TAMRMS#: B06
11.1
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Planning and Engineering Business Improvement Specialist Report Updates
Notice given by: Councillor Hughes
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PROPOSED MOTION(S):
recommendation
That the Planning and Engineering Business Improvement Specialist recommendations and implementations to date are provided to Internal Audit Committee at the first 2026 Internal Audit Steering Committee meeting, and implementations are updated to the committee on an annual basis moving forward until all planned recommendations are implemented.
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ADMINISTRATION’S UNDERSTANDING OF THE INTENT OF THE MOTION
That an account of the 2024 KPMG report is provided to the Internal Audit Steering Committee (IASC) through the regular year-end report to be presented at the first Committee meeting in Q1 2026, and to be annually reported upon until all recommended items are implemented.
PURPOSE OF REPORT
The purpose of this report is to present a motion for which Councillor Hughes gave notice on December 16, 2025.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
On December 20, 2022, Council approved the following motion:
PM-23-20
That a Business Process Consultant process in identifying and the implementation of improved process for the Planning and Engineering Department in the amount of up to $150,000 be funded, and that the funding source is the capital reserve pay as you go.
BACKGROUND AND DISCUSSION
In November 2023, the City of St. Albert engaged KPMG to conduct process review of two areas:
1. Planning and Development process improvement, with the objective to increase awareness of complete planning and development processes, including opportunities and challenges, business requirements for land management and permitting software, and a market scan of the systems that would meet the City’s needs and identify process improvement opportunities.
2. Capital Project Management Office process review, with the objective to help the City standardize and formalize practices and processes across Capital Project Management and Procurement, and clearly define roles and responsibilities in general, and between sponsors and delivery departments.
The final reports were presented to Administration in August 2024. The KPMG review was completed purely from a process improvement lens towards a maturity path based on industry bench marking, rather than through an auditor’s lens for non-compliance to any standards.
The Planning and Development Report Recommendations
The Planning and Development final report identified areas for Opportunities that the City can focus on, which would enable the biggest return on investment to achieve the targeted future state. The opportunities include focusing on:
1. Application Completeness
2. Process Documentation
3. Business Analysis Support
4. Performance Management Framework
5. Issue Escalation
6. Risk-based Approach
7. Internal and External Communication and Education
8. Process Digitization
Capital Project Management Office Report Recommendations
The final report identified areas for Opportunities that the City can focus on, which would enable the biggest return on investment to achieve the targeted future state. The opportunities included:
1. Introducing Project Intake and Categorization
2. Template Development
3. Project Management Resourcing and Competency Alignment
4. Role and Responsibility Clarification
5. Compliance
6. Delegation of Authority
7. Stakeholder Feedback
8. Project Management Software
The progress report has been provided through quarterly updates in the Corporate Quarterly Report until the final KPMG report was received and under the Corporate Business Plan (CBP) quarterly updates within project 5.8 Standardize Capital Project and Contract Management Procedures. Please note that Contract Management Procedures were not part of the KPMG report.
The entirety of the $150,000.00 budget has been fully spent. Besides the KPMG report, the funds approved were also utilized to provide training on LEAN Six Sigma for Planning and Engineering staff. The LEAN Six Sigma training provides in-house working knowledge toward process documentation and process improvement.
Internal Audit Steering Committee (IASC)
Established in 2016 under Council direction through Bylaw 25/2016, the IASC provides oversight and guidance on audit activities. The Committee includes three Council members and two residents, and focuses on:
• Selecting external consultants/auditors
• Providing input into reviews
• Approving the Internal Auditor’s work plan
• Receiving interim reports
• Making recommendations to Council
The Committee meets at least three times annually:
• By end of Q1
• By June 30
• By December 1.
Although the two reviews were not directed by the IASC or completed under the Committee’s oversight, Administration could bring forward a brief progress update for Q1 2026 as part of the Annual Report, followed by a more detailed report for each recommendation of both final reports by December 2026, as per established reporting practice for the IASC.
This approach will ensure that this motion is actioned while providing Administration sufficient time to prepare reports, while balancing other critical priorities in Q1 2026.
