2006 Audit Recommendations - Status Tracking

Document 4

Audit: Surface Operations - Roads Maintenance

(Lead: Richard Hewitt)

Audit Recommendation

Management Response

Budget Implications 2008 or Beyond

Related Council Motions

Status Update / Comments
as of July 23 07

% Complete
as of
Aug 20 07

Report's #

Audit Management Response

Action Required Based on DCM Implementation Plan

Management Timelines
(Q1- Q4)

($$ if known)

(Status, risks, issues regarding implementation, etc)

That the SAI visioning exercise be accelerated (without additional costs), particularly those actions which will have a direct impact on operational efficiency with a target implementation of 2007 for budget and cost savings/consolidation.

Managements agrees with this recommendation.

Implementation priorities are financial accountability and operational planning. Detailed operations planning development workshops have been moved up to begin in December 2006. The objective is a long-term sustainable organization. Completion is expected in Q4 2007.

Q4 2007

Operations Planning and Balance Scorecard (Performance Reporting) were advanced and are on track for completion in 2007.

50%

That the Branch create a Quality Assurance function for Roads, through the reallocation of existing resources, to provide checks and balances to the quality of road maintenance including appropriate preventive maintenance.

Management disagrees with this recommendation.

Industry best practices clearly identify operational quality, effectiveness and efficiency as core management accountabilities. The Branch’s approach is to put in place management skills as well as financial and operational planning, and management tools to ensure that staff is knowledgeable, capable, and empowered to manage these items.
Performance Measurement and Business Services Unit has been established with the responsibility to conduct internal Competitive Service Delivery Reviews (CSDR) analysis and support the performance management requirements.
Audit mechanisms are already in place through the office of the Auditor General. Comparative tools such as OMBI and MPMP are also in place to benchmark performance against other municipalities.

This item is still on the list requiring CM briefing by DCM at next one on one.

As part of the Strategic Alignment Initiative, a Performance Measurement and Business Service Unit has been established in the Surface Operations Branch. We believe the Performance Measurement and Business Services Unit will achieve the objectives of the Auditor General's recommendations by working with line managers and supervisors to embed a culture of critical review, continuous improvement, and financial accountability within the branch.
This we believe, is a more inclusive approach in contrast to the detached (even if only perceived) function of "Quality Assurance" recommended.

50%

(cont'd)

The Performance Measurement and Business Services Unit has initiated a process of implementing a Balanced Scorecard reporting system across the three divisions in the branch (Parks, Roads and Forestry). The scorecard is designed to get managers to focus on the critical success factors of their divisions especially as they relate to Customer Service, Programs and Services, Organizational Culture and Resource Management. The Performance and Business Services Unit aims to facilitate the introduction of many of the tools and techniques used in quality assurance, they include establishing service standards, benchmarking, peer reviews and the introduction of quality circles.

Further, the unit hopes to assist managers and employees at all levels to identify and share best practices across the branch, council or sector. Senior Management in the Branch is committed to providing the leadership needed for initiatives to enhance the quality programs and services we in the Surface Operations currently provide. Through the Performance Measurement and Business Services Unit, the Branch will actively participate in the Ontario Municipal Benchmarking initiative (OMBI) MPMP and Corporate Accountability initiatives.

That the Branch re-engineer the planning and allocation of work so that all work is initiated by work orders issued by supervisors or other City staff (not the 311 system). Note that this will also facilitate the simplification of the accounting system.

Management disagrees with this recommendation.

Work will be proactively planned and managed, and operational planning and accomplishment tracking is a major focus of current efforts. The Branch’s work is activity-based not work-order driven. Work orders are created where individual cost tracking is required. Individual work orders for all of the Branch’s work is not necessary and would create significant administrative inefficiencies. Individual work orders are created as required for specific work tracking.

This item is still on the list requiring CM briefing by DCM at next one on one.

Briefing Note will be required.

As per management response.

That the Branch conduct complete process mapping, develop and implement standard operating procedures.

Management agrees with this recommendation and it is already in progress.

This is being implemented in phases based on an assessment of risk and opportunity associated with each process, which will be determined in 2008.

2008

On track

That SOP re-engineer their approach to planning work so that the Notification system is a complement to a systematic approach based on routine maintenance, road patrols and preventive maintenance.

Management Response Surface Operations
Management agrees with this recommendation and it is already in progress and is expected to be completed by Q4 2007.

Management Response Information Technology Services
Management agrees with this recommendation.

