June 10, 1998

 TO:City of Toronto Budget Committee

 FROM:Norman Gardner, Chairman

Toronto Police Services Board

 SUBJECT:STATUS OF THE AVAILABILITY OF THE CITY'S FINANCIAL SYSTEM TO THE TORONTO POLICE SERVICE

 Recommendations:

 It is recommended that:

 1.the following report be received for information;

and

 2.the City of Toronto Budget Committee advise the Toronto Police Services Board on the status of the availability of the City's financial system to the Toronto Police Service.

  Council Reference/Background History:

 At its meeting on May 21, 1998, the Toronto Police Services Board was in receipt of the following report APRIL 21, 1998 from David J. Boothby, Chief of Police:

 "SUBJECT:TORONTO POLICE SERVICE YEAR 2000 PROJECT

 RECOMMENDATIONS:THAT the Board:

 1. Approve the expenditure of $1.2 million to UNISYS Canada Inc., for the continued provision of consulting services for Phase 3 of this project. Funds are available in the Year 2000 Capital Budget for these purposes.

 2. Receive this report as information regarding additional 1999 funding requirements of an estimated $1.7 million above the current $0.25 million recommended in the Service's 1999 Capital Budget due to the addition of significant scope to this project, namely the conversion of three major applications (Occurrence Processing, Activity Tracking and the Financial Management System).

 BACKGROUND:

 The Toronto Police Service is similar to the rest of the industry, in that, many computer programs are not coded to handle the Year 2000 correctly. The problem stems from the fact that many older programs use 2 digits to represent the year of a date (for example 96, instead of 1996). Where program logic is controlled by date information, the full four digits of the year are required for correctness of calculations, e.g. calculation of age, court scheduling, selection of information based on date, etc. Incorrect interpretation can have serious operational impact, including total program failure. The Board, in 1997, approved a strategy for preparing the Service's systems to accommodate this change of year from 1999 to 2000 and onwards, and this report provides further information in this respect.

 The Service's Year 2000 project is divided into three distinct phases:

 Phase 1: Risk Assessment and Impact Analysis

Phase 2: Pilot Projects

Phase 3: Year 2000 Conversion, Test and Implementation.

 A public tender was issued in 1997 for these services and the Board approved the award of the first two phases of this project to Unisys Canada Inc. and DMR Consulting Group Inc. (Minute #378 September 18, 1997 and Minute #13 January 29, 1998 refer). The first two phases are now complete.

The Board was advised at its January 29, 1998 meeting that further assessment was required for the following systems: Centralized Occurrence Processing System (COPS), Activity Tracking System (DECS) and the Financial Management System (FMS). The Board also requested this further report on how the Service will achieve Year 2000 compliance in all its programs (Minute #13/98 refers). These systems were scheduled for replacement before the Year 2000 and, consequently, were not within the scope of this project. The original Year 2000 Capital Budget of $4.0 million was reduced by $1.5 million with the understanding that the replacement of COPS and DECS would proceed in other capital projects. The replacement of the Financial Management System was recommended in the 1998 capital program.

 New Requirements for Year 2000 Project Funding

 The Centralized Occurrence Processing System (COPS), which includes the Master Name Index (MANIX) sub system, has now been formally analyzed using specialized Unisys Year 2000 tools to determine the number and nature of date occurrences, and the cost and time frame for fixing and testing these changes. The COPS system, which contains 40,000 known date occurrences, will require 4 Unisys and 2 internal staff full time for approximately 14 months to make this system Year 2000 compliant. The option of replacing COPS before Year 2000 is now a risk that the Service is no longer prepared to take. While this was clearly the intent when the 1998 capital budget was being prepared, the Service was dependent upon acquiring a new Records Management System as a member of the Common Police Environment Group (CPEG) by the end of 1997. The CPEG RFP process is now scheduled to be completed by September, 1998. This results in the Service having to rely on its existing COPS system into the Year 2000. For this reason, the Service must complete its Year 2000 compliance work on this system, necessitating additional capital funds for this purpose in 1999. At this date, there remains uncertainty on the part of the Budget Committee regarding the Occurrence Re-Engineering (which has in its scope the replacement of COPS) and Mobile Workstation projects. These matters have been referred to the C.A.O. of the new City.

