Item - 2026.IE29.2

The Infrastructure and Environment Committee:

1. Referred item IE29.2 - Forensic Audit of the 2021 Winter Maintenance Procurement, to the City Manager and request that they report to Infrastructure and Environment Committee with answers to the following questions:

a. Was there a failure to outline expectations of individual responsibility and accountability;

b. Were all important stakeholders consulted; and

c. Opportunities to further investigate the following matters:

1. Variations in Cost estimates and Bid results;

2. Conflicts of interest;

3. Changes post-award;

4. Equipment Substitutions; and

5. Any other matters of interest.

The Infrastructure and Environment Committee recessed its public session to meet in closed session to consider this Item, as it pertains to the receiving of advice that is subject to solicitor-client privilege, personal matters about an identifiable individual, including municipal or local board employees, and labour relations or employee negotiations.

City Council on March 25 and 26, 2026, referred Item CC39.2 to the May 6, 2026, meeting of the Infrastructure and Environment Committee for consideration.

In March 2025, City Council requested the City Manager to undertake a forensic audit of the procurement and award of winter maintenance contracts in response to concerns regarding fairness, transparency, cost outcomes, and contract management. The services of KPMG were retained to conduct the audit which examined the two negotiated request-for-proposal processes and a subsequent non-competitive procurement used to award winter maintenance services for the 2022–2029 period. This report outlines the findings and recommendations pertaining to the forensic audit.