Working together with PWS, ITS can change and implement work orders, preventative maintenance and other functions to assist with planning, as described by the audit. The assessment of the time and cost to implement this will be undertaken starting in Q1 2008.

ITS Comment:
As per the ITS Management Response, the assessment of the time and cost to implement requirements identified by PWS will begin in Q1 2008.

Q4 2007 / Q1 2008

SOPS Comment:
On track

Sept 2007 ITS Comment:
In-Progress. Work to begin in Q1 2008 pending approval of Surface Operations business cas in Q4 2007.

25%

ITS - 5%

That the Director SOP, the Director of IT and the Manager of the 311 Call Centre work to improve the ability of the Call Centre and related system to facilitate the work of the SOP staff responding to Notifications

Management Response from Surface Operations
Management agrees with this recommendation and work is already in progress.

The inquiry and notification process is being re-engineered in conjunction with the 3-1-1 Call Centre and ITS staff in Q4 2007. As an interim measure until the results of the re-engineering effort are fully implemented, an operations clerk has been dedicated to work on facilitating notifications, processing and tracking.

In addition, measures are being taken to provide the public and other stakeholders with improved information to proactively satisfy service and information requests. Examples of these proactive measures include: general training on Surface Operations services to all of the Client Service Centre staff; specialized training on items of interest to the rural community to "Rural Champions" in the Call Centre; updates and enhancements information appearing on the City's website; and implementation of winter parking e-alerts that notify registrants of winter parking restrictions via automated email alerts.

Q4 2007 / Q1 2008

SOPs Comment: On track
Inquiry management procedures have been developed and piloted and are scheduled to be implemented across the Branch by the end of September 2007. Network performance issues at the Bloomfield Yard have been addressed.
The Daily/Weekly/Monthly work scheduling process will be re-engineered and optimized as part of the Operations Planning implementation and are scheduled to be completed prior to the end of the year.
Senior Operations Clerks have been trained in the 311 application (MAP) used to create service requests. SOPs Branch will explore opportunities to have Branch staff input Notifications directly into the MAP system.

Sept 2007 ITS Comments:
In Progress. Project is part of the CSPI lead 311 Performance Reporting Initiative that is scheduled to go live in December 2007.

70%

ITS: 20%

(cont'd)

Management Response from CSPI
Management agrees with this recommendation.

Management will continue to work with Councillor’s offices to request that they use 3-1-1 to forward service requests to all operating departments.

Management Response from ITS
Management agrees with this recommendation.

Working together with PWS and the 3-1-1 Call Centre, ITS can improve and enhance the integration and data sharing/transfer between Request for Service and SAP, at an estimated cost of $450,000. The business case for this project will be submitted to the Value Assessment Program and will be prioritized along with other Corporate IT requirements. It is anticipated that this project can be initiated in Q1 2008

CSPI Comment:
CSPI continues to work with councillors offices to ensure that they use the 311 system rather than sending requests directly to the Operations yards. The ward based reporting initiative that will commence this summer will help to encourage this. Ward based reporting, coupled with reporting on turnaround time will go a long way toward alleviating the requirement to report back on completion directly to the Councillor’s Offices.

ITS Comment:
As per the ITS Management response, this project is anticipated to be initiated in Q1 2008, following the PWS request and submission of the business case to the ITS Value Assessment Program.

Q1 2008

That accomplishment units be redesigned to measure quantities which the department should be monitoring to meet best practises for their industry.

Management agrees with this recommendation and it is already in progress.

Accomplishment units are being updated as part of the comprehensive operations planning initiative. Financial reports are being modified to include reporting of accomplishment units by activity, all scheduled for implementation in Q4 2007.

Q4 2007

On track

25%

That, for the year 2007, an extremely simplified, streamlined budget be prepared for the Branch. This budget should roll up from the bottom as opposed to the current roll down from the top and should be focused on the information that managers need to make financial decisions.

Management Response from Surface Operations Branch
Management agrees with this recommendation.

Simplification of management reporting is underway. Some bottom-up analysis has been completed; however complete bottom-up budgeting is not feasible until operational planning functions have been implemented. This will be implemented in Q4 2007.

Management Response from Financial Services Branch
Management agrees with this recommendation.

The 2007 budget will be developed at a sufficiently detailed level to reflect the decision-making structure of the organization and summarized for the corporate budget presentation. The audit suggested the need for a greater level of detail for SOP operations. Changes were initiated in 2006 through the Branch’s SAI Project to develop and monitor the budget within their Maintenance Management System (MMS) at a zone and activity level, accessible by Supervisors, Area Managers and Managers.

