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Home My WebLink AboutGM 06/98104 OP REPORT TO COUNCIL FROM: Thomas J. Quinn DATE: May 19,1998 General Manager REPORT NUMBER: GM 06 -98 SUBJECT: Ajax & Pickering Transit Partnership / Amalgamation Study Recommendation on Consultant Hiring File: MG 5030 RECOMMENDATION: 1. That Council receive Report to Council GM 06-98 and concur with hiring Delcan Corporation, in association with Coopers & Lybrand, to undertake the Town of Ajax do Town of Pickering Transit Partnership / Amalgamation Study. 2. That Council authorize a pre - budget expenditure of up to $60,000 to cover the Town's share of the cost of the study, on the condition that the Town of Ajax also agrees to undertake the study and make a similar funding contribution. 3. That the Mayor and Clerk be authorized to execute any necessary documents resulting from the above recommendations. 4. That a copy of this Report be forwarded to the Town of Ajax. ORIGIN: Council Resolution #53/98, wherein Council approved the Terms of Reference for the Town of Ajax & Town of Pickering Transit Partnership / Amalgamation Study. Report dated May 19, 1998, from the steering committee for the transit study, recommending the hiring of Delcan Corporation, in association with Coopers & Lybrand, to undertake the Town of Ajax & Town of Pickering Transit Partnership / Amalgamation Study. AUTHORITY: The Municipal Act, R.S.O. 1990 FINANCIAL IMPLICATIONS: The base cost of the Delcan / Coopers & Lybrand study is $91,300 plus GST, with an additional $12,000 for optional surveys, consultation and other work that may be required. This results in an overall study cost of up to $103,300, plus GST. The total cost of the study will be shared equally between Pickering and Ajax. Sufficient funds for the Town's share of the study are being set aside in staff's 1998 budget submission (Account # 2350.2392). As the budget submission has not yet been considered by Council, pre - budget authorization is needed to proem with the study at this time. Ajax Council Report to Council GM 06-98 Date: May 19,1998 10 g Subject: Transit Partnership / Amalgamation Study Page 2 has already authorized up to $60,000 for this study, and it is recommended that Pickering Council make a similar funding commitment. The foregoing has been discussed with the Director of Finance who, given the need to commence the study, concurs with the Report and its recommendations. EXECUTIVE SUMMARY: As previously directed by Ajax and Pickering Councils, a joint steering committee made up of senior staff from Ajax and Pickering have completed a selection process for the hiring of a consultant for the Ajax & Pickering Transit Partnership / Amalgamation Study. Submissions from a total of five consulting teams were reviewed by the steering committee, and four consulting teams were selected for interview. Following the interviews, the steering committee prepared a report (see Attachment No. 1) recommending the hiring of Delcan Corporation, in association with Coopers & Lybrand to undertake the study. The Delcan / Coopers & Lybrand proposal meets all the requirements of the Terms of Reference, and represents the lowest total bid price of all the submissions. It is recommended that Council support the steering committee's recommendation to hire Delcan / Coopers & Lybrand to undertake the study, on the condition that a similar decision is made by the Town of Ajax. Should Council agree to this recommendation, a pre-budget expenditure of up to S60,000 should be authorized. The Town of Ajax has already authorized up to $60,000 for the study. BACKGROUND: In 1997, the Councils of the Town of Ajax and the Town of Pickering met to consider the merits of partnering or amalgamating various municipal services. Further discussions revealed an interest in looking closely at whether increased partnerships, or possibly the full amalgamation of the transit systems of the two municipalities should be considered. Staff was requested to have a "business case" prepared in order to identify all the relevant costs and benefits of further partnerships, or a full amalgamation of the transit systems. A joint steering committee made up of senior staff' from Ajax and Pickering subsequently prepared and distributed to a number of consulting teams in the Greater Toronto Area terms of reference for a study of the transit systuns of the two municipalities. A total of five proposals were subsequently received: • Delcan Corporation, in association with Coopers & Lybrand; • ENTRA Consultants Inc., in association with Deloitte & Touchc, Management Solutions; • IBI Group, in association with OGA Management Consultants; • Price Waterhouse Management Consultants, in association with TranPlan Associates and Hicks Morley Hamilton Stewart Storie; and • UMA Partnership Ltd., in association with RGP Transtcch Inc. The proposals were evaluated on the basis of a number of criteria, including team composition; understanding of the issues and the local area; previous experience with similar projects; the proposed study process and timetable; the stakeholder consultation process; and the total bid price. After reviewing the proposals and interviewing four of the consulting teams, the steering committee concluded that the proposal submitted by Delcan and Coopers & Lybrand should be recommended to the respective councils. The Delcan / Coopers & Lybrand proposal meets all the requirements of the terms of reference and represents the lowest total bid price of all the submissions. The steering committee's report is included as Attachment No. 1. i r tf 0 6Report to Council OM 0698 Subject: Transit Partnership / Amalgamation Study Date: May 19,1998 Page 3 It is recommended that Council endorse the recommendation of the steering committee, and authorize a pre-budget expenditure of up to $60,000 to undertake the study (similar to what has been authorized by Ajax Council). This will ensure that sufficient funds are available to undertake the study, including any optional work that may prove necessary as the study unfolds. It should also be noted that because the study will not be completed until 1999, the study cost will be spread over two years. ATTACHMENTS: Report dated May 19,1998, from the joint Ajax/Pickering staff staring committee. Prepared By: Approved / Endorsed By: Thomas E. Mely tuk pas J. Qi i TM: copy: R. Padsotto, C.A.O., Town of Ajax TOWN OF AJAX 65 Harwood Avenue South Max, Ontario LIS 2119 Telc*m (907) 6124550 Facsimile (903)617.1061 M1RN.I„_TOREPOIITM�✓L 7hF �` "OFpkr� TOWN OF PICKERING One , O Cana Esplanade LIV Pickering, Ontario LI V 6K7 Telepinne (90S) 4204611 Facsimile (905)/2046!5 TOWN OF AJAX & TOWN OF PICKERING TRANSIT PARTNERSHIP /AMALGAMATION STUDY REPORT OF THE STEEPING COMMITTEE May 19,1998 1. Background In March 1997, the Councils of the Town of Ajax and the Town of Pickering met to consider the merits of partnering or amalgamating various municipal services. The opportunity of establishing increased partnerships, or implcmenling it full amalgamation of the transit systems was subsequently discussed. It was determined that a "business case" should be prepared, in order to review the relevant costs and benefits associated with further partnerships, or a full amalgamation of the two systems. To this end, the Town of Ajax and Town of Pickering agreed to jointly commission a study of their transit systems. A consulting team would be hired, having expertise in municipal transit, finance, administration, and labour relations. In terms of reporting relationships, the consulting team would report to, and be directed by a steering committee made up of senior staff from the Town of Ajax and the Town of Pickering. The steering committee would report to their respective Town Councils through the Chief Administrative Officer in Ajax and the General Manager in Pickering. 2. Study Terms of Reference In March 1998, with the concurrence of both Councils, terms of reference for the "Town of Ajax & Town of Pickering Transit Partnership / Amalgamation Study" were released. The terms of reference outlined the purpose of the study as: a) To assess the merits of amalgamating the transit services of the Towns of Ajax and Pickering, or entering into other significant structural partnerships between the two systems, considering various pertinent factors including service delivery; transit facilities, equipment, maintenance and inventory; finance and administration; human resources; and governance. Ajax I Pickering Transit Steering Committee Report 2 •.108 . b) To provide an implementation strategy for increased transit partnerships or the full amalgamation of the services in the event one or the other is recommended. c) To undertake an operational review for the transit partnership or amalgamated service in the event one or the other is recommended, Leiters advising of the availability of the terms of reference were forwarded to a number of firms in the Greater Toronto Area that provide consulting services in municipal transit. The study terms of reference were also made available on the Toitin of Pickering's web- site, Transit staff of both municipalities were also formally advised of the study. Consulting firms interested in undertaking the study were asked to provide a detailed proposal by April 14, 1998. A total of five submissions were received: • Delcan Corporation, in association with Coopers & Lybrand; • ENTRA Consultants Inc., in association with Deloittc & Touchc, Management Solutions; • IDl Group, in association with GGA Management Consultants; • Price Waterhouse Management Consultants, in association with TranPlan Associates and Ilicks Morley Ilamilton Stewart Storic; and • UMA Partnership Ltd., in association with RGP Transtech Inc. 3. Selection Process The five submissions were reviewed by the steering committee. Pour were selected for further consideration, and interviews were held on May 11, 1998, with the key members of each of the teams. The proposals were considered on the basis of a number of criteria, including team composition; understanding of the issues and the local area; previous experience with similar projects; the proposed study process and timetable; the stakeholder consultation process; and the total bid price. Following detailed consideration, the steering committee agreed that the proposal submitted by Dcican and Coopers & Lybrand should be recommended to the respective municipal councils. 4. The Delcan / Coopers & Lybrand Submission The Delcan / Coopers & Lybrand submission met all of the requirements and conditions of the terns of reference. It also had the lowest total bid price of all the submissions. The submission identifies the cost of the study as $91,300 plus GST, with an additional $12,000 for optional surveys, consultation and other work that may be requested during the study. t Ajax / Pickering Transit Steering Committee Report 3 Coopers & Lybrand would take the lead through Phase I of the study, while Delcan would take the lead during Phases 2 and 3. Overall Project Manager for the Deleon / Coopers & Lybrand team would be Mr. Chris Prentice, of Delcan, who has previously done transit studies for both Ajax and Pickering. In addition to being Project Manager, Mr. Prentice will also be responsible for service delivery issues related to the study. Other key members of the consulting team include Mr. Stephen Martin and Mr. ]cc Parker of Cooper & Lybrand (responsible for finance and administration issues), Mr. Gerry Johnston of GHJ Transportation Consultants. (responsible for governance issues), Mr. Chris Eames of IRC Industrial Relations Consultants Ltd. (responsible for labour relations and human resources issues), Ms. Beatrice Schmicd of Schmied Communications (responsible for consultation and marketing/communications issues), and Mr. Alistcr McAlpine of the St. Catharines Transit Commission (responsible for facilities and equipment maintenance issues). It is recommended that the Councils of the 'Town of Ajax and the 'Town of flickering support the hiring of Dcican Corporation, in association with Coopers & Lybrand, to undertake the study. Respectfully submitted, Terry Barnett Director of Transit, Ajax Greg Kirkbridc Town Treasurer, Ajax Brian Skinner Director of Operations, Ajax Neil Killen Manager of Transportation, Pickering Gil Paterson Director of Finance, Pickering Tom Melymuk Executive Coordinator, Pickering 109