Item - 2013.EX32.3
Tracking Status
- City Council adopted this item on June 11, 2013 without amendments.
- This item was considered by Executive Committee on May 28, 2013 and was adopted with amendments. It will be considered by City Council on June 11, 2013.
EX32.3 - Results of the Shared Services Study - City Agencies
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
City Council Decision
City Council on June 11, 12 and 13, 2013, adopted the following:
1. City Council authorize the City Manager and the Executive Director, Human Resources to lead the development of a labour relations and collective bargaining strategy for the City and its agencies going forward, in consultation with City agencies, and report the strategy to the City's Employee and Labour Relations Committee for approval in principle.
2. City Council, following approval in principle of the strategy by the City's Employee and Labour Relations Committee, request the City Manager and the Executive Director, Human Resources to bring forward the strategy to the relevant agency boards, or the Labour Relations Committees of the boards under delegated authority, for their consideration and approval.
3. City Council refer the following shared service opportunities to the City Manager to commence implementation in 2014 and to report further as required:
a. Share generic training and learning functions;
b. Coordinate and standardize common health and safety functions;
c. Enhance the use of the City’s Internal Audit Division for compliance, assurance and business risk consulting services by agencies that do not have their own audit resources;
d. Establish a Quality Assurance Centre of Excellence to leverage tools, templates and specialized skills, coordinate work plans and share best practices; and
e. Continue to rationalize the City stores and increase direct delivery of consumable goods and automate P2P (purchase to pay) processes.
4. City Council request the City Clerk to provide as a best practice, the City’s online submission application for Freedom of Information requests to interested agencies when it becomes available.
5. City Council request the Chief Corporate Officer to work with the Chief Executive Officers of the Toronto Transit Commission and Toronto Parking Authority regarding the possibility of the City providing lessor services to their agencies.
6. City Council request the City Manager and Deputy City Manager and Chief Financial Officer, to work with the Chief Executive Officers of the Toronto Transit Commission and Toronto Parking Authority, to insure the Toronto Transit Commission and the Toronto Parking Authority under the City’s insurance for non-specialized policies and exclusive of claims, where the City is able to provide similar coverage for a lower cost and report further as required.
7. City Council refer the following shared service opportunities to the City Manager for further due diligence and consultation with City agencies and report back to Executive Committee with a multi-year shared service implementation plan and after consideration by boards of affected City agencies:
a. Share procurement of common goods and services and implement strategic sourcing;
b. Standardize human resource information systems and share payroll and benefits administration;
c. Share common information technology infrastructure with a focus on infrastructure management, data management and storage;
d. Rationalize information technology applications;
e. Coordinate real estate contract and vendor management through an information technology platform; and
f. Establish a change management centre of excellence to support the implementation of shared services and other major City change initiatives.
8. City Council request the City Clerk, in consultation with the City Manager and the Chief Information Officer, to include in the Information Management Strategy for the City, a plan to transition to managing digital records and phased-in implementation to include City agencies.
9. City Council request that this report be forwarded to the boards of the agencies included in the Shared Service Study for their consideration.
10. City Council request the Toronto Police Services Board to implement the shared service recommendations outlined in the report through all available budgetary and administrative tools.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-58359.pdf
Appendix A - Summary of Current Shared Services
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-58360.pdf
Appendix B - Disposition of KPMG Opportunities
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-58361.pdf
Appendix C - KPMG Final Report
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-58362.pdf
Communications (Committee)
Motions (City Council)
Vote (Adopt Item) Jun-13-2013 6:11 PM
Result: Carried | Majority Required - EX32.3 - Adopt the item |
---|---|
Total members that voted Yes: 33 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Sarah Doucette, John Filion, Paula Fletcher, Doug Ford, Mary Fragedakis, Doug Holyday, Mike Layton, Chin Lee, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, John Parker, Gord Perks, Jaye Robinson, Karen Stintz, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam |
Total members that voted No: 0 | Members that voted No are |
Total members that were Absent: 12 | Members that were absent are Josh Colle, Frank Di Giorgio, Rob Ford, Mark Grimes, Norman Kelly, Gloria Lindsay Luby, Giorgio Mammoliti, Pam McConnell, Ron Moeser, James Pasternak, Anthony Perruzza, David Shiner |
EX32.3 - Results of the Shared Services Study - City Agencies
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
Committee Recommendations
The Executive Committee recommends that:
1. City Council authorize the City Manager and the City's Executive Director of Human Resources to lead the development of a labour relations and collective bargaining strategy for the City and its agencies going forward, in consultation with City agencies, and report the strategy to the City's Employee and Labour Relations Committee for approval in principle.
2. City Council, following approval in principle of the strategy by the City's Employee and Labour Relations Committee, request the City Manager and the City's Executive Director of Human Resources to bring forward the strategy to the relevant agency boards, or the Labour Relations Committees of the boards under delegated authority, for their consideration and approval.
3. City Council refer the following shared service opportunities to the City Manager to commence implementation in 2014 and to report further as required:
a. Share generic training and learning functions;
b. Coordinate and standardize common health and safety functions;
c. Enhance the use of the City’s Internal Audit Division for compliance, assurance and business risk consulting services by agencies that do not have their own audit resources;
d. Establish a Quality Assurance Centre of Excellence to leverage tools, templates and specialized skills, coordinate work plans and share best practices; and
e. Continue to rationalize the City stores and increase direct delivery of consumable goods and automate P2P (purchase to pay) processes.
4. City Council request the City Clerk to provide as a best practice, the City’s online submission application for Freedom of Information requests to interested agencies when it becomes available.
