HomeMy WebLinkAboutCAO-07-003 - Vehicle & Equipment Permit ProgramHuman Resources
Report To: Finance and Corporate Services Committee
Date of Meeting: January 29, 2007
Submitted By: Doug Paterson, Director Human Resources
Prepared By: Shelley Ogilvie, Supervisor, Corporate Health & Safety
Ward(s) Involved: n/a
Date of Report: January 22, 2007
Report No.: CAO-07-003
Subject: VEHICLE AND EQUIPMENT PERMIT PROGRAM
RECOMMENDATION:
That a Vehicle and Equipment Permit Program be reinstated at the City of Kitchener; and further,
That the cost of $200,000 for the two year implementation of this program be included in the 2007-2016
capital forecast for consideration by the Finance and Corporate Services Committee, as part of the 2007
budget deliberations, and further,
That the funding for the program to come from the City of Kitchener Equipment Reserve.
BACKGROUND:
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 program policy, structure and renewal of the program and the permits. At this time, the City does not
have a formal Vehicle and Equipment Permit System program.
REPORT:
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).
FINANCIAL IMPLICATIONS:
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 program will require both internal and external resources.
Over a two year period, resources required will include administration and equipment costs, costs related
to staff, professional consultants 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",
• City of Kitchener vehicles and equipment can be broken into 50+ distinct classes each requiring
it' s own permit.
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 Program in consultation with all affected work areas
(Appendix A contains the specific data collected). The committee, with the help of all affected areas, also
conducted a series of needs analyses which identified the following:
• overall additional administrative time commitment
• numbers and types of permits staff will require
• minimum assessment and coaching standards for each class of equipment
• time required for coaching and assessment for each class of equipment by department
• approximate consulting costs to deliver coaching and assessment for each class of equipment.
• requirements, by department, for coaching, assessment, additional staffing coverage,
professional resources and rental equipment for each classes of equipment
The needs analysis does not incorporate the cost for current vehicle and equipment training and
assessment staffing.
The implementation model is a phased-in approach beginning with a grandfathering process.
Experienced, competent operators, estimated at 60°Io 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 phase 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 Program is implemented, a maintenance program will ensure operators remain competent
and new operator 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.
Shelley Ogilvie, Supervisor, Corporate Health & Safety
Appendix A: Vehicle and Equipment Permit Program Needs Analysis
PERMIT IMPLEMENTATION OVER VIEW **
Total Cost Estimate for Coaching $94,162.60
Total Cost Estimate for Evaluation $60,920.00
Total Cost Estimate for Administration $2,500.00
Rental Equipment * $40,000.00
Total $197,582.60
* rental equipment may be needed during implementation phase to
meet coaching and evaluations needs without hindering operations.
This amount is an estimated amount.
Example: loader = $475 /day, roller = $278 /day, backhoe loader =
$295 /day, dozer = 359 /day
** this budget is intended for the implementation phase of the permit
system and is not considered a permanent operating budget for the
program.
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