2006 Audit Recommendations - Status Tracking

Document 4

Audit: Property Management

(Lead: S. Finnamore)

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)

Establish guidelines governing the negotiation fees and charges based on a volume and type of business by defining scales of fees to be charged to their various clients.

Management agrees in principle with this recommendation.

There is already in place a published schedule of fees and charges, for the use of Lansdowne Park facilities. This includes a sliding scale for potential rental discounts when other revenue streams are taken into account, which is applied in a consistent, transparent and equitable manner. Commercial activities, such as entertainment events, require that a degree of flexibility be exercised by management in order to attract business in an extremely competitive environment. In 2007, management will review the largely market-driven fees and charges schedule and associated application guidelines to ensure that they are inline with good business practices.

The review of the fees/charges schedule along with the application guidelines will include comparators from local, national and international segments of the industry, to include baseline rates as well as facilities and services provided.

N/A

Sept 2007 - Research is nearing completion. Rate adjustments will be finalized and published in time for the next business cycle beginning September 2008.

Develop, for Council approval, a long-term plan/vision for Lansdowne Park in order that future usage of the Park be done in conjunction with the citizens expectations.

Management agrees with this recommendation.

Studies completed prior to amalgamation recommended long-range plans for Lansdowne Park that did not come to fruition. In 2002, Lansdowne undertook a full operations review and since amalgamation the Lansdowne Park operating budget has gone from a $1.2M deficit to a $250K deficit. However, the annual revenue stream does fluctuate from year to year. The lack of vision and long term planning has impeded the development of long-term, sustainable business strategies for the site in the face of increasing competition in the event industry.

Lansdowne Park initiated an Economic Impact Study that is currently out for RFP. The results of that study, lead by the Economic Development Division, Planning, Transit and the Environment, are due at the end of the first quarter 2007.

Economic Impact Study.

N/A

Sept 2007 - The Draft Economic Impact Study has been received and the final report is expected by the end of September 2007. Councillors have announced an intention to bring a motion through the Planning and Environment Committee in October 2007 regarding the future direction of Lansdowne Park.

(cont'd)

Over the years Lansdowne has successfully supported a variety of activities and events ranging from professional and amateur sporting activities, entertainment events, social activities and expositions, including the annual Exhibition. However, a long-term vision along with a strategic plan for implementation is required to identify and secure the necessary resources to ensure a long-term viable and sustainable site. A long-term plan/vision for Lansdowne Park will be in front of Council for approval in the Q4, 2007.

Renew or create Service Level Agreements for all major program/facility type clients.

Management agrees with this recommendation.

The Service Level Agreements (SLA) drafted and approved in 2001/2002 were dramatically impacted by the UPR exercise in response to the 2004 operating budget process. Since that time, clients and service providers have been focusing on specific issues needing immediate attention. In 2006 a program was initiated that involves all COE Branches and their clients that will address SLAs on a more comprehensive basis. This program is being managed from the office of the CCSO.

New Service Level Agreements

TBD

This project has been placed on hold until the priorities for the new Business and Transformation Services Department have been established.

As part of its 2007 budget submission, clearly articulate the need for adequate funding for Life Cycle Renewal and Repair and Maintenance and the implications of reduced funding on the long-term condition of City facilities.

Management agrees with this recommendation.

Although a report entitled, “Comprehensive Asset Management Strategy for Buildings and Parks” was tabled at City Council in 2004, which raised and quantified the level of deferred life cycle renewal and proffered several approaches to address the concern, further communication is warranted. The manner in which RPAM will inform Council of inadequate funding for life cycle renewal and the consequences of the shortfall will be coordinated with the budget process.

EMC will need to clarify the manner in which the need for funding for life cycle renewal and repair and maintenance will be presented to Council, as part of the budget process. The CAM Division can provide updated life cycle renewal funding charts to assist in this matter.

To be confirmed by EMC

No dollar implications related to the meeting of this recommendation. However, there will be a requirement for the City to augment its funding for life cycle renewal as part of its future capital budget submissions

Sept 2007 - The CAM Division provided charts to Finance illustrating the impact of a deferred replacement program for building assets, as part of the LRFP Committee's discussion on capital renewal. The Arena Divergence Analysis report issued by CAM is a complimentary report to this issue and will need to undergo EMC review prior to its potential release to Committee and Council.

