REPORT TO COMMITTEE(S) OF COUNCIL

INTERNAL ROUTING CHECKLIST

 

ORIGINATING DEPARTMENT: PWS

DIVISION:  Surface Operations

REPORT AUTHOR: John Manconi

PHONE No. 21110

REPORT TITLE:  SOPS Integrated Security and Inventory Controls

REFERENCE No:ACS2007-PWS-SOP-0005

DOCUMENT FILE NAME/PATH:      

APPLICANT:        

APPLICANT’S ADDRESS:        

WARD:   City-wide

CONTROVERSIAL:    Yes    No

To Be Presented To

Date of Meeting

Committees 

1.  Transportation Committee

 Next or 5 September 2007

2. 

 Next or

Council

  26 September 2007

Other Divisions/Branches Consulted

Forwarded To

Financial Services Unit or Financial Planning

 YES   NO

Supply

 YES   NO

Legal Services

 YES   NO

By-law Services

 YES   NO

Environmental Management Division

 YES   NO

Real Property Asset Management Branch

 YES   NO

Infrastructure Services Branch

 YES   NO

Others: Ottawa Forests and Greenspace Advisory Committee

 YES   NO

Contacted / Consulted / Advised by Department

Elected Official(s) / Ward(s)

 

Public Groups /Individual(s)

General public

Advertising/Notice

 

Regular Advertising Required

 NO   YES Date: usual

Municipal Act Notice Required

 NO   YES Date:      

For Originating Department’s Use

Approved

Date

1.

Originating Division Director or Delegate - - Report is acceptable

John Manconi

26 July 2007

2.

Financial Services Unit Manager, Financial Planning or Delegate (if applicable) – Report Recommended to General Manager

Jim Raycroft

26 July 2007

3.

Supply (if applicable) – Report Recommended to General Manager

     

     

4.

Corporate Security

Bob Gauvreau

25 July 2007

5.

Program Manager

 

 

6.

District Manager or Delegate – Report approved to leave Department Manager

 

 

7.

Deputy City Manager or Delegate – Report approved to leave Department

R.G. Hewitt

         “

13 August 2007

24 August 2007

 

2.             Surface Operations integrated security and Inventory controls

 

SÉCURITÉ ET VÉRIFICATIONS D’INVENTAIRE INTÉGRÉES POUR LES OPÉRATIONS DE SURFACE

 

 

 

Committee recommendation

 

That Council approve:

 

1.         The implementation of physical security measures at the 19 Surface Operations maintenance yards identified for long-term use in accordance with corporate security standards at a total capital cost of  $1.25M, with an associated annual operating costs of $83,000 for ongoing support and maintenance.

 

2.         Funds in the amount of $1.25 M be drawn from the City Wide Reserve Fund to fund this requirement.  The ongoing operating maintenance requirements of $83,000 will be included in the 2008 draft operating budget.

 

 

Recommandation dU ComitÉ

 

Que le Conseil approuve :

 

1.         La mise en śuvre, conformément aux normes de sécurité de la Ville, des mesures de sécurité physique pour les 19 cours d’entretien devant faire l’objet d’une utilisation de longue durée, moyennant des coűts d’immobilisation totaux de 1,25 millions de dollars et des coűts de fonctionnement annuels (soutien et maintenance) de 83 000 $.

 

2.         Le prélčvement de crédits de 1,25 millions de dollars dans le Fonds de réserve de la Ville pour le financement de cette opération.  Les frais de maintenance de 83 000 $ seront prévus au budget de fonctionnement préliminaire de 2008.

 

 

 

 

 

Documentation

 

1.                  Deputy City Manager, Public Works and Services report dated 8 August 2007
(ACS2007-PWS-SOP-0005).

 

 

 

 

Report to/Rapport au :

 

Transportation Committee / Comité des transports

 

and Council / et au Conseil

 

8 August 2007 / le 8 aoűt 2007

 

Submitted by/Soumis par:

R.G. Hewitt, Deputy City Manager/Directeur municipal adjoint,

Public Works and Services/Services et Travaux publics

 

Contact Person/Personne-ressource:  John Manconi, Director/Directeur

Surface Operations/Opérations de surface

613-580-2424, x/poste 21110, John.Manconi@ottawa.ca

 

City Wide / Ŕ l'échelle de la Ville

Ref N°: ACS2007-PWS-SOP-0005

 

 

SUBJECT:
Surface Operations integrated security and Inventory controls

 

 

OBJET :

SÉCURITÉ ET VÉRIFICATIONS D’INVENTAIRE INTÉGRÉES POUR LES OPÉRATIONS DE SURFACE

 

 

REPORT RECOMMENDATION

 

That the Transportation Committee recommend that Council approve:

 

1.         The implementation of physical security measures at the 19 Surface Operations maintenance yards identified for long-term use in accordance with corporate security standards at a total capital cost of  $1.25M, with an associated annual operating costs of $83,000 for ongoing support and maintenance.

