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HomeMy WebLinkAboutFIN-2025-499 - Request for Additional Funding - Q25-079 Professional Services - Huron Road ImprovementsStaff Report J IKgc.;i' r� R Financial Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: December 15, 2025 SUBMITTED BY: Ryan Scott, Chief Procurement Officer PREPARED BY: Sarah Pethick, Procurement Specialist WARD(S) INVOLVED: N/A DATE OF REPORT: December 3, 2025 REPORT NO.: FIN -2025-499 SUBJECT: Request for Additional Funding - Q25-079 Professional Services - Huron Road Improvements RECOMMENDATION: That $415,000 be transferred from the Development Charges reserve funds for Roads and Water to the Huron Road Improvements capital account to allow the project to proceed. REPORT HIGHLIGHTS: The purpose of this report is to obtain approval to transfer funds to the Huron Road Improvements project to allow the award of a procurement in accordance with Procurement By-law 2022-109; The impact of not approving the transfer would be canceling the solicitation and delaying the project until at least 2028; This report supports the delivery of core services. BACKGROUND: The City intends to urbanize Huron Road from its current rural cross-section to include curb and gutter and storm sewers. The scope of work for professional services includes the complete the pre -design, final design, coordinating related project needs, tendering, contract administration/inspection and resident/business services during construction of improvements to the roadway, underground services, drainage and other related infrastructure. Construction is expected to begin Spring 2027. REPORT: In accordance with the Procurement By-law 2022-109 (Chapter 170 Municipal Code), Council's approval is required if any one or more of the conditions of Section 10 — Delegated Approval Authority are not met. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 11 of 48 Specific to the project listed, the City has conducted an open competitive process which resulted in nine (9) responses being received, and the intent is to award to the highest rated response. Staff have concluded that: • Market pricing has been received for the listed deliverables; and • Based on the significant number of bids received through this competitive process, staff do not believe better pricing would be received by canceling this solicitation and waiting at least another year; and • It would be in the City's best interest to proceed ahead with the project. However: • There is insufficient funding to award the procurement under delegated authority; and • Additional funds are being requested to facilitate an award. Failing to transfer additional funds would lead to canceling the solicitation and delaying the project until at least 2028. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: The table below shows the proposed transfer and the revised project budget that would allow the procurement to be awarded within the Procurement By -Law. Summary of Proposed Action This project is completely funded by roads and water development charges (DCs). The increased costs in this phase of the project will hopefully be offset by savings in the construction portion of the project. 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: There are no previous reports/authorities related to this matter. Page 12 of 48 Account Amount Approved Budget Professional Services - Huron Road $681,500 Improvements Recommended Transfer Development Charges reserve funds $415,000 Revised Budget Professional Services - Huron Road $1,096,500 Improvements This project is completely funded by roads and water development charges (DCs). The increased costs in this phase of the project will hopefully be offset by savings in the construction portion of the project. 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: There are no previous reports/authorities related to this matter. Page 12 of 48 APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department Page 13 of 48