IMPACTS OF MOTION
Financial:
None.
Compliance & Legal:
The IASC Bylaw requires the IASC to recommend a work plan to Council for approval. The review of the recommendations from the 2024 KPMG report is not on the IASC’s current work plan. If this motion is passed, the KPMG report recommendations should be added to the next iteration of the IASC work plan.
Program or Service:
The reporting to IASC on the two process-improvement final reports will result in additional reporting requirements for Administration and impacted departments.
Organizational:
Resources will be required to prepare formal reporting to the IASC, which will take resources away from other high priority work by Planning & Development, Engineering, and Strategic Services. Preparing the report will involve collaboration among Engineering, Planning and Development, and Strategic Services to gather information, validate progress, and ensure a consistent reporting framework.
Currently, providing formal reporting on KPMG report implementation is not included in departmental work plans.
Risks
Capacity of resources as teams balance high priority items such as Lakeview Business District Servicing, Housing initiatives, and the Asset Management Program.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Financial Sustainability - Standardize Capital Project Management Practices and Processes
Financial Sustainability - Extending Online options for Building and Development Application Process
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
Corporate Reporting: Corporate reporting process to Council will maintain transparency to the community through regular reporting of the City's achievements. It helps monitor and report results against plans, including strategic plans, long-term plans, business plans, and budgets. This can be achieved through various different reporting mechanisms, and in keeping with C-CAO-15 - Program and Service Review reporting.
Corporate Performance: Corporate performance is measured through various mechanisms in the City. This includes planning, execution of audits, reviews, and other related activities as per the Internal Audit Steering Committee Bylaw 24/2023. This service also coordinates and supports Committee meetings and related ongoing work. The Corporate Business Plan process includes a reporting structure, which is aligned with several Corporate/Council Priority Projects, of which many interact with the findings of the KMPG report.
ALTERNATIVES
Alternative 1 (Administrative Recommendation): That the progress report is provided through the Department Annual Review and through the Corporate Business Plan (CBP) update process upon discussion and approval through Council’s Strategic Session 2026.
Financial:
None.
Compliance & Legal:
Providing progress reports through the annual review and CBP, is in conformance with City Council Policy C-CAO-15 - Program and Service Review. This policy directs administration to have in place a framework for ongoing review of City programs, services, and service levels.
Program or Service:
The KPMG report was not done through an auditor’s process nor through IASC oversite. Therefore, components of the KPMG report recommendations have been incorporated into projects contained within the CBP, and will continue to be added to the reporting process once the implementation plan is finalized. This would provide Council with the opportunity to understand progress made on the reported recommendations.
Organizational:
Additional resource capacity is required to see meaningful progress on certain elements of the implementation plan. Both departments are leading and supporting several of Council’s and organizational priorities, which require dedicated resources over the next few years. Reporting at the CBP project level would be done as part of the existing resource work assignment, which would ensure workload efficiency while providing feedback to Council on progress of the KPMG recommendations.
Risks
N/A
Alternative 2: That the progress report is provided once in 2026 to the IASC with no subsequent reporting to the IASC.
Financial:
None.
Compliance & Legal:
None.
Program or Service:
Additional reporting will not be required once the 2026 progress update is provided to the IASC. Once this progress update is provided, future reporting will be incorporated into the Department Annual Review and through the Corporate Business Plan (CBP) update, in conformance with the City Council Policy C-CAO-15 - Program and Service Review.
Organizational:
Additional capacity required to produce annual reports on an ongoing basis will be directed to higher priorities for two departments. Both departments are leading and supporting several Council’s and organizational priorities, which require dedicated resources over the next few years.
Risks
N/A
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Report Date: January 13, 2026
Author: Kristina Peter, Dawny George, Darija Slokar and Katherine Esteves
Department: Planning and Development, Engineering Services, Financial & Strategic Services
Department Director: Kristina Peter, Dawny George, and Anne Victoor
Managing Director: Diane McMordie and Adryan Slaght
Chief Administrative Officer: William Fletcher