Q4 2007

Per management response

1) Budget
100% all Divisions at the cost centre financial level

To the activity level:
Parks 100%
Forestry 100%
Roads 70%

2) Actuals
100% all Divisions level/zone reporting

3) HRIS 100 % all Divisions

That the SOP budget not be increased until SOP has a good understanding of their financial situation.

Management disagrees with this recommendation.

The budget, and Branch operations and services will be reviewed in a manner prescribed by Council to be established through the Budget Directions.

Surface Operations Branch is planning to report back to Corporate Services and Economic Development Committee in Q4 2007 .

http://ottawa.ca/calendar/ottawa/citycouncil/occ/2007/05-23/disposition14.htm

This will be dealt with in the response to the Council Motion. This is considered closed.

Waiting for AG review

That the entire activity sheet/data entry process be reengineered, to provide the necessary financial and payroll information within the SAP system.

Management agrees with this recommendation.

The activity sheet is being reviewed as part of the Strategic Alignment Initiative Performance Management in Q1 2008. Once the Branch's performance measurement and management framework is developed, the activity sheet and associated data collection/entry processes will be re-engineered to ensure the necessary information is captured and entered efficiently. As an immediate measure, to better utilize data that can already be entered into the system, the Branch is incorporating accomplishments by reporting on a number of key operational reports to improve the information available for operational decisions.

Q1 2008

On track
Surface Operations staff are also proactively investigating technology options that may be available to facilitate this process. Specifically, capabilities available through the pending SAP upgrade and the City's document management system roll-out show signficant promise.

30%

That any cut-backs proposed to Council during budget deliberations clearly state if they will have an impact on both Service Levels/City Standards and/or condition of Infrastructure (e.g. deterioration from lack of maintenance).

Management Response from Infrastructure Services Branch

Management agrees with this recommendation.

Through the LRFP process, investment levels are identified to maintain the City’s infrastructure assets. In the case of roads, the level of investment identified in the LRFP is to maintain the overall network at current levels (i.e. approximately 20% in need of resurfacing or reconstruction). When approved budget levels are less than the needs identified in the LRFP, as has been the case in previous years, over time this results in further deterioration of the overall network condition and increases the pressure on the operating budget.
As part of the City Corporate Plan, the Infrastructure Services Branch (ISB) is required to define service levels for municipal infrastructure. Once completed in 2007/08, this will provide an ability to create more direct links between funding levels and impacts on service levels.

Infrastructure Services Comment:
Review of existing service levels for municipal infrastructure (including roads, sidewalks, sewers and bridges) to be finalized in 2007.

2008

Infrastructure Services Comment: This is 75% complete for roads, sidewalks and bridges. Work will be complete in 2008.

75%

That the Director SOP and the Director Employee Services, or their delegates, work together to develop basic routine monthly reports to facilitate management of SOP staff.

Management agrees with this recommendation and this process has already been initiated.

Staffing coordinator position, established through Strategic Alignment Initiative, will facilitate the implementation of these measures in Q4 2007.

Management Response from Employee Services
Employee Services will meet with Surface Operations staff to review the HR reports already available through SAP-HR, to assist in managing human resources. As well, Employee Services will ensure that Surface Operations staff is able to access the HR information required to manage their staff.

Employee Services Comment:
Employee Services will work with Surface Operations staff to ensure that they are able to use the displays and reports available within SAP-HR, to assist in their management of Surface Operations employees. The HRIS Unit provides monthly SAP-HR Display and Report new user and refresher training, for which Managers, Administrative Assistants to Managers, Program Managers, and Supervisors of 15 or more direct reports are entitled to register. The HRIS Unit will conduct specialized training sessions for Surface Operations managers and supervisors. Surface Operation's Human Resource Consultant (HRC) already provides some information on a monthly basis. The HRC is also available to coach them to understand how this information will assist in the day-to-day monitoring of Surface Operations' staff once they have received the training.

Q4 2007

SOPS Comment:
On track: As part of the Branch's Performance Measurement Framework, the Branch is developing metrics for reporting, tracking and management purposes. Regular management reports are being provided to the branch from Employee Services.

