HomeMy WebLinkAboutFIN-10-103 - E10-063 - Consultant - Phase 1 Asset Management
REPORT
REPORT TO:
Mayor Carl Zehr & Members of Council
DATE OF MEETING:
2010-06-14
SUBMITTED BY:
Larry Gordon, Director of Supply Services
PREPARED BY:
Larry Gordon, Director of Supply Services (2214)
WARD(S) INVOLVED:
N/A
DATE OF REPORT:
2010-06-08
REPORT NO:
FIN 10-103
SUBJECT:
E10-063 - Consultant Services – Phase 1 Asset Management Gap
Analysis
RECOMMENDATION:
That Expression of Interest E10-063, Consultant Services – Phase 1 Asset Management Gap
Analysis, be awarded to Prior & Prior Associates Ltd., Markham, Ontario at their estimated fee
of $75,000., plus G.S.T. of $3,750., for a total of $78,750., based on a satisfactory contract
being negotiated and an upset fee being established, and further that the Director of Supply
Services be authorized to execute an agreement satisfactory to the City Solicitor.
BACKGROUND:
Capital asset management represents a core business function for the City of Kitchener given
the considerable number and value of assets that are owned and maintained by the municipal
government (almost 300,000 individual assets with a replacement cost of $3 billion).
The introduction of new tangible capital asset accounting standards has provided the City of
Kitchener a platform from which to launch leading edge systems to support asset management.
These systems will maintain the corporate asset inventory and also provide a corporate tool for
decision support. These changes provide an opportunity to improve the coordination between
City departments to ensure that efficiencies resulting from new technology are maximized and
that decisions are made in the future to optimize the use of taxpayer/ratepayer funds for capital
investment.
In 2009, the City prepared an Asset Management Service Delivery Strategy in consultation with
asset managers from across the City. The Strategy was vetted thoroughly and was endorsed
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by City Council at its regular meeting held on February 22, 2010.
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At the February 22, 2010 meeting, Council also passed the resolution: “That Phase 1 of the
Strategy, being Asset Management Gap Analysis, be completed in 2010”.
The purpose of the Gap Analysis is to determine the gap between the City’s current asset
management practices and best practices for all of the City’s physical assets. The goal of this
phase is to identify opportunities for improvement that will move the City from where it is to the
best appropriate practice. This work will result in a phased roadmap and timeline to enable
incremental implementations of the actions. The analysis will cover all of the City’s major asset
types as defined through the PSAB 3150 implementation.
In addition to the Gap Analysis, this assignment will result in the development of a “Terms of
Reference” document for the governance of the asset management program outlining positions,
responsibilities and related processes and the development of a Risk Assessment and Risk
Register for the City’s Asset Management Service Delivery Strategy.
REPORT:
In accordance with Chapter 170 of the Municipal Code pertaining to the Selection of
Professional Services/Consultants, a Consultant’s Review Committee was established
consisting of D. Chapman, General Manager of Financial Services & City Treasurer, H. Gross,
Director of Project Administration and Economic Investment, and L. Gordon, Director of Supply
Services.
Expressions of interest were advertised on The City of Kitchener Home Page and on the
internet through the Ontario Public Buyers Association Electronic Tendering Information System
relative to this project. Documents were downloaded by eighty-seven (87) interested parties,
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and by the closing date of Thursday May 27, 2010, fourteen (14) responses had been
received.
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The Review Committee met on Wednesday June 2, 2010 to review the submissions. The
Committee elected to award the project to Prior & Prior Ltd., Markham, Ontario.
A listing of the responding parties follows for your reference.
KPMG, Toronto
Associated Engineering, Toronto
Genivar Consultants, Markham
The Createch Group, Hamilton
Western Management Consultants, Toronto
Deighton Associates Limited, Whitby
Stantec Consulting Ltd., Kitchener
CH2M Hill, Toronto
AM FM Consulting Group Inc., Toronto
GHD Inc., Markham
Prior & Prior Ltd., Markham
Dillon Consulting, Ottawa
Sierra Systems Group Inc., Toronto
Aecom, Hamilton
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FINANCIAL IMPLICATIONS:
Funding will be provided from Cost Centre 5002022 - Asset Management Reserve
Financial Report is attached.
Budget estimate is $75,000.
* Any surplus funds will remain in this account to be used in future years.
ACKNOWLEDGED BY:
Dan Chapman, General Manager of Financial Services and City
Treasurer
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Purchasing Tender - Asset Management Gap Analysis
Funded from Cost Centre 5002022 - Asset Management Reserve
$
Funding Sources
Current Balance (Deficit) 5002022, as at Jun 2, 2010 (243,467.00)
Additional Revenue Projected 1,098,439.00
Total Revenue Projected 854,972.00
Projected Expenditures
E10-063 75,000.00
E10-063- HST (Net of Rebates) 1,320.00
Existing Encumbrances -
Projected Expenses (Unencumbered) 70,052.00
Total Expenditures Projected 146,372.00
Projected Reserve Balance708,600.00
Note: Amounts include taxes net of any applicable rebates.
Balance in the reserve is used to fund asset management strategy.
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