2006 Audit Recommendations  -  Status Tracking   
  Completed  
    Audit: Surface Operations - Roads Maintenance  (Lead:  Richard Hewitt)          
    Audit Recommendation Management Response  Budget Implications 2008 or Beyond Related Council Motions Status Update / Comments  
                 
Report's #     Audit Management Response Action Required Based on DCM Implementation Plan   Management Timelines
(Q1- Q4)		 ($$ if known)   (Status, risks, issues regarding implementation, etc)  
  2 That the Branch adopt an Enterprise wide Risk Management (ERM) approach to determining strategies, setting goals and developing action plans Management agrees with this recommendation.

The Branch’s 2007 workplan includes both a strategic approach and priority setting to incorporate ERM approaches and techniques such as SWOT analysis (Strength/Weakness/Opportunities/Threats) and Risk/Impact assessments.  The technology plan, stakeholder strategy, fleet plan, and 2008 workplan will also include these approaches to decision-making with completion in Q3 2007.		   Q3 2007     Completed
See management response		 100%
  3 That the Branch develop annual plans which clearly identify the highest risks to the City, strategies to address, goals/milestones and action plans.  Regular reports to senior management should document progress and identify any anticipated or realized obstacles or impediments to achievement of the annual goals. Management agrees with this recommendation.

This process is already in place, and is included in projects such as the technology plan, stakeholder plan, fleet plan, 2008 workplan, etc.  This is scheduled for completion in Q4 2007.		   Q4 2007     Completed
Annual work planning framework has been established.
As per recommendation number 2 - ERM is included
Branch Management Team undertakes 2 formal reviews  annually.		 100%
  5 That the Branch initiate a weekly analytical reporting mechanism. Management agrees with this recommendation.

A process has already been implemented.  Financial reports are being updated.  Budget and cost accountability will be at the supervisor level, implementation anticipated for Q4 2007 and program accountabilities at zone service level area (supervisor level) for Q1 2008.  Weekly operational meetings include a review of financials and service delivery metrics. Note that recommendations 5, 8, 10, 11, 24 and 25 are linked as part of the operations planning process and have some dependencies.		   Q4 2007 / Q1 2008     Completed
On track
Financial reports have been updated to include year to date Budget and Actuals.		 100%
  13 That the SOP budget not be increased while the Branch refines the manner it which it formulates its budget requests and redirects existing funds to programs which do have a strategic plan and related specific budget, specifically the Forestry program. 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. 100%
  15 That employees be equipped to key in accomplishment levels electronically to avoid travel costs, and duplication of effort; and that checks and balances be built into this system to all for verification of hours works, etc. by the site supervisor and district manager. Management agrees with this recommendation.

As an immediate measure, the administrative staff have been decentralized to field locations allowing for support closer to those who need it. This minimizes redundancy and eliminates the vast majority of travel costs associated with the delivery of activity sheets to headquarters.  Checks and balances already exist, within the system, to ensure that supervisors approve all activity sheets. As part of the activity sheet re-engineering effort identified in Response 15, electronic means of having field staff enter time and accomplishments with appropriate checks and balances will be considered in the future.		         Completed 100%
  16 That, in conjunction with the proposed simplified budget system, Zone Supervisors receive current, accurate financial reports indicating the actual expenditures as well as the budgeted amounts Management agrees with this recommendation.

The supervisor report currently includes only cost and is being updated to include budget figures. This will be implemented by Q3 2007.    		  Q3 2007     Completed
On track
The Surface Operations MMS system has been enhanced to provide actuals vs. budget reporting to the Zone activity level. Zone supervisors in Parks and Forestry are receiving actual expenditures vs budget reports.  Roads is developing their activity budget, which will be loaded into the MMS once it is available.  It is anticipated that this will be completed by mid-September.  This reporting rolls up to the Area and Division level.

Due to the Branch's significant organizational restructuring that is being implemented during the two seasonal transitions, budget vs. actual reporting will not be completely aligned in all areas for the remainder of 2007.  However, all measures put into place will be accurate and current for the 2008 fiscal year.		 100%
  18 That Council be advised on the annual operating cost increase required or savings anticipated when considering major capital decisions. Management agrees with this recommendation.

