2006 Audit Recommendations  -  Status Tracking
	Audit:  Fleet Management	(Lead:  Richard Hewitt)
	Audit Recommendation	Management Response			Budget Implications 2008 or Beyond	Related Council Motions	Status Update / Comments
		Audit Management Response	Action Required Based on DCM Implementation Plan	Management Timelines    (Q1- Q4)	($$ if known)		(Status, risks, issues regarding implementation, etc)
1a)  b)	That Fleet Services continue reporting vehicle utilization regularly but focus on identifying units that are used less than their respective break-even point. a)  Determine break-even-points between owning a city vehicle and other transportation alternatives (minimum number of kilometres/year, number of days…) b)  Fleet has determined thresholds for cars but that same exercise should be repeated with other vehicle categories.	Management agrees with these recommendations. These practices have been followed since amalgamation.	SSC Lead Information included in Q1 and month 7 customer reports.				Completed
1c)	c) That end users be held accountable to justify the identified low use vehicles directly to Council.	Management agrees with the recommendation. Fleet Services will provide the appropriate information, to Deputy City Managers, to enable them to take appropriate action.	SSC Lead Information included in Q1 and month 7 customer reports.				Completed
3	That Fleet Services complete the implementation of its new fuel management system and start monitoring fuel consumption and identify/investigate vehicles consuming more than expected.	Management agrees with this recommendation and this practice has been underway since 2005. As well, Fleet Services is currently in the process of completing the standardized fuel management system for all City owned fuel sites, which will automatically perform checks relating to fuel consumption.  The target date for completion is Q4 2007. Since 2002, fuel usage per vehicle has been recorded and included in the monthly billing.  High fuel consumption is noted and tracked.	OSP Lead Underway	Q4 2007			Completed Capital costs have been approved.  Project on target for completion by late 2007.  No new capital required. Fuel savings will result in 2007 and  beyond.
4	That Fleet Services review its maintenance and repair cost performance specifically for heavy and medium trucks.	Management agrees with this recommendation. In 2007 Fleet Services will expand its benchmarking efforts.  On top of the internal performance measures and those included in OMBI, Fleet Services is going to be searching across Canada for additional national benchmarks.  Over the course of the past two years, Fleet Services has been leading the benchmarking initiative for the Canadian Association of Municipal Fleet Managers (CAMFM).  In the Q3 2007, CAMFM will mark its first year of comparing fleet measures across the nation.	OSP Lead Underway	Q3 2007			Completed Fleet Services has expanded our performance measures to include CAMFM, which is now in place.  We have our first year's data which supports our original position that we do compare favourably with respect to medium/heavy equipment.
5a) b)	That Fleet Services: a) Establish benchmarks, KPI’s (Key Performance Indicators) and target performance levels, identify key success factors, identify gaps and investigate exceptions. b) A dashboard or balanced scorecard system should be implemented to track all KPI’s on a regular basis and increase accountability of the organization.	Management agrees with this recommendation and it has already been implemented.   The branch has been and will  continue to work with OMBI and CAMFM (Canadian Association Of Municipal Fleet Managers) to establish and report on fleet performance benchmarks.  The branch presently reports on 17 performance measures with OMBI and 19 with CAMFM. Service performance is monitored and reported on a daily basis as part of our dashboard or scorecard system.	MFM Lead				Completed
5c)	c) Document vehicle abuses and elaborate strategies to minimize the costs related to misuse.	Management agrees with this recommendation and it has already been implemented. The branch has been reporting vehicle abuse to operating departments monthly since 2005, however it is the responsibility of the operating department to take corrective action.  A new initiative is being launched in Q2 of 2007 by the Fleet Services branch to review monthly abuse statistics with client departments to find out the root cause of the abuse/misuse and take corrective action.  Both the Fleet Maintenance and Fleet Operator Training divisions will participate in these reviews.					Completed.  Same as Recommendation 31, has been implemented..
