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HomeMy WebLinkAboutINS-2024-534 - Increase in DMAF Purchase Orders 215113 and 214720Staff Report l IKgc.;i' r� R Infrastructure Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: December 16, 2024 SUBMITTED BY: Bu Lam, Director, Sanitary and Stormwater Utilities, 519-783-8835 PREPARED BY: Nick Gollan, Manager, Sanitary and Stormwater Utilities, 519-783-8827 Samantha Brickman, Supervisor, Sanitary and Stormwater Utilities, 519- 783-8825 WARD(S) INVOLVED: Ward 2: SWMF197 — Idlewood Greenway Ward 4: SWMF190 — Millwood Park Ward 6: SWMF191 — Country Hills Park Ward 6: SWMF192 — Countryside Park Ward 7: SWMF193 — Sandrock Hydro Corridor Ward 9: Schneider and Shoemaker Creek DATE OF REPORT: November 18, 2024 REPORT NO.: INS -2024-534 SUBJECT: Increase in DMAF Purchase Orders 215113 and 214720 RECOMMENDATION: That Purchase Order 215113 for Q22-136 DMAF — PARTS - Schneider Creek Naturalization be increased in the amount of $904,258, plus H.S.T. of $117,553.54, for a total of $1,021,811.54, as outlined in Infrastructure Services Department report INS -2024- 534; and further, That Purchase Order 214720 for Q22-051, DMAF Bundle A - New Stormwater Management Facilities be increased in the amount of $920,398.80 plus H.S.T. of $119,651.84, for a total of $1,040,050.64. REPORT HIGHLIGHTS: This report requests an increase in purchase orders to accommodate the expanded project scope, which involves coordinating with nearby city projects, environmental testing and remediation, enhanced engagement, and additional design work to incorporate required scope changes to maintain the Disaster Mitigation and Adaptation Fund (DMAF) program schedule. It includes two contract increases managed by the Sanitary and Stormwater Utilities for projects vital to the successful implementation of the DMAF: o Schneider and Shoemaker Creek Naturalization: There is enough funding in the Capital Budget for DMAF Creek Naturalization (#801009029) to cover this request and the additional work. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 24 of 42 o DMAF Bundle A - New Stormwater Management Facilities: There are sufficient funds in the Capital Budget for Park/SWM Enhancements (#901009016) to support the additional work. • This report supports the delivery of core services. BACKGROUND: In 2016, the city released its Integrated Stormwater Management Master Plan (ISWM-MP) to comply with the Municipal Class Environmental Assessment Act. This updated plan replaced the 2001 Master Plan and outlined an implementation strategy in six focus areas, including 'Stormwater Management (SWM) Facilities,' identifying twelve park locations for new facilities to improve drainage. The PARTS Rockway Plan, developed through community consultation, was approved in 2017 to establish a vision for the Rockway Station area and review floodway solutions. In 2019, the City received $49.99 million from the Disaster Mitigation and Adaptation Fund to implement over 95 projects, including SWMF installations and flood improvements. Projects were bundled into elements and sub -bundles to streamline administration based on similar construction and design timelines, employing standardized design, construction, and engagement processes. Disaster Mitigation and Adaptation Fund Project Management The Disaster Mitigation and Adaptation Fund (DMAF) agreement requires a duty to consult with impacted "Aboriginal Groups" and emphasizes ongoing engagement and implementation of proposed risk management strategies, as needed. To enhance project management efficiency and flexibility, a number of risk mitigation measures have been implemented to improve duty to consult, community engagement, aligning legislation, and streamlining the acquisition of professional services. These strategies are vital for implementing successful projects that can be delivered within the timelines of the DMAF program, while effectively addressing potential risks and adapting to evolving policy changes. Schneider and Shoemaker Creek • On November 3, 2022, quotation Q22-136 Professional Services - Disaster Mitigation and Adaptation Fund — PARTS — Schneider Creek Naturalization was awarded to Stantec Consulting Ltd. at a cost of $1,003,810.22 inclusive of H.S.T, to complete both the Environmental Assessment and the detailed design and construction oversight of the project. • The creek naturalization project depended on completing the Environmental Assessment (EA). Stantec's initial scope intentionally excluded details on property acquisition and environmental site assessments for contamination and soil management, which were not well understood at the time of initial contact award. Now that the EA has been completed, there is more clarity on this scope and therefore these components are now being included as part of the PO extension request. • The PO extension also includes legal surveys, new design components recommended following community and First Nations engagements such as a new Iron Horse trail alignment, and geotechnical and engineering investigations related to property acquisitions. Page 25 of 42 DMAF Bundle A - New Stormwater Management Facilities • Consulting services were bundled due to the similar nature of work. Projects include wet ponds and subsurface storage at Countryside, Country Hills, Millwood, Sandrock Hydro Corridor (Meadowlane), and Idlewood Greenway Parks. • On May 17th, 2022, quotation Q22-051 Professional Services - Disaster Mitigation and Adaptation Fund Bundle A - New Stormwater Management Facilities, was awarded to Aquafor Beech Limited, Mississauga, Ontario, at a cost of $2,109,139.80 inclusive of H.S.T. • The Bundle A project has faced unforeseen increases due to scope changes that have arisen after significant public and First Nations engagements. These include additional environmental studies (e.g., hydrological and geotechnical), increased engagement events, and new/updated designs. • These additional works have increased costs beyond the original consultant budget but within the overall project budget. • Aquafor Beech Ltd. is currently working on tasks, advancing toward the 90% detailed design stage for all sites included in Bundle A, with construction for Meadowlane Park and Country Hills Park scheduled to begin in 2025. REPORT: In accordance with the Procurement By-law 2022-109 (Chapter 170 Municipal Code), Council's approval is required to increase the scope of this project as it exceeds the Chief Procurement Officer's delegated authority. An increase of $904,258 excl. HST is required to deliver the remainder of the Schneider and Shoemaker Creek Naturalization project following the completion of the Environmental Assessment. This increase includes the addition of scope for delivery and contingency as described above. City staff and Stantec Consulting Ltd. are working to complete the design and construction by 2027. An increase of $920,398.80 excl. HST is required to deliver the remainder of the Bundle A project. This increase includes the addition of new scope for delivery and contingency as described above. City staff and Aquafor Beech Ltd. are working to complete the design and construction of all Bundle A projects by 2030. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: There is sufficient budget in the Capital Budget — DMAF Creek Naturalization (#801009029) to support this request and additional scope of work. There is sufficient budget in the Capital Budget — Park/SWM Enhancements (#901009016) to support this request and additional scope of work. Page 26 of 42 COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: INS -2024-129 - Schneider and Shoemaker Creek Naturalization EA APPROVED BY: Denise McGoldrick, General Manager, Infrastructure Services ATTACHMENTS: None. Page 27 of 42