Approve controversial $1.4B snow-clearing deal or put public at risk, Toronto councillors told

Toronto city councillors will be asked to approve $1.4 billion worth of snow-clearing contracts Wednesday, even though city transportation staff won't say if the companies in line to win the bulk of the work have the plows to get the job done.

If those councillors don't OK the deal, staff are warning in a supplementary report released Tuesday there would be "considerable risk" of not being able to clear roads, sidewalks and bike lanes by the time snow starts flying in 2022. That would jeopardize public safety, they say.

CBC Toronto was first to report two companies, A & F Di Carlo and Infrastructure Maintenance Inc., and a joint venture they launched in late September, 2868415 Ontario Inc., dominated the contract process and are in line to win 9 of 11 contract areas (all of Toronto except for the Willowdale area and Gardiner and Don Valley Parkway). The work is potentially worth $893 million.

At the Dec. 2 infrastructure and environment committee debate on the matter, rival snow-clearing companies who were shut out of work they've done for decades warned they have "grave concerns" about the outcome of the city's new negotiated request for proposal (nRFP) process, and claimed it was neither fair nor transparent while also being littered with "red flags."

Committee members ultimately sent the proposal to full council without recommendations. That means 25 councillors and Mayor John Tory will have limited minutes to ask questions of staff before potentially voting on contracts that will dictate how snow-clearing in the city gets done for at least the next seven years.

At committee, Scarborough Coun. Paul Ainslie asked what happens if something goes wrong with the winning companies.

"We believe these vendors are reliable," replied Vincent Sferrazza, the city's director of operations and maintenance.

"We are very confident in their capacity operationally and financially."

But will councillors trust that analysis?

Combined, the three linked companies will need 925 vehicles — everything from full-size snow plows to salters to pick-up trucks and sidewalk plows — by next winter, city staff confirmed. They can outsource a quarter of the work they win.

CBC News asked city staff if 2868415 Ontario Inc., which won six contracts, has the vehicles it needs. City officials wouldn't say yes or no. Instead, here is the full response they sent via email: 

"As part of the submission review process, each vendor was mandated to provide equipment information as per the equipment requirements identified in the procurement. Companies are required to meet the terms of agreement on the first day of the contract."

The same city department proposing this contract was burned this spring when a contractor won a $300,000 street-sweeping contract it didn't have the vehicles to complete. The city sought no punishment.

A few more details emerged in Tuesday's supplementary report, which states: "The industry advised that they require between nine and 12 months to procure and outfit the equipment required for winter maintenance services. The current market conditions may require additional lead time."