Loading...
HomeMy WebLinkAboutCAO-06-019 - Shared Services - Program Review & Update1 Ki~~.R ~hiefAdministraror's Off)ce REPORT Report To: Chair Berry Vrbanovic and Members of Finance and Corporate Services Commitee Date of Meeting: March 6, 2006 Submitted By: Carla Ladd, CAO Prepared By: Kitchener Waterloo Joint Service Initiatives Committee Ward(s) Involved: All Date of Report: February 27, 2006 Report No.: CAO-06-019 Subject: Shared Services -Program Review and Update RECOMMENDATION: That City Council approve the revised Terms of Reference for the `Kitchener Waterloo Joint Service Initiatives Committee' which reflect an expanded scope and refinement of the Shared Services program between the cities of Kitchener and Waterloo as approved in September 2004. BACKGROUND: Early in 2004, staff from the Cities of Kitchener and Waterloo commenced informal discussions about opportunities where a collective approach to services would be beneficial for both cities. This program was subsequently formalized in September of 2004 through the approval by both Councils of a Shared Services program. The program began with five initiatives which were intended to pilot the benefits of shared services in four categories: community integration, service rationalization, service efficiencies and consistencies and system efficiencies and consistencies. The first five initiatives were as follows: • Woodworkers • Border Streets • Infrastructure Management System • Consulting Service Agreements • Election System Selection This report is intended to provide Council with an update on these five initiatives as well as other initiatives which have been included in the program since its inception. Finally, this report will put forward a revised terms of reference which includes a renaming of the program from `Shared Services' to `Joint Service Initiatives' to reflect the strategic growth of the cooperative and collective efforts of the two cities. Progress to Date Wnnrlwnrkers The joint use agreement for the proposed Woodworking and Craft Centre made a significant step forward in fall 2005. The City of Waterloo found it necessary to close the Project Woodwork Facility in Waterloo Park in the latter part of 2005 when the Electrical Safety Authority required mandatory but impractical upgrades to the heating system. Waterloo City Council subsequently approved allocating funds for a joint City of Waterloo and City of Kitchener facility. The joint Kitchener-Waterloo Woodworking and Craft Centre is proposed to be located at 171 Roger Street which is in Waterloo but on the K-W border. The 2006 City of Waterloo budget allocations are $25,000 per year operating funds for the joint operation of the woodworking program, and $10,000 capital funds for facility renovations (for details see City of Waterloo Report R&LOS-45). In 2004, the City of Kitchener committed to $50,000 per year through the annual operating grants for ongoing lease costs associated with this facility and to $20,000 for one-time capital costs for renovations. For details see, report #CSD-04-021. The funding ratio of both the operating and capital costs for this facility is based on a 2l3 and 1l3 split between the Cities of Kitchener and Waterloo, which approximates the population ratio between the two cities. Now that both Cities have committed to the concept of a j oint Woodworkers club and have committed the necessary funding staff will begin working through the implementation details. The volunteers who initiated this project have formed an Incorporated Not-for-Profit Organization and, in November, elected a Board of representatives from both Cities proportionate to the funding ratio. In 200b, the Board intends to officially establish its name as the "Kitchener-Waterloo Woodworking and Craft Centre" to reflect the involvement of both Cities. Border Streets The Cities of Kitchener and Waterloo share twenty (20) roads, which link the two cities forming a seamless border for many of the area residents. Levels of service provided by each municipality are comparable as both cities provide services to deal with snow plowing, sewer and water services, general road maintenance, street sweeping and leaf collection. Beginning in the 2004 the Cities rationalized the winter maintenance routes for the snowplows and salters to better distribute the routes between the two cities. Written communication was delivered to all of the affected residents and to date this arrangement has been working very effectively, and has resulted in positive feedback from the affected residents. In 2005 staff from the two cities augmented the border street program by providing leaf collection services on an optimized route basis which again was received positively by the affected residents. In 200b it is anticipated that summer maintenance and sweeping will be added to this border street program to round out the maintenance practices. All of these operational efficiencies for border streets are being documented in a short agreement between the two cities to ensure clarity on our roles and responsibilities. Rehabilitation and reconstruction of the border streets has also been aligned to ensure economies of scale and the least disruption to our respective property owners. In 2004 the City of Kitchener lead the reconstruction of Waterloo Street in both the City of Waterloo and City of Kitchener; similarly in 2005 the City of Waterloo lead the reconstruction of Belmont Street. Conservative estimates indicate that a 10°Io savings is achieved by aligning these projects together. Resident response to this coordinated approach to reconstruction has been very high and most importantly these only required disruption once. Pre-construction planning is now underway for Ellis Crescent reconstruction which is scheduled for work over 2006 and 2007. Infrastructure Mana ement System The City