DATE:	15 June 2009
TO:	Executive Director, Ottawa Police Services Board
FROM:	Director General, Ottawa Police Service
SUBJECT:	FOLLOW-UP ON FLEET AUDIT RECOMMENDATION #3 - CIVILIANIZATION OF FLEET SERVICES MANAGER POSITION

RECOMMENDATION

That the Finance and Audit Committee recommend to the Police Services Board that the Fleet Services Manager Position remain a sworn position.

BACKGROUND

In 2007 the City’s Auditor General conducted an audit of the Ottawa Police Service fleet. The report covered all aspects of fleet operations including: asset management, fuel management, vehicle maintenance and administration. The report contained six recommendations including:

Recommendation 3: “That the Ottawa Police Service assures continuity of the OPS fleet management function by civilianizing the position.”

The Auditor General’s Report explains that the recommendation was made in response to the high rate of turnover in the Manager of Fleet Services position, which is performed by a Sergeant. Since 1995 there have been 6 incumbents in the position. Sergeants are generally quite upwardly mobile in OPS, given the high level of retirement over the past 15 years and the expansion of the Police Service. It is quite common in policing to have a sworn officer perform the function. However they are not typically trained or experienced fleet professionals and as a result they tend to require a fair amount of time to learn the trade. Just as they bring processes up to industry standards they are promoted or transferred to another job.

Management supported Recommendation 3:

“Management agrees that a review of the merits of civilianizing the fleet manager position should be completed, and is in the process of doing so as a component of the 2008 Strategic Deployment Review.”

Staff have reviewed this matter and are recommending that the Fleet Services Manager remain a sworn officer position within the Ottawa Police Service. This report outlines the rationale for that conclusion.

DISCUSSION

Magnitude of the Fleet Services Operation

The Ottawa Police Service operates a fleet of 560 vehicles and conveyances, which travel between 2.5 and 3.0 million kilometres annually. It includes:

· 193 marked vehicles

· 288 unmarked vehicles

· 18 specialty vehicles

· 30 motorcycles

· 8 all terrain vehicles, snowmobiles

· 5 boats

· 18 trailers.

The annual operating budget for the fleet is $9,971,700. It is a comprehensive one that includes all the staffing costs for fleet personnel as well as the costs to repair, maintain and replace the fleet. The component related to fleet replacement is $3,407,000 and it provides for the replacement of roughly 1/3 of the marked fleet and 1/5 of the unmarked fleet each year.

Key Success Factors – Police Fleet Services

The police vehicle is the most important operational asset at an officer’s disposal. It is the basic means by which they do their work, in conditions that vary each day, on a 24/7 basis. It is also their “office-on-wheels.”

Police services across the country make a significant resource investment in the fleet function in recognition of the important role that the vehicle plays in police operations. All have a similar goal: to ensure that the appropriate vehicle, outfitted with the correct equipment, is available when needed, in an economical and efficient way so that each officer can safely perform their duty.

Four key success factors influence how well the fleet service provider will meet the needs of police operations:

1. Police Operational Knowledge – A thorough knowledge of police operations is needed to ensure a match of fleet services with officer requirements.

2. Customer Relations – Strong customer relations skills and a reliable network are needed so that service delivery can be adjusted in keeping with customer feedback.

3. Access to Fleet Experts - Ready access to internal and external vehicle / equipment services and expertise is key in order to maximize vehicle availability and meet vehicle deployment requirements.

4. Funding Support - Appropriate funding support is required to meet vehicle fuelling, repair and replacement requirements.

Fleet Services Delivery Model

The fleet service delivery model at OPS has been developed around these key success factors. The OPS model emphasizes the importance of connecting with police operations by placing a sworn operational leader in the role of Fleet Services Manager. The role has been structured around the skill set of a general manager, not a technical specialist. Technical skills are drawn from outside experts, primarily from the City, as needed. There is appropriate operational and business leadership in other positions in the chain of command, such as the Inspector, Materiel Management and the Executive Director, Corporate Support, to support the Fleet Services Manager as needed.

Police Operational Knowledge - In the OPS model operational knowledge is provided by assigning the role of Fleet Services Manager to a sworn position. Previous incumbents in the job have brought a minimum of 15 years of operational experience to the position.

A sworn incumbent undertakes the job with a strong understanding of the role that police vehicles play in operations. They will have experience with the deployment, shift schedules, collision, equipment, safety, cover operations, collective agreement and other issues that must be managed in order to balance operational needs against other resource issues.

Customer Relations – The Fleet Services Manager has the prime responsibility for ensuring strong customer relations for the Section. As a sworn member with a minimum of 15 years on-the-job they will have developed a strong network of contacts within the organization that can be used to supplement the official communication and feedback channels. As a sergeant they can also call on their rank to deal with command and control situations as necessary.

The addition of the positions of Inspector, Materiel Management and Executive Director, Corporate Support in the Fleet Services Manager’s chain of command have created other customer relation points of contact within the network of Senior Officers, an important client base.

Access to Fleet Experts - Contracts and service level agreements have been established so that the Fleet Services Manager has access to external services and experts as needed. The Fleet Services Manager’s role is to effectively manage these arrangements and relationships.

· Repair, maintenance and body repair services are contracted out to the City of Ottawa or private contractors

· Fuelling is provided through a fuel card/fob arrangement with Esso – City yards are also an option

· Tracking of repair data occurs in the City’s M5 system

· City staff provide procurement advice and support.

OPS Fleet Services staff deliver the following internal services, under the direction of the Fleet Services Manager who has responsibility for supervision of the 14 staff who perform these duties.

