CONFIDENTIAL MEMO / NOTE DE SERVICE

,o 6 7e(tinataire 8rom 6 2.'diteur &u%3e!t 6 O%3et

Mayor and Mem%er( of Coun!il M" )i!* O<Connor, City Cler* and &oli!itor Herv Pomerleau Ontario n!"

8ile69: de fi!hier;

7ate; 1= January 2014

Beginning on Monday, January 20, 2014, the City of Ottawa and Herv Pomerleau Ontario n!" #Pomerleau$ will %e engaged in a trial in the Ontario &u'erior Court of Ju(ti!e in relation to a !laim %rought %y Pomerleau ari(ing out of the tender for !on(tru!tion of dige(ter( at the )o%ert O" Pi!*ard Centre in 200+" ,he trial i( anti!i'ated to la(t for a( mu!h a( three wee*(, de'ending on the eviden!e and (u%mi((ion( of the 'artie(" ,he City-( e.ternal !oun(el maintain the view that the City-( !a(e i( (trong" ,heir o'inion i( %ol(tered %y the fa!t that !oun(el for Pomerleau have not 'rodu!ed any e.'ert re'ort in (u''ort of the !om'any-( damage !laim, a( well a( the view( e.'re((ed during the !our(e of re!ent 're/ trial 'ro!eeding(" 0hile the City and Pomerleau have made effort( to (ettle the !a(e, at thi( late (tage, there would a''ear to %e little li*elihood of a negotiated re(olution" 1( a re(ult, the trial that i( (!heduled to %egin ne.t Monday i( li*ely to 'ro!eed" ,he Pomerleau !a(e involve( a !laim again(t the City for alleged %rea!h of !ontra!t in relation to a %id (u%mitted for the !on(tru!tion of !on!rete dige(ter tan*( at the )o%ert O" Pi!*ard 2nvironmental Centre in 200+" ,hough it had (u%mitted the lowe(t %id %y a nominal amount, Pomerleau wa( not (ele!ted to underta*e the wor* a( their %id wa( deemed non/!om'liant %y the City"" ,he (ituation that re(ulted in the re3e!tion of the Pomerleau %id aro(e on a!!ount of Pomerleau having li(ted two (u''lier( for the delivery of the !on!rete tan*(, de('ite the e.'re(( tender re4uirement that %idder( (ele!t a (ingle (u''lier" 1t the time, the City had deemed one of the two (u''lier( li(ted %y Pomerleau a( failing to meet the e.'erien!e !riteria re4uired %y the tender do!ument(" n an attem't to 'ro!eed a( fairly a( 'o((i%le and aware of the 'ro('e!t of an a!tion at the in(tan!e of the ne.t lowe(t %idder had the City made the (ele!tion for Pomerleau, the City a(*ed Pomerleau to !hoo(e a( %etween it( li(ted (u''lier(" 0hen Pomerleau !ho(e the un4ualified (u''lier, it( %id wa( re3e!ted a( non/!om'liant" t (u%(e4uently %rought the a!tion on the %a(i( that it (hould have %een awarded the !ontra!t" ,he e((en!e of Pomerleau-( !laim i( that the City (hould have told them that one of their (u''lier( wa( non/!om'liant and therefore not 'ut the !om'any in the 'o(ition of lo(ing the wor* if it made the wrong !hoi!e" t al(o !laim( that the i((ue of an un4ualified (u%!ontra!tor (hould have %een dealt with through negotiation a( o''o(ed to the re3e!tion of it( %id" Pomerleau-( !laim i( for 512 million for lo(( of 'rofit, a( well a( 51 million in e.em'lary damage(" n!luding intere(t and !o(t(, the total amount of the !laim i( a''ro.imately 51+ million"

tru(t the a%ove u'date i( hel'ful" M" )i!* O-Connor City Cler* > &oli!itor !!; ?" ?ir*'atri!*, City Manager 9" &!he'er(, 7e'uty City Manager, Planning and nfra(tru!ture M" &imuli*, City ,rea(urer 0" 9ewell, @eneral Manager, nfra(tru!ture &ervi!e( &" 1r'in, Mayor-( Chief of &taff J" Byrne, Chief Pro!urement Offi!er 7" 0hite, 7e'uty City &oli!itor, Aitigation and Aa%our )elation(