Request for Additional Funds for Construction and Consulting Services for Garage Restoration Project at 40 Larch Street (Car Park 150)

During removal of the asphalt traffic deck and waterproofing system, Toronto Parking Authority's structural consultant, Sense Engineering (GTA) Ltd., identified structural irregularities, including radial cracking at multiple column locations. Toronto Parking Authority immediately implemented emergency safety measures, including temporary shoring to stabilize the structure. These measures were completed promptly to ensure public safety and maintain the structural integrity of the facility while a comprehensive investigation was undertaken to determine the cause, extent, and depth of the radial cracking. Sense Engineering completed its review of the deficiencies identified through a structural investigation and determined that additional, more complex design and construction-related work is required. The investigation identified several deficiencies in the existing structure, including differences between the original design drawings and the facility's actual structural conditions and column construction details that reduced the slab's load-carrying capacity. The investigation also confirmed the need to reduce structural dead load by replacing the existing asphalt traffic deck with a lighter-weight traffic deck system, such as polyurethane methacrylate (PUMA), which provides comparable durability while reducing load on the structure. The structural analysis and proposed structural repair details were independently peer reviewed by Engineering Link and Honeycomb Engineering, respectively. To proceed with the required corrective work, Toronto Parking Authority is seeking the Board to increase: - the construction contract with Heritage Restoration Inc. (HRI) from $5,245,943.42 to a total of $12,005,943.42, excluding HST, including $5,260,000 in structural repair costs and a $1,500,000 contingency; and - the consulting contract with Sense Engineering (GTA) Ltd. from $552,260 to $1,052,260, excluding HST, to cover expanded structural analysis, additional investigation and testing, detailed strengthening design, and construction‑phase support. Despite the significant increase in project cost resulting from this unforeseen scope, the additional work is directly and materially connected to the original CP 150 rehabilitation project/tender. The work arises from structural conditions identified during execution of the approved rehabilitation scope and is necessary to complete the project safely and effectively. To confirm that HRI's proposed change order costs were reasonable, competitive, and aligned with industry norms, Toronto Parking Authority engaged its retained cost consultant to conduct an independent review. The review determined that HRI's proposed costs were approximately 20% below expected industry benchmarks. As such, the additional structural repair and traffic deck replacement work is appropriately managed as a change order to the existing contract, rather than as a separate procurement. Retendering the work would introduce unnecessary delay, increase project risk, and potentially compromise continuity of design responsibility, construction sequencing, and site safety. It may also expose Toronto Parking Authority to contract termination costs, remobilization costs, claims for delay, and additional carrying costs associated with extending the project schedule. Proceeding by change order allows the required repairs to advance efficiently while maintaining accountability, cost control, and alignment with the original project objectives. This approach also reduces the risk of further disruption to the facility, the supported Toronto Community Housing Corporation (TCHC) residential buildings, and the City-owned public laneways above the structure.

2. The Toronto Parking Authority Board of Directors provide authority to the President, Toronto Parking Authority, to amend contract 2023-CS-CP150-B10 for the Garage Restoration project located at 40 Larch Street (Car Park 150) with Sense Engineering (GTA) Ltd. by increasing the current consulting contract valued at $552,260, by $500,000 for additional structural design, construction review, and contract administration fees, with the sum total approved valued at $1,052,260 excluding Harmonized Sales Tax (HST).