HomeMy WebLinkAboutFIN 14-19cd,
DICKERING
REVISED
Report to
Council
Report Number: FIN 14-19
Date: June 24, 2019
From: Stan Karwowski
Director, Finance & Treasurer
Subject: Provincial Audit and Accountability Fund
Recommendation:
1. That Report FIN 14-19 of the Director, Finance & Treasurer be received;
2. That staff be directed to submit an Audit and Accountability Fund: Expression of
Interest for grant funding to the Ministry of Municipal Affairs and Housing Central
Region by June 30, 2019 deadline;
3. That Council grant the Chief Administrative Officer and the Director, Finance &
Treasurer the authority to single source a third party consulting engagement in
accordance with the City's Purchasing Policy Item 10.03 and not to exceed
$100,000 should the City of Pickering's request for funding be approved by the
Ministry of Municipal Affairs and Housing; and
4. That the appropriate City of Pickering officials be authorized to take the necessary
actions as indicated in this report.
Executive Summary: On May 21, 2019, the Premier announced the creation of the
Audit and Accountability Fund with funding of $7.35 million for large urban municipalities
and district school boards interested in conducting service delivery and administrative
expenditure review with the goal of finding efficiencies while protecting front line
services.
Projects that are eligible can take the following forms:
• A line -by-line review of the municipality's entire budget.
• A review of service delivery and modernization opportunities.
• A review of administrative processes to reduce costs.
As part of the annual budget process, the City conducts a line -by-line review of the
operating budget and detailed scrutiny of the capital budget to find savings. Staff are
recommending that the review focus on assessing the implementation of free WIFI in all
public property and study implementation of new technology to better serve Pickering
residents.
FIN 14-19 June 24, 2019
Subject: Provincial Audit and Accountability Fund Page 2
Financial Implications: The Audit and Accountability Fund covers 100 per cent of
the eligible costs, that includes the costs associated with a third -party consultant. The
estimated eligible costs for this project is estimated to be up to $100,000. This cost
reflects the total cost of the third -party consultant including non-recoverable HST.
In the event the City receives confirmation written or otherwise of the Grant funding
being awarded, Recommendation 3 provides staff the authority to proceed with the
award of the sole source contract and hence expediting the commencement of the work
required.
Discussion: In a May 21st news release Premier Ford announced that "the Ontario
government is offering to help large urban municipalities protect core public services for
future generations by finding savings of four cents on every dollar spent. He announced
that the government is providing $7.35 million for large urban municipalities interested in
conducting municipal service delivery expenditure reviews to identify potential savings,
while maintaining vital front-line services, through the "Audit and Accountability Fund."
Through the Audit and Accountability Fund, the Ontario government is offering large
municipalities funding to undertake a third -party expenditure review of their service
delivery and administrative expenditures with the goal of funding efficiencies and to
modernize service delivery while protecting front-line jobs.
On May 29th, Pickering was notified that the Expression of Interest (EOI) forms were
being accepted for funding until June 28th. EOI submissions will be reviewed on a case-
by-case basis. Funding amounts may depend on the available appropriation. This
funding covers 100 per cent of the cost of a consultant/third party. Internal municipal
costs are considered ineligible.
The grant was released May 29th and the application process consists of two steps:
June 14, 2019 — notify Ministry of intention to apply followed by a submission of an
Expression of Interest (EOI) to the Province by Friday, June 28, 2019. The City notified
the Province before June 14th that the City would be putting forward an EOI. By
completing this step, staff kept the "Door Open" for the grant funding process, however,
the City is not legally bound to complete Step Two. If Recommendation 2 is approved,
staff will complete the EOI for submission on or before June 28, 2019. If Council does
not approve Recommendation 2 — no application will be submitted.
EOI forms will be reviewed and approved by the Province as they are received. Our
understanding is that notification of the approval, or denial, of our EOI will be in July. It
is our understanding that the eligible cost to date to commence expenditures will
coincide with the receipt of verbal or written approval for the grant and that a formal
Transfer Payment Agreement will follow for execution later this summer.
