#	Recommendation	Management Response	Est Comp Date	Status Updates (In Progress; Pending; Complete; Requires Resolution)
2	That Fleet Services: (a) Revise its replacement criteria using total lifecycle costing, which may result in extended lifecycles; (b) Elaborate a sustainable replacement plan based on documented criteria instead of theoretical lifecycles; and (c) Quantify all impacts of delaying replacements.	2(a)/(b): Management agrees with this recommendation. Management currently submits a sustainable vehicle replacement plan through the Long Range Financial Plan. Council determines affordable funding levels during annual budget cycles. Fleet Services vehicle lifecycles are based on industry standards; the City fleet is older than these standards as supported by independent analysis. There is a process of assessing replacement priority that considers age, usage, condition, cost and operational needs. Fleet Services will commence a process of determining economic life by implementing the equivalent annual cost (EAC) methodology through phases in 2007, starting with identifying the best opportunity for savings and priority identification by end of Q3 2007. This process may lead to shorter or longer lifecycles. 2(c): Management agrees with this recommendation. Since 2005 Fleet Services has identified impacts of delayed replacements in the annual replacement report to Council in advance of budget deliberations and will continue to do so.	Q3 2007	December 2009: In Progress. a) & b) Fleet Services’ Shared Services Plan / City Efficiency Program (Transform Fleet Management) will be developed by end of Q2 2010 and will address these issues. June 2009: a) & b) The recently appointed Fleet Services Manager has developed an understanding of the importance of this recommendation and will take the steps necessary to ensure that appropriate resources are assigned to this project. c) Complete. December 2008: Work will be included in the 2009 workplan and is expected to be complete by Q4 2009. October 2008: a) & b) The resource identified to further develop the EAC model was removed as part of the 2008 FTE reduction. Options to continue this project will be explored through 2009. c) The 2009 Replacement Report continued to identify the financial consequence of not replacing vehicles. The resource identified to further develop the EAC model was removed as part of the 2008 FTE reduction. August 2008: No change from May update. Expected completion Q1 2009. May 2008: a) & b) Project further delayed by six months. Staffing not processed due to staff movements out of the lifecycle analysis section. c) Delay in producing EAC analysis of item 2a) and b) above will not allow Fleet to improve the methodology of assessing impact of not renewing the fleet in its 2009 Replacement report. The same method used in previous report will be used. January 2008: Project delayed. Contract expected in Q4 2007 did not occur due to budget restrictions and delays in staffing process. Contract is now expected in Q2 2008 assuming vacancies are filled in Q1. 2007: Consultant will be hired to do the EAC analysis. Will be further costs in 2008. a) & b) Fleet priority identification to be completed by end of Q3. Development of a SOW for consultant contract is in progress. Contract expected in Q4. c) The 2008 Replacement Report, tabled at CSEDC on September 18, 2007, identifies the impact of not renewing fleet.
5 5	That Fleet Services: (a) Establish benchmarks, Key Performance Indicators (KPIs) and target performance levels, identify key success factors, identify gaps and investigate exceptions; (b) Should implement a dashboard or balanced scorecard system to track all KPI’s on a regular basis and increase accountability of the organization; (c) Document vehicle abuses and elaborate strategies to minimize the costs related to misuse; and (d) Elaborate an action plan to reduce the number of breakdowns and operator reports by reviewing preventive maintenance programs and measuring work quality in terms of Mean Time Between Failures (MTBF) or downtime and drilling down per category, per garage or per user groups until the root causes are identified.	5(a)/(b): 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. 5(c): 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. 5(d): Management agrees with this recommendation. Fleet Services currently does failure analysis on a case-by-case basis to meet known problems. With the implementation of the new FMIS, a systematic review of mean times between failures will be established. Implementation is scheduled for end of Q2 2008.	Q2 2008	December 2009: In Progress. d) Transit Lead: MTO officials have reviewed and accepted the preventative maintenance programs. Additional M5 enhancements and internal procedures are being considered and implemented to facilitate (MTBF), root cause analysis, etc. Projected completion date is the end of Q4 2010. June 2009: d) Delays in the implementation of M5 have been the root cause of the delay in implementation. A review of this implementation with a focus to accelerate this process is currently being undertaken. December 2008: d) M5 was implemented in Transit Services on October 21, 2008. Staff will continue to sort out data integrity and process issues through January 2009. The first failure analysis and reporting utilizing this data will begin at the end of Q1 2009. August / May 2008: d) No change. January 2008: d) M5 Implementation in Transit Fleet Maintenance has been rescheduled until Q4 2008. a) b) c) Complete.