Growth in the transportation network has a significant impact on operating costs.  Growth information is tracked by ISB and provided to SOP so that this can be reflected as an operating pressure as part of the annual budget process.		   Budget 2008     Completed
Infrastructure comment:
Data Collection is ongoing.		 100%
  20 That SOP develop and implement standard policies and procedures to reduce both routine “overtime” work and on-call work of Supervisors and Maintenance Coordinators.  Consideration should be given to changing shift start and stop times, as well as sharing on-call responsibilities among two or more yards. Management agrees with this recommendation and process has already been initiated.

For example in Parks, each Area Manager places one Supervisor on call to handle after hour emergencies across their entire district.  They do not put someone on call for each work unit.  They also assess the call to see if it is truly an emergency or if it can wait until the next workday so as to avoid the overtime cost of responding to the call. There is little non-discretionary overtime worked in the Branch.
The Roads Division has also implemented a no overtime payment procedure for the 6th & 7th day worked on 24/7 City core shift, which brought forth a saving of $165,000. Also the start time for night shift has been changed to 10:30 p.m., which allows regular hour coverage for morning rush hour, therefore reducing overtime costs. The Branch continues to move forward with new initiatives and will finalize in Q4 2007.		   Q4 2007     Completed
On track
Written overtime policy has been implemented.
Overtime costs continue to reduce.		 100%
  21 That SOP develop and implement standard policies and procedures to reduce both routine “overtime” work and on-call work be scheduled Management agrees with this recommendation.

New policies and procedures, such as the alternative shift arrangements for 24/7 coverage in the downtown area and the shift start time procedures were implemented on November 15, 2006 for the 2006 / 2007 winter season. 
These measures have already resulted in a $200,000 reduction in overtime costs.  The Branch continues to work in developing and implementing policies and procedures to reduce costs incurred with overtime and on-call work.  The Branch manages its overtime in accordance with the draft Corporate Overtime Policy.		         Completed
On track
Written overtime policy has been implemented.
Overtime costs continue to reduce.		 100%
  22 That SOP explore new and innovative staffing schedules to optimize staff costs and productivity including 7 day shifts, 3 shifts per day, staggered shifts, shared on call, etc. Management agrees with this recommendation and it is already in progress.

Assessment and implementation of timelines are being determined.		         Completed
On track		 100%
Forms part of Operations Planning
  24 That SOP streamline/reduce the management levels of the organizational structure and redeploy redundant personnel into other areas identified in this report (e.g. road patrols). Management agrees with this recommendation and it is already in progress.

The Strategic Alignment Initiative Program has initiated a project that forms part of the Transition Manager’s Responsibility, where a team has been created to review the supervisory alignment and number of operational units. The work is currently underway working towards completion for Q4 2007.		   Q4 2007     Completed 100%
  26 That SOP schedule vacations outside peak work seasons Management agrees with this recommendation and it has already been completed.

Vacation leave is to be taken at a mutually agreeable time and every attempt is made to schedule vacations during non-peak periods.  It must be recognized that most wage staff in SOPS are multi-tasked and cross-trained to provide maximum flexibility in meeting peak work demands.  For example, staff will work in roads on snow clearing operations during the winter and in parks or traffic during the summer.  This results in very little non-peak periods for these staff.  Work units generally ensure that the number of staff off on vacation leave at any one time is minimized to ensure that the required work can still get done.  Also, during the peak holiday season (i.e. summer) students and contracted services are available to supplement the full time staff. 		        Completed 100%
  27 That Senior Managers, Zone Supervisors and Maintenance Coordinators receive additional training in basic management skills and become more active in industry associations (e.g. Ontario Good Roads Association) to foster knowledge of Industry Best Practises. Management agrees with this recommendation.

