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HomeMy WebLinkAboutFND-025-20Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: June 22, 2020 Report Number: FND-025-20 Submitted By: Trevor Pinn, Director of Finance/Treasurer Reviewed By: Andrew C. Allison, CAO File Number: Resolution#: By-law Number: Report Subject: Single Source award to Grant Thornton for the development of Key Performance Indicators and Management by Objectives. Recommendations: 1.That Report FND-025-20 be received; 2.That under the single source provision of the Municipality’s Purchasing By-Law and based on the proposal received, Council grant the Purchasing Manager the authority to negotiate an agreement with Grant Thornton for the development of Key Performance Indicators (KPIs) and Management by Objectives (MBOs) for the Municipality; 3.That the Purchasing Manager be authorized to execute the necessary agreement with Grant Thornton for the services outlined in recommendation 2 in a form acceptable to the Municipal Solicitor; 4.That funds required for the services be funded from the Continuous Improvement Reserve Fund; and 5.That all interested parties listed in Report FND-025-20 and any delegations be advised of Council’s decision. Municipality of Clarington Page 2 Report FND-025-20 1. Decision background 1.1 Through Report CAO-006-20 dated February 24, 2010, Council approved significant organizational changes. The report also identified the need to create a formal capital management process (recommendation 25), key performance indicators (recommendation 26) and management by objectives (recommendation 23). As part of the 2020 Budget, Council recognized the importance of this work and established the Continuous Improvement Reserve Fund with an initial $100,000 to assist in their implementation. 1.2 Report CAO-006-20 stated that due to the significant impact KPIs can have on how an organization operates and performs, as well as the nuances associated with what each KPI is driving, staff would be seeking to retain an expert consultant through the next round of funding under the Province’s Audit and Accountability Fund to assist us with this work. Due to COVID-19, it appears that any Audit and Accountability funding may either be suspended or not happening in the foreseeable future, but our work must continue. 1.3 Grant Thornton came to us with a proposal in late March to deliver on the next stage of the work - KPIs, MBOs, and corresponding business plans, but with the ongoing pandemic it was not an advisable time for such an undertaking. We reengaged the conversation again in late May, with a greater understanding of what our post-COVID world may look like. 1.4 Recognizing and wanting to take advantage of the familiarity that Grant Thornton has with our corporate structure, staff asked Grant Thornton to provide an estimate of the cost to undertake the work described in section 1.1 above. The first version of their proposal came in at $105,000 + HST. Staff reviewed the proposal and assessed our own internal staffing competency to take on as much of that work as possible, drawing from the Office of the CAO, Corporate Service, Finance as well as other departments across the organization. As such, they were able to adjust their costing accordingly and a final version of their proposal is attached to this report as Confidential Attachment 1. Report Overview In 2019, the Municipality received funds from the Province of Ontario to undertake an organizational review. The final report from the consultant (Grant Thornton) outlined the need for Key Performance Indicators (KPIs) and Management by Objectives (MBOs) to track output. Creating KPIs and MBOs is a science that requires specific expertise and as such staff are recommending that Grant Thornton be retained to complete that work for us. In addition, they will help create departmental business plans that will cascade into the measurable output items. Municipality of Clarington Page 3 Report FND-025-20 1.5 The proposal has Grant Thornton starting their engagement in July 2020 and completing it in November 2020. They will be working on the following deliverables: a. Developing departmental business plans; b. Aligning roles and responsibilities of top levels of management with business plans; and c. Building measurable markers (KPIs) against the business plans that can be tracked and reported to Council. 1.6 The award of a single source contract will allow the Municipality to expedite the implementation of the key performance indicators and management by objectives. 2. Financial 2.1 The funds required in the amount of $71,232 (net HST rebate) will be drawn from the Continuous Improvement Reserve Fund. The contribution of funds to this reserve fund was approved in the 2020 budget. 3. Concurrence Not applicable. 4. Conclusion It is respectfully recommended that Council award a single source contract to Grant Thornton to develop Key Performance Indicators and Management by Objectives for the Municipality. Staff Contact: David Ferguson, Purchasing Manager, 905-623-3379 ext.2208 or dferguson@clarington.net. Attachments: Confidential Attachment 1: Proposal from Grant Thornton Interested Parties: List of Interested Parties available from Department.