Present the draft Life Cycle Renewal Policy document, based on the principles presented to Council in 2004 and finalized in 2006, to Council in the second quarter of 2007 for review and approval.

Management agrees with this recommendation.

The draft policy was reviewed by the Management Advisory Committee and will require Executive Management Committee (EMC) review and approval prior to its tabling at a Council meeting. This is anticipated to be complete by the end of Q1, 2007.

Life Cycle Renewal Policy needs to be reviewed by EMC before its tabling with Council. CAM is prepared to make this presentation and draft report to Council upon direction from EMC

To be confirmed by EMC

No dollar implications involved in meeting this recommendation

Sept 2007 - The policy document is available for EMC review which is required prior to its release to Committee and Council. The Arena Divergence Analysis report should be reviewed at the same time as the LCR Policy document, should this opportunity arise.

Develop a plan to complete and update the Building Condition Assessments for all major facilities.

Management agrees with this recommendation.

RPAM has audited over 5 million square feet of building area since amalgamation. The City building inventory measures approximately 11 million square feet. RPAM will define the costs associated with undertaking Type II building condition audits on the remaining building portfolio that has not undergone this type of assessment. The condition audits are funded from the lifecycle capital program and, as such, the requisite timeframe to complete these assessments is dependent on the level of capital funding afforded to the Branch. A master schedule will be developed to reflect the funding allotment. Timelines, that will be included in the plan for completion of Building Condition Assessments, will be dependent on funding.

The CAM Division has identified the extent of outstanding building condition audits and is in the process of estimating the costs to complete these audits. The entire program of work is dependent on the level of funding afforded to the CAM division and the availability of external resources.The work program can only be concluded once confirmation of funding is provided to CAM.

The plan to complete and update the building condition assessments for all major facilities will be finalized by Q3 '07. Confirmation of funding for CAM is by expected by Q4 which will determine how many building condition assessments get completed in 2008. Funding for a period of five years will be needed in order to complete the condition assessment completion schedule.

To be determined. However initial cost projections peg the value at more than $3M

Sept 2007 - The CAM Division is continuing efforts to identify the outstanding condition audit load and the cost implications of commissioning condition reviews. A general summary of its findings should be available in the 4th quarter of 2007, following the 2008 budget submission.

That the Branch review all facilities without access to City water service to confirm compliance with section 3.2.4 (fire alarm & detection) and section 3.2.5 (fire fighting provisions) of the Ontario Building Code.

Management agrees with this recommendation.

Management will ensure that the compliance reviews will provide the level of detail necessary to identify the non-compliance issues, the scope of remedial actions required for compliance and the resourcing required to implement the retrofit work. The results of these reviews will be shared and coordinated with the Fire Services Branch, Community and Protective Services. The review of all facilities will be completed in time for the 2008 budget process.

The CAM Division has modified the terms and specifications listed in its request for proposals related to condition auditing to reflect this requirement. A first set of contracts for condition auditing, valued at $70,000, has been released. The CAM Division has already received the results of several audits that address the firefighting issue and for three buildings, the cost projections to satisfy the provisions of the OBC total more than $150,000.

Q2 and Q3

To date, the CAM Division has incurred costs of $70,000 to review the provisions of this recommendation. The capital retrofit costs to satisfy the provisions of the OBC retroactivally will be significant

Sept 2007 - Initial contracts related to an examination of the OBC covenants related to fire fighting and well water systems have been issued and these reports are being submitted. It is expected that the results of these reviews will be completed by the 4th quarter. It will be necessary to secure 2008 funds in order to continue these reviews. There are no funds remaining in 2007 to expedite these reviews. It is expected that 2008 funds under the Operational Response Program will be made available to retrofit the affected buildings to meet OBC requirements.

That the City provide the funding required to conduct the reviews, and any corrective measures identified as a result, referred to in Recommendations 7 and 8.

Management agrees with this recommendation.

Capital funding to implement corrective measures associated with compliance retrofit work will be identified separately from the life cycle renewal program with funding need to be identified and recommended to Council in the 2008 capital budget.

