2014-06-20 Decision Letter - Budget Committee

The Budget Committee recommends to the Executive Committee that:

1. City Council amend the 2014 Capital Budget and 2015-2023 Capital Plan for Toronto Water by accelerating the 2015 approved cash flow for All District Water Service Replacement Project (CPW544-03) and Sewer Rehabilitation Project (CPW465-06) in the amount of $1,550,000.00 and $1,850,000.00 respectively, from 2015 to 2014, as outlined in Table 2 in the report (May 28, 2014) from the General Manager, Toronto Water and the Acting Director, Purchasing and materials Management, with no budget impact.

2. City Council amend the 2014 Operating Budget for Toronto Water by reallocating the 2014 approved funding for contribution to Toronto Water's Capital Financing Reserve Funds in the total amount of $3,621,440.00 to the 2014 approved funding for contracted services as outlined in Table 2 in the report (May 28, 2014) from the General Manager, Toronto Water and the Acting Director, Purchasing and materials Management, with a $0 net impact on the 2014 Approved Operating Budget.

3. City Council reverse the 2014 Operating Budget amendment in Recommendation 2 above, as part of the 2015 Operating Budget Process.

4. City Council direct the General Manager, Toronto Water, include for consideration with the 2015 Operating and Capital Budget Process, any additional funding required in 2015 and future years resulting from the impact of the extreme cold weather during the 2014 winter.

The Public Works and Infrastructure Committee, at its meeting of June 18, 2014:

1. Amended Contract 47017290 for Repairs of Water and Sewer Connections, Mains and Appurtenances Toronto East York District, Tender 254-2012, with OJCR Construction Ltd., by an additional amount of $2,500,000.00 net of all taxes ($2,544,000.00 net of HST recoveries) revising the current value from $11,786,948.43 to $14,286,948.43 net of all taxes ($14,538,398.72 net of HST recoveries), subject to City Council approval of Recommendations 1 and 2 from the Budget Committee.

2. Amended Contract 47017308 for Repairs of Water and Sewer Connections, Mains and Appurtenances Etobicoke York District, Tender 255-2012, with OJCR Construction Ltd., by an additional amount of $2,800,000.00 net of all taxes ($2,849,280.00 net of HST recoveries) revising the current value from $8,696,692.66 to $11,496,692.66 net of all taxes ($11,699,034.45 net of HST recoveries), subject to City Council approval of Recommendations 1 and 2 from the Budget Committee.

3. Amended Contract 47017297 for Repairs of Water and Sewer Connections, Mains and Appurtenances NorthYork District, Tender 256-2012, with Finch Paving (1993) Ltd., by an additional amount of $900,000.00 net of all taxes ($915,840.00 net of HST recoveries) revising the current value from $7,083,696.28 to $7, 983,696.28 net of all taxes ($8,124,209.34 net of HST recoveries), subject to City Council approval of Recommendations 1 and 2 from the Budget Committee.

4. Amended Contract 47017307 for Repairs of Water and Sewer Connections, Mains and Appurtenances Scarborough District, Tender 257-2012, with 614128 Ontario Ltd. o/a Trisan Construction, by an additional amount of $700,000.00 net of all taxes ($712,320.00 net of HST recoveries) revising the current value from $5,065,946.02 to $5,765,946.02 net of all taxes ($5,867,426.67 net of HST recoveries), subject to City Council approval of Recommendations 1 and 2 from the Budget Committee.

The purpose of this report is to advise on the impact of the extreme cold weather during the 2014 Winter on Toronto Water Operations current contracts, and to seek authority to amend Contracts 47017290, 47017308, 47017297 and 47017307 for Repairs of Water and Sewer Connections, Mains and Appurtenances in various Districts to ensure business continuity to the end of 2014, as well as to seek authority to amend the approved 2014-2023 Capital Budget and Plan and 2014 Operating Budget for Toronto Water in order to allocate appropriate funding for requested contract amendments. It also reports on the cost impact of the volume increase to permanent restoration work to be carried out by Transportation Services in 2015/16.

Meeting No.	55	Contact	Jennifer Forkes, Committee Administrator
Meeting Date	Friday, June 20, 2014	Phone	416-392-4666
Start Time	9:30 AM	E-mail	buc@toronto.ca
Location	Committee Room 1, City Hall	Chair	Councillor Frank Di Giorgio

Committee Decision
The Budget Committee recommends to the Executive Committee that: 1. City Council amend the 2014 Capital Budget and 2015-2023 Capital Plan for Toronto Water by accelerating the 2015 approved cash flow for All District Water Service Replacement Project (CPW544-03) and Sewer Rehabilitation Project (CPW465-06) in the amount of $1,550,000.00 and $1,850,000.00 respectively, from 2015 to 2014, as outlined in Table 2 in the report (May 28, 2014) from the General Manager, Toronto Water and the Acting Director, Purchasing and materials Management, with no budget impact. 2. City Council amend the 2014 Operating Budget for Toronto Water by reallocating the 2014 approved funding for contribution to Toronto Water's Capital Financing Reserve Funds in the total amount of $3,621,440.00 to the 2014 approved funding for contracted services as outlined in Table 2 in the report (May 28, 2014) from the General Manager, Toronto Water and the Acting Director, Purchasing and materials Management, with a $0 net impact on the 2014 Approved Operating Budget. 3. City Council reverse the 2014 Operating Budget amendment in Recommendation 2 above, as part of the 2015 Operating Budget Process. 4. City Council direct the General Manager, Toronto Water, include for consideration with the 2015 Operating and Capital Budget Process, any additional funding required in 2015 and future years resulting from the impact of the extreme cold weather during the 2014 winter.