 Recommended capital budget requirements in the Service's 1998 capital budget submission for the replacement of the Activity Tracking System (DECS) were deferred by the Budget Committee for consideration in the 1999 capital budget process. There is now insufficient time to acquire a replacement system, consequently the existing system must be converted to ensure Year 2000 compliance.

 At the last Budget Committee meeting, the Service agreed to use the new City of Toronto's Financial System subject to availability of their system and the funding required to accomplish the integration of our systems. The integration funds were not allocated by the Budget Committee nor was any commitment made regarding the availability of the City's system for TPS use. As a consequence, the Service's current system must also be converted to ensure Year 2000 compliance.

 In total, this new scope has added approximately 12 person years to the Service's Year 2000 conversion efforts and results in additional funding requirements for this project. While the additional capital funding of $1.7 million is not required until 1999 and will be reflected in the Service's 1999 budget capital submission accordingly, the Service has defined a revised 1998/1999 Year 2000 implementation strategy to address all resource requirements, both financial and staffing. The key components of this strategy are as follows.

 a) Reallocation of Existing C&T Staff Resources

 Based on the results of Phases 1 and 2, C&T now has an accurate assessment of all the work required and a better understanding of the complexity of this undertaking. With the addition of the three major systems, the workload is much greater than originally anticipated. Understanding that the successful completion of this project must be the highest technology priority, C&T has re-assessed all current and planned projects with the aim of freeing up resources for this critical project. Due to their critical nature and their impact on the Year 2000 issue, the following projects are proceeding:

 Radio Switch Replacement

Computer Aided Dispatch (CAD) Upgrade

Intelligence Comverse System Upgrade

RICI (Mugshot) System Replacement

Property System Replacement

VIP (Vehicle Pounds) Upgrade

Windows NT Conversion

New Release of Payroll System.

 Projects planned in 1998 which will consume resources which are required for Year 2000, will be deferred and will not be initiated until these resources are no longer required in the Year 2000 project. Those projects currently being considered for deferral include: CIPS annual release and CAD Reporting Enhancements. Any new requests will be assessed by the Command and appropriate decisions made on an "as required" basis.

 C&T has reviewed the list of systems and proposed priorities, based on the impact of loss of the system to the Service. This priority list will be further refined with the Command during the next few weeks. When finalized, this list, with accompanying timelines, will be the subject of a further report to the Board. In the interim, known high priority conversions will continue.

Although the objective is to complete the conversion of all systems, it is essential to agree on priorities for the work, as there is very little flexibility in the plan. In addition, as field developed and supported systems are discovered, it may be necessary to re-allocate funding to these areas if these systems are of a higher priority than the C&T developed systems.

  b) Enhanced External Hiring Strategy to Replace/Retain Staff Resources

 Computing & Telecommunications (C&T) is faced with the challenge of hiring new staff and retaining existing technical staff in a market where demand now far exceeds the supply. This increase in demand, fuelled by other organizations facing the same crisis, has driven the cost of Information Technology professionals much higher, resulting in higher staff turn-over and fewer candidates attracted by TPS compensation levels.

 C&T has adopted an aggressive hiring strategy to replace the vacancies which currently exist. In the meantime, C&T will use its surplus salary funds to acquire consulting resources to address critical operational needs, including additional resources for this project.

  c) Retain Unisys Canada Inc. as a Key Partner

 UNISYS Canada Inc., in accordance with the original tender, has been recommended to continue to provide consulting services for the mainframe conversions. They have demonstrated a high level of competency, expertise and have extensive experience with TPS systems. The $1.2 million recommended in this report is for the continuance of the current services until the 2nd Quarter, 1999. Additional requirements will be assessed at that time. Funding for these purposes is available in the Year 2000 project budget.

 The non-UNISYS systems will be addressed using existing staff and consulting services from various companies. The existing consultants with experience on this platform will be renewed and others hired as required.

  d) C&T Year 2000 Project Team

 Based on the findings of the first two phases, C&T has created a project team consisting of internal and consulting resources to manage, convert and test all systems. A mix of internal staff and consulting services provides the best approach for this conversion. This also ensures the final product adheres to TPS standards and can be supported by internal staff at completion.

  e) Define Revised Funding Strategy

 Based on current plans, C&T will require an additional $1.7 million in 1999 capital funds to complete this project, with the added scope. This projection will be further refined and additional funds will be requested in the Capital program for 1999. This funding must be available by January 1, 1999. A summary of the capital budget changes follows.