of Kitchener is in the process of completing a Concept of Operations Study in preparation for completion of a business case and RFP for an Integrated Infrastructure Management System (IIMS). The target date for release of the RFP is the summer of 2006. Based on interest expressed by the Shared Services Committee, staff will explore possible partnership arrangements and ultimately the feasibility of a j oint initiative. Consulting Service A reements ~e A standard consultant agreement for engaging consultants for infrastructure would be beneficial for the cities and the consultants. A common contract would standardize such issues as insurance requirements, data ownership and other details. This consistency should reduce confusion and delays in project commencement. The committee has produced a draft agreement which is being reviewed by the legal advisors for both cities. Following this review circulation will be made to the new local chapter of the Consulting Engineers of Ontario for comment. A method for updating the agreement will also be determined. The goal is to have this completed by the 2nd quarter of 200b. Election Tabulation System This project, involving joint leasing of tabulation equipment, was successfully completed with all Councils endorsing a two election lease arrangement with an option to extend for a third election. Vendor pricing was very aggressive and staff feel the co-operative effort involving Kitchener, Waterloo and Cambridge produced excellent value for the money. We have now entered into phase 2 of the undertaking and are issuing a joint Request for Quotation to produce ballots for the 2006 election. The Request will be put out in March of this year and again Kitchener, Waterloo and Cambridge are all participating. New Initiatives Underway Storm Sewer Utility Under the auspices of the shared services mandate The City of Waterloo and the City of Kitchener are jointly conducting a feasibility study for the implementation for a Stormwater Utility. Stormwater accumulates on land after rain falls or snow melts. In cities, this water runs over hard surfaces, carrying pollution into our water. This water must be managed in a variety of ways to make sure that there is minimal harm to the environment. A stormwater utility is a program and funding system that manages the implementation and maintenance of stormwater controls within a municipality The feasibility study began in August 2005 and has a primary objective to investigate new utilitylfunding mechanisms to better support the Cities' respective stormwater management programs while preserving fairness and equity among the stakeholders (i.e. heavy users of the storm system should pay higher to maintain the municipal system). A consortium of companies headed by a local company TSH Inc has been retained by the Cities to facilitate the Study with key stakeholders from both communities. As part of this study, a Stormwater Advisory Committee (SWAG) was formed, with membership from various resident, businesses, environmental and not-for-profit associations to assist the study team in identifying the appropriate program needs and revenue sources in both cities. Forming the SWAG helps to bring the key stakeholders to the front end of the decision making process to address an equitable and stable funding source for stormwater management. The SWAG will guide and assist the project team (Staff of City of Waterloo and City of Kitchener) in defining preliminary recommendations for the specific program needs, early-out projects, regulatorylpolicy issues, annual financial requirements, proposed fee structure, and alternative funding mechanisms. It is anticipated that preliminary recommendations from this committee will be available for Councils consideration in the 2nd quarter of 200b. The collaborative approach for this initiative has provided economies of scale on the consultation process and also provides both communities with a consistent, fair and equitable approach to this innovative undertaking. Strong interest in this proactive undertaking has been expressed by Municipalities and various governing bodies from throughout Ontario. Cemetery Services The Council of the City of Kitchener has received a commissioned report entitled Cemetery Operations and Strategic Business Alternatives Plan prepared by F.J. Galloway Associates Inc. of London, Ontario. City of Kitchener staff are currently reviewing the Plan's recommendations. One recommendation in the City of Kitchener Cemetery strategic business report advocated investigation of the integration of cemetery services with the City of Waterloo. It was suggested the integration could be investigated on a number of levels (i.e. service costing, operational, marketing, strategy, administration, etc.). The report also indicated that a number of delivery models could be investigated, including a single source model. The City of Kitchener has communicated its interest in pursuing discussions with the City of Waterloo about potential integration options. The City of Waterloo is currently working towards the completion of a Cemetery Services -Bechtel Park Master Plan. The Master Plan Study Design includes a Cemetery Services Business Case Study component, which will examine options for cemetery operations including shared service possibilities with the City of Kitchener. In late May 2005, Hilton Landmarks Inc., a cemetery consulting firm, was retained to undertake the Business Case Study. On August 25, 2005, the consultant for the City of Waterloo had an initial fact finding meeting with City of Waterloo and City of Kitchener staff regarding the shared service investigation. Following this meeting, the consultant, with assistance from City of Waterloo staff created an extensive questionnaire to assist in facilitatinglunderstanding potential shared service initiatives. This