Will establish an estimate of the retrofit costs needed to meet the specific provisions of the OBC as part of the 2008 capital budget submission. It is expected that the RPAM recommendation will be to phase the retrofit work over an extended period, based on facility priority and risk management issues.

To be determined. Capital costs are expected to be sizeable since there are more than 80 buildings affected by this recommendation

Sept 2007 - RPAM has signaled the requirement for additional funding in 2008 in the amount of $500K to be added to the Operational Response Program in order to retrofit building services to meet OBC requirements, where warranted. Completion of this work is subject to the approval of the 2008 capital budget.

Review priorities for the completion of Threat Risk Assessments for all City facilities and establish a timeframe for completion.

Management agrees with this recommendation.

Corporate Security has visited all City facilities and continues to conduct Threat and Risk Analysis as resources permit, based upon the level of incidents and threat level inherent in the location and operation of the facility. Formal analysis will continue in this vein on an ongoing basis, as Threat and Risk Analysis needs to be regularly re-visited in order to remain current. Threat and Risk Analysis priority will be given to facilities where the risk level is identified as elevated by the Corporate Security Division. Implementation of this recommendation will be ongoing and dependent on funding.

The Corporate Security Division has partnered with the Algonquin College Security Management Program to increase the resources available to address outstanding TRA's. Priorities have been reviewed and facilities where the risk is deemed to be elevated are being assessed first. This is an ongoing process as TRA's need to be revisited in order to remain current.

Phase 1 of the process (priority facilities) to be completed by Q4 2009 depending on resource availability.

Funding for remedial action plan identified as part of the TRA's will be required however, until the TRA's are completed for priority facilities, this amount cannot be confirmed.

N/A

Sept 2007 - Progress is dictated by staff resources to complete Threat and Risk Analysis and funding for remedial action plans.

The Corporate Security Division has partnered with the Algonquin College Security Management Program to increase the resources available to address outstanding TRA's. Priorities have been reviewed and facilities where the risk is deemed to be elevated are being assessed first. This is an ongoing process as TRA's need to be revisited in order to remain current.

Re-confirm the timeframe for the completion of the ISMS implementation and monitor this implementation to ensure its completion.

Management agrees with this recommendation.

The schedule for the completion of the base ISMS in 2009 is still the timeframe within which Corporate Security is working. However, this time frame is dependent upon funding availability, changes to facility usage and the addition of new facilities, etc. Corporate Security has ongoing project monitoring in place to ensure that the timeframe is respected and that all projects are completed on schedule as funding allows.

The original schedule for completion of 2009 was established based on receiving $1M per annum in funding. As this level of funding has yet to be obtained, the ISMS implementation schedule has now been extended to 2016 based on the historical funding levels. Corporate Security will continue to identify the total requirement to complete the ISMS as part of the annual budget process however, will prioritize project based on the actual level of funding.

2007 projects will be completed by the end of Q1 '08.

Funding support at the current level will be required until 2016.

N/A

Sept 2007 - Timeframe for completion of the ISMS is dependant on funding levels. At present, approximately 55% of the facilities have been equipped with a base system, with all major sites having a base system installed at present.

It should be noted however, that RPAM's 2008 budget request for capital funding to continue with implementing this program has been placed on the "not recommended" list of Strategic Initiatives.

Finalize and bring forward for Council approval draft policies regarding Security.

Management agrees in principle with this recommendation.

Corporate Security has finalized the draft policies and is able to bring them forward for the appropriate approvals. It is not expected that all draft policies will require Council approval; many may be able to be approved/adopted by Senior Management. Corporate Security will bring forward draft policies, along with the Divisional Standards for ISMS projects, for Director’s approval and actioning to the appropriate approval authority in 2007.

The draft policies along with standards for ISMS are currently being finalized and will be forwarded to the Director for approval and/or actioning to the appropriate approval authority .

Q3 2007

N/A

Sept 2007 - The draft policies along with standards for ISMS are currently being finalized and will be forwarded to the Director for approval and/or actioning to the appropriate approval authority .

The report will be forwarded to the Director's Office by the end of October 2007.