DATE:	20 April 2010
TO/DEST:	Executive Director, Ottawa Police Services Board
FROM/EXP:	Chief of Police, Ottawa Police Service
SUBJECT/OBJET:	RESPONSE TO OUTSTANDING INQUIRY #I-09-04: REVIEW OF FEE STRUCTURE FOR POLICE RECORD CHECKS

RECOMMENDATION

That the Ottawa Police Services Board receive this report for information.

BACKGROUND

At the Ottawa Police Services Board special meeting held on 09 December 2009 to table the 2010 Draft Operating and Capital Budget, Member Jensen inquired about the fees charged for records checks.

In reference to Appendix E of the budget document presented at that meeting, Member Jensen asked why a standard fee did not exist for the numerous types of checks being performed. Further, he explained his belief that if the rate was standardized, it could be a significant revenue source.

The Director General indicated that staff would review the fee structure and bring forward recommendations to the Board. Member Jensen also suggested that the review should include a comparison of fees charged by other comparable-sized police services in Ontario.

DISCUSSION

Types of Records Checks

The Ottawa Police Service provides two types of records checks:

1. Police Records Check (PRC)

This service is restricted to applicants seeking employment and/or volunteer work with vulnerable individuals. This check includes national and local police databases.

2. Criminal Records Check (CRC)

This service is intended for applicants who are involved as a volunteer, employee or in any situation where a basic criminal background check is requested. This check includes national databases only.

Vulnerable persons or individuals refers to a class of persons who, because of their age, disability or other circumstances whether temporary or permanent, are in a position of dependence on others or are otherwise at a greater risk than the general population of being harmed by persons in a position of authority or trust relative to them. Examples of vulnerable persons include children, the disabled or elderly individuals.

The OPS also processes records checks for adoption and pardon applications.

User Service Fees

At the special meeting held on 7 February 2007 for the tabling of the 2007 Budget, the Board received and tabled the Director General’s report on service fee increases for records checks. At the Board meeting held on 19 February 2007, the Board approved:

1. The full cost recovery fee schedule effective 1 July 2007; and

2. That beginning in 2008, the fee schedule be adjusted in accordance with the user fee policy.

The user fee policy referred in item 2 above refers to a motion passed by the Board at its meeting on 15 December 2006 that approved a policy that maintains the ratio between tax rate support and user fee support from the benefiting user. This policy applies to all such user fees not governed by by-law or previously approved Board objective.

The cost recovery schedule as approved by the Board in 2007 was predicated on several important principles originating in 2003:

1. It preserved the “no charge” status of PRCs for volunteers serving the vulnerable sector.

2. It maintained a low cost for applicants requiring a PRC for employment purposes in the vulnerable sector.

3. The fees did not exceed the median charged in the province for other records.

4. It aligned the non-resident surcharge with the express surcharge.

Prior to the adjustments approved in 2007, the fees charged by the OPS for these services had not been adjusted since July 2003. Table 1 shows the user service fees and surcharges since 2003.

Table 1

User Service Fees and Surcharges

		2003 to 2006	2007	2008	2009	2010	Break Even Proposal	Mitigating Backlog Proposal
Type of Service
	Police Records Check – Vulnerable Sector Volunteer	N/C	N/C	N/C	N/C	N/C	N/C	N/C
	Police Records Check – Vulnerable Sector Employment	$12	$12	$13	$14	$15	$36	$40
	Criminal Records Check	$35	$35	$38	$40	$42	$36	$40
	Adoptions	$35	$35	$38	$40	$42	$36	$40
	Pardons	$45	$45	$48	$50	$53	$36	$40
Surcharges
	Express Service	$30	$30	$32	$34	$36	$36	$36
	Non-resident	$30	$30	$32	$34	$36	$36	$36

Where applicable, surcharges may apply in addition to the cost of the records check request:

Express Surcharge:

Express service is intended to serve the needs of applicants who require faster turnaround. This option is only available to those who have resided in the OPS jurisdiction within the past five years.

Non-Resident Surcharge:

This surcharge applies to individuals who are not permanent or temporary residents of the City of Ottawa, and is intended to ensure that Ottawa taxpayers do not subsidize applicants who travel from other jurisdictions to have their records checks performed by the OPS instead of their local police service.