questionnaire was completed by City of Kitchener staff. On December 9, 2005, the consultant facilitated a second meeting with staff from both Cities to clarify the content and staff responses to the questionnaire. These meetings, along with other dialogue with staff from both Cities will assist in developing preliminary recommendations surrounding potential shared service initiatives for the Business Case Study. The findings of the City of Waterloo Cemetery Services Business Case Study are expected to be completed and presented to Council in the first few months of the year 200b. High level recommendations with respect to the potential of integrated service, if any, from the City of Waterloo perspective, will be contained in the Study. Before any presentation to Council, preliminary findings will be forwarded to and discussed with City of Kitchener staff to evaluate possibilities for shared service. Purchasing - On-line Auction of City Assets Many municipalities have found that the most cost effective way to dispose of assets with low value (e.g. office furniture, equipment, etc.) is through an on-line auction process, similar to e-bay. The City of Kitchener has obtained a copy of the Region of Halton's auction software, free of charge, and is in the process of testing and modifying it for Kitchener's use. Once the testing is complete, the system will go live on the City of Kitchener's website. City of Kitchener and Waterloo Purchasing will be looking at implementation which will provide a single site for both municipalities by mid July 2006. Future Initiatives Hydro Carbon Characterization Study/ Research Over the past several years the local Municipalities have been rehabilitating some of the existing storm water management ponds including removal of the accumulated sediment to restore the capacity and effectiveness of the ponds. Long standing regulatory positions on the removed sediment has been that the material becomes contaminated with hydrocarbons from the source locations (ie roadway runoff, etc) and as such must be hauled and disposed of at an approved dumping location which results in some very significant costs. In 2004 the City of Waterloo retained a consultant to further review the level of contamination that exists in the sediment being removed from a SWM Pond off of Erbsville Road. This consultant was able to raise inferences that the hydrocarbon contamination was not from external sources (ie road runoff) but rather was forming from plants, algae and bacteria that were decomposing within the pond itself. The analytical work completed by this consultant on behalf of Waterloo resulted in strong interest from the Ministry and they have offered to partially fund more research into this hypothesis which may result in cost savings for Municipalities throughout Ontario. Kitchener-Waterloo-Cambridge and the Region have agreed in principle to provide nominal research funding (ie less than $2000 each) to further this research. The Ministry intends to provide approximately $23,000 towards this project; subject to their approval of the research proposal. The collaborative approach to advancing this research understanding by the Area Municipalities and the Ministry has potential for significant savings as we conduct further SWM Pond rehabilitation programs in the future. Infrastructure Rehabilitation Joint Application for Federal-Provincial Grant Funding The Cities of Kitchener, Waterloo and Cambridge are working collaboratively on the principles of a j oint application for water and sewage infrastructure renewal funding through Federal and Provincial funding opportunities. The intent of this joint application would be to assist the area municipalities with a comprehensive program utilizing state of the art trenchless technology processes to upgrade the aging infrastructure that currently represents amulti-million dollar liability. Should the program eligibility criteria adequately represent our infrastructure needs staff will be reporting to the respective City Councils on the merits of this joint application and the local funding requirements. Other Initiatives of Note As a final note, a number of collective initiatives are underway that extend beyond the cities of Kitchener and Waterloo and include in some cases other cities while in other, all jurisdictions in the Region. While oversight of these initiatives are not the responsibility of the Kitchener Waterloo Joint Service Initiatives program, progress on these initiatives are tracked by this group. Expert Water Panel Since the Walkerton tragedy, there have been several legislative changes in Ontario. While some are in place and a couple of them are in draft forms, there are studies going on with the intent of having further legislative changes. `Watertight' is one of the initiatives that was put forward by the newly created Ministry of Public Infrastructure (PIR). The Expert Panel's report, Watertight: The case for change in Ontario's water and wastewater sector, was released on July 22, 2005. In October of 2005 the Council's from Kitchener, Waterloo and Cambridge approved a coordinated approach in response to the Expert Panels Watertight recommendations. Specifically the Councils' supported the principles of the Watertight report excluding recommendation 4.9; which is a recommendation that the "Municipal Act should be amended to give all Regional Municipalities exclusive jurisdiction over all elements of the water and wastewater sector". The Cities of Kitchener- Waterloo-Cambridge see this as an overly prescriptive solution with significant impacts on current operational and governance arrangements within our current structure. Following our Councils' direction in October 2005 the Mayors' of the three cities met with the Minister of Public Infrastructure Renewal to express our concerns around recommendation 4.9. In