HomeMy WebLinkAboutFIN-07-017 - E07-014 - Consultant Services - Capital Asset Management Business Process Study
Report To:
Mayor Carl Zehr and Members of Council
Date of Meeting:
2007 -02-05
Prepared By:
Larry Gordon
Date of Report
2007-01-30
Report No:
FIN 07-017
Subject: E07-014 - Consultant Services - Capital Asset Management Business Process
Study
RECOMMENDA TION
That Expression of Interest E07-014, Consultant Services Capital Asset Management Business
Process Study, be awarded to Prior & Prior Associates Ltd., Markham, Ontario at their estimated
fee of $74,068., including disbursements of $2,000. and G.S.T., based on a satisfactory contract
being negotiated and further that the Director of Purchasing be authorized to execute an
agreement satisfactory to the City Solicitor.
BACKGROUND
The City is proposing to commence a review of its capital asset management practices,
culminating in the development and documentation of business processes to support the
directions, priorities and needs for asset management (financial and non-financial) at the City.
This work is being undertaken as part of the definition of RFP requirements for new CIFS and
IIMS systems and to provide support to the implementation of PSAB 3150 Tangible Capital
Assets as outlined in the approved Business Case. The retention of a Consultant is required due
to the aggressive project deadlines, as well as the need to incorporate leading practices in this
field. The intent of the initiative is to:
· gather and review information with respect to current asset management plans and
strategies, systems, inventories and business processes in place at the City,
· work with internal stakeholders to identify the directions, priorities and needs for the
asset management program,
· assess gaps between current practices and the stated objectives,
· incorporate a review of best practices,
· develop and document asset management business processes specific to the City of
Kitchener consistent with the directions, priorities and needs identified,
· assess the corresponding business requirements in support of a request for proposals for
new financial and asset management systems, and
· provide recommendations with respect to policy and process considerations relevant to
the implementation of PSAB 3150 - Tangible Capital Assets.
This review will include all phases of capital asset planning and management (financial and non-
financial) for all capital asset classes along with related systems requirements.
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, Director, Financial Planning & Reporting, R. LeBrun, Manager, Financial
Planning & Reporting, J. Taylor, Business Systems Analyst, and L. Gordon, Director of
Purchasing.
Expressions of interest were advertised on the City of Kitchener Home Page relative to this
project. Documents were picked up by seventeen (17) interested parties. By the closing date of
Friday January 26th, 2007, six (6) responses had been received. The Review Committee met on
Monday January 29th, 2007 to review the submissions. A shortlist of two (2) Consultants was
selected for further interviews.
The Review Committee met on Tuesday January 30th, 2007 to interview the shortlisted
candidates. The Committee elected to award the project to Prior & Prior Associates Ltd.,
Markham, Ontario.
A listing of the responding parties follows for your reference.
Prior & Prior Associates Ltd., Markham
iPLANcorp, Newmarket
KPMG, Waterloo
Western Management Consultants, Toronto
Deloitte & Touche, Kitchener
The Trilogics Group Inc., Hamilton
FINANCIAL IMPLICATIONS
Funding will be provided from index 334021 - Tangible Capital Assets Implementation
REVENUES
Capital out of Current
Contribution from Water
Contribution from Gas
Contribution from Sewer
$384,000.00
$ 48,000.00
$ 66,000.00
$102~000.00
TOTAL REVENUES
$600,000.00
EXPENSES
Staff Costs
E07 -14
Less G.S.T. Rebate
$276,708.00
$74,068.00
($ 4~ 192.55)
$69,875.45
$ 69,875.45
$147,624.55
$ 60,000.00
$ 45~792.00
Contracted Services
Project Software
Miscellaneous
TOTAL EXPENSES
$600,000.00
BALANCE
Larry Gordon
Director of Purchasing