Through the Investment in People project of the Strategic Alignment Initiative Program, a training program has been established for Crew Leaders, Maintenance Coordinators and Supervisors. The guidelines for enrolment and course content are presently being reviewed by Labour Relations, Human Resources and the Corporate Learning Centre, with an expected completion in Q4 2007. 
The Branch is continuously pursuing new initiatives and opportunities for staff training.  At the senior level of the Branch, the Management Team has identified a Succession Planning project in its 2007 Branch Workplan.		   Q4 2007     Completed
Employee Services Update:
As of June 7, 2007, Surface Operations supervisors have participated in the following training:
1 session of Bias Free Interviewing and Selection (11 participants); 2 sessions of Supervision 101 (30 participants) and managers participated in 1 session of Best Practices in Municipal Business Planning (20 participants).  The Learning Centre Consultant responsible for management training has consulted with the Director of Surface Operations regarding future needs and they will work collaboratively to provide appropriate training support.		 100%
                Completed
Surface Operations Comment: 
On track.
In addition to the above-noted training, Managers are now part of the Ontario Good Road Association (OGRA), the American Public Works Association (APWA), the Ontario Professional Forestry Association (OPFA), etc.  Extensive involvement, membership and utilization of the Associations is occurring. 		100%
  30 That the Branch develop a Public Tree bylaw and Best Management Practices bylaw (Community Forests). Management agrees with this recommendation. 

Municipal Trees and Natural Areas Protection By-law 2006-279 was approved in July 2006 and implemented on September 1, 2006.  In 2007 a Resource Management Plan for the South March Highlands is under development with subsequent 20-year plans identified for updating as they expire, i.e. Marlborough Forest in 2010.		   2007     On track 100%
  31 That the Forestry Division develop long terms goals and implement in an Urban Forest Management Plan with a goal to replenish Older City trees with new stock factoring in disease and pest resistant species Management agrees with this recommendation. 

A five year Trees and Forests Maintenance Strategy was approved by Council in October 2006 with funding deferred to the LRFP in 2008.  Life cycle trimming was initiated in 2006 and will continue in 2007 in the areas of highest priority, such as those were sensitive marine clay is known to exist to maintain existing trees and the City's tree planting programs will continue to replace trees as they reach the end of their life cycle with species and location appropriate replacements pending priority setting and budget approvals.		   2008     Completed
Pending Council approval of funding envelopes.		 100% completed, however cannot be implemented due to no funding
  32 That the Branch adopt a tree management system, including a complete tree inventory, ensuring that the system has adequate input, storage, query (for forest management planning) and reporting capabilities including mapping that tie in with the corporate wide GIS if possible. Management agrees with this recommendation is already in progress.

The five year Trees and Forests Maintenance Strategy, which is completed and was approved by Council, recognizes the requirement to produce and maintain an accurate tree inventory and identifies required staff and equipment resources of approximately $575,000.  Work will progress on a priority basis (core area, boundary trees along woodlots and ravines in suburban areas) in 2007.		   2007     Completed
Pending Council approval of funding envelopes.		 100% completed, however cannot be implemented due to no funding
  33a) That the City explore options to consolidate tree trimming with Hydro Ottawa in order to ensure that trees trimmed for hydro lines are not damaging the life expectancy of the tree. Management agrees with this recommendation and the work is already in progress. 

The initial meeting was held to review the operations, roles and responsibilities.  Arboricultural specifications have been exchanged for comment and the review of professional content. 
In 2007, management staff will be pursuing the development of common technical documents.  City operations staff will work with their counterparts to maintain consistency in their respective trimming operations and to explore new initiatives such as working cooperatively to plant replacement trees.		   2007     Completed
Ongoing		 100%
  34 That Fleet Services management review its practices pertaining to preventative maintenance and off season storage with a view of optimizing the life span of the equipment. Management agrees with this recommendation. 

Work is already in progress as part of Strategic Alignment Initiative Facility rationalization plan. The implementation team will include representation from Fleet Services to assess maintenance impact of inside storage versus outside particularly during winter season. The Branches will work together in Q3 2007 to ensure the respective accountabilities optimize the lifespan of the equipment.		   Q3 2007   http://ottawa.ca/calendar/ottawa/citycouncil/occ/2007/05-23/disposition14.htm Completed
Council approved Surface Operations Branch Facility Rationalization and Consolidation Plan (ACS2007-PWS-SOP-0003), pending approval of IPD memo tabled for the September 5, 2007 Transportation Committee meeting.		 100%
  35 That Surface Operations identify dedicated resources to direct minimum standards to be met in tendering and to coordinate and track maintenance and replacement of vehicles; and that such staff resources be supported by ongoing training on current industry practice and governmental standards related to vehicle and equipment function and purchasing. Management Response from Surface Operations Branch
Management agrees with part of this recommendation.