11 11 11	That Fleet Services join Materials Management in a combined effort to: (a) Revise store staffing requirements; (b) Improve training for storekeepers; (c) Measure waiting times at the counter and set targets acceptable to Fleet Services; (d) Document and eliminate clandestine inventory; and (e) Introduce performance measures for stores and include them in a service level agreement with Fleet Services.	11(a): Management does not agree with this recommendation. Management recognizes the intent of the recommendation however it disagrees that it can be implemented using existing resources. Approval will be requested for an additional $180K Operating Budget funding in 2008 in order to allow Municipal Materials Management to hire three (3) Purchasing Stores Clerks to support currently unattended technician shifts. Presently, there are not any available resources to transfer staff from a regular day shift to an evening or night assignment. 11(b): Management does not agree with this recommendation. Management recognizes the intent of the recommendation however it disagrees that it can be implemented using existing resources. Training is required in order to maximize the efficiencies of SAP and improve training in other areas of concern to Fleet Services. Approval is required for an additional $100K in the 2008 Operating Budget in order to allow Materials Management to complete this training by January 2009. 11(c): Management does not agree with this recommendation Management recognizes the intent of the recommendation however it disagrees that it can be implemented using existing resources. Materials Management will request approval for one-time Capital Budget funding of $60K in order to purchase an electronic queuing system and an on-going Operating Budget increase of $7K is required to cover the life cycle costs for the continued use of the system. It will be completed six (6) months after the receipt of the 2008 budget approval. 11(d): Materials Management agrees with this recommendation. Materials Management will continue to assist Fleet Services by cataloguing and restocking parts that are presented to Materials Management by Fleet Services to be held in inventory. 11(e): Materials Management agrees with this recommendation. Materials Management, in conjunction with Fleet Services, will review requirements and establish service level performance measures.	Q1 2009	December 31, 2009: In Progress. c), d), e) The City’s Efficiency Program (Transfer Fleet Management) includes a plan specific to these items and will be developed by end of Q2 2010. A major initiative of the Efficiency Program to outsource the parts store to an outside provider will resolve this issue as they will be included with other key service standards for the providers. June 2009: c) A review of Stores performance, including this item will be undertaken in Q3 and will ensure proper metrics are in place by the end of the year to measure this performance. d) Facility Review and construction were delayed pending management review of operational practices and the supporting space requirements. Expansion of the stock room is on hold pending this review. In the interim, temporary storage has been arranged to secure the remaining 20% of materials affected by this delay. Completion is expected by Q4 2010. e) Transit Bus Maintenance and its Materials section are under reorganization with KPIs to be determined as part of this process. Completion is expected in Q3 2009. December 2008: a) Complete. Stores confirmed that they did receive approval for the 3 FTEs in the 2008 budget and have completed the hiring. b) Complete. Stores received approval of $100K in the 2008 budget to improve training for stores keepers. This was included within project IT002550 and training has been implemented. c) Stores has confirmed that they have purchased the equipment to measure waiting time at the store. The system has been implemented at Swansea with complete implementation expected by Q3 2009. d) Construction that is required in the garage to expand the stock room has been delayed pending final agreement between Fleet and Stores on the configuration of the space. Approximately 80% of goods have been secured. Remaining 20% not yet secured due to construction delays. Parts values have been determined and agreed upon by Fleet and Materials Management at 25% of new. Inventory levels have been established. On target for Q1 2009. e) The Senior Stores Clerk position was filled by an internal candidate, which has caused backfilling difficulty and project delays. The project is now underway. Stores is collecting metrics and will be meeting with Transit Fleet Maintenance in Q1 2009 to finalize them. August 2008: d) Supply Update: Project ongoing. e) Supply Update: Senior Stores Clerk position has been staffed. This position will develop performance measures for Materials Management to be included in services level agreement. May 2008: d) Supply Update: Transit Materials has completed approximately 10% of this project to