HomeMy WebLinkAboutFIN-08-061 - E08-037 - Consultant Services - Project Risk Assessment - Consolidated Maintenance Facility
Report To:
Mayor Carl Zehr and Members of Council
Date of Meeting:
2008-05-05
Prepared By:
Larry Gordon
Date of Report
2008-04-29
Report No:
FIN 08-061
Subject:
E08-037 Consultant Services - Project Risk Assessment -
Consolidated Maintenance Facility
RECOMMENDA TION
That Expression of Interest E08-037, Consultant Services - Project Risk Assessment
Consolidated Maintenance Facility, be awarded to KPMG LLP, Toronto, Ontario at their
estimated fee of $102,394., including disbursements and out of pocket expenses of $23,805. and
G.S.T., based on a satisfactory contract being negotiated and an upset fee being established.
BACKGROUND
The City of Kitchener has recently entered into a purchase agreement with TC MidAtlantic
Development Inc. to purchase approximately 45 acres of privately-owned land at 131 Goodrich
Drive in Kitchener, including some of the existing buildings on the site. These industrial
buildings will be reused and adapted as much as possible in order to accommodate consolidation
of five existing aging City maintenance facility yards into one location. This will facilitate
process efficiencies and eliminate duplication of services at the various current locations.
It is a complex project and represents a significant investment for the City of Kitchener. The
total project cost is expected to be between $46 million and $48.3 million. The project requires
not only effective technical management but also strong leadership and significant commitment
from the business operations throughout the initiative in order to fully achieve the intended
business objectives. The City is experienced in construction projects of this size. However,
given the diversity of the operations that will be coming together under one roof, including
multiple unions, the largest challenge will be managing the people component and getting all
parties to come to agreement on the form and function of the new structure.
In recognition of these challenges, the City of Kitchener requires an independent project risk
assessment to assist the City of Kitchener in its' analysis of the:
· Risks related to the successful implementation of the project on time and within budget;
· Risks related to the successful integration of staff from multiple unions and work areas into a
single location;
· Appropriateness of the project management processes and implementation approach being
applied; and
· Risk mitigation strategies
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 C. Tasker, Performance Management and Internal Auditor, D. Chapman, General Manager of
Financial Services & City Treasurer, H. Gross, Director Project Administration & Economic
Investment, and L. Gordon, Director of Purchasing.
Expressions of interest were advertised on the City of Kitchener Home Page and the internet
through the Ontario Public Buyers Electronic Tendering Information System relative to this
project. Documents were downloaded by eight (8) interested parties. By the closing date of
Tuesday April 1 st, 2008, two (2) responses had been received. The Review Committee met on
Monday April 14th, 2008 to review the submissions. Both Consultants were shortlisted for
further interviews.
The Review Committee met on Friday April 18th, 2008 to interview the shortlisted candidates.
The Committee elected to award the project to KPMG LLP, Toronto, Ontario.
A listing of the responding parties follows for your reference.
KPMG LLP. Toronto ON
SPM Group Ltd. Toronto ON
FINANCIAL IMPLICATIONS
Funding will be provided from index 526073 and 528000 - Consolidated Maintenance Facility
REVENUES
Contribution from Capital
Contribution from Reserve
Contribution from Gas
Contribution from Water
Contribution from Sewer
Contribution from DC
Land Sales
Existing Capital Funds
TOTAL
$22,637,523.
$ 330,000.
$ 1,560,000
$ 1,560,000.
$ 1,560,000.
$ 3,299,000.
$14,650,000.
$ 428~000.
$46,024,523.
EXPENSES
Land Costs
E08-037
Less G.S.T. Rebate
$22,410,308.
$102,394.
($ 4~876.)
$97,518.
$ 97,518.
$ 2,299,693.
$ 200,000.
$ 200,000.
$ 106,527.
$18,000,000.
$ 300,000.
$ 300,000.
$ 2,300,000.
$ 1~996~288.
$48,210,334.
Consulting - Architect
Consulting People Amalgamation
Art
Miscellaneous (Fees & Permits)
Building Alterations
Relocation Costs
Information Technology System
Contingency
Interest Costs
TOTAL
DEFICIT
$ 2,185,811.
* The project is currently under funded by $2,185,811. At the November 19,2007, Finance and
Corporate Services Committee, it was resolved that staff deal with this deficit through the
planning phase, once designs and costs have been finalized.
Larry Gordon
Director of Purchasing
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