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Anna Lisa Barbon Managing Director, Corpor

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Anna Lisa Barbon Managing Director, Corpor CHAIR AND MEMBERS TO: CORPORATE SERVICES COMMITTEE MEETING ON FEBRUARY 18, 2020 ANNA LISA BARBON FROM: MANAGING DIRECTOR, CORPORATE SERVICES AND CITY TREASURER, CHIEF FINANCIAL OFFICER CORPORATE ASSET MANAGEMENT SYSTEM CONTRACT SUBJECT AMENDMENT - ASSETIC CANADA HOLDINGS INC. RECOMMENDATION That, on the recommendation of the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer, with the advice of the Manager III, Corporate Asset Management, the following actions be taken with respect to the Corporate Asset Management (CAM) Software System: a) the attached proposed by-law (Appendix “A”) being “A by-law to approve the Amending Agreement between The Corporation of the City of London and Assetic Canada Holdings Inc. to provide for ongoing license and support fees for the Corporate Asset Management Computer System” BE INTRODUCED at the Municipal Council Meeting to be held on, 2020 it being noted that the Amending Agreement will provide for license and support fees for the Corporate Asset Management Computer System at the same original Request for Proposal (RFP) bid price, $113,500, HST per year, for an additional three years (2020, 2021 & 2022) in accordance with section 20.3 (e), Contract Amendment, of the Procurement of Goods and Services Policy; b) the Civic Administration BE AUTHORIZED to undertake all the administrative acts that are necessary in connection with the Agreement noted in a) above. PREVIOUS REPORTS PERTINENT TO THIS MATTER • June 8, 2016, Report to Corporate Services Committee – RFP 14-72 Corporate Asset Management System Acquisition – Assetic Canada Holdings • 2016-2019 Multi-Year Capital Budget - Project TS 1350 Corporate Asset Management Software 2019-2023 STRATEGIC PLAN This report and recommendation supports several strategic priorities including: Strategic Area of Expected Result How are we doing it? Focus • Develop and document current levels of service and identify Maintain or increase current levels proposed level of services. Building a of service. • Prioritize investment in assets Sustainable to implement the Asset City Management Plan. Manage the infrastructure gap for • Communicate the Infrastructure all assets. Gap. Strategic Area of Expected Result How are we doing it? Focus Improve public accountability and • Measure and publicly report on transparency in decision making. corporate performance. Leading in Maintain London’s finances in a • Continue to ensure the strength Public transparent and well- planned and sustainability of London’s Service manner to balance equity and finances. affordability over the long term. • Promote and strengthen Increase efficiency and continuous improvement effectiveness of service delivery. practices. BACKGROUND Through a Request for Expression of Interest/Qualifications (REOI/RFQUAL 14-14) followed by a Request for Proposal (RFP 14-72) process, a contract was awarded to Assetic Canada Holdings Inc. (“Assetic Canada”) for provision of the Corporate Asset Management (CAM) Software System in accordance with the Procurement of Goods and Services Policy. At the time of the awarding of the original Request for Proposal in early 2016, Assetic Canada’ submission was the lowest cost, most user friendly software product that best met the expectations of the City. Assetic Canada provides pre-packaged asset management software, implementation, training, support and maintenance services. They have a range of innovative products installed at over 150 sites across Australia, New Zealand, South Africa, U.K., USA and Canada. Over the past few years Assetic has made a concerted push into the North American market via offices located in Toronto and Seattle, and have a presence in providing municipal asset management software in Ontario, Canada, and the United States. Ultimately, Corporate Asset Management, including the software system, is intended to support continuous improvement, effective and efficient management of the Corporation’s $20.1 billion worth of assets. Historically the City of London has relied on ad hoc decentralized manual processes to produce reports like the State of Infrastructure Report and the Asset Management Plan. Obtaining Assetic’s system helped to streamline process and simplified the creation of these Reports. Assetic’s system had to fit within existing and planned systems that comprise the source of data for the City’s many assets. Figure 1 depicts the overview of Assetic system’s major components which depend on the City’s key existing and proposed data sources (e.g. Computerized Maintenance Management system (CMMS), Geodatabase (GIS), Customer Service (CRM) and Financial System (JDE)) to effectively support standardized asset management practices. Figure 