date. Funds have been allocated to carry out the capital requirements of the project which will be dependent on space improvement currently in the design phase for the St. Laurent garage. e) Supply Update: Transit Materials has posted and is in the process of hiring a Senior Stores Clerk to support this requirement. February 2008: a) Resolution. Through the Finance branch process review, a survey has been distributed to other like organizations, and the feedback currently being received will be helpful in responding to the AG recommendation which suggests increasing the inventory turnover ratio. A briefing note on the subject will be presented to CAWG during the second quarter of 2008. Implementation is dependant on approval of the 2008 budget in Q4 2007, after which Supply will revise store staffing requirements. If budget not approved, Supply will prepare a briefing note to CAWG in Q1 2008 Management and the AG agree that additional resources will be required. However, prior to requesting additional resources, management has made a commitment to advance the review of the Fleet Services branch, as part of the Branch Process Review Program. Any savings identified through this process will be used to fund activities related to implementing the Auditor General’s recommendations. The BPRP review will take place by Q3 2008. This recommendation has been moved to the ongoing status tracking report. b) Resolution. Although the 2008 training budget has not been increased to allow the issue specific training envisioned by MM, we will undertake an analysis of needs in this regard. The priorities which will be identified through this process will be targeted for training during 2008 by existing senior staff. High level Supply reconciliation complete, however the item is being analyzed in greater detail by Supply Management at the request of the AG. Management and the AG agree that additional resources will be required. However, prior to requesting additional resources, management has made a commitment to advance the review of the Fleet Services branch, as part of the Branch Process Review Program. Any savings identified through this process will be used to fund activities related to implementing the Auditor General’s recommendations. The BPRP review will take place by Q3 2008. This recommendation has been moved to ongoing status tracking. c) A competitive procurement process was completed in Q4 2007, the contract for the equipment was approved, the equipment was ordered and received, and payment was made using 2007 funds identified for that purpose. The system will be implemented during Q1 2008, at a number of stores locations. Supply plan to implement a counter monitoring system to measure waiting times and provide management with meaningful information on ""waiting times"" using 2007 funding. Purchasing plan to obtain bids in Q4 2007. Resolution: Management and the AG agree that additional resources will be required. However, prior to requesting additional resources, management has made a commitment to advance the review of the Fleet Services branch, as part of the Branch Process Review Program. Any savings identified through this process will be used to fund activities related to implementing the Auditor General’s recommendations. The BPRP review will take place by Q3 2008. This recommendation has been moved to the ongoing status tracking report. d) Supply Update: Fleet and Supply have agreed to either add the parts to stock or to dispose of them in accordance with the Purchasing By-Law. Implementation underway for completion during 2008. e) Supply Management update: Discussions have taken place between Supply and Fleet to implement the AG recommendation, and are ongoing for completion during 2008.
15	That Fleet Services establish a series of performance indicators, track them systematically in a dashboard and that Fleet Services be accountable for them.	Fleet Services agrees with this recommendation. Fleet Services already has some established performance indicators, namely those that are part of OMBI (Ontario Municipal CAO’s Benchmarking Initiative) and some that are strictly internal to the City of Ottawa (including one dashboard measure). Fleet Services is leading the development of other indicators with CAMFM (Canadian Association of Municipal Fleet Managers). With the arrival of a single Fleet Management Information System, Fleet Services will be in a position in 2008 to expand the dashboard indicators.	Q4 2008	December 31, 2009: In Progress. Dashboard implementation is planned to occur by the end of Q2 2010. June 2009: Delays in the implementation of M5 have been the root cause of the delay in implementation. A review of this implementation with a focus to accelerate this process is currently being undertaken. December 2008: M5 went live in Transit on October 22, 2008. M5 has many standard KPIs. Transit will be looking at enhancing these over time. Project is on target for Q4 2009. August / May / January 2008: Due to M5 project delay by 1 year, new target is Q4 2009.
