The newly amalgamated city will likely contract out the majority of those services associated with maintaining and operating its $1.7 billion worth of building assets.
The Real Property Asset Management committee recommended last week to the transition board that only specific core competencies (like overall management) be handled internally, and that most services should be delivered through outsourcing.
"That's the whole intent of this process. No doubt this group, because of the nature of the assets, will head in that direction," said project leader Steve Finnamore. "I think there'll be fairly significant opportunities (for private industry) around areas like life cycle renewal, IT services "
Once banded together, the new City of Ottawa will own more than 3,400 properties. The asset project team was asked to evaluate property management, real estate management, professional services management, energy/utility management, environmental management and life cycle renewal of these facilities.
The committee suggested the transition board establish a centralized "corporate landlord" approach to manage all of the assets and contracted services. In the coming weeks, the team will evaluate all programs and benchmark them against private industry standards. It will then determine which will be best suited for private contracts. About six management positions would be cut in the process. The team wouldn't know until September how many lower level staff would lose their jobs.
Although Finnamore could not cite specific examples, he says the region's 12 municipalities already outsource a surprisingly large percentage of their asset services. However, he maintains there's still plenty more opportunities. The level of IT services, for example, vary drastically from one municipality to another and will have to be standardized.
Finnamore also recommended that the transition board allocate more money annually for life renewal before the city's building inventory becomes outdated and in a state of disrepair. An average of $10-15 million a year is now set aside for renovations. He recommended that figure be stepped up to $20-25 million. Already a number of companies have lined up to offer their assistance in the transition process and, most likely, scope out opportunities for future contracts, says Finnamore.
Following public input into these latest recommendations, the transition board will consider the report on Aug. 8.