1: Asset Management System (Assetic) The most recent example of the use of Assetic’s system was in the City’s 2019 Asset Management Plan. The CAM projected long term condition profiles to optimize service level outcomes and capital expenditures. Assetic’s decision making module (Predictor) was used for the City’s Core Assets (Water, Wastewater, and Transportation), the majority of Facilities (Recreation and Corporate Facilities) and other service areas such as Fleet and Fire Department. An example of a projected condition profile is listed in Figure 2. The City is also continuing a phase implementation of Assetic’s asset register module for the Transportation and Parks & Recreation pilot areas. This will be followed by full implementation across the City providing CAM the ability to optimize the City Capital budget across all the service areas. Figure 2: Example of a Projected Condition Profile using Assetic System (Predictor) Contract Amendment Rationale The recommended Contract Renewal Agreement is in accordance with section 20.3 (e) of the City’s Procurement of Goods and Services Policy noting that Assetic has been providing good service to the City – the predicted asset condition and pilot implementation informs the CAM Program, including the recent 2019 CAM Plan, and supports several strategic priorities of the City. The amendments to the existing contract include: i. The annual licensing fee of $113,500 (before HST), for the current renewal period (2020-2022) is the same as the current Agreement fee, with the same services being provided to the City. This licensing fee is flat lined (no increase). ii. Options to renew at end of term with the ability to negotiate new fees after 2022; iii. Adjustment to appropriately reflect the legal name of Assetic Canada to Assetic Canada Holding Inc. Financial Impact The necessary funds are available in the annual Corporate Asset Management Operating budget. SUBMITTED BY: REVIEWED BY: KHALED SHAHATA, PHD, P.ENG IAN COLLINS, CPA, CMA MANAGER III, CORPORATE ASSET DIRECTOR, FINANCIAL SERVICES MANAGEMENT RECOMMENDED BY: ANNA LISA BARBON, CPA, CGA MANAGING DIRECTOR, CORPORATE SERVICES AND CITY TREASURER, CHIEF FINANCIAL OFFICER Attached cc: John Freeman, Manager III, Purchasing & Supply Kyle Murray, Director, Financial Planning & Business Support Bill No. 2020 By-law No. A by-law to approve an Amending Agreement between The Corporation of the City of London and Assetic Canada Holdings Inc. to provide for the ongoing license and support fees for the Corporate Asset Management Computer System. WHEREAS subsection 5(3) of the Municipal Act, 2001 S.O. 2001, c.25, as amended provides that a municipal power shall be exercised by by-law; AND WHEREAS section 9 of the Municipal Act, 2001, as amended, provides that a municipality has the capacity , rights, powers and privileges of a natural person for the purpose of exercising its authority under the Municipal Act, 2001 or any other Act; AND WHEREAS Municipal Council of The Corporation of the City of London considers it to be in the interests of the municipality to enter into an Amending Agreement with Assetic Canada Holdings Inc. to continue to use the Corporate Asset Management Computer System and to address the license and support fees for Years 4-6 (2020-2022); NOW THEREFORE the Municipal Council of The Corporation of the City of London enacts as follows: 1. The Amending Agreement attached as Appendix “A” to this by-law between The Corporation of the City of London and Assetic Canada Holdings Inc. to amend the agreement entered into with Assetic Canada Holdings Inc. on December 1, 2016 (the “Original Agreement”) is hereby authorized and approved. 2. The Mayor and City Clerk are authorized to execute the Amending Agreement authorized and approved in section 1 of this by-law. 3. This by-law shall come into force and effect on the day it is passed. PASSED in Open Council on March , 2020. Ed Holder Mayor Catharine Saunders City Clerk First Reading –, 2020 Second Reading –, 2020 Third Reading –, 2020 Appendix “A” AMENDING AGREEMENT This agreement made the day of , 2020. B E T W E E N: THE CORPORATION OF THE CITY OF LONDON (the “Corporation”) - and - ASSETIC CANADA HOLDINGS INC. (“Assetic Canada”) WHEREAS The Corporation of the City of London and Assetic Canada Holdings Inc. (the “parties”) entered into an Agreement commencing December 1, 2016 for the acquisition and implementation of a Corporate Asset Management Software Computer System (the “Original Agreement”); AND WHEREAS the Original Agreement did not address licensing fees for years 2020-2022 and the parties wish to enter into an Amending Agreement to provide for annual ongoing license and support fees for years 2020-2022; AND WHEREAS the parties wish to provide for a termination date of December 31, 2022 for the Original Agreement by
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