17	That Materials Management consolidate and repatriate all parts, new, used and remanufactured, within official inventory	Management does not agree with this recommendation. Management recognizes the intent of the recommendation however it disagrees that it can be implemented using existing resources. Materials Management believes that the used and remanufactured material currently residing outside their span of control should be moved from Fleet Services control into a secure environment and recorded in the SAP system. The opportunity to create a secure and effective storage area will present itself with the opening of the Swansea Rebuild area under the Fleet Capacity Optimization project. Three (3) new staff positions at a cost of $183K were approved in the 2007 Operating Budget. Additional funding requests of $140K are planned for 2008 for racking and equipment to create a clean, safe and controlled storage environment. Materials Management will assume control and movement of the materials in 2007, where appropriate, following a risk assessment and cost-benefit analysis. Full and secure control of the appropriate stock will occur by the end of 2008 following budget approval.	Q4 2008	December 31, 2009: In Progress. The City’s Efficiency Program (Transfer Fleet Management) includes a plan specific to these items and will be developed by Q2 2010. A major initiative of the Efficiency Program to outsource the parts store to an outside provider will resolve this issue as they will be included with other key service standards for the providers. June 2009: Facility review and construction were delayed pending management review of operational practices and the supporting space requirements. Expansion of the stock room is on hold pending this review. The 20% of unsecured materials affected by this delay are composed mainly of components and assemblies of low street value or are difficult to lose due to theft or being misplaced. Completion is expected by Q4 2010. December 2008: Transit Services is undertaking a Space Utilization review scheduled for completion by Q2 2009. Once completed, necessary space will be freed up or renovated by Q2 2010. Materials Management will continue to integrate and assume control of materials as current space becomes available or is capable of being secured in keeping with operational needs. Supply Management Comment: Management plans to bring all appropriate stock into inventory by Q4 2008. Approved increases in staff are currently underway with training to be completed in Q4 2007. By Q1/Q2 2008 necessary internal storage space within St. Laurent South will become available once Fleet vacates the area which is currently occupied by a group moving to Swansea under the Fleet Capacity Optimization Project. Approximately $140K will be sought in the 2008 Capital Budget to cover the installation of racks and shelving and the creation of a secure area. In 2008 staff will commence identifying all new, used and remanufactured parts and complete movement and inventorying of all remaining outstanding materials in the secured area. Resolution: Management and the AG agree that additional resources will be required. However, prior to requesting additional resources, management has made a commitment to advance the review of the Fleet Services Branch, as part of the Branch Process Review Program. Any savings identified through this process will be used to fund activities related to implementing the Auditor General’s recommendations. The BPRP review will take place by Q3 2008.
19	That Fleet Services implement a preventative maintenance program for bodies and structures.	Fleet Services agrees with this recommendation. A Materials/Mechanical engineer was hired in 2005 to develop a preventative corrosion protection program for bus chassis and structures. This program for all the transit bus fleet is under development, with support from other transit agencies such as STO (Gatineau) and STM (Montreal), as well as bus manufacturers. In the interim, Fleet Services has implemented an inspection protocol for its newest transit bus models, D60LF (227 buses) and D40i (239+ buses). Inspections have been established in 2005 and updated in 2006, and meet the bus builder recommended preventative maintenance schedule.		December 31, 2009: In Progress. Transit Lead: Condition assessment training is planned for Q1 2010. Implementation will commence in Q2 2010. June 2009: Phase 1 (development) has been extended to include Phase 2 (procedure validation) and is scheduled for completion in Q3 2009. Procedure validation to occur in June 2009. December 2008: Phase 1 has been delayed by the consultant (NRC), which impacts the ability to initiate Phase 2 (procedure validation) scheduled for Q1 2009. Pending funding approval, Q2 2009 should see Phase 2 completed. Meanwhile, corrosion programs level I (Bus wash procedure and visual inspection reporting) should now begin in Q1 2009 with the implementation of Maximus M5 in Transit Maintenance. October 2008: Phase 1 has been delayed by the consultant (NRC) which impacts ability to initiate Phase 2 (procedure validation) scheduled for Q4 2008. Q1 2009 should see Phase 2 completed. Meanwhile, corrosion programs level I (Bus wash procedure and visual inspection reporting) should now begin in Q1 2009 since Maximus M5 is implemented in Transit Maintenance. August 2008: Phase 1 to be completed Q3 2008, and Phase 2 (procedure validation) in Q4 2008. Meanwhile, corrosion programs level I (Bus wash procedure and visual inspection reporting) to commence Q4 2008. January 2008: Fleet Services Comment: NRC contracted to perform Phase 1. Phase 1 completion has been delayed to Q1 2008. Phase 2, to be completed by NRC, would result in a detailed PM plan by Q3 2008 and will require funds. Funding requirements will be known once Phase 1 is completed. Once Phase 2 is completed, implementation could commence in 2009 subject or resource availability in TFM. Fleet Services Comment: NRC contracted to perform Phase 1. Phase 1 completion has been delayed to Q4 2007. Phase 2, to be completed by NRC, would result in a detailed PM plan by Q2 2008 and will require funds. Funding requirements will be known once Phase 1 is completed. Once Phase 2 is completed, implementation could commence in 2008/2009 subject or resource availability in TFM.
