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HomeMy WebLinkAboutINS-2025-321 - Ildewood Greenway Budget Reallocation and Pre-Approval Infrastructure Services Department www.kitchener.ca REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: August 11, 2025 SUBMITTED BY: Bu Lam, Director of Sanitary & Stormwater Utilities, 519-783-8835 PREPARED BY: Nick Gollan, Manager of Utility Planning & Programs, 519-783-8827 Ryan Hagey, Director of Financial Planning & Asset Management, 519-904-9347 WARD(S) INVOLVED: Ward 2 DATE OF REPORT: July 15, 2025 REPORT NO.: INS-2025-321 SUBJECT: Idlewood Greenway Budget Reallocation and Pre-Approval RECOMMENDATION: That 2026 funding of $5.36M be reallocated from the Middle Strasburg Naturalization project to the Idlewood Greenway project, as outlined in Infrastructure Services Department report INS-2025-321; and further, That the Idlewood Greenway funding in 2026 be preapproved for tender in 2025. REPORT HIGHLIGHTS: The purpose of this report is to reallocate funding and preapprove spending for the Idlewood Greenway stormwater project. Favourable pricing for the Middle Strasburg Naturalization project due to current market conditions provides the opportunity to advance the work on Idlewood Greenway. Completing this project earlier than planned has environmental and financial benefits. Community engagement included an open house public consultation about the project conducted in spring 2024 and a planned pre-construction open house in fall 2025. This report supports the delivery of core services. BACKGROUND: As part of the Integrated Stormwater Management Master Plan, the Idlewood Greenway was identified as an area in need of stormwater measures to manage runoff. This project will help to: Improve water quality in Idlewood Creek and the Grand River Reduce the risk of flooding Reduce erosion in Idlewood Creek Improve resilience against climate change Enhance community safety *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 3 of 55 REPORT: The work on the Idlewood Greenway is currently budgeted to be completed between 2027- 2029. However, due to favourable pricing in another stormwater project (Middle Strasburg Naturalization) there is an opportunity to advance the Idlewood Greenway work in 2025- 2026. The Middle Strasburg tender price came in considerably below budget due to current market conditions and partially due to staff establishing a roster of pre-approved contractors to bid on complex stormwater projects, ensuring the most efficient construction methods and best possible unit prices for individual contract items could be achieved. Staff hope to tender the construction of the Idlewood Greenway in the fall of 2025 to take advantage of the favourable market conditions, with the bulk of the work taking place in early 2026. To accelerate the timing of this project, staff need Council approval to reallocate 2026 funding of $5.36M from the Middle Strasburg Naturalization project to the Idlewood Greenway project and approval to tender the work before the 2026 budget is approved. There will be no impacts to the Middle Strasburg Naturalization project due to the reallocation of these surplus funds. Completing the work at Idlewood Greenway earlier than originally planned has a number of advantages, including: Mitigating flooding and other environmental risks in the area Avoiding economic volatility and inflationary pressures that may increase pricing between now and 2027 Providing significant work in the local economy Advancing a project funded by the Disaster Mitigation and Adaptation Fund (DMAF) in an effort to meet the conditions of the CityÓs grant application STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: The budget for phase 1 construction of Middle Strasburg Naturalization will be reduced from $14.5M to $9.1M due to favourable pricing. Sufficient budget remains to tender phase 2 of the Strasburg project (a connection from phase 1, around the Snow Storage Disposal Facility, to a naturalized portion of North Strasburg Creek at Old Huron Road) later in 2025. The budget for Idlewood Greenway remains unchanged at $5.8M, but the timing of the project is accelerated by more than two years. Funding that was budgeted for Idlewood Greenway will be reallocated to other stormwater priority projects like Creek Naturalization as part of the 2026 budget process. COMMUNITY ENGAGEMENT: INFORM Î This report has been posted to the CityÓs website with the agenda in advance of the council / committee meeting. CONSULT Î An open house was held in spring 2024 regarding the Idlewood Greenway project where citizen feedback was solicited and incorporated into the final design. A pre- construction open house is scheduled to take place in the fall of 2025. Page 4 of 55 PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter. APPROVED BY: Denise McGoldrick, General Manager of Infrastructure Services Page 5 of 55