7a)	That Fleet Services set productivity targets per mechanic in 3 ways: a) Establish Vehicle Equivalent standards per mechanic based on NAFA’s averages. Allocate annual hour budgets per vehicle based on the same VE method and track budget variances.	Management agrees with this recommendation. Fleet Services establishes the needs for mechanics based on an assessment of actual cost applied against growth equipment.  This option will be examined for analysing our structure during the course of this year.	MFM Lead a) Vehicle equivalent standard method for mechanics will be reviewed				Completed
7b)	b)  Establish standard times per major activity based on Mitchell’s On Demand flat rate standards, ATA standards (American Trucking Association) or other recognized time estimating guides and track variances.	Management agrees with this recommendation.  It was implemented in 2006.					Completed
7c)	c) Record and compile all billable and non-billable hours on work orders and set a target of at least 60% of paid hours.	Management agrees with this recommendation. Fleet Services has been recording billable/non-billable hours since 2001 and is well above the industry benchmark of 60%.  The total 2006-year benchmark for this category is at 68%.  No further action is required on this recommendation.					Completed
9	That Fleet Services adopt a proactive approach and reduce interpretation by documenting the levels of service expected from each client and by measuring satisfaction levels more accurately.	Management agrees with this recommendation and it is already the practice.  Fleet Services Management  meets regularly with the management teams of their largest clients (Surface Operations, Fire Services, Transit Services and Paramedic Services).  This presents a forum for discussion of upcoming issues as well as resolution or identification of the way forward for any ongoing issues.  In addition, the Service Level Agreements (SLAs) clearly outline the responsibilities and accountabilities of each party as well as documenting escalation processes for any unresolved issues.	OSP Lead				Completed
12a)	That Fleet Services: a) Ensure that vehicle log books are used especially for light passenger vehicles and perform random audits to determine how often the vehicle is required. Kilometres may not always represent a good indicator to validate whether a vehicle is justified or not. Unjustifiable vehicles should be reported to Council.	Management does not agree with this recommendation. Logbooks are a client responsibility.  Fleet Services reports usage whereas the client determines the justification.	TS Lead a) No further action planned as per management response				Completed. Briefing Note will be required. The City Manager agrees that operators are required to conduct circle checks.  Supervisors are responsible to monitor operators to ensure the circle checks are being conducted.  The Director of Fleet Services is responsible for providing training to operators and supervisors on their responsibilities for circle checks.  This is being done, and has been done since amalgamation.  This recommendation is closed. Fleet Services does not report back to the manager of the operator when an operator does not do a circle check.  There would be no way for Fleet Services to monitor this.  The accountability for this fall to the Supervisor of the operator to ensure that circle checks are conducted each day.  When the unit is brought in for service, the circle check book is used by Fleet Services to create work orders based on the defects noted.
12b)	b) Facilitate vehicle pooling by adapting the chargeback model and transferring as many vehicles as possible to a daily rental mode.	Management agrees with this recommendation. Fleet Services maintains a vehicle pool that clients can access for rental units.					Completed
12c)	c) Improve the “Fleet Analysis Reports” sent out to clients at each period. The reports should focus on performance indicators, identify benchmarks, highlight exceptions and require actions. Indicators may include: Fuel consumption, utilization statistics, misuse, accidents, etc…	Management agrees with this recommendation. Fleet Services has been providing reports to clients detailing all the indicators mentioned since 2002.					Completed
12d)	d) Establish vehicle standards per types of task and discourage derogations from the low cost standards by requiring approval from upper management or Committee of Council.	Management does not agree with this recommendation. Fleet Services uses best practices by developing vehicle specifications based on operational requirements of the client department.  The client department is responsible to determine the capability requirement and Fleet Services is responsible to prepare a specification to meet that requirement in a cost effective manner.  The standard specification is for a base model in each category.  Options are added depending on specific application or as a result of departmental request with justification and authorization.  Options not supported by Fleet Services are escalated to the Executive Management Team, and if necessary Council for approval.	TS Lead d) No further action planned as per management response				Completed Fleet Services uses best practices by developing vehicle specifications based on operational requirements of the client department.  The client department is responsible to determine the capability requirement and Fleet Services is responsible to prepare a specification to meet that requirement in a cost effective manner.
13	That Fleet Services perform a basic survey to evaluate the number of daily calls in and out of the help desk. After statistics are compiled, a business case should be made to acquire an appropriate phone system and adjust staffing to cover the evening and night shifts.	Management agrees with this recommendation and it has been implemented. In conjunction with ITS, Fleet Services has  investigated the number of calls to the City’s Call Centre and the possibility of a call management system.  From the analysis made on the light traffic pattern on the call centre it was determined that the system is adequately equipped to handle the volume of calls and that the investment of $19K in a call management system is not economically justifiable.  However the situation will be continually monitored and the necessary action will be taken should it become economically justifiable.   No further action will be taken on this recommendation.	MFM Lead				Completed.
14	That Fleet Services make a decision between M4 and SAP as recommended in the 2003 audit.	Management agrees with this recommendation. The decision has been made to move to a single Fleet Management Information System, M5.  Implementation is currently underway and is planned to be completed by the end of Q4 2007.	OSP Lead		Transit to M5 in 2008.  Once implemented in Transit, TFM will be able to declare savings of $500K per year for the first two years.		Completed.
