HomeMy WebLinkAboutINS-11-020 - Electronic Key Mgt System
REPORT TO:
Special Council
DATE OF MEETING:
February 7, 2010
SUBMITTED BY:
Pauline Houston, Deputy CAO, Infrastructure Services - 2646
PREPARED BY:
Pauline Houston
WARD(S) INVOLVED:
N/A
DATE OF REPORT:
January 26, 2011
REPORT NO.:
INS 11 - 020
SUBJECT:
ELECTRONIC KEY MANAGEMENT SYSTEM – addendum
to tender report FCS-11-016
RECOMMENDATION:
For information.
BACKGROUND:
This report provides additional information to support tender report FCS-11-016 – Electronic
Key Management System as requested by members of Council at their meeting on January 24,
2011.
REPORT:
Cost of Key Replacement:
Based on a fleet size of 450 vehicles, 300 drivers and average of 100 keys lost per year, the
total annual cost for key replacement is $7,500.
In addition to lost keys, time is spent locating or replacing missing keys costing approximately
$45,500 per year.
Based on these costs alone, the payback period for the key management system is 2.67 years.
An automated key management system facilitates increased vehicle sharing/pooling between
divisions, thus improving equipment utilization and reducing fleet size. Given the cost of
vehicles (e.g. $200,000 per dump truck; $45,000 per crew cab; $29,000 per pickup truck), the
key management system would pay for itself in one to three years, based on reducing fleet size
by just one vehicle.
An automated key management system will also ensure that only drivers with current permits to
operate specific equipment will have access to those vehicles. This process will reduce the cost
of preventable vehicle collision damage that occurs.
The City’s Internal Auditor as well as the Quality Management Auditors for Fleet and for Water
Quality have recommended the implementation of an automated key management system to
improve security of assets and more importantly, to ensure quick access to vehicles for
emergency response.
Many medium to large organizations utilize automated key management systems to improve the
efficiency of their operations. Some examples include Long Beach Transit Authority, City Of
Toronto – Union Station, City of Minneapolis, City Of Barrie, and Rochester Housing Authority.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Theme: Financial Management
Strategic Direction: Ensure responsible use of public funds within a supportive policy
framework. The City of Kitchener’s purchasing policies and practices ensure openness,
fairness and transparency in the procurement of goods and services.
FINANCIAL IMPLICATIONS:
Not applicable to this report.
COMMUNITY ENGAGEMENT:
Not applicable.
ACKNOWLEDGED BY:
P. Houston, Deputy CAO, Infrastructure Services