November 17, 1999

To: Works Committee

From: Barry H. Gutteridge, Commissioner, Works and Emergency Services

Subject: Progress Report for the Western Beaches Tunnel Design-Build

Contract No. 58507

(High Park)

Purpose:

To inform the City of Toronto Council on the progress of the contract for the design and construction of the Western Beaches Tunnel.

Financial Implications and Impact Statement:

There are no financial implications resulting from the adoption of this report.

Recommendations:

It is recommended that this report be received for information purposes.

Background:

Phase I of the Western Beaches Tunnel (WBT) design-build contract was awarded by the Board of Management of the former City of Toronto at its meeting of December 18, 1997, to McNally-Frontier Joint Venture Inc. (MFJV) at a total price of $32,035,800.00, including all applicable taxes (Meeting No. 1997-50, Minute No. 24).

Subsequently, the Council of the City of Toronto at its meeting of February 4, 5 and 6, 1998, approved to accept Alternative B of the proposal submitted by the Joint Venture, locating the main shaft and pumping station at Battery Park instead of Coronation Park, at a reduced total contract price for Phase I of $31,500,800.00 (Community & Neighbourhood Services Committee, Report No. 1, Clause No. 6).

Phase II of the WBT contract was awarded by the City of Toronto Council at its meeting on February 2, 3 and 4, 1999, by adoption of Notice of Motion J(19), to McNally-Frontier Joint venture Inc. at a total contract price of $17,259,100.00, including all applicable taxes.

Comments:

The purpose of the WBT project, following Lakeshore Boulevard West between Strachan Avenue and Parkside Drive, is to intercept, during periods of rainfall, polluted sewer discharges which otherwise would flow to Lake Ontario from the City's combined sewer system for subsequent treatment before release to the Lake. Intercepting and treating the polluted sewer discharges will improve the water quality along the western waterfront and substantially reduce the frequency of beach postings during the summer seasons.

The contract commenced in January 1998, with an expected Substantial Performance date of June 30, 2000, representing the operational date of the system for both Phases I and II.

The contractor has completed approximately 60 per cent of the project, with the design and civil portion of the work representing the major activities. Currently mining of the rock tunnel is proceeding between the Cowan Shaft, located on the south side of Lakeshore Boulevard in line with Dunn Avenue, and the Glendale Shaft, the end shaft located in Budapest Park on the south side of Lakeshore Boulevard, just east of Parkside Drive.

The first large-diameter shaft under construction, the Battery Park Shaft, was excavated between February and October 1998, allowing commencement of mining of the rock tunnel westerly toward the second large-diameter shaft, the Cowan shaft. The mining activities were then stopped just past the location of the Cowan shaft, in April 1999 to allow its excavation, which was completed in August 1999. Boring of the rock tunnel resumed westerly on November 8, 1999, toward the third and last large-diameter shaft, the Glendale shaft, with removal of the spoil from the Cowan shaft.

Following excavation of the storage shafts and the rock tunnel, construction of the concrete shaft floors, walls and tunnel lining proceeded in sequence, as specified and as per design provided by the contractor. Simultaneously, the detailed design of the project proceeded for the balance of the components, including all the necessary approvals.

Construction of the support system for the excavation of the last main shaft, the Glendale shaft, commenced in May 1999.

However, the design-build contractor has recently notified the City of Toronto, as per MFJV's letter dated November 5, 1999 attached, that delay in the supply of power to the mining operation at the Cowan site by Toronto Hydro and the unexpected discovery of a soft layer of soil at the Glendale shaft location, requiring partial redesign of the shaft structure and a change in the construction method previously planned, have contributed to project delays and may later contribute to further delays, making the operational completion date of June 30, 2000, unattainable. The contractor has therefore requested an extension in completion time to December 11, 2000, to make both Phases of the project operational.

This Department and our Consultant are reviewing the request initiated by the contractor, who has the responsibility to design and build the project and is committed to its completion as proposed. The contractor has advised the Department that in this unexpected scenario, the additional time requested is the minimum necessary time, presently envisaged, to allow the WBT project to become operational. Damages due to this extension include additional consulting costs for general administration and site supervision, extended accordingly over the longer duration of the project, as well as a delay in the realization of lake water quality improvement.

We have not completed the review of the completion time extension request, as more information will be provided by the contractor and, therefore, at this time we cannot recommend the granting of the extension and the terms, in view of the provisions for Liquidated Damages contained in the contract and the specified Substantial Performance date of June 30, 2000. However, as we understand that the project cannot be completed by the specified date, we will assess the completion time extension issue at the time of Substantial Performance of the contract, when all the relevant data and information are available.

Conclusion:

This report has presented the progress reached in the Western Beaches Tunnel project and has identified a request by the contractor for a revised date of December 11, 2000, as the operational completion date of the project.

Contact:

A.F. Piccolo, P.Eng.

Senior Project Engineer, Plant & Facility Construction

Engineering Services - Works Facilities and Structures

Technical Services Division

Tel: (416) 392-8853

Fax: (416) 392-4594

E-mail: APiccol@city.toronto

Tom G. Denes, P.Eng.

Executive Director

Technical Services

Barry H. Gutteridge

Commissioner

Works and Emergency Services

Attachment:

McNally letter dated November 5, 1999