 

2.         Funds in the amount of $1.25 M be drawn from the City Wide Reserve Fund to fund this requirement.  The ongoing operating maintenance requirements of $83,000 will be included in the 2008 draft operating budget.

 

 

RECOMMENDATION DU RAPPORT

 

Que le Comité des transports recommande au Conseil d’approuver :

 

1.         La mise en śuvre, conformément aux normes de sécurité de la Ville, des mesures de sécurité physique pour les 19 cours d’entretien devant faire l’objet d’une utilisation de longue durée, moyennant des coűts d’immobilisation totaux de 1,25 millions de dollars et des coűts de fonctionnement annuels (soutien et maintenance) de 83 000 $.

 

2.         Le prélčvement de crédits de 1,25 millions de dollars dans le Fonds de réserve de la Ville pour le financement de cette opération.  Les frais de maintenance de 83 000 $ seront prévus au budget de fonctionnement préliminaire de 2008.

 

 

BACKGROUND

 

On 23 May 2007, Council approved the Surface Operations Facility Rationalization and Consolidation report (ACS2007-PWS-SOP-0003), which recommends closure of 7 facilities and retention of the remaining 19 maintenance yard facilities for long-term use.  Each of these 19 facilities is utilized as a deployment hub for all Branch operations, provides for storage of material and equipment, and provides auxiliary services such as fuel supply and equipment maintenance services.  The rationalization of its operational facilities is part of the Branch’s Strategic Alignment project.  This rationalization not only reduces the overall number of facilities, but also provides future opportunities for operational efficiencies and disposal of city properties.

 

As part of ensuring that the long-term facilities adequately support Branch operations, each facility’s security measures must be assessed and updated.  Eighteen of the 19 facilities identified for long-term use have incomplete physical security measures, putting the City at risk of theft and other general security threats.  As part of its ongoing effort in ensuring accountability, this report provides an overview of the Branch’s security risk and exposure, and a discussion of the Branch’s multi-faceted mitigation approach that includes recommended security upgrades.  It also outlines the recently developed inventory materials management procedures developed for road salt that complement the recommended security measures.

 

During the period from January 2005 through May 2007, 64 security-related incidents have been reported at maintenance yard facilities utilized by Surface Operations.  Of these incidents, 34 (or 53%) involved allegations of either theft or fraud.

 

Eight incidents of equipment theft have resulted in claims totalling approximately $401,000 for the period between January 2005 and May 2007 (see Document 1).  Some of the stolen equipment was later recovered, and the net loss after recoveries total approximately $235,000.

 

The Branch manages an extensive material inventory, including $12 million dollars worth of road salt. Many technical, operational, and procedural factors can affect the accuracy of salt tracking and the Branch has been proactively reviewing its inventory practices and has made significant changes to the management of this material. Further, through the Branch’s salt management plan, operational enhancements are being addressed such as the reliability and calibration of salt spreader controls, training of spreader operators, and internal salt movement tracking procedures.  The Corporate Security Division has been working with management staff on its inventory procedures and is in full support of the report’s recommendations.

 

DISCUSSION

 

The Branch recognizes that achieving the objective of securing the City’s equipment and material inventory requires a multi-faceted approach.  This approach includes both a combination of operational and physical controls.


Operational Controls

 

Operational measures and procedures are being developed and implemented to address specific inventory management issues – for example, the management of salt.  The following list provides examples of operational controls already implemented or in progress:

 

1.      The Branch has discontinued the practice of selling salt to outside agencies, such as local hospitals as of the coming winter season.  This practice was identified as a potential security risk as it allowed for the presence of contractors not under contract with the City to access City facilities.