A review of service fees charged by eleven other police services across Ontario in 2008 revealed that almost all services charge a nominal fee ranging from $10 to $15 for PRC applications for volunteers in the vulnerable sector. The OPS and Peel Regional Police were the only services among those surveyed that do not charge for this type of application.

For PRCs relating to employment in the vulnerable sector and for CRCs, all other police services surveyed adopted a standard rate for both types of applications, with rates ranging from $25 to $45.
Five of eleven police services surveyed in 2008 (including OPS) did not charge a consistent rate for PRCs relating to employment in the vulnerable sector ($13) and CRCs ($38). This fee disparity for the OPS arises from the Board’s decisions in 2007 to ensure volunteers in the vulnerable sector can obtain a PRC free of charge and that those seeking employment in a vulnerable sector can obtain a PRC for a low cost. These decisions, combined with the Board’s objective of overall cost recovery for processing records checks, influenced the OPS fee structure.

Standardization of User Fees

For the purposes of determining a cost recovery fee structure which incorporates standard fees, staff examined processing volumes for 2009. Table 2 summarizes these volumes.

Table 2

Applications Processed in 2009


	Police Records Check – Vulnerable Sector Volunteer	11,662
	Police Records Check – Vulnerable Sector Employment	20,325
	Criminal Records Check	15,208
	Adoptions	267
	Pardons	289
	Total	47,751

In addition to examining the volume of applications, staff took into account the average processing time for each type of records check. Furthermore, the standard fee calculation sought to ensure that revenues would offset the costs related to processing this volume of applications, including direct compensation costs, administration and overhead charges.

Staff calculates that a standard fee of $36 could be implemented for all applications other than PRCs for volunteers in the vulnerable sector. The “no charge” status of PRCs for volunteers serving the vulnerable sector would be preserved. This proposed rate excludes the effect of surcharges on overall revenue.

It is important to note that a standard rate of $36 is based on the actual volume of records checks processed in 2009. At various times in the year, however, a backlog of applications accumulates and staff are challenged to meet target processing times of 3-6 weeks. This backlog arises due to volume fluctuations during the year, such as the periods preceding summer employment or sports team activities. At the end of 2009, the backlog was approximately 12 weeks.

Staff estimate that a standard fee of $40 would allow the OPS to adequately staff the Records Section with two additional full time staff and allow target processing times to be met more consistently throughout the year.

The above analysis does not include the impact of surcharges, and assumes that the ratio of ‘no-charge’ applications remains consistent in future years.

Efficiencies

As an alternative to increasing the fee structure, staff is undertaking several initiatives to achieve cost savings through process efficiencies.

The OPS is currently conducting a review of the records check process, with the objective of finding efficiencies and eliminating unnecessary delays and effort. Staff expect this review to be completed by the end of the third quarter.

In April 2004, the RCMP launched the Real Time Identification (RTID) initiative, designed to improve the efficiency of Canada’s national fingerprint and criminal record repository. RTID will enhance RCMP activities in support of fingerprint identification by providing criminal record verification by way of searching for an individual’s fingerprints against the criminal records database. The OPS is working closely with the RCMP to incorporate fingerprint identification in its records check processes. Staff expect that RTID will be an integral part of the records check process by Q4 2010. Increases to the fee structure will likely be required as a result of the RTID integration if the RCMP charges a fee for this service.

Furthermore, staff is evaluating options for allowing individuals to submit records check applications on-line. On-line submissions will enhance service, shorten processing times and alleviate administrative tasks presently associated with manual forms. Staff estimate that on-line processing should be available by the end of 2010.

CONSULTATION

Not applicable.

FINANCIAL STATEMENT

Not applicable.

CONCLUSION

The Board’s decision to provide records checks to volunteers and employees of organizations working with the vulnerable sector at zero or low cost, combined with the decision to maintain full cost recovery resulted in a non-standard fee structure. A standard fee of $36 could be implemented for all applications other than PRCs for volunteers in the vulnerable sector and remain revenue neutral. A standard fee of $40 for all records checks other than those involving volunteers in the vulnerable sector would also help address backlog issues. Opportunities for efficiencies are being examined by staff to further improve service levels.

(original signed by)

Vern White