21	That Fleet Services and Supply Management determine the exact costs of reconditioning components (ABC - Activity Based Costing) and charge all the reconditioned parts to the inventory.	Management agrees with this recommendation. However, costing the components is complex and needs further review by Supply Management, Accounting and Reporting and Fleet Services. This work will be completed by the end of 2008.	Q4 2008	December 31, 2009: Pending. The rebuild operation is currently under review by Transit Maintenance with the assistance of JLA Consultants who are engaged to assist in the re-organization of Transit Maintenance operations. Data collected is being used to review operational costs in terms of direct and overhead costs and is central to this review process. Finance will review the ABC requirement in light of this initiative. Pending this Finance decision all current re-conditioned parts are charged to inventory using standard part costs. June 2009: Processes for controlling inventory in SAP and recording the work in M5 were developed allowing for complete costs to be collected and analyzed to arrive at the exact cost of parts. Recording inventory will commence in Q2 with costs determined and recommendation achieved by Q4 2009. December 2008: M5 implementation is now complete. Data is currently being collected. Once data collection is complete, it will be analyzed and new costing will be applied. Estimated date of completion is Q2 2009. October 2008: Implementation of M5 will supply rebuilt costs. Further discussions with stakeholders required to determine impacts. August 2008: Stakeholder meeting occurred. Expected completion of project end 2008. Costing the components is complex and needs further review by Supply Management, Accounting and Reporting and Fleet Services. A further meeting with these various stakeholders is scheduled for Q4 2007, and this work will be completed by the end of 2008.
22	That Fleet Services elaborate and document its refurbishing program.	Management agrees with this recommendation. A procedure is already in place for determining which buses will be reconditioned and on what frequency. A spreadsheet detailing past, present and future activity exists however the process has not been documented. Fleet Services will undertake to complete this documentation of the process by Q3 2007.	Q3 2007	December 31, 2009: In Progress. Transit Lead: Condition assessment training is planned for Q1 2010. Implementation will commence in Q2 2010. June 2009: No change from December update. December 2008: M5 went live in Transit Services on October 21, 2008 and will generate adjustments to many existing procedures. Implementing new processes will not be feasible for another four months, until consultant reports on Transit Maintenance Management Review. When combined with the work under #19 above, this will produce a process and procedure to document the refurbishing program. Estimated date of completion is Q4 2009. October 2008: Maximus M5 (fleet management info system, replacing SAP) went live in Transit Services on October 21, 2008, and will generate adjustment to many existing procedures. Implementing new processes will not be feasible for another 3 months. When combined with the work under #19 above, this will produce a process and procedure to document the refurbishing program. EDC Q2 2009. August 2008: Implementation of Maximus M5 (fleet management info system, replacing SAP) in October 2008, combined with the work under #19 above, will provide the necessary means and procedure to document the refurbishing program. January 2008: This project is linked to #19 as inspections for the refurbishment program are part of the overall PM process. Phase 1 delayed to Q1 2008. Once the Phase 2 plan documentation is complete in Q3 2008, an updated process document regarding the refurbishment program will be generated. EDC Q3 2008. This project is linked to #19 as inspections for the refurbishment program are part of the overall PM process. Phase 1 to be complete by Q3 2007. Once the Phase 2 plan documentation is complete in Q1 2008, an updated process document regarding the refurbishment program will be generated. EDC Q2 2008.