 Table-1: Year 2000 Capital Submissions ($,000)

 199719981999Total

Original Capital Budget

1997-2000 Capital Submission1,0002,0001,0004,000

 Metro Adjustments Jan/97

(Removal of COPS, DECS)1,0001,0005002,500

 Cash Flow Adjustments

1998-2002 Capital Submission7501,5002502,500

 Proposed 1999 Capital Submission7501,5001,9504,200

 It should be noted that the additional 12 person years, resulting from the added scope, would cost approximately $2.9 million in the external market place. In recognizing the City's significant funding constraints, the Service has reduced the additional capital funding request to $1.7 million by deferring projects and re-directing C&T staff to this project, as reflected in the above table.

 The Chief Administrative Officer - Policing has certified that the funding of this $1.2 million expenditure to Unisys Canada Inc. is available in the 1998 Year 2000 Capital Budget, which is scheduled for Council approval at its April, 1998 meeting.

 Larry Stinson (ext 8-7550), Richard Fung (ext 8-7651), Erika Wybourn (ext 8-7561) and John Macchiusi (ext 8-7498) of Computing & Telecommunications will be in attendance to answer any questions pertaining to these matters."

 The Board was also in receipt of the following report MAY 7, 1998 from David J. Boothby, Chief of Police:

 "SUBJECT:YEAR 2000 PROJECT TIMELINES

 RECOMMENDATION:THAT the Board receive the following report for information.

BACKGROUND:

 At the January 29, 1998 meeting, the Board requested that the Chief submit a report outlining timelines on how the Service intends to achieve Year 2000 compliance in all its programs (Minute # 13 refers).

 Members of the Computing and Telecommunications (C&T) Year 2000 project team met with a Year 2000 User Group comprised of designated Command representatives to categorize and prioritize all Toronto Police Service (TPS) applications. This prioritization is critical; the conversion workload increased significantly when new system initiatives such as Occurrence Processing (COPS), Activity Tracking (DECS) and Financial Management were deferred. It is essential that the applications that support the core TPS processes be operational on January 1, 2000. There are approximately 90 systems which have been divided into four categories:

 Priority A:

Systems in this category are essential for the organization to conduct its core business. There are 19 systems which fit this most critical category, among them the Voice/Radio system, 9-1-1 call taking, the Computer Aided Dispatch system and the Fingerprint system(AFIS).

 Priority B:

Although these systems do not impair critical core business activities, they do have significant financial or workflow impact if they fail to operate correctly in the year 2000. Examples of the 22 systems in this category include Payroll and Fleet/Inventory Management.

 Priority C:

Systems in this category would present noticeable problems to some or all of the organization, however, contingency plans or work arounds are judged to be acceptable for short terms (up to 3 months). Examples of the 30 systems in this category include the Major Case Management system (CaseFile) and the divisional Night Directory system.

Priority D:

The systems in this category tend to be stand-alone systems which impact a very limited area of the organization, or have a very low impact across the organization; it is judged that the application owner could cope with a work around solution for a period of time (up to 6 months). An example of the 18 known applications in this category is the Human Rights Complaint Tracking System.

 The goal is to deliver Year 2000 compliant systems in order of priority, with the following timelines:

  At this time, it is anticipated that all Priority A systems will meet their target with the exception of the Occurrence Processing system (COPS), which will be implemented in the 1st quarter of 1999. Occurrence Processing is new scope, highly date sensitive, and the largest application within the Service. Priority D applications may stretch into the year 2000.

 Mr. Larry Stinson, Director - Computing & Telecommunications (ext. 8-7550), and Ms. Erika Wybourn, Manager - Information Systems (ext. 8-7567) will be in attendance at the May 21, 1998 meeting to respond to any questions that the Board may have."

 Conclusions:

 Larry Stinson, Computing & Telecommunications, and Frank Chen, Finance and Administration, were in attendance and discussed these reports with the Board.

 The Board approved the following Motions:

 1.THAT the Chief's report dated April 21, 1998 be approved and the report dated May 7, 1998 be received; and

 2.THAT the foregoing reports be forwarded to the City of Toronto Budget Committee and that it be requested to advise the Board as to the status of the availability to the Toronto Police Service of the City's financial system.

  Contact Name and Telephone Number:

 Larry Stinson, Director of Computing & Telecommunications, Toronto Police Service, telephone no. 808-7550.

 Respectfully submitted,

 Norman Gardner

Chairman