Claim to Recover Damages - Toronto Police Service Data Centre

The Data Centre houses computer hardware, software, and related equipment and technology to support network and information technology services for the Toronto Police Service. The location of the Data Centre and its functionality is confidential. Construction of the Data Centre commenced in August 2017. It was substantially complete by November, 2018 and turned over to the City to operate and maintain. Fit up of the Data Centre by Toronto Police Service with computer and network equipment was completed in September 2019. In early 2021, Toronto Police Service staff observed significant unexpected corrosion on computer hardware components and certain metal surfaces in the Data Centre. In order to mitigate against potentially catastrophic system failures, Toronto Police Service locked down the building while it explored options to relocate the data systems. By mid-2021, Toronto Police Service had moved all operations from the Data Centre to other locations and taken all of the computer equipment offline. Toronto Police Service determined that corrosion observed on some of the computer systems compromised the equipment's integrity and, therefore, created operational risks. Accordingly, Toronto Police Service determined that it was necessary to relocate staff and operations to another facility, pending the completion of its investigation into the causes of the corrosion, the implementation of appropriate measures to prevent future damage to its computer systems, and the replacement of the computer systems in the Data Centre. The Construction of the Data Centre In 2014, the Toronto Police Services Board recognized that its current disaster recovery data centre was at its maximum capacity and located too close to the main site to meet industry standards for business continuity purposes. For these reasons Toronto Police Service received approval as part of its 2015-2024 capital program to replace the existing data centre with a new facility that would meet its operational requirements. Following the approval of this construction project, the Toronto Police Services Board awarded MMM Group Limited ("MMM Group") with the architectural design and consulting services contract for the Data Centre. As part of its contractual work, MMM Group developed site selection criteria and reviewed suitable sites with the City of Toronto Real Estate Division. In 2016, the City acquired the property on which the Data Centre would ultimately be constructed. In July of 2016 the Toronto Police Services Board entered into a contract with Eastern Construction Company Limited for construction management and construction services for the Data Centre project based on the designs and specifications prepared by MMM Group. The Data Centre was designed to include, among other things, heating, ventilation, and air conditioning systems that were capable of maintaining a consistent level of temperature and humidity within the Data Centre. These key heating, ventilation, and air conditioning systems were manufactured by KyotoCooling North America LLC and Stulz Air Technology Systems Inc. and commissioned by Jones Lang LaSalle Real Estate Services, Inc. The Data Centre was substantially completed in November 2018 and the City contracted with Bouygues Energies and Services Canada Limited and Plan Group Inc. for the general maintenance of the Data Centre and ongoing maintenance of the mechanical and heating, ventilation, and air conditioning systems. The Toronto Police Services Board entered into contracts with DP Environmental Service Inc. for specialized cleaning of the Data Centre computer equipment, preparing environmental assessments, and concrete sealing of the Data Centre subfloor. Confidential Attachment 1 contains legal advice from the City Solicitor with respect to ongoing investigation of the issues and legal action against the parties contracted to design and construct the building, to install heating and cooling and building management systems, and to clean and maintain the Data Centre. A statement of claim was issued on December 21, 2022 in order to recover the losses incurred as a result of the property damage, the anticipated costs to address the existing deficiencies that led to the damage, and associated costs to relocate staff and equipment while the investigation, design and construction work is undertaken.