As part of the funding agreement requirement, Pickering is required to "Publicly post
the study results", no later than November 30, 2019. The third -party report needs to
be approved by City Council at the November 22, 2019 Council meeting.
FIN 14-19 June 24, 2019
Subject: Provincial Audit and Accountability Fund Page 3
The consultant's final report will need to outline the analysis, findings and include any
identified specific and actionable recommendations for cost savings and improved
efficiencies. The focus is on savings of about 4 per cent of every $1, however, if the
study does not yield the desired savings we have been advised that this would not
jeopardize our funding. Conversely, if savings and efficiencies are found there is an
expectation that they be implemented.
If staff's EOI is successful and if the City receives notification by the end of July, the
project would basically have three months to complete all project tasks including:
• Award of contract to a consultant
• Consultant performing the review, completing and delivering the final report to the
City
• Administration presenting final report to City Council on November 22nd, the last City
Council meeting in November
• Approved report posted publicly by November 30, 2019
Recommendation Three (Single Source) is required to facilitate completing all tasks
within the timelines outlined in the Audit and Accountability grant funding guidelines.
Given the very tight timelines provided by the Province under this grant funding
program, staff have identified the following services (Preliminary Priority Sequence) to
be reviewed:
1. Review implementation of free WIFI in all City owned public property and also review
the provision of free WIFI by other municipalities (excluding single tier
municipalities.) Single tier municipalities are being excluded from the study to
facilitate a more "apples to apples" comparison as it relates to population size and
economic capacity.
2. Review and study the implementation of new technology to better serve Pickering
residents. The anticipated outcome from this review would be to provide a roadmap
or high level plan.
As stated above with the tight timeframe and taking into consideration of available
staffing resources, the above priority sequence may change. As Members of Council
are aware, Finance Department staff is heavily involved in the implementation of a new
financial system with a Go -Live date of January 2, 2020 and therefore, Finance staff's
availability for this project is constrained.
FIN 14-19 June 24, 2019
Subject: Provincial Audit and Accountability Fund Page 4
Attachments:
1. Audit and Accountability Fund: Expression of Interest
Prepared By: Approved / Endorsed By:
Stan Karwowski
Director, Finance & Treasurer
Stan Karwowski
Director, Finance & Treasurer
Recommended for the consideration
of Pickering r Council
Tony Prevedel, P.Eng.
Chief Administrative Officer
Ontario
ATTACHMENT# 1 TO REPORT# Fd _ F19
Ministry of Municipal Affairs and Housing
Audit and Accountability Fund: Expression of Interest
To apply to the Audit and Accountability Fund:
1.) Complete all required fields of this Expression of Interest.
2.) Ensure that the completed Expression of Interest has been attested to by the appropriate
municipal staff.
3.) Include an outline of your project timeline and costs (procurement documents, a project charter, a
project work plan, or any other document as appropriate).
4.) Email this Expression of Interest and any additional supporting materials to
municipal.programs@ontario.ca by June 30, 2019.
Attestation
I have reviewed this expression of interest and the supporting material and can verify that it is accurate to
the best of my knowledge and understanding.
Signature
Date (DD/MM/YYYY)
Legal Name of Municipality
Name of Signatory
Position Title
Applicant Information
Mailing Address
Name of Primary Contact
Position Title
Email Address
Telephone Number
o I acknowledge that it is a program requirement that the proposed third -party review project result in a
publicly posted report by November 30, 2019.
What is the anticipated cost of your proposed third -party review project? Note: only the cost of a third -party
service provider should be included. Attach a document to support the timeline and costs of your project.
Have you included a resolution of council demonstrating support for the proposed third -party review project?
Note: this is not a program eligibility requirement.
O Yes (If yes, please attach a copy to this Expression of Interest form)
O No
CONFIDENTIAL ONCE SUBMITTED. Not to be copied or distributed without written consent of the owner.
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Review Project Description
1.) Provide a brief description of your proposed third -party review project.
2.) Provide a summary of the objectives of your proposed third -party review project.
3.) Provide a summary of expected outcomes of your proposed third -party review project.
CONFIDENTIAL ONCE SUBMITTED. Not to be copied or distributed without written consent of the owner.
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