of Council with
the agenda for the Works and Utilities Committee meeting of September9, 1998, and a copy thereof is on file in the office
of the City Clerk.)