Employee Services HRIS Unit, in discussion with Surface Operation's Administrative Services Unit, approved the granting of additional SAP-HR licenses to the Unit's Senior Operations Clerks. According to the Administrative Services Unit, they will be using these Senior Operations Clerks to provide timely reporting to required operational staff to assist in the management of their staff. A specialized training session was developed by the HRIS Unit to meet the specific needs of Surface Operation's staff and was conducted 13 July 2007.

65%

The training was successful and the Senior Operations Clerks are providing timely reports as required. The HRIS Unit conducts refresher sessions on a monthly basis for any licensed user requiring an update to their SAP-HR Display and Report skills.

That SOP calculate whether they have the best complement of full-time workers to optimize the use of overtime and salaries.

Management agrees with this recommendation.

The operational planning initiative in Q1 2008 will enable the Branch to better quantify resource needs to meet service demands. This will be compared with available staff time, overtime utilization, productivity improvement opportunities, contracting mix, and alternative service delivery options to identify the best complement of full-time workers for the Branch.

Q1 2008

On track
Operations Planning Framework includes detailed resource loading requirements.

40%

That SOP calculate how many person years are lost to the Time Off in Lieu (TOIL) policy and determine whether they are hiring sufficient full-time, part-time or temporary workers to optimize costs given lieu time leave and vacations.

Management agrees with this recommendation.

The amount of TOIL accumulated annually is available through SAP. The analysis is estimated to be completed by Q1 2008. There is no provision for backfilling for staff during short-term absences. The Branch does make use of temporary staff, students and contracted services to supplement the work of full time staff.

Q1 2008

On track

65%

That a training budget be reinstated to a level which will ensure a continued skilled workforce

Management agrees with this recommendation.

Current initiatives, which have been undertaken for example is the development of a Crew Leader, Foreperson and Supervisor Training Program, which will be used as a succession planning mechanism. This will ensure corporate memory and field experience is transferred to junior employees that are being groomed to replace retiring Supervisors. Job descriptions will be created that will set criteria for participation in the training program and will recognize the increasing requirement for technical knowledge, financial accountability, operational planning and ability to deal with human resource issues.

2008 Budget

Crew leader training program has been finalized and is moving into implementation phase.

90%

(cont'd)

Training programs are being set-up for each level in the supervisory structure to match the duties outlined in the job descriptions. Courses are provided through a combination of internal corporate training initiatives and external experts or organizations that specialize in activities related to Health and Safety or roads, parks or forestry maintenance. Participants in the training programs will be teamed with an experienced supervisor/manager to monitor performance and mentor the individuals on the expectations for each successive step in the structure.
Each candidate in the training program will have to complete all phases of the training and demonstrate the ability to put the training into practice before they will be considered for advancement to the next level supervision. This practice should ensure that promotions are based on merit and a proven ability to perform the increasingly complex requirements of the field supervisors. Management Level Training with organizations such as OGRA, APWA, etc. have also been initiated. Training priorities will be identified during
the 2008 budget.

2008 Budget

Employee Services Comment:
The Learning Centre Consultant responsible for corporate management development has contacted the Director of Surface Operations to discuss learning needs. Where the learning needs are of a corporate nature, The Learning Centre will continue to work cooperatively with Surface Operations to provide appropriate learning solutions within the budgetary reality of The Corporate Learning Centre.

That, Branch resources be redirected so that Road Patrols are reinstated in accordance with the City’s standards.

Management agrees in principle with this recommendation.

In May 2003, a report was brought forward to Council recommending (8) FTEs to enable Service Operations to increase road patrol capacity with the objective of meeting road patrol guidelines, however this recommendation was not approved. Furthermore during the 2004 Universal Program Review cuts, $1.042M associated with road patrol on collector and residential streets were cut from the Surface Operations Branch budget.

Review is underway.
Branch is currently working on the feasability of redeployment of vacant FTE's to Road Patrols within existing budget.

70%

33b)

That the Forestry group develop guidelines and a public awareness campaign for both the public, developers and other municipal departments to promote new tree plantings that are of a variety more suited to the local climate and soil conditions (develop better growing stock able to withstand increase pressure from changing climate).

Management agrees with this recommendation.

Forestry Services 2007 workplan includes an increase in internal/external communication and will focus on completion for Q4 2007. Target audiences have been identified i.e. By-law Services, Infrastructure staff, Development Approvals (internal) and local community associations and forestry interest groups (external). Arboricultural and forestry technical information will be consolidated and formatted in conjunction with other Surface Operations Branch initiatives.

Q4 2007

Ongoing

30%