16	That Materials Management and Fleet Services reconcile their inventory numbers in terms of parts issued to Fleet and parts assigned to buses and municipal vehicles.	Management agrees with this recommendation. An analysis of inventory issues against fleet receipts was completed in mid April 2007 that reconciled all variances between Materials Management and Fleet Services.  In the course of the 2007 Audit of the Inventory Management Process, Management will provide additional analysis on specific items discussed in the variance reconciliation provided to the Auditor General.	Fleet Comment:  Action Complete - Inventory Reconciliation has been done. Supply Management Comment: Actions per management response are underway.	2007			Completed Supply reconciliation complete, however the item is again under review by the AG in the 2007 Audit of Materials Management
20	That Fleet Services elaborate and implement a risk assessment strategy and a clear procedure in case of bus fires due to malfunction or poor design	Management agrees with this recommendation. The documentation of the risk assessment strategy will be completed by September 2007.	TS Lead Documentation is underway.	Q3 2007			Completed Strategy has been completed and is in final stages of sign-off.
24	That Fleet Services redirect resources to planned repairs/routine maintenance and review its procedures pertaining to circle checks and routine maintenance to ensure that the individuals responsible for performing said operations are properly versed with their responsibilities and make use of the training programs available.	Management disagrees with this recommendation.  Clear accountabilities already exist for operators for inspection and repair and they are documented and incorporated in training programs.  No further action needs to be taken on this issue.	OSP Lead No action required				Completed The City Manager agrees that operators are required to conduct circle checks.  Supervisors are responsible to monitor operators to ensure the circle checks are being conducted.  The Director of Fleet Services is responsible for providing training to operators and supervisors on their responsibilities for circle checks.  This is being done, and has been done since amalgamation.  This recommendation is closed.
25	That the St. Laurent shop be cleaned up.	Management does not agree with this recommendation. Cleanliness in the garage is not the issue; however, the crowded work-space does contribute to the untidiness of the garage. Daily shop maintenance routines performed by Transit Fleet maintenance staff include cleaning their work areas during and upon completion of each bus repair.  Area cleaning is also done by Transit Fleet maintenance staff on an as-needed basis and equipment cleaning and maintenance is done on a scheduled basis by RPAM. The St. Laurent garages are well utilized and although crowding of buses and components is a challenge to work around, cleanliness is a priority. Crowding of most areas will be significantly reduced by the end of 2007 when the major repair operation moves to another garage, thereby providing additional storage space for components and cores presently stored in these bays. There will be an opportunity to improve the "area" cleaning component at that time, and action will be taken following this move.	TFM Lead No action required.				Completed Resolution Document states that the AG is satisfied with the Management response.  Recommendation closed.
26	That Fleet direct management to immediately stop any personal repairs from being carried out. That all employees be re-educated about the details of the city Code of Conduct requirements and that strict adherence (zero tolerance) to the existing policy be enforced rigorously.	Management agrees with this recommendation and it has been implemented.  A directive was issued to all staff on 06 July 2006 detailing the prohibitions outlined in the Code of Conduct.  Fleet Services has also been monitoring this to ensure ongoing compliance.	Director Lead				Completed
27	That Fleet commission an easy to read, and updateable, manual for the ease of reference of managers, mechanics and operators. In the alternative, we recommend that additional training be provided to managers and supervisors about the various regulations and the applicability of the federal and provincial statutes to Fleet Services.	Management agrees with this recommendation. Applicability of federal and provincial statutes already forms part of the comprehensive training programs and is incorporated into Fleet’s numerous procedures.  While no single manual is planned (would be too large to be of use) Fleet will continue to leverage electronic access to up-to-date information.  As part of Fleet’s move to a single Fleet Management Information System, more information will be accessed via the web (i.e. procedures, vehicle specifications, parts listings, etcetera).  In addition, we work directly with our clients to help inform them of changes at the federal/provincial levels and help build solutions to meeting new and changing legislation.	OSP Lead		No cost.		Completed
28	That Fleet Services ensure that all managers and senior staff understand their role as it relates to environmental waste disposal.	Management agrees with this recommendation. As stated in the audit, this was simply a miscommunication between the staff interviewed and the Auditors.  This issue was quickly sorted out and all senior staff and managers do understand the rules as it relates to environmental waste disposal.  No further action is required.	TFM/MFM Lead				Completed
29	That Fleet Services reallocate existing resources to the training division to ensure that all operators are provided with sufficient training.  Operator supervisors (clients) should also recommend additional training whenever possible.	Management agrees with this recommendation. Fleet Services, as part of the annual budgeting process, aligns training resources to the client training needs.  As a result, two trainers were added in 2006.  Fleet Services training programs are based on legislated and mandated requirements.  Additional training resources are not required until 2008.	OSP Lead		No cost at this time.		Completed
30	That Fleet Services educate all mechanics and operators regarding their responsibility as it relates to the loss/ suspension of G licenses.  Operator education must be strengthened in the following areas: - operating a vehicle without a valid licence; - Consequences for violating the code of conduct are severe when compared to reporting a temporary loss of licence; - Liability of operating a city vehicle wihtout a proper license relating to personal liability.	Management does not agree with this recommendation. Fleet Services does not have the authority for providing this type of education.  Employee orientation at hire, which is the responsibility of the supervisor, is the appropriate place to both review the code of conduct (which is given to each new hire) and all other related issues (including discipline) specific to the job the employee is being hired into.	OSP Lead No action required		No cost associated with this.		Completed The City Manager and the AG agree that the Director of Fleet is to send out a yearly email that reminds managers that they are responsible to ensure that all employees hold the appropriate licesnes.  Also to incorporate this into the traning that operators have a responsiblity to inform their manager when they have lost their license.
