HomeMy WebLinkAboutFIN-19-076 - Sole Source Award for Community Benefit Charge Study & BylawREPORT TO:Committee of the Whole
DATE OF MEETING:2019-09-23
SUBMITTED BY:Margaret Fisher, Director of Procurement, 519-741-2200 ext. 7214
PREPARED BY:Ryan Hagey,Director of Financial Planning, 519-741-2200 ext. 7353
WARD (S) INVOLVED:N/A
DATE OF REPORT:2019-09-11
REPORT NO.:FIN-19-076
SUBJECT:Sole Source Award for Community Benefit ChargeStudy& Bylaw
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RECOMMENDATION:
That Hemson Consulting Ltd.,Toronto, Ontario, be the sole source provider of a
Community Benefit Charge studyand bylawat an estimatedcost of $100,000., plus H.S.T.
of $13,000.,for a total of $113,000., provided a satisfactory contract is executed; and
That a budget of $150,000.be established for the Community Benefit Charge studyand
bylaw.
BACKGROUND:
As part of Bill 108 More Homes, More Choices Act, the provincial government passed legislation
that amends the Development Charges Act(DCA). The change will remove some services from
the DCA and put them intoa newly created Community Benefit Charge (CBC).
While details about the CBC are still being developed through a new Regulation, some
information has been made public. The mostpertinent detail is that in order to implement a
CBC,a municipality must pass its CBC bylaw prior to January 1, 2021.In order to complete the
required work in a timely manner, the assistance of a consultant is needed.
REPORT:
As per clause 170.8.2 ofthe Purchasing By-law 2017--Standard
Procurement process is only permitted under the following circumstances:
b.where only one Supplier is able to meet the requirements of a Procurement in order
to:
i.ensure compatibilitywith existing products;
ii.recognize exclusive rights, such as exclusive licenses, copyright and patent
rights; or
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Please call 519-741-2345 or TTY 1-866-969-9994for assistance.
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iii.maintain specialized products that must be maintained by the manufacturer
As per clause 170.8.3 of the Purchasing By-law 2017-All non-standard
Procurement processes must be approved and conducted in accordance with this By-law
RequirementProcurement Procurement Approval Authority
ValueProcess
Excluding Taxes
Goods, Up to $99,999Non-Competitive or Director of Supply
Services, Construction, Limited CompetitionServices
Consulting Services
Goods, Greater than Non-Competitive or Council
Services, Construction,$100,000Limited Competition
Consulting Services
It is expected that the work required to pass a CBC bylaw will be similar to the work required to
practice to relyon consultants with expertise in that area of municipal finance. The legislative
change introducing the CBC occurred during the time the City was updating its DC bylaw, so
staff view the CBC bylaw as an extension of the recent DC work. Because of this and the
reasons listed below, staff believe sole sourcing the CBC work to Hemson, the same consultant
,Additional
reasons for sole sourcing the CBCbylaw work to Hemson include:
Hemson was awarded the DC bylawwork in 2018 based on a competitive request for
proposalprocess.
Only two bids
are only two major consulting firms that do this sort of work (Hemson and Watson &
Associates).
All other area municipalities are intending to sole source their CBC bylaw work to the
consultant that also prepared (or is preparing) their most recent DC bylaw.
Staff are aware that Hemson has already been retained by other municipalities to
complete their CBC bylaws, so failing to secure them nowmay mean they are not
available to assist Kitchener.
Hemson has indicated they would hold their hourly rates at the same levels as were used
for the DC study.
Staff are recommending a sole source contract amount of $100,000 for the CBC bylaw, which
is approximately 50% of the price to complete the DC bylaw. Staff are suggesting an overall
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budget of $150,000 to account for other expertise that may be required to complete the CBC
bylaw (e.g. land appraisers and legal fees).
The recommendation was reviewed by R. Hagey, Director of Financial Planning, who concurs
with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The
the delivery of core service.
FINANCIAL IMPLICATIONS:
There is no existing budget for this work. The $150,000 would be funded from the Development
Charges reserve, the newly established Community Benefit Charge, or Capital Contingency.
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
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