HomeMy WebLinkAboutCS 10-21Report to
Council
Report Number: CS 10-21
Date: January 25, 2021
From: Brian Duffield
(Acting) Director, Community Services
Subject: Facilities Asset Management System
- Renewal of VFA Software Subscription and Services
- File: A-1440
Recommendation:
1. That Quote #Q-194376-1 for the VFA Facilities Asset Management System software
subscription for a five year period, submitted by Accruent in the amount of $200,828 (HST
included) be accepted;
2. That the total gross project cost of $200,828.00 (HST included), and the total net project
cost of $180,852.00 (net of HST rebate), be approved;
3. That Council authorize the Director, Finance & Treasurer to finance Year 1 subscription
fees for net cost of $34,065.00, and five year sum of $180,852 (net HST rebate) be
provided for in the 2021 Current Budget, to be funded from property taxes; and,
4. That the appropriate City of Pickering officials be authorized to take the necessary action to
give effect hereto.
Executive Summary: In November 2015, Council approved Report CR 18-15 for consulting
services to perform building condition assessments required for the implementation of a facilities
asset management system. The resulting database is now fully implemented and integrated into
Community Services’ Facility Asset Management System (FAMS). Staff have also worked
diligently to ensure that separate software solutions used by Finance and Community Services
can work hand in hand. VFA is also linked to an internationally recognized construction cost index
database to ensure that its data and estimates provide values reflecting recent trends in the
construction industry. This system has become an invaluable project planning and management
tool and is often a requirement when reporting Federal Gas Tax project outcomes and as a
component of grant applications made to upper tiers of government.
Report CR 18-15 included funding for five years to collect the data required to populate the
database and coordinate it with other existing records. That work is now complete, and the VFA
system is actively being used to track, predict, and inform projected capital funding needs. The
2021 Capital Budget will be the first to feature input on all City facility assets using the VFA
software.
CS 10-21 January 25, 2021
Subject: Facilities Asset Management System Page 2
Re-assessment of building assets is not expected to commence until 2022, at the earliest, and will
be included in future Budget submissions for Council’s approval. The funding and approval
requested herein is only for the extension of the software subscription fees for VFA facilities for
the next five years.
Extension of the existing service agreement with VFA Canada Corporation, now owned by
Accruent, for another five year term (2021 -2025), in the amount of $200,828.00 (HST included) is
recommended for approval. The total gross project cost is estimated to be $200,828.00 and the
total net project cost is estimated at $180,852.00 (net of HST rebate).
Financial Implications:
1. Proposal Amount
Proposal No. Q-194376-1 $177,724.45
HST (13%)
Total Gross Proposal Cost
$23,104.18
$200,828.63
2. Breakdown of Costs by Budget Year
Total Project Cost
2021
Budget
2022-2025
Budgets Total
Software Maintenance $33,476.00 $144,248.00 $177,724.00
HST (13%) 4,351.00 18,753.00 23,104.00
Total Gross Project Cost $37,827.00 $163,001.00 $200,828.00
HST Rebate (11.24%) (3,762.00) (16,214.00) (19,976.00)
Total Net Project Cost $34,065.00
$146,787.00
$180,852.00
3. Approved Source of Funds
Approved Code
2711.2392.0000
Source of Funds
Property Taxes
Total Funds
2021 Budget
$34,065.00
$34,065.00
Required
$34,065.00
$34,065.00
$34,065.00
Project Cost under (over) approved funds by $0.00
CS 10-21 January 25, 2021
Subject: Facilities Asset Management System Page 3
Discussion: The Province of Ontario enacted the Infrastructure for Jobs and
Prosperity Act in 2015, further extending its requirements with O.Reg 588/17 Asset Management
Planning for Municipal Infrastructure in 2017. This legislation is intended to assist various levels of
government with the long term strategic planning required to address the financial demands of
aging infrastructure. Aware of the pending requirements and predicting a need to contribute data
for the City’s facilities assets, Community Services issued a request for proposals in 2015 to
obtain consulting services and a software service agreement to commence the work required to
populate a database specific to the conditions of the City’s facilities. The City issued its first formal
AMP in 2017 in accordance with the legislation’s requirements, and incorporating some of the
early data provided by the FAMS.
Most asset management legislation still focuses primarily on linear assets and infrastructure,
including roads, bridges, sidewalks, and sewers. The provision of building-based data is not
formally required until 2023, but the necessary work has already been completed and reflected in
the City’s AMP. An updated AMP is to be provided in 2021, and will be required to specifically
address levels of service standards f or various asset categories. The City will be well-positioned to
respond proactively beyond the legislated minimum requirem ents thanks to previous investments
towards completing its FAMS. The level of detail and active use of the software by staff has also
prompted the vendor to actively engage with the City, seeking input for the future development of
their software to better serve the City’s needs. Pickering is now considered to be at the forefront of
facilities capital asset management among VFA’s Canadian clients.
Completion of the VFA database provides the City with reliable predictions for the lifecycles of key
systems and equipment, and data-backed estimates for replacement costs that serve as the
foundation of the facilities-related Capital Budget planning process. The VFA software is directly
linked to the RS Means cost estimating database, which draws on construction p ricing information
from across North America to provide reliable trends that can be set to reflect regional cost
variance. Pickering, for example, relies on costing data for the zone immediately east of Toronto,
where certain goods and construction services vary significantly enough from those in Toronto to
have an impact on overall project costs. Source information from VFA has been gradually
incorporated into facility-related Capital Budgets over the last two years, with positive and reliable
results. This year’s Budget will be the first to draw on source data from all City facilities.
The data and analytical tools provided by the VFA software will assist the City with long term
strategic planning, looking at the full lifecycle cost implications of owning and maintaining different
buildings. Most of the City’s existing building assets are already over 20 years old, with its 3
largest facilities in the 30-40 year range. Planning for the end of life for major facilities has a
significant impact on the City’s finances and requires years of work to be done in advance in order
to properly prepare for their replacement. This work also includes establishing and maintaining
targeted levels of service in order to determine the related cost implications.
In accordance with Purchasing Policy Item 09.01, the Manager is authorized to make single or
sole source purchases, without competitive bids and enter into a contract if the following condition
applies: 9.04(c) Compatibility with an existing product is the overriding consideration. A single or
sole source purchase exceeding $125,000 is subject to Council approval.
CS 10-21 January 25, 2021
Subject: Facilities Asset Management System Page 4
An updated fee proposal has been provided by Accruent for ongoing access to the software and
related support services received by the City to date. Upon careful examination of the proposal,
the Community Services Department recommends the renewal of this agreement for a further five
year term in the amount of $200,828.00 (HST included) and that the total net project cost of
$180,852.00 be approved.
CS 10-21 January 25, 2021
Subject: Facilities Asset Management System Page 5
Prepared By: Approved/Endorsed By:
Vince Plouffe Brian Duffield
Manager, Facilities Capital Projects (Acting) Director, Community Services
Ray Rodrigues, CPPB
Manager, Supply & Services
Stan Karwowski, MBA, CPA, CMA
Director, Finance & Treasurer
BD:vp
Recommended for the consideration
of Pickering City Council
Marisa Carpino, M.A.
Interim Chief Administrative Officer
Original Signed By: Original Signed By:
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