HomeMy WebLinkAboutCAO-06-066 - Referral of Projects to the 2007-2016 Capital Forecast - Chief Administrator's Department~- _ _
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Chief Administra tar`s
Office
Report To: Finance and Corporate Services Committee
Date of Meeting: December 11, 2006
Submitted By: Carla Ladd, Chief Administrator
Prepared By: Doug Paterson, Director, Human Resources and Shelley
Ogilvie, Supervisor, Corporate Health & Safety
Terry Boutilier, Brownfield Coordinator & Senior Planner
(Special Projects)
Ward(s) Involved: n/a
Date of Report: November 23, 2006
Report No.: CAO-06-066
Subject: Referral of Projects to the 2007-2016 Capital Forecast -Chief
Administrator's Department
RECOMMENDATION:
THAT the following capital projects be included in the 2007-2016 capital forecast for
consideration by the Finance and Corporate Services Committee as part of the 2007 budget
deliberations, as outlined in staff report CAO-06-066:
Vehicle & Equipment Permit System $200, 000 2007/2008
Brownfields Community Improvement
Plan TIF Payments $2,065,144 2007-2016
BACKGROUND:
Two new capital projects from the Chief Administrator's Department with budgets in excess of
$50,000 are to be referred to the City's ten-year capital forecast by a resolution of Council.
These are then evaluated during the budget approval process against all other project priorities
and funding constraints. This report provides information and recommendations with respect to
new project priorities for the Chief Administrator's Department, Human Resources, Corporate
Health & Safety and Economic Development, Business Development.
REPORT:
Vehicle and Equipment Permit System
The Corporation is required to ensure safe operation, operator competency and provide training
to operators by the:
• Occupational Health and Safety Act of Ontario, Ministry of Labour,
• Highway Traffic Act of Ontario, and the
• Commercial Vehicle Operator's Registration (CVOR), Ministry of Transportation.
The purpose of the Permit Program is to ensure that City staff possess the skills and knowledge
necessary for the safe operation of vehicles and other "self propelled equipment" prior to being
authorized to operate any City vehicle or equipment.
Although the City had a permit system at one time, in the 1990s the program was discontinued
due to lack of structure and renewal. At this time, the City does not have a formal Vehicle and
Equipment Permit System program.
Occupational Health and Safety Act
The Occupational Health and Safety Act of Ontario, enforced by the Ministry of Labour (MOL),
requires that employers ensure the safety of their vehicle operators through the safe operation
of its vehicles. As an employer, the City of Kitchener must ensure staff are held to a standard
level of vehicle operator competencies that are verified and documented. In situations of non-
compliance, the MOL has the authority to issue work orders, tickets and fines, and initiate and
lay charges, which can result in imprisonment. MOL enforcements can apply to the Corporation
in general, and to Corporate staff specifically.
Commercial Vehicle Operator's Registration (CVOR)
Under CVOR, enforced by the Ministry of Transportation, the Corporation is responsible for:
• ensuring vehicles are properly maintained;
• ensuring that competent drivers are behind the wheel;
• establishing policies to track vehicle maintenance and safety programs; and
• taking immediate corrective actions to correct inadequate programs and non-adherence
to programs.
Following a significant event such as a major collision, fatality or significant accumulation of
C.V.O.R. demerit points, the M.T.O. will conduct an enforcement audit.
The audit looks at the:
• vehicle profile,
• driver profile,
• training profile, and
• collision reporting.
Consequences of non-compliance
Based on the results of the audit, the M.T.O. may restrict fleet size, or issue warnings, orders or
fines to the Corporation, management or the driver directly.
Lacking a permit program, the Corporation is vulnerable under both the provincial safety
legislation and CVOR for fines, charges, orders and restrictions. Implementation of this program
will meet requirements under the Occupational Health and Safety Act of Ontario (Ministry of
Labour) and our CVOR requirements (Ministry of Transportation).
