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HomeMy WebLinkAboutDTS-08-094-2 - Implementation of 2007 Engineering Audit Recommendations1 K KR Development& Technical Services REPORT Report To: Councillor B. Vrbanovic, Chair, and Members of Audit Committee Date of Meeting: June 9, 2008 Submitted By: Grant Murphy, P.Eng. Director of Engineering Services Prepared By: Grant Murphy, P.Eng. Director of Engineering Services wards} Involved: All Date of Report: May 30, 2008 Report No.: DTS-08-094 Subject: IMPLEMENTATION OF THE 2007 ENGINEERING AUDIT RECOMMENDATIONS RECOMMENDATION: That Council receive the report for information and that staff continue to proceed with the implementation plan of the engineering audit recommendations as prepared by the MMM Group and originally received by Council on March 17, 2008. BACKGROUND: In 2002 and 2003, the City of Kitchener undertook two projects in the City's downtown area: • The Victoria Street Project, which entailed road reconstruction and upgrade of the municipal underground services of Victoria Street from Park Street to King and Park Street from Devon Street to the CNR tracks; and • The JosephlGaukel Streets Project, which included the conceptual and detailed design and contract administration for Victoria Park Entrance. During the execution of both projects, the extent of soil contamination was far greater than originally estimated and the quantity of non-hazardous to hazardous material was also far greater than anticipated. These issues caused significant delays to the construction schedule as well as increased costs relating to environmental cleanup. To further complicate the projects, additional project scope was added to the existing contracts for the reconstruction of neighbouring streets. Due to these projects, it was proposed that a comprehensive review of how projects are scoped, designed, constructed, managed and closed-out. In February 5, 2007, it was recommended that an expression of interest be issued, seeking an external reviewer to complete an engineering audit of these projects. In June, 2007, the City retained MMM Group Limited (MMM) to undertake an independent review of processes and methodologies used on the Victoria Street and Joseph/Gaukel Streets Reconstruction Projects. The City's requirements were outlined in Expression of Interest E07- 031 and work began in July 2007. The consultant reviewed existing documentation, interviewed staff and one of the consulting firms involved in the projects. An interim report was submitted by the consultant on November 26, 2007 to Council for their consideration and information. The final report was completed and presented to City staff on December 19, 2007 and is attached for Council's consideration. On March 17, 2008 the MMM Group presented the findings of the Engineering Audit report and the audit findings revealed that there was general compliance with current procurement and project management policies. There were areas identified by the MMM Group where additional focus by the City may bring about improvements in the effectiveness of their Project Management Processes. Council directed staff to prepare an implementation strategy to address the issues that have been identified in the Audit. The report briefly describes the actions, timing, estimated cost, level of effort required to implement the Audit recommendations. REPORT: On May 15, 2008, a meeting was held with Engineering Division staff to review the results of the Engineering Audit and develop a plan to implement the recommendations. The purpose of the meeting was to understand the desired outcome, identify steps towards achieving the goal and identify obstacles that would prevent the achievement of the goal. During this meeting staff were also asked to begin documenting detailed action plans for each recommendation. An important part of the meeting was to reinforce a culture of continual and sustainable improvement. The areas are centred mainly on the need for effective planning, increased reporting, and standardized filing, and archiving, and sharing of experience through Lessons Learned during and after project completion. Table 1 summarizes the eight (8) specific recommendations from MMM Group and the results of the May 15t" Engineering Services Staff meeting. It should be noted that some of the recommendations listed have already been started and are noted as such in Table 1. Item # Description Timing Effort Estimated Status Cost 1 Implementing a Lessons Learned November Medium none Not- Process 2008 and started continual 2 Evaluating the City's current practices November Medium none Not- relating to consultant procurement and 2008 and started selection and preparation of a detailed continual Expression of Interest to ensure the project management and environmental requirements are ca tured 3 Specifying the Environmental Site November Medium Included in Not- Assessment work should be 2008 and Project started supervised by a Qualified Person as continual Construction identified in the Environmental Cost Protection Act (EPA) (variable) 4 Completing environmental investiga- April 2008 Medium Included in Started tions such as soil and ground water and Project Pre- in assessments on projects at risk well in annual Construction January advance of undertaking construction basis Cost 2008 variable 5 Ensuring that essential tools for the January Medium $15,000 Not- City to maintain overall project control 2009 and (new budget started are available to the City's project continual $ required) manager 6 Training of City staff in the areas of April 2009 High and $9,000 Not- environmental issues and the essential continual (new budget started elements of project management $ re uired 7 Implementing an indexed filing system April 2009 Medium Engineering Started to improve the retrieval and and staff time in May completeness of project files Continual 2008 g Performing follow-up audits to January High & audit Completed Not- evaluate program effectiveness after 2010 frequency to by Internal started new process improvements are be determined Auditors im lemented. FINANCIAL IMPLICATIONS: None COMMUNICATIONS: None CONCLUSION: The City anticipates that they will be faced with complex infrastructure projects due to the industrial history of the City, changes in environmental legislation, and increased interest in the development of the City's core. As such, the City by completing this engineering audit it will to enable staff to be better manage future infrastructure construction projects. Grant Murphy, P. Eng., Director, Engineering Services