TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: September 14, 2026 Report No. FIN-26-018
TO: Council
FROM: Ian Irvine, Director of Financial Services
SUBJECT: Enterprise Resource Planning (ERP) Project
RECOMMENDATION:
Recommendation
That Council receive the Enterprise Resource Planning project backgrounder attached to Staff Report FIN-26-018 and direct staff to negotiate with Cascadia Partners for the provision of consulting services related to the project with funding to come from the Township’s existing accumulated surplus.
Body
EXECUTIVE SUMMARY:
The purpose of this report is to provide Council with information regarding the Enterprise Resource Planning (ERP) project. Attached to the report is a project summary which outlines the project, why it is necessary and what it will mean for the Township. In addition to providing these details, the report includes a recommendation in response to the recent Request for Proposals for consulting services as the Township looks to embark on the first phase of the project.
BACKGROUND:
For over 20 years, the Township has used Microsoft Dynamics GP software to process all core financial transactions such as payroll and accounts payable and receivable. This system also integrates with other Township applications related to property tax, land management, licensing, permitting, budgeting, recreation services, and human resources.
Recently, Microsoft communicated a deadline of April 2029 for sunsetting support of this Enterprise Resource Planning (ERP) software. The Township is looking to replace and modernize its core financial software as a result. There is the ability to include other functionality, such as human resource or asset management but these would be considered only after considering resource constraints and potential impacts on the overall timeline.
This project to replace the Township’s ERP will be a long and complex process. Replacement of an accounting system is historically a difficult and lengthy process, as it affects all operations, departments, employees and to some degree, the public. All users need to be trained, and all process changes need to be tested and documented. To prepare, staff have engaged with peers, attended information sessions, and held internal discussions to fully understand the scope, resource requirements and potential risks. A project background document is attached to this report for Council’s review.
ANALYSIS:
Given the significance and magnitude of this project, Township staff have determined that they require resources to assist with the planning, procurement and implementation of a replacement system. The first phase of the ERP project involves assessing current business processes, determining system requirements, and preparing for the procurement of a new system.
To facilitate this work, a Request for Proposal for ERP consulting services was posted in July 2026 on the Township and BC Bid websites. The Township received seven responses prior to the August 10, 2026, deadline. Scoring was performed by the project team and focused on the areas of qualifications and experience (30%), methodology (30%), cost (30%), and proposal quality (10%). The following is a scoring summary of the seven proposals received:
|
Respondent |
Proposed Cost |
Calculated Score |
|
Cascadia Partners |
$87,060 |
92.00 |
|
MNP Digital |
$125,000 |
86.89 |
|
BDO |
$125,000 |
82.89 |
|
Perry Group |
$104,150 |
76.71 |
|
Western Management |
$115,000 |
69.08 |
|
Promateus Ltd. |
$347,640 |
56.51 |
|
Cebean Inc. |
$182,670 |
53.30 |
Independent evaluations of all proposals were performed by two project team members using the evaluation criteria identified in the RFP. Both staff members ranked Cascadia Partners as the preferred proponent.
OPTIONS:
Based on the RFP evaluations, staff have identified Cascadia Partners as the preferred proponent for Enterprise Resource Planning (ERP) consulting services. By directing staff to initiate phase one of the project, the consultant and staff can begin to formulate plans, coordinate schedules and commence the work required to prepare for phase two of the project. To proceed with the current plan of engaging a consultant to assist with the first phase of work, staff recommend the following resolution:
• That Council receive the Enterprise Resource Planning project backgrounder attached to Staff Report FIN-26-018 and direct staff to negotiate with Cascadia Partners for the provision of consulting services related to the project with funding from the Township’s existing accumulated surplus.
While the need for a replacement ERP system exists, support for the current system will continue until April 2029. Should Council wish to delay a decision about the project, it could direct staff to provide more information for consideration during the 2027 budget process. This decision would come with risks such as a reduced time frame to complete the project and the potential that consultants and software providers will no longer have the capacity to assist the Township.
COUNCIL PRIORITY:
Good Governance and Organizational Excellence
FINANCIAL IMPACT:
Currently, the Township has an accumulated surplus balance of $11.7M. While staff have not had the opportunity to provide Council with options for using or relocating these funds, this required replacement project provides a viable means of funding phase one of this project without the need to generate funds through additional property taxation.
COMMUNICATIONS/ENGAGEMENT:
No external communication or engagement is required at this time.
TIMELINES & NEXT STEPS:
After Council approval, Township staff will engage with the preferred vendor to agree on the project scope and establish a date for phase one commencement. Unless there are unforeseen issues, it is anticipated that this work will be completed prior to May 2027. As part of the work, there will be assessments of potential replacement software options, including a review of potential total costs. Towards the end of this engagement, staff will update Council regarding the preferred option and will, at that time, be seeking funding approval to commence phase two of the project.
REPORT REVIEWED BY:
1. Sarah Holloway, Manager of Corporate Services, Reviewed
2. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Enterprise Resource Planning (ERP) Project Backgrounder