23	That Fleet Services document the preventative maintenance program and train/inform the mechanics.	Management agrees with this recommendation. Transit Fleet’s Preventative Maintenance program is presently under review. Some changes have already been implemented and it is anticipated that further modifications will be introduced by Q3 2007. Training is being carried out as part of the review as is the use of working groups to optimize the programs. Also, the implementation of a new Fleet Management Information System (FMIS) in the latter part of Q4 2007 will provide Transit Fleet Maintenance with the tool necessary to better manage the program.	Q4 2007	December 31, 2009: In Progress. Transit Lead: Transit Engineering is actively reviewing the preventative maintenance programs within M5 to ensure compliance with MTO regulations and manufacturers recommended maintenance. This work will be complete by the end of Q1 2010. June 2009: Rail, Safety & Development Branch has just completed the Level 3 inspection procedures with the NRC (National Research Council). Field testing of the new process was conducted in June 2009. Implementation will be integrated into the inspection schedules under review in conjunction with JLA consulting. All revised inspections and preventative maintenance procedures will be rolled out in a phased approach starting in September 2009. Project is expected to be complete in August 2010. December 2008: Recommendations by Bronson Consulting, regarding Preventative Maintenance program requirements for OC Transpo's fleet of buses, were entered into M5 at implementation in October 2008. Refinements to these programs will continue through June 2009 during which time mechanics will be trained on new procedures. August / May 2008: No change. Q4 2008 implementation timeline. January 2008: Preventative Maintenance program has been reviewed and changes to the program identified. The revised PM program will be implemented at the same time as M5 in Transit Fleet Maintenance. M5 Implementation in Transit Fleet Maintenance has been rescheduled until the end of Q2 2008.
34	That Fleet Services’ budgeting process be reviewed to: · Reassess its process for informing the appropriate client/business unit of expected budget overruns; · Reassess the accountability of each business unit (Fleet Services, Supply Management or Fleet Services’ clients) over expenses incurred by Fleet Services; · Identify the cost drivers for each of Fleet Services’ expenses; · Develop tools to measure and track each cost driver; · Allocate each cost driver’s responsibility to the appropriate business unit, and incorporate performance measures to the budget of each business units controlling these cost drivers.	Management agrees with the recommendation. The current billing system of charging actual costs to clients does not accurately reflect the allocation of responsibilities for cost drivers. A lease-based system would more accurately reflect these cost drivers, including usage, workshop efficiencies, accident damage and misuse. Fleet Services will investigate the opportunity of moving to a lease-based system by the end of 2008.	Q4 2008	December 31, 2009: In Progress. The City’s Efficiency Program (Transfer Fleet Management) includes a plan specific to these items and will be developed by Q2 2010. A major initiative of the Efficiency to outsource the parts store to an outside provider will resolve this issue as they will be included with other key service standards for the providers. June 2009: Further to the December update, consultants will be hired in Q3 and Q4 to ensure this project is complete prior to Fiscal Year 2010. December 2008: Fleet Services has undertaken a number of initiatives in moving toward a lease-based system. This was examined in the Branch Business Process Review and the results recommended that a lease-based system be implemented. A Terms of Reference has been written to retain a consultant to assist in the development of a framework and to recommend an implementation plan targeting January 1, 2010. Implementation of this system will identify cost drivers for each expense as well as development of measures to track each cost driver. A review of the Fleet/Stores relationship will be undertaken following the finalization of Phase 3 of the corporate realignment. October 2008: Project identified in BPRP #6.1. Project has been integrated into Fleet Services Branch Strategic Plan. August 2008: BPRP Complete. BPRP report going to EMC Q4 2008. Project will be undertaken as a result of BPRP. May 2008: On target, to be completed as part of Fleet Services Branch Business Process Review. Terms of Reference being finalized for KPMG to review the chargeback model. No budget implications. Chargeback methodology to clients may change based on recommendation. January 2008: On target, to be completed as part of Fleet Services Branch Business Process Review.