· Vehicle deployment, key and equipment dispatch, break-down support and minor repair occurs from 10 locations across the City and is managed through 3 Fleet Co-ordinators and 8 staff at 3 divisional locations (one operates on a 24/7 basis).

· Vehicle fit-up and equipment diagnostic / maintenance service is provided by the Technical Services Section within Fleet Services, through a group of 3 highly specialized technicians.

· Vehicle acquisition is performed by the Fleet Services Manager primarily through the standing offers of the Police Cooperative Purchasing Group (for marked vehicles) and through the local used car dealer market for unmarked cars.

· Vehicle disposal occurs through a local vehicle auction under the direction of the Fleet Services Manager.

Funding Support – The Fleet Services Manager works closely with the Inspector, Materiel Management and the Executive Director of Corporate Support to map out the operating and capital budget requirements of the OPS fleet. The Manager provides important information about fleet, operational and budget trends, which merge with the corporate and strategic information supplied by the Inspector and Executive Director. The product is the budget funding submissions that come forward in the annual resource allocation exercises.

Organizational Structure

The Manager of Fleet Services is responsible for two functional units comprised of 14 employees as shown in the organizational chart below: Most staff are located at OPS Headquarters, at 474 Elgin Street which operates on a 24 hour/7 day per week basis. The West Division Coordinator and two drivers are located at 245 Greenbank Road.

Chart 1

OPS Fleet and Technical Services Organizational Structure

Performance Indicators

One measure of performance for the current fleet services model is the standard industry measure of maintenance and repair cost per kilometre. The Auditor General’s report identified that the OPS weighted average cost per kilometre (2006 data) was $0.13, as shown in Table 1 below. At this level, OPS costs were exactly the same as Montreal Police. The OPS rate compared favourably to other municipal comparators for which the Auditor General supplied data, as shown in Table 2. The cost per kilometre for these fleets ranged between $0.14 and $0.19.

Table 1

OPS Fleet 2006

Maintenance and Repair Cost per Kilometre

Table 2

2006 Comparators- Other Municipal Jurisdictions

Cost per Kilometre

Contribution to Annual $500,000 Efficiency Target

Another measure of the performance of the fleet services model is the contribution it has made to the achievement of the $500,000 Efficiency Target established by the Board during each budget cycle. The Fleet Services Manager consistently launches new projects and initiatives each year, which yield savings that contribute to the Board’s Efficiency Target and help to achieve the budget goal. Some recent examples include:

· In-house decal process....................................................................................................……….$ 10,000

· New car wash program utilizing Esso points ..............................................................…………..$ 40,000

· New fuel contract with Imperial Oil/City of Ottawa sites...............................................................$ 120,000

· Cancellation of fuel cards for covert vehicles .................................………………………………..$ 13,400

Green Fleet and Anti-Idling Initiatives

The Fleet Services Manager has also launched initiatives that will save money in the future and help to lower emissions. A pilot program to test alternative fuels such as propane is underway. A significant green fleet initiative has been launched with the creation of a test “green car.” It uses battery power to run the equipment in the car to reduce idling and therefore cut down on gas usage and emissions. The Fleet Services Manager has won a provincial Green Fleet award in recognition of this leading work.

Reducing Turnover in the Fleet Services Manager Position

The new Tenure Policy will help to reduce the rate of staff turnover in this position, a problem cited in the Auditor General’s report. Under the new policy the Fleet Services Manager position has been rated as one that has a 5 year tenure duration. Members must complete a minimum of 50% of their tenure before they can apply for another position. Staff will be monitoring the suitability of the 5-year rating, to see if it should be adjusted upward (6 to 7 years) in keeping with other specialist positions.

Designation Requirement for the Position

In light of the new approach to tenure, staff is also recommending that incumbents in the Fleet Services Manager position attain the Certified Automotive Fleet Manager’s designation offered through the National Association of Fleet Managers (NAFA). The course work takes 3 years to complete and provides credit towards a Bachelor of Science Degree, with a minor in Fleet Management, through Ferris State University in Michigan. The work required to earn this designation will help to ensure that the incumbent develops a solid background in management principles and their application.

The Civilian Led Approach to Fleet Services

There are many examples in Ontario of police services that have chosen to place a civilian fleet professional in the role of Fleet Services Manager. Typically these organizations ensure that there is sworn “oversight” by placing a sworn senior officer directly in the chain of command. The advantage to this approach is that the civilian manager will clearly have a strong grasp and deep understanding of the fleet management issues that must be tackled. Their challenge will be in learning police operations and developing the respect and trust of their customer. While they may be experienced fleet managers, it may be sometime before they have “traction” in their role.

Should OPS Switch to a Civilian Led Approach?

The OPS has the option of switching its model to the civilian led approach. It is not clear however that there are any significant advantages to a switch.

The current model with a sworn officer as the Fleet Services Manager seems to align with the key success factors set out at the beginning of the report
The traditional fleet performance measures of cost per kilometre suggest that the OPS fleet is well managed
OPS can point to many achievements in the fleet area which demonstrate effective leadership and cost savings
The issue of turnover in the Fleet Services Manager role can be mitigated with the Tenure policy
The requirement to earn a designation can be added to the role to increase the incumbent’s depth of knowledge
There are no material financial savings to be gained by converting the position to a civilian one. It would likely be a Group 10 or 11 job and these salary ranges fall within the ranges for a sergeant (without responsibility pay).

CONSULTATION

Not a requirement for this matter.

FINANCIAL STATEMENT

Not applicable.

CONCLUSION

There is not a compelling business case to change the Fleet Services Manager position from a sworn to a civilian one. The current model meets the operational needs of the police service.

(original signed by)

Debra Frazer

Director General

REPORT