The Surface Operations Branch has dedicated a position to provide Fleet with a single point of contact for acquisition requirements.  This position will also be working with Fleet Services on the development of a fleet equipment asset management strategy.		 The City Manager has requested a briefing from the DCM during their next one on one.  What is the equipment strategy issue and the role of the position, and how does this fit with the Service Level Agreements between Fleet and Surface Operations.       Completed
SOPS Comment:
On track
Surface Operations and Fleet Services have reengineered the acquisition process and the new process has been implemented.  The process has resulted in improved decision making and prioritization in this year's acquisition plan.  Operations Planning, once implemented, will provide additional information needed to make more strategic and longer term acquisition decisions.

Staff turnover in the dedicated fleet position in Surface Operations has temporarily delayed work on the Branch's equipment strategy.  Consulting resources have been engaged to provide temporary capacity to support "in flight" acquisitions.  It is anticipated that work on the equipment strategy will not resume until late 2007 or early 2008.		 100%
      Management Response from Fleet Services Branch
As a Center of Expertise, Fleet Services has the responsibility for planning, acquisition, disposal and replacement of vehicles.  As outlined in the Service Level Agreement (SLA), the operator (Surface Operations) is responsible for identifying operational requirements outlining what the equipment is required for.  Fleet Services take that information and develops specifications to meet those requirements based on the City of Ottawa’s purchasing By-law.  Fleet’s role is to understand client requirements and provide them with equipment to meet the minimum operational requirements in a cost effective manner.

Management does not agree with the part of the recommendation to provide Surface Operations staff with training on specifications as this would be a duplication of effort within the city, and would contravene the COE model and the SLA. This recommendation states that Surface Operations Branch should be responsible for areas that they are not accountable.  		        Briefing Note will be required.  
  36 That the truck bodies be placed on a re-habilitation program that would see them inspected, sand blasted and re-painted as the rusting begins to appear. Management disagrees with this recommendation.

Fleet Services does not perform any cosmetic repairs for rusting, as it does not affect the operation of the vehicle.  The condition of vehicle bodies is monitored as part of the annual inspection program.  Structural repair is done when the vehicle does not meet the Ministry of Transportation requirements.  Rusting is normally repaired if it is assessed that the rust will shorten the life of the vehicle. Cosmetic repairs are not done as a matter of course due to the additional cost.		 The City Manager agrees that as part of maintenance planning the painting of the vehicles should be considered.  A briefing is required at the next one on one meeting with the City Manager on how vehicles are tracked as part of the maintenance cycle for painting.  Ken Wetzel to provide the information from the fleet management system showing evidence that this is done.       Completed 100%
  37 That salt / sand spreaders (and other major equipment not in use seasonally) be washed, lubricated to prevent corrosion of the connections, electronics, conveyor systems and moving parts and mothballed during the off season. Management agrees with this recommendation. 

Washing, lubricating and off-season storage is an operational task and is part of regular seasonal changeover.  		        Completed.  Already part of regular maintenance. 100%
  38 That indoor storage be considered to keep single season units out of the weather until required; or that other provisions for secure mothballing of equipment be provided. Management agrees with this recommendation.

This will be considered as part of the facility rationalization project currently being undertaken as part of the Strategic Alignment Initiative, completion in Q3 2007.		   Q3 2007   http://ottawa.ca/calendar/ottawa/citycouncil/occ/2007/05-23/disposition14.htm Completed
Council approved Surface Operations Branch Facility Rationalization and Consolidation Plan (ACS2007-PWS-SOP-0003), pending approval of IPD memo tabled for the September 5, 2007 Transportation Committee meeting.		 100%