HomeMy WebLinkAboutFCS-13-095 - E13-050 - Consultation Serv - DC Background Study and Draft By-law
REPORT TO:Committee of the Whole
DATE OF MEETING:
2013-06-10
SUBMITTED BY: Larry Gordon, Director of Supply Services, 519-741-2200
ext. 7214
PREPARED BY:
Larry Gordon, Director of Supply Services, 519-741-2200
ext. 7214
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2013-05-28
REPORT NO.: FCS-13-095
SUBJECT:
E13-050 Consultant Services – Development Charge
Background Study and Draft Development Charge Bylaw
RECOMMENDATION:
That Expression of Interest E13-050 – Consultant Services – Development Charge Background
Hemson Consulting Ltd.,
Study and Draft Development Charge Bylaw, be awarded to
Toronto, Ontario
at their estimated fee of $148,343., plus H.S.T. of $19,285., for a total of
$167,627., based on a satisfactory contract being negotiated and an upset fee being
established.
BACKGROUND:
The Development Charges Act and its associated regulation allow municipalities to recover
growth-related capital costs that are needed to service new development. In order to do so,
under the terms of the Act, municipalities must prepare a development charge background
study and pass a bylaw to determine the development charges, taking the following into
account:
A forecast of the amount, type and location of housing units, population and non-
residential development anticipated in the city.
The average capital service levels provided by the municipality in the 10-year period
immediately preceding the preparation of the background study.
A review of future capital projects, including analysis of gross expenditures, funding
sources and net expenditures incurred or to be incurred by the municipality, to provide
for the expected development.
Development charges (DC) bylaws have a maximum term of five years. Kitchener’s current DC
bylaw expires in 2014. In order to update the bylaw, a background study must be done, which
involves a number of staff from across the organization and takes several months to complete,
therefore the work will begin in the first half of 2013.
External consultants are engaged to assist with the preparation of the DC background study and
associated bylaw. Development charge background studies are complex and specialized
financial planning documents that must be in accordance with legislation and are often appealed
1 v) - 1
to the Ontario Municipal Board. The assistance of external expertise will ensure that all
requirements of the Act are fulfilled and that the City’s DC bylaw is approved before the
expiration of the current bylaw. The costs of the DC background study and associated bylaw
are completely funded through development charges.
REPORT:
In accordance with Chapter 170 of the Municipal Code pertaining to the Selection of
Professional Services/Consultants, a Consultant’s Review Committee was established
consisting of D. Chapman, Deputy CAO, Finance and Corporate Services, R. Hagey, Director of
Financial Planning, A. Pinard, Director of Planning and L. Gordon, Director of Supply Services.
Expressions of interest were advertised publicly on the City of Kitchener website and on the
internet through the Ontario Public Buyers Association Electronic Tendering Information System
relative to this project. Documents were downloaded by eight (8) interested parties, and by the
th
closing date of Thursday May 16, 2013, one (1) response had been received.
nd
, 2013, to interview the candidate.
The review committee met on Wednesday, May 22
The Committee rated consultants on the following criteria:
Understanding & approach
Experience related to DC studies, bylaws & related
Experience related to policies related to DCs
Project Manager
Project Staff
Fee
A listing of the responding parties follows for your reference:
Hemson Consulting Ltd. Toronto ON
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Theme: Effective and Efficient Government, Financial Management
Strategic Direction: Reduce Reliance on Taxes
The City of Kitchener’s purchasing policies and practices ensure openness, fairness and
transparency in the procurement of goods and services.
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FINANCIAL IMPLICATIONS:
The net cost for this expression of interest (A), is fair and reasonable for a purchase of this
scope and the upset limit is within the budget allowance (B) provided within the budget.
Funding for this study is included within the approved capital budget. The estimated surplus
(E) will remain within the project to fund any additional costs.
Expression of Interest E13-050
Consultant Services - Development Charge Background Study and Draft Development
Charge Bylaw
Estimated Cost for this Expression of Interest
Expression of Interest E13-050 costs, including HST $ 167,627
less: HST rebate on tender (16,674)
Net Cost Being Awarded 150,953 A
Total Estimated Cost for this Expression of Interest $ 150,953 C
Budget for this Expression of Interest
Capital from Current 11,041
Development Charges 209,775
Total Budget for this Expression of Interest $ 220,816 B
Estimated Surplus/(Deficit) for this Expression of Interest (B - C) $ 69,863 D
Balance in account, net of encumbrances 30,399
Total Estimated Surplus/(Deficit) $ 100,262 E
COMMUNITY ENGAGEMENT:
The development of the Development Charges Background Study and Draft Development
Charge Bylaw will include a public consultation component.
ACKNOWLEDGED BY:
Michael Goldrup, Acting Deputy CAO, Finance and Corporate Services
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