31	That Fleet Services implement strategies and document a process to reduce the expenses related to misuse and/or repairs caused by abnormal utilization.	Management agrees with this recommendation and it has  been implemented.  The branch has been reporting vehicle misuse to operating departments on a monthly basis since 2005, however it is the responsibility of the operating department to take corrective action.  A new initiative is being launched by the Fleet Services to review monthly abuse statistics with client departments to find out the root cause of the misuse and take corrective action.  Both the Fleet Maintenance and Fleet Operator Training divisions will participate in these reviews. In addition to the above, Fleet Service reports misuse information annually, at the year-end, customer reports which are provided to the branch Directors as well as the Deputy City Managers to enable them to take appropriate action.	MFM Lead	Q2 2007			Completed - same response as 5c
32	That one specific individual be put in charge of all Ministry issued licenses, or in the alternative, have one person responsible for dealing with the Ministry on behalf of Fleet Services.	Management agrees with this recommendation and it has  been implemented. Fleet Services has consolidated all garage and technician licensing under one (1) person in Transit Fleet Maintenance (for transit garages) and under one (1) person in Municipal Fleet Maintenance (for municipal garages).	MFM/TFM Lead				Completed
33	That the management members of the unions be bargained out of the existing collective bargaining unit and into a separate unit when the contract is renegotiated in the future.	Management does not agree with the recommendation. The Transit Fleet garage supervisors belong to a CUPE local and the staff they supervise belong to an ATU local, therefore a conflict does not exist since supervisory staff are in a different Union. The best-case scenario occurs when any level of supervisory staff is either non-union or from a bargaining unit different than the bargaining unit to which staff belong.  Arbitral jurisprudence allows functional supervisors to be from within the same bargaining unit.  Functional supervision can include scheduling and assigning work, as it does in this case.  These are not true management responsibilities.  The management staff from the MPE group or the garage supervisor’s bargaining unit is responsible for the management of disciplinary issues.	ES Lead No action required.				Completed This recommendation has been withdrawn by the Auditor General.
35	That Municipal Fleet promotes the use of the City’s fuelling stations, review the reasons why some vehicles are being fuelled outside the City’s stations, and approve or rectify such practice.	Management agrees with the principle of this recommendation.  Fleet Services actively promotes the use of city owned fuelling stations.  Fleet communicates with drivers via the use of pamphlets provided in all city owned vehicles and by the use of corporate e-mail (for those who have access).  City management is also apprised of the benefits of using city owned sites via e-mail, monthly client billing (which shows city vs. retail fuel usage), and quarterly/year end reports which identify the amount of dollars which could have been saved had city-owned fuel stations been used.  However, it must be recognized that there are valid operational reasons why the use of City fuelling facilities is not always practical. Further the decision to use City owned fuelling stations is at the discretion of the operating department.	OSP Lead Already underway.  No new action required.	Q4 2007			Completed Final phase of Fuel Study to be completed in 2007.  Revised fuel brochure by November 2007.  No Budget implications.
36	That Municipal Fleet renews its standing offers to lock in discounts on fuel purchases.	Management agrees with this recommendation. Supply Management has already been working with Fleet Services on this initiative. As well, this past February, a draft of the proposed standing offer was circulated to the fleet group for further input.  The RFSO will set-up authorized retail fuel outlets based on set criteria, and a firm discount from the pump price, in relation to urban and rural districts stipulated in the document.  The RFSO will be issued on the internet based Merx site during Q2 2007, and it is anticipated that the call-up list will be approved in time for use during the latter part of 2007.	Supply Management Lead See Management Response	Q3 2007			Completed Tender has been awarded.