addition, senior staff from the three cities met with PIR Staff to articulate our position on 4.9, and to better understand the background of this proposed recommendation. Through these constructive meetings an opportunity was offered to the three cities to participate in a pilot testing of draft regulations on the "Sustainable Water and Sewage Systems Act, 2002"; an Act complimentary to the Watertight directions that deals with full cost recovery of water and sewage utilities to ensure proper subsidization and reinvestment in this critical infrastructure. The Cities have since further extended this offer to participate in the pilot to the Townships of Woolwich and Wilmot, and the Regional Municipality of Waterloo. This cooperative approach to participating in the pilot regulations by all of the affected Municipalities in the Region of Waterloo will result in a better understanding of our local opportunities and constraints that will assist with future discussions on local solutions that meet the spirit and direction of the Watertight recommendations. It is anticipated that our test pilot participation in the draft regulations will also result in positive feedback to the Ministry on the practicality of implementing this legislation across the province. In response to the recommendations developed by the Expert Water Panel, the three cities of Kitchener, Waterloo and Cambridge developed j oint response to the Province. The three cities continue to work towards a locally based solution to ensure the safe and efficient delivery of water. Library Services Discussions between the two library boards (WPL and KPL) have been underway for sometime in regards to opportunities for improving library services in both cities. In December of 2005, KPL agreed to eliminate its' non-resident charge and become part of the regional `reciprocal borrowing' network. WIFI The CAO's from each of the regional municipalities are exploring opportunities with Atria to advance the development of the wireless network throughout the Region. Seen as a valuable economic development tool and an opportunity that could improve the effectiveness of the delivery of municipal services, the CAO group is working towards a proposal for presentation to their respective Council's in the near future. Tnnrism Much interest has been expressed recently about the development of a region wide tourism delivery model. The regional CAO group has taken responsibility for exploring a collective model for tourism services and is anticipating bringing forward a model by June 200b. Program ReviewlRevised Terms of Reference As work progressed between the two cities, additional opportunities for collaboration continued to emerge. Given this, the Shared Services Advisory Committee felt that it was appropriate to review current program parameters and give consideration to future program growth. Much of this was precipitated on the fact that a number of the opportunities which were emerging extended beyond basic service delivery. The staff committee felt that there would be significant benefit in expanding the program to include strategic initiatives, such as review and response to new provincial legislation. This kind of collaborative approach was recently taken by the three cities in response to the recommendations of the Expert Water Panel and certainly resulted in the response having more profile and effectiveness. Other such initiatives could include a cooperative approach towards the development of a sports tourism strategy since our collective ability to attract and host larger events would be increased; and the development of a community investment strategy which would provide a more focused approach toward setting and achieving strategic program goals through the funding and support of community based programs and initiatives. In addition to the strategic opportunities, both cities have acknowledged that we have a great deal that we can both learn from and offer each other. The committee felt that we should build on the informal relationship that has developed to share our learnings, information and best practises. The results of these discussions is reflected in the attached Terms of Reference for the `Kitchener Waterloo Joint Service Initiatives Committee' . These revised terms of reference also provide further clarity around project/initiative criteria, structure and a number of general considerations to make the program more effective including regular report to Council and the public. Summary The Shared Services program between the Cities of Kitchener and Waterloo has been an unprecedented success -achieving program coordination in areas that the public has suggested for many years. As the program grows, new opportunities continue to emerge and are embraced by staff in order to improve the delivery of services to our collective residents. Respectfully submitted, Carla Ladd, CAO Kitchener Simon Farbrother, CAO Waterloo Attachment ,. *~ . .~ Kitchener Waterloo Joint Services Initiatives Committee Terms of Reference The municipalities of Kitchener and Waterloo share a long history of cooperation. In 2004, the Shared Services Committee was formed to more formally explore opportunities to work in collaboration, with significant success in developing and delivering a number of shared services. The opportunity now exists to further develop the terms of reference in a way that creates a framework that will better define the role of the committee. This will also redefine the parameters in a way that will better support this committee in meeting its objectives. An initial change is the shift in the name of this committee to the Joint Services Initiatives Committee. The following outlines some initial thinking on Terms of Reference that would be appropriate for the Joint Services Initiatives Committee moving forward. Mission