2.      New salt ordering and receiving procedures have been implemented internally to provide tighter control of these materials.  Staff are also working on amending the City’s salt contract so that the vendor will also be required to adhere to the new procedures for the coming winter season.

3.      The Branch is acquiring portable weigh scales that will be employed to randomly spot check salt deliveries to ensure they match the amounts being invoiced.

4.      The portable weigh scales will also be utilized to confirm calibration of the City’s fleet of salt spreaders.  Inaccurate calibration can result in more or less salt being spread than desired and contribute to salt loss or inaccurate reporting.

 

The Surface Operations Branch is committed to improving its operational measures and procedures associated with management of all inventory, including items such as: topsoil, trees and shrubs, grass seed, etc.  The Branch will continue to work with its partners in Supply Management and Financial Services to improve inventory management on an ongoing basis.  With the salt inventory framework having been completed, the Branch will employ the same approach to develop management procedures for its other inventory and materials.

 

Physical Security Controls

 

The lack of comprehensive physical security measures, such as gates and cameras, continues to be a gap in securing City equipment and inventory, as identified by both Corporate Security and is also being discussed within the current Auditor General’s review of inventory management.  While proper storage, handling, management, and tracking of the inventory is critical, round-the-clock security measures such as gates and cameras for the facilities are also very important.

 

The recommended security measures act not only as a deterrent to fraud and theft, but provide invaluable information in the investigation of incidents.  Document 2 provides a complete listing and budget estimate for addressing the primary security gaps at each of the Branch’s 19 facilities identified for long-term use.

 

The Department recommends proceeding with a program to bring all of these facilities in line with corporate security standards.  Corporate Security has been closely consulted in the development of this report and supports the Department’s recommendation.

 

 

CONSULTATION  

 

Public consultation will not be required. 

 

FINANCIAL IMPLICATIONS

 

No funding has been provided in the 2007 capital budget for the implementation of the corporate security standards per the report recommendations.  Subject to Committee and Council approval, funds are available in the City Wide Reserve Fund to fund this requirement.  The ongoing operating maintenance requirements of $83,000 will be included in the 2008 draft operating budget.

 

 

DISPOSITION

 

Upon approval of this report, the Public Works and Services Department, Surface Operations Branch will commence with implementation of the program as outlined in the report.

 

 

DOCUMENTATION

 

Document 1:     Surface Operations Equipment Thefts (January 1, 2005 to June 30, 2007)

Document 2:     Security upgrades and capital expenditure required by facility to bring Surface Operations facilities in line with corporate security guidelines.

Document 3:     Operating pressure associated with servicing and maintaining recommended security measures.

 

 

 

DOCUMENT 1

 

 

Surface Operations Equipment Thefts and Associated Value (January 1, 2005 to June 30, 2007)

 

 

Incident No.

Unit Number

Date Stolen

Date Recovered

Replacement Value

Replacement Value of Equipment Not Recovered

1

B4-1915

2-Dec-05

 

 $           58,458

 $           58,458

1 

N2-1915

2-Dec-05

 

 $            6,422

 $            6,422

 1

N8-1915

2-Dec-05

 

 $            6,270

 $            6,270

2

B4-1096

27-Jun-06

23-Oct-06

 $           38,941

 

 2

FH-2149

27-Jun-06

 

 $            7,738

 $            7,738

 2

J1-8162

27-Jun-06

 

 $           33,397

 $           33,397

3

N2-6372

2-Oct-06

 

 $            7,045

 $            7,045

4

P0-6367

1-Nov-06

 

 $            6,566

 $            6,566

5

N8-1888

2-Nov-06

 

 $            4,275

 $            4,275

6

B4-1414

23-Nov-06

 

 $           57,560

 $           57,560

 6

N2-1414

23-Nov-06

 

 $            6,422

 $            6,422

 6

N8-1414

23-Nov-06

 

 $            6,270

 $            6,270

7

B4-1900

29-Nov-06

30-Nov-06

 $           33,605

 

 7

N2-1900

29-Nov-06

 

 $            6,422

 $            6,422

 7

N8-1900

29-Nov-06

 

 $            6,270

 $            6,270

 7

B4-1415

29-Nov-06

30-Nov-06

 $           57,330

 

 7

N2-1415

29-Nov-06

 

 $            6,422

 $            6,422

 7

N8-1415

29-Nov-06

 

 $            6,270

 $            6,270

8

B4-1799

25-Jun-07

3-Jul-07

 $           35,682

 

 8

FH-6718

25-Jun-07

 

 $           10,870

 $           10,870

 

 

 

Totals:

 $         402,235

 $         236,677

 

 

 

DOCUMENT 2

 

 

Security upgrades and capital expenditure required by facility to bring Surface Operations facilities in line with corporate security guidelines.