5. City Council request the Chief Corporate Officer to work with the Chief Executive Officers of the Toronto Transit Commission and Toronto Parking Authority regarding the possibility of the City providing lessor services to their agencies.
6. City Council request the City Manager and Deputy City Manager and Chief Financial Officer, to work with the Chief Executive Officers of the Toronto Transit Commission and Toronto Parking Authority, to insure the Toronto Transit Commission and the Toronto Parking Authority under the City’s insurance for non-specialized policies and exclusive of claims, where the City is able to provide similar coverage for a lower cost and report further as required.
7. City Council refer the following shared service opportunities to the City Manager for further due diligence and consultation with City agencies and report back to Executive Committee with a multi-year shared service implementation plan and after consideration by boards of affected City agencies:
a. share procurement of common goods and services and implement strategic sourcing;
b. standardize human resource information systems and share payroll and benefits administration;
c. share common information technology infrastructure with a focus on infrastructure management, data management and storage;
d. rationalize information technology applications;
e. coordinate real estate contract and vendor management through an information technology platform; and
f. establish a change management centre of excellence to support the implementation of shared services and other major City change initiatives.
8. City Council request the City Clerk, in consultation with the City Manager and the Chief Information Officer, to include in the Information Management Strategy for the City, a plan to transition to managing digital records and phased-in implementation to include City agencies.
9. City Council request that this report be forwarded to the boards of the agencies included in the Shared Service Study for their consideration.
10. City Council request the Toronto Police Services Board to implement the shared service recommendations outlined in the report through all available budgetary and administrative tools.
Origin
Summary
This report responds to Council’s request for the City Manager to review opportunities for the City to share corporate support services with its agencies. The Auditor General has also put forward recommendations about improving shared services over the last ten years through value for money audits.
The City Manager identified eight corporate support services to review as a part of a Shared Service Study and retained third party consulting expertise, KPMG LLP (KPMG), to undertake this assignment. The corporate support services reviewed were: information technology, internal audit, insurance and risk management, legal services, human resources/labour relations, procurement and materials management, real estate and records management.
The study focused on the City’s six largest agencies with a view to expanding any resulting opportunities to additional City agencies as appropriate. The agencies included were: Exhibition Place, Toronto Parking Authority, Toronto Police Service, Toronto Public Health, Toronto Public Library, and Toronto Transit Commission.
The Shared Services Study confirmed that the City and its agencies are already sharing many corporate support services across a range of functions. KPMG put forward 20 opportunities to increase shared services by bringing together resources, functions, processes and skills to create economies of scale and increase standardization to yield a positive return on investment.
This report recommends the implementation of eighteen (18) opportunities and no further action on two (2) opportunities. Eleven (11) opportunities will be implemented in the shorter term and reported out as required. The remaining seven (7) KPMG opportunities are broad transformational directions that will require significant business process re-engineering, organizational change and information technology investment to successfully implement. These opportunities are recommended for referral to the City Manager for further due diligence and planning, in consultation with City agencies with potential net financial benefits of about $55 million.
A Shared Service Steering Committee will be established with membership from City and agency senior management to guide the next stages of shared services planning and implementation. The City Manager will report back to Executive Committee with a multi-year shared services implementation plan, after consideration by boards of affected agencies.
Background Information
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-58359.pdf
Appendix A - Summary of Current Shared Services
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-58360.pdf
Appendix B - Disposition of KPMG Opportunities
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-58361.pdf
Appendix C - KPMG Final Report
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-58362.pdf
Communications
Speakers
Councillor Janet Davis
Councillor Gord Perks
Motions
City Council request the Toronto Police Services Board to implement the shared service recommendations outlined in the report through all available budgetary and administrative tools.
Vote (Amend Item (Additional)) May-28-2013
Result: Carried | Majority Required - Thompson - motion 3 |
---|---|
Total members that voted Yes: 10 | Members that voted Yes are Paul Ainslie, Gary Crawford, Frank Di Giorgio, Doug Holyday, Norman Kelly, Peter Milczyn, Cesar Palacio, Jaye Robinson, David Shiner, Michael Thompson |
Total members that voted No: 0 | Members that voted No are |
Total members that were Absent: 3 | Members that were absent are Vincent Crisanti, Rob Ford (Chair), Denzil Minnan-Wong |
That recommendation 1 in the report (May 10, 2013) from the City Manager, be deleted.
Vote (Amend Item) May-28-2013
Result: Lost | Majority Required - Ainslie - motion 4 |
---|---|
Total members that voted Yes: 1 | Members that voted Yes are Paul Ainslie |
Total members that voted No: 9 | Members that voted No are Gary Crawford, Frank Di Giorgio, Doug Holyday, Norman Kelly, Peter Milczyn, Cesar Palacio, Jaye Robinson, David Shiner, Michael Thompson |
Total members that were Absent: 3 | Members that were absent are Vincent Crisanti, Rob Ford (Chair), Denzil Minnan-Wong |
Vote (Adopt Item as Amended) May-28-2013
Result: Carried | Majority Required - Holyday - motion 5 |
---|---|
Total members that voted Yes: 10 | Members that voted Yes are Paul Ainslie, Gary Crawford, Frank Di Giorgio, Doug Holyday, Norman Kelly, Peter Milczyn, Cesar Palacio, Jaye Robinson, David Shiner, Michael Thompson |
Total members that voted No: 0 | Members that voted No are |
Total members that were Absent: 3 | Members that were absent are Vincent Crisanti, Rob Ford (Chair), Denzil Minnan-Wong |