HomeMy WebLinkAboutFIN-2022-496 - Pre-Approval of 2023 Capital Projects
Financial Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: December 12, 2022
SUBMITTED BY: Ryan Scott, Chief Procurement Officer, 519-741-2200 ext. 7214
PREPARED BY: Ryan Scott, Chief Procurement Officer, 519-741-2200 ext. 7214
Ryan Hagey, Director of Financial Planning & Reporting, 519-741-2200
ext. 7353
WARD(S) INVOLVED: All Wards
DATE OF REPORT: November 24, 2022
REPORT NO.: FIN-2022-496
SUBJECT: Preapproval of 2023 Capital Projects
RECOMMENDATION:
That Council pre-approve the capital projects listed in Appendix A to report FIN-2022-496
for procurement prior to passing the 2023 budget.
REPORT HIGHLIGHTS:
The purpose of this report is to obtain pre-approval from Council to procure a small number
of capital projects prior to the 2023 budget being approved.
The projects proposed for pre-approval are standard budget items.
Preapproval is being sought to secure more favourable pricing than waiting until early spring
when Kitchener will have to compete with other local municipalities for bids.
This report supports the delivery of core services.
BACKGROUND:
2022 budget process concluded in December of 2021, meaning the City had an
approved budget before the end of the year. This allowed the City to procure many of its capital
projects in December/January and receive multiple bids from interested contractors. Due to
2022 being an election year, the final approval of the 2023 budget cannot take place until the
nd
new year (Final Budget Day is scheduled for February 2). If the City of Kitchener waits until
February to start procurement, it will face increased competition from other local municipalities
which will likely mean fewer bids and higher prices.
REPORT:
Given the delayed passing of the 2023 budget, staff are recommending Council pre-approve a
small number of high-priority capital projects. This will allow the City of Kitchener to go to market
early, which will create the conditions to encourage more bids, better pricing, and aligns with
see the greatest number of bids early
in the year when contractors are planning their work compared to far fewer bids (and higher
prices) received for procurements later in the year.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
With the pre-approval of the projects listed in Appendix A of this report, procurement staff will
have the ability to award the projects in accordance with the procurement by-law. In addition to
getting more favourable pricing, this should ensure work on these projects proceeds early in
2023 instead of taking place later in the year. This is an important factor as work on some of
the projects is extremely time sensitive.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
The budgets for each of the projects shown in Appendix A are from the 2023 budget and are
included in the proposed rate increases Council will consider as part of the budget process.
There have been relatively few capital budget reductions made by Council during the last several
budget processes, so the risk of impacting the 2023 budget discussions is extremely low.
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services.
ATTACHMENTS:
Appendix A List of Projects for Pre-Approval
Appendix A List of Projects for Pre-Approval
Project Project 2023
Division
Name Number Budget
Delaware Avenue/Highland Road
Engineering 901003036 $5,493,000
Reconstruction
Bruce Street Fife to Heather
Engineering
901004029 $2,764,000
Reconstruction
Westwood Crescent
Engineering 901004021 $2,405,000
Reconstruction
McKenzie Avenue Ottawa to
Engineering
901004020 $2,390,000
Sheldon Reconstruction
Second Avenue Kingsway to
Engineering 901003028 $1,568,000
Connaught Reconstruction
Patricia Avenue Queen to
Engineering
701205078 $872,000
Highland Reconstruction
Engineering Resurfacing City Streets 800405000 $2,765,000
Engineering
Downtown Cycling Infrastructure 801101001 $1,978,000
Strasburg Road South &
Engineering 901007008 $849,000
Watermain Detailed Design
Facilities
Salt Dome Replacement 900401052 $1,859,000
Management
Fleet
One (1) Plow Truck 300801001 $375,000