 

FACILITY

ISMS

CCTV

BARRIER

TOTAL

 1655 Maple Grove

 $         11,972

 $         33,105

 $         47,320

 $         92,397

 1159 Moodie Drive

 $                -  

 $         21,067

 $                -  

 $         21,067

 4244 Rideau Valley Drive

 $                -  

 $         34,673

 $                -  

 $         34,673

 1951 Cryville Road

 $         17,957

 $         35,369

 $         47,320

 $       100,646

 2035 Trim Road

 $                -  

 $         24,930

 $                -   

 $         24,930

 29 Hurdman Road

 $         17,957

 $         24,669

 $         47,320

 $         89,946

 380 Catherine Street

 $         17,257

 $         23,469

 $         48,620

 $         89,346

 4127 John Shaw

 $         13,391

 $         13,095

 $         54,600

 $         81,086

 2941 March Road

 $         13,391

 $         12,910

 $         56,420

 $         82,721

 2121 Huntley Road

 $         23,391

 $         17,763

 $         53,950

 $         95,104

 2145 Roger Stevens Road

 $         17,257

 $         23,469

 $         53,950

 $         94,676

 2481 Scrivens Road

 $         17,257

 $         17,763

 $         64,870

 $         99,890

 2264 Colonial Road

 $                -  

 $         25,236

 $                -  

 $         25,236

 1125 Trim Road

 $                -  

 $         15,240

 $                -  

 $         15,240

 911 Industrial Avenue

 $                -  

 $         33,755

 $                -  

 $         33,755

 256 McArthur Avenue

 $         13,391

 $         12,910

 $         59,020

 $         85,321

 320 Bloomfield Road

 $         17,957

 $         12,910

 $         47,320

 $         78,187

 Conroy SDF / Heatherington

 $         17,957

 $         33,984

 $         47,320

 $         99,261

 1683 Woodward Avenue

 $                -  

 $                -  

 $                -  

 $                -  

 ISMS - CCTV - BARRIER

 $       199,135

 $       416,317

 $       628,030

 $    1,243,482

 

 

Notes:

ISMS: Gaps in and cost to add facility to corporate Integrated Security Management System (ISMS).

CCTV: Gaps in and cost to add closed circuit television.

Barrier: Gaps in and cost to add physical barriers.

DOCUMENT 3

 

 

Operating pressure associated with servicing and maintaining recommended security measures.

 

Facility Name

Access Control and CCTV

Barrier

Totals

 1655 Maple Grove

 $                2,677

 $                3,786

 $                6,463

 1159 Moodie Drive

 $                1,245

 

 $                1,245

 4244 Rideau Valley Drive

 $                2,318

 

 $                2,318

 1951 Cyrville Road

 $                2,979

 $                4,212

 $                7,191

 2035 Trim Road

 $                1,382

 

 $                1,382

 29 Hurdman Road

 $                2,411

 $                4,212

 $                6,623

 380 Catherine Street

 $                1,766

 $                4,000

 $                5,766

 4127 John Shaw

 $                1,472

 $                4,000

 $                5,472

 2941 March Road

 $                1,457

 $                4,000

 $                5,457

 2121 Huntley Road

 $                1,844

 $                4,000

 $                5,844

 2145 Roger Stevens road

 $                2,363

 $                3,800

 $                6,163

 2481 Scrivens Road

 $                2,154

 $                3,800

 $                5,954

 2264 Colonial Road

 $                1,707

 

 $                1,707

 1125 Trim Road

 $                1,019

 

 $                1,019

 911 Industrial Avenue

 $                2,292

 

 $                2,292

 256 McArthur Avenue

 $                1,457

 $                3,800

 $                5,257

 320 Bloomfield Road

 $                1,766

 $                3,800

 $                5,566

 Heatherington

 $                3,244

 $                3,800

 $                7,044

 Totals

 $              35,553

 $              47,210

 $              82,763