March 16/05 Report
Start time: 9:35 a.m. Adjournment: 10:25 a.m.

Present:

• Councillor D. Braden (Chair)
• Councillor P. Bruckler
• Councillor C. Collins
• Councillor M. Ferguson
• Councillor M. Pearson
• Councillor A. Samson (Vice Chair)

Also Present:

• J. Rinaldo - General Manager, Finance and Corporate Services
• K. Christenson - City Clerk
• G. Paparella - Director, Strategic Initiatives
• R. Male

CATCH (Roberts and Hawker)

1. CHANGES TO THE AGENDA

Added item 8.2 Finance and Administration Organization Review (CM05010) - (City Wide)

6. CONSENT ITEMS

6.1 Report from the Hamilton Mundialization Committee respecting Hamilton Mundialization Twin-City Report: Sarasota (City Wide)
Summary from report : A delegation from the City of Hamilton traveled to Sarasota, Florida to explore opportunities for cultural and economic relationships between these twin-cities.

Discussion: Councillors Bruckler and Ferguson asked for a report on how successful twinning is and what are the benefits. Staff will prepare a report within the next 4-6 weeks. Ferguson asked how many cities are twinned with Hamilton. Staff replied that there are 10 including Japan, but that the ones in China, India and Monterey, Mexico are more active.

6.2 Revision to Corporate Services Volunteer Advisory Committees (FCS05035) (City Wide)
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
corporate-administration/2005/Mar16/FCS05035%20-%20
Committee%20Against%20Discrimination.pdf

6.3 Report of the 2004 Remuneration and Expenses as Required Under Section 284 of the Municipal Act (FCS05034) (City Wide)
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
corporate-administration/2005/Mar16/FCS05034%202004%20
Remuneration%20and%20Expense.pdf

(Pearson/Ferguson)
That reports be received for information.

8. DISCUSSION ITEMS

8.1 Payments to the Hamilton Waterfront Trust (FCS05036) (Wards 2 and 5 with City Wide Implications)
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
corporate-administration/2005/Mar16/FCS05036%20Payments
%20to%20Ham%20Waterfront%20Trust.pdf

8.2 Finance and Administration Organization Review (CM05010) - (City Wide)
Finance and Administration Organizational Review (pdf file, 524 kb)
Summary of report : A response to the Request for Proposal (RFP) resulted in nine firms submitting proposals. Council appointed Councillors Collins and Ferguson together with the City Manager's office to oversee the evaluation, selection and implementation of the review, cost not to exceed $100,000. In accordance with City Purchasing policies, staff recommend that the work be awarded to the firm which scored the highest number of points against the preset evaluation criteria.

Discussion: The above report was "walked on" as an added agenda item 8.2, through Guy Paparella (Director, Strategic Initiatives). Copies were given to Councillors at beginning of meeting leaving them little time to review. CATCH, the only media present, did not receive a copy. Councillors started questioning Paparella re how the decision to choose Deloitte Inc. was arrived at. The RFP and the subsequent Evaluation was not made available to this Committee with the result that throughout the meeting Paparella had to be continuously asked for criteria and weighting for different applicants. At times, answers were more general than specific.

Collins started the discussion with the remark that he "can't support this recommendation, with 2 lower bids," when both lower bids met specifications, saying there was a $30,000 difference between Deloitte and the lowest bid. (Deloitte was 3 rd lowest.) He continued "it makes little sense to go with Deloitte when we're geared to save us some money . wants to be recorded to being opposed."

Ferguson voiced his problem with Booker & Associates Inc. (one of the two lower bids) was that they have no experience (being a new firm), and come with "preconceived notions" about financial management at City Hall (alluding to remarks made by Booker which can be found at http://www.environmenthamilton.org/CATCH/
articles/art_0412/art_041207audit.htm.) He said "Deloitte has fresh set of eyes, Booker doesn't have that. That's why I will support Deloitte."

Collins was concerned that the two lower bids (Thornton and Booker) were excluded in the weighting because in doing previous City work they had been critical. He did not agree with Paparella on what criteria info was given him and Ferguson when asked to assess all bid material. Booker & Associates Inc. is a new firm, but Booker herself was a former lead in the firm of Grant Thornton. So although it appears that staff gave Booker Inc. low marks for experience, it was confirmed that the two persons noted as the expected on-site leads for the work would be closely supervised and aided by Booker herself.

Paparella seemed unable/unwilling to answer directly the questions posed by Councillor Braden when he asked "Is it a risk to take the lowest bidder?" and "Was it clear in the structure" that it was "weighted to determine the lowest bidder?". Joe Rinaldo (General Manager, Finance and Corporate Services) explained that when you set up an RFP, it includes the criteria, and "once you set the criteria, you should follow it."

Paparella said the "Deloitte scored highest number of points". Collins asks for an explanation of "points" and "criteria". No clear answer was given. At this stage Councillor Pearson says she doesn't know now "how to proceed". Clearly there is much confusion with Paparella unable to explain the report so that Councillors can make a decision.

Ferguson asks of Paparella , "Let's have prices from all firms". Paparella states that the "range was from $65,100 to $147,800. All over $100,000 were not considered. Ferguson again remarks that "Thornton and Booker have preconceived notions of how to fix it," and referred to Booker when he said her "statement was off the wall" referring to a reference Booker made about finances at City Hall last year.

Councillor Bruckler asked about Booker: "What work have they done?" Rinaldo answered that Booker has been the City's "external auditor since 2001," working for the firm of Grant Thornton, and explained that Booker had left Thornton and has her own company now, Booker & Associates Inc.

More discussion followed about Booker & Associates Inc. and the make up of the firm, but the Committee was cautioned by Kevin Christenson (City Clerk) about speaking personally about Booker.

Ferguson then said "to muddy the waters", that Deloitte was the winner with a quote of $99,000. He explained that after the decision, it was obvious that Deloitte was including a number of meetings, etc. that were unnecessary. The sub-committee directed staff to renegotiate the cost with Deloitte. This resulted in the cost dropping from $99,000 to $87,500 with taxes.

Ferguson stated he was happy with the decision, initially considered giving weight to those who had done City work previously because they "have a running start", but stated emphatically that overall, Deloitte won on points although their winning bid was with a cost of $99,000.

Braden then asked for a motion to receive the report. Rinaldo said that "Council already has given approval . here to pick up the bid . here because (sub-committee) did not accept the lowest bid."

(Pearson/ ?)
To receive and approve decision of sub committee. CARRIED

Collins asked to be recorded as OPPOSED .

ADJOURNMENT 10:25 a.m.