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HomeMy WebLinkAboutDSD-2025-469 - Project Funding Increase for Dundee Secondary Plan and Environmental AssessmentStaff Report J IKgc.;i' r� R Development Services Department www.kitchener.ca REPORT TO: Planning and Strategic Initiatives Committee DATE OF MEETING: December 1, 2025 SUBMITTED BY: Rosa Bustamante, Director of Planning and Housing Policy/City Planner, 519-783-8929 PREPARED BY: Carrie Musselman, Senior Environmental Planner, 519-783-8940 Gaurang Khandelwal, Senior Planner, 519-783-8937 WARD(S) INVOLVED: Wards 4 and 5 DATE OF REPORT: November 20, 2025 REPORT NO.: DSD -2025-469 SUBJECT: Project Funding Increase for Dundee Secondary Plan and Environmental Assessment RECOMMENDATION: That Purchase Order 213285 — Dundee Secondary Plan and Environmental Assessment, be increased in the amount $200,000, plus HST of $26,000, for a total of $226,000. REPORT HIGHLIGHTS: • The purpose of this report is to obtain approval to increase Purchase Order 213285 to support the additional scope and extended timeline for the Dundee Secondary Plan. • Due to various challenges and increased complexity, the project has extended beyond what was originally anticipated, requiring our consultant to realign the project approach, scope of work, and schedule. • There is sufficient budget in the Capital Budget — Planning Growth Studies to support this request. • This report supports Building a Connected City Together: Focuses on neighbourhoods; housing and ensuring secure, affordable homes; getting around easily, sustainably and safely to the places and spaces that matter. BACKGROUND: On October 23, 2020, proposal P20-140 — Professional Services — Technical Work for New Secondary Plan — Dundee North was awarded to CH2M HILL (now Jacobs) at their proposed price of $378,856.50, including contingencies of $34,441.50, plus HST, for a total of $428,107.85 to prepare a joint Environmental Assessment and Secondary Plan for the Dundee North lands in southwest Kitchener. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 128 of 271 On June 24, 2024 Council approved an increase of $150,000, plus HST of $19,500, for a total of $169,500. This increase was in response to the expansion of the Study Area to include part of Southwest Kitchener Policy Area (SKPA) lands as outlined in Development Services Department Report DSD -2024-254. Since 2024, there have been legislative changes resulting in the requirement to update previously completed work, as well as a need for additional support on engagement. This has required the consultants to further realign the project approach, scope of work and schedule. REPORT: In the past year, there have been several legislative changes, including a new Provincial Planning Statement coming into effect on October 20, 2024, the Regional Municipality of Waterloo becoming an upper tier municipality without planning responsibilities on January 1, 2025, and changes to Ontario's Endangered Species Act in 2024 and 2025. More level of effort and realignment of project schedule has been needed on multiple occasions to better understand the implications of and respond to these changes. Further, the delegated procedural aspect of the Provincial duty to consult has required a substantial change to project scope and schedule. This includes the scope of work in relation to cultural heritage to be undertaken by a separate consultant to deliver a cultural heritage impact assessment, a heritage corridor enhancement plan, and exploring policy tools available related to archaeology. Duty to consult has also necessitated we continue to build upon established relationships and continue to meaningfully engage and collaborate with First Nations communities. At the same time there are other projects which have impacted the project scope and schedule. Kitchener 2051, the process through which a new Official Plan is being developed, will replace the current Official Plan providing a new long-term land use and policy framework for the City. The Dundee Secondary Plan is now being aligned with Kitchener 2051 and will build on the new city-wide land use and policy framework. The Dundee Secondary Plan has also been informing and considering the results of the Greenfield Thermal Utility Project, led by Kitchener Utilities, exploring feasibility and business case of an alternate clean energy use solution for the study area. Planning applications in proximity to the study area have identified possible servicing implications, requiring capacity assessment(s) for servicing. Based on the above, the consultants have prepared a scope change that incorporates the increased effort required to manage the project, update some of the work previously completed to align with new/updated legislation, and additional continued meaningful engagement and collaboration with First Nations to deliver the project to completion in 2026. Navigating a changing legislative framework may result in further updates to work previously completed, changes to our approach and extension of timelines. Page 129 of 271 Procurement 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 delegated authority of the Chief Procurement Officer. An increase of $226,000 is required to expand the scope and timeline of work currently being undertaken by Jacobs and deliver the remainder of the Dundee Secondary Plan and Environmental Assessment project. STRATEGIC PLAN ALIGNMENT: This report supports Building a Connected City Together: Focuses on neighbourhoods; housing and ensuring secure, affordable homes; getting around easily, sustainably and safely to the places and spaces that matter. FINANCIAL IMPLICATIONS: There is sufficient budget in the Capital Budget— Planning Growth Studies (#59500166) to support this request. 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: • DSD -2024-254 -Increase to Purchase Order 213285 — Dundee North Secondary Plan REVIEWED BY: Natalie Goss, Manager, Policy & Research Ryan Scott, Chief Procurement Officer, Financial Services APPROVED BY: Justin Readman, General Manager, Development Services Page 130 of 271