Statement: The Joint Services Initiatives Committee exists to ensure that current and future opportunities to work collaboratively for the benefit of citizens in Waterloo and Kitchener are identified, explored and leveraged wherever possible, delivering municipal services in the most efficient and effective manner possible. Scope: While there are a number of initiatives that are project specific, the Joint Services Initiatives Committee will also pursue opportunities to work together that are more strategic in nature. This may include but is not limited to shared learnings, best practices, information sharing, and developing a community investment strategy. Principles: Any Joint Services initiative will be based on three basic principles: • Accessibility -ensuring services and programs are citizen focused and the structure and responsibility is understood by all citizens • Affordability -blending accessibility with the need to deliver cost-effective service • Accountability -representing the needs and desires of the community they serve and they are delivered in a fashion that have clearly identified areas of responsibility. In addition, the Joint Services Initiatives Committee will demonstrate: • respect for municipal timing • respect for municipal autonomy • effective use of resources • equity between the member municipalities • a commitment to early engagement • a commitment to open and timely communications • a commitment to annual evaluation of the committee's terms of reference Criteria: In order to determine which projects offer the best opportunities as Joint Services initiatives, a number of criteria are required to serve as the framework within which opportunities would be assessed. The following require that Joint Services initiatives should: • enhance the capacity of either municipality to deliver or develop aservice/program beyond its resources • create service level improvements while maintaining costs and/or producing future opportunity savings • not be limited to operational issues but also consider when either municipality is faced with capital requirements • provide operational and/or capital opportunities • be based on the principles of best practices Frequency of Meetings: In order to be a committee of action, it's recommended that meetings be held on a quarterly basis, and that these meetings are scheduled at the beginning of the year to ensure that time is held in the calendars of all members. Meeting on a quarterly basis will allow for timely updates, as well as allow for sufficient time between meetings for actions to be taken. The committee will continue to evaluate its progress on an annual basis. Project Management: All projects will have a clearly identified project lead as well as a municipal contact from each municipality. Members of the committee will be responsible for bringing forward opportunities to pursue joint services initiatives. These projects will be evaluated and prioritized using the principles and criteria identified in these terms of reference. Minutes: Minutes will be captured for every meeting. In 200b, minutes will be the responsibility of Waterloo. In 2007, Kitchener will be responsible for meeting minutes. To keep neighbouring municipalities and townships informed about current work underway, minutes will also be shared with these groups. Membership of the Committee: It is recommended that a core group be identified that consists of membership from both municipalities. The core group would include the CAOs, the Chief Financial Officers, the Director of Human Resources, the Communications officers, as well as senior management responsible for delivery of service. Other members would be invited to participate and attend as required; however, the core group would hold overall responsibility for furthering the mandate of the committee throughout the year. Considerations: In addition to the terms suggested, the following must be taken into consideration: - ETyee impact: In some instances, this may impact employees, and in particular, Union members. In order to ensure support and buy in, communications will be key. Ensuring union workers understand the objectives behind any Joint Services initiative and are clear on the benefits will help secure buy in from this group. - Provincial, Federal and Regional context: Throughout the year, there may also be opportunities to bring the work we are doing through the Joint Services initiatives committee to the provincial context. It will be important to identify these opportunities when appropriate and to leverage them wherever possible. - Marketin : A strategy needs to be developed to better identify and/or market proj ects that are a result of the Joint Services Initiatives Committee. This may include developing a look, a colour scheme, and a logo that reflects participation on behalf of both municipalities. As well, the committee should consider communications initiatives such as a quarterly update on progress. - Definition of `joint' : It is important to consider whether `joint' refers to an equal participation, or whether it means one municipality taking lead responsibilities, with the support and knowledge of the other. - Initial Budget: The committee will consider whether it would be of benefit to establish some `seed' money. - Measurement: The committee will consider whether there is an opportunity and/or need to define the measures of success in terms of efficiencies and effectiveness, as well as whether there is an opportunity to quantify the dollars saved. - ReT~Regular reporting, including an annual presentation and three briefing notes over the course of a year, will focus on recent accomplishments and on future initiatives. - Broader Municipal Context: When an issue impacts more than Kitchener and Waterloo, these will be brought forward to the regional CAO's for consideration.