Brownfield Community Improvement Plan TIF Payments
In November of 2003, the Minister of Municipal Affairs approved of Kitchener's Brownfield CIP.
The Program began operation in 2004.
Since that time, four applications have been approved by City Council, pursuant to the Program,
and the respective Resolutions are attached. The Program provides grants, commencing in the
year following construction completion and re-assessment by MPAC. Grants continue for a
maximum period of 10 years, or until the total eligible remediation cost has been reached,
whichever comes first.
Rationale/Analysis:
1. Vacant and contaminated lands provide a range of negative effects on our community
and
increased municipal & regional operating costs in the form of policing, fire inspections
and bylaw enforcement. The contamination is an ongoing threat to the community's
drinking water supply.
2. Similarly, these properties have very low assessment values due to "little or no market
potential", and therefore low contribution to community costs (taxes).
3. Landowners to contaminated lands face four obstacles: Regulatory Liability, Civic
Liability, cost of clean-up and a reluctant Canadian Banking community to invest for all
the above reasons. Without some form of financial assistance these properties will not
be cleaned up and put back into productive use.
FINANCIAL IMPLICATIONS:
Vehicle and Equipment Permit System
Ultimately, an implemented operator competency system such as the permit program will
reduce vehicle and equipment costs due to damage, misuse and collisions. In 2005, for
example, the minimum estimated cost related to City vehicle collisions was $68,000. This
estimate does not include the cost of insurance claims, legal settlements, or the premature wear
caused by misuse of equipment.
Initially though, the implementation of a permit system will require both internal and external
resources. Over a two year period, resources required will include administration and equipment
costs, and costs related to staff, professional consultant and instructor time.
Determining the cost must take into account that the City:
• has approximately 841 drivers /operators,
• owns approximately 1079 vehicles and other "self-propelled equipment".
Furthermore, the determination of competency varies depending on the class of equipment and
skill required to safely operate the equipment. Staff may need to acquire several permits,
depending on the equipment and vehicles their position requires them to operate.
Over the last two years, a working committee composed of across-section of management staff
has developed a Vehicle and Equipment Permit System in consultation with all affected work
areas. The committee, with the help of all affected areas, also conducted a series of needs
analyses which identified the following:
• overall administrative time commitment
• numbers and types of permits staff will require
• minimum assessment and coaching standards for each class of equipment
• time commitment for coaching and assessment for each class of equipment
• approximate cost to deliver coaching and assessment for each class of equipment.
• requirements, by department, for coaching, assessment, staffing, professional
resources and equipment for each classes of equipment
The implementation model is a phased-in approach beginning with a grandfathering process.
Experienced, competent operators, estimated at 60% of existing operators, could be eligible for
a permit without additional coaching or assessment. This would reduce the coaching and
assessment costs.
Taking the grandfathering into account, the needs assessment estimated the following:
• 2162 hours will be required to assess staff skills and implement the program
• $200,000 is the estimated overall cost to implement the program over a 2 year
period.
As much as possible, the cost for implementation will be minimized through careful scheduling
and the use of internal resources. The goal for complete implementation is December 31St
2008.
Once the Permit System is implemented, a maintenance program will ensure operators remain
competent and new operators competencies are assessed and documented prior to operating
City owned equipment and vehicles. A cost analysis will be conducted during the
implementation process to determine as accurately as possible the ongoing maintenance
program cost.
Brownfield Community Improvement Plan TIF Payments
The following amounts are included in the capital provision:
Application Approved Amount
537/547 Frederick St. DTS-04-138 $ 34,630
1240 King St. East DTS-06-043 177,498
90 Woodside Avenue DTS-06-084 972,208
112 Benton Street DTS-06-061 880,808
$ 2,065,144
If supported, the capital projects proposed in this report will be referred to capital budget
deliberations. They will then be evaluated against all other capital projects and funding
constraints within the ten-year forecast.
Carla Ladd
Chief Administrator