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Home My WebLink AboutFIN-08-085 - E08-056 - Consultant Services - Human Resource Integration - Consolidated Maintenance Facilityh~ ~' I ,P f ` ~ '~.! X`,,. ' • ' is is Report To: Mayor Carl Z~hr and Members of Council Date of Meeting: 2008-06-16 Prepared By: Larry Gordon Date of Report 2008-06-11 Report No: SIN 08-085 Subject: E08-056 -Consultant Services - ~Iuman Resource- Integration - Consolidated Maintenance Facility RECOMMENDATION That Expression of Interest E08-056, Consultant Services - ~Iuman Resource- Integration - Consolidated Maintenance- Facility, be awarded to The- Osborne- Group Toronto Inc., Toronto, Ontario at their quoted fee of $99,902.52, including disbursements of $7,823.60 and G.S.T., based on a satisfactory contract be-ing negotiated and an upset fee be-ing established, and further that the- Mayor and City Clerk be authorized to exe-cute- an afireement satisfactory to the- City Solicitor. BACKGROUND The City of Kitchener will be consolidating five existing City maintenance facility yards into one location. This will facilitate process efficiencies and eliminate duplication of services at the various current locations. 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 is retaining a consultant to provide advisory services to the City's internal Project Human Resource Integration Manager in the following areas: ^ Planning and implementation of the integration of approximately 440 non-union and union staff that are represented by four (4) bargaining units into one location; ^ Planning and implementation of the integration of portions of five (5) different city departments from five (5) different locations into one location; ^ Application of best practices and past experience/lessons learned to create a unified culture of cooperation; ^ Identification of potential challenges and opportunities and critical time frames for people integration activities; ^ Application of the results/recommendations of the Risk Assessment Report (prepared by others) in the successful integration of staff and functions; and ^ Application of best practices from other similar municipalities related to the impact of the departmental integration on the City's current organizational structure. The- rotegration of staff, staff functions and location within the- new facility will take- place from approximately June- 2008 to October 2008. REPORT In accordance- with Chapter 170 of the- Municipal Code- pertaining to the- Sele-coon of Professional Services/Consultants, a Consultant's Re-view Commutee was established consisting of D. Chapman, General Manager, Financial Services, ~I. Gross, Director Project Administration and Project Management, D. Paterson, Director ~Iuman Resources, and L. Gordon, Director of Purchasing. Expressions of interest were- requested from three potential bidders, advertised on the- City of Kitchener Nome- Page- and the- roternet through the- Ontario Public Buyers Electronic Te-nde-ring Information System relative to this project. Documents were- downloaded by two (2) additional interested parties. By the- closing date- of Wedne-sday May 28t~~, 2008, no responses had been received. An addendum was issued to all five- parties with a revised budget and an exte-nded closing date- of Wedne-sday June- 4t~~, 2008. By the- closing date- of June- 4t~~, 2008, one- response was received. The- Re-view Commutee interviewed the- proponent on Wedne-sday June- 11th, 2008 and the- Commutee elected to award the- project to The- Osborne- Group Toronto Inc., Toronto, Ontario. A listing of the- responding parties follows for your reference. The Osborne Group Toronto Inc., Toronto FINANCIAL IMPLICATIONS Funding will be provided from codex 526073 and 528000 -Consolidated Maintenance Facility REVENUES Contribution from Capital $22,637,523. Contribution from Reserve- $ 330,000. Contribution from Gas $ 1,560,000. Contribution from Water $ 1,560,000. Contribution from Sewer $ 1,560,000. Contribution from DC $ 3,299,000. Land Sales $14,650,000. Existing Capital Funds $ 428,000. TOTAL $46,024,523. EXPENSES Land Costs $22,410,308. Consulting -Architect $ 2,397,211. Consulting - Pe-ogle- Amalgamation $ 104,850. Art $ 200,000. Miscellaneous (Fees & Permits) $ 106,527. Building Alterations $18,000,000. Relocation Costs $ 300,000. Information Technology System $ 300,000. Contingency $ 2,300,000. Interest Costs $ 1,996,288. E08-056 $99,902.52 Less G.S.T. Re-bate- 4,752.52 $95,150.00 $ 95,150. TOTAL $48,210,334. 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- de-signs and costs have- been finalized. 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