July 15, 1998
COMMISSIONER OF CORPORATE SERVICES
EXECUTIVE DIRECTOR OF INFORMATION AND TECHNOLOGY
The Budget Committee on July 13, 1998, had before it the following:
(a)report (July 8, 1998) from the Executive Director, Information and Technology,
regarding implications of Year 2000 Computer Compliance Issues - Extension of Contract
No. T-27-96: Maintenance of Traffic Control and Related Devices; and
(b)transmittal letter (July 17, 1998) from the Urban Environment and Development
Committee regarding the extension of Contract No. T-27-96.
The Budget Committee on July 13, 1998 deferred consideration of this matter to its next
meeting scheduled for July 28, 1998.
City Clerk
Barbara Liddiard/RC/cp
Item No. 10
Attachment
c.Chief Financial Officer and Treasurer
Commissioner of Works and Emergency Services
Year 2000 Project Executive, Information and Technology, Corporate Services
General Manager, Transportation Services
Director of Budgets
July 8, 1998
To: Budget Committee
From:Executive Director, Information and Technology, Corporate Services
Subject:Implications of Year 2000 Computer Compliance Issues - Extension of Contract
No. T-27-96: Maintenance of Traffic Control and Related Devices
Purpose:
The purpose of this report is to discuss the Year 2000 computer compliance issue in
connection with the decision of the Urban Environment and Development Committee to
recommend the extension of Contract No. T-27-96 - Maintenance of Traffic Control and
Related Devices.
Funding Sources:
It is estimated that the Transportation Services Division of the Works and Emergency
Services Department will require approximately $700,000.00 to make the necessary
modifications and replacements to the traffic control computer systems and equipment to
ensure Year 2000 compliance.
Recommendations:
It is recommended that:
(1)Contract No. T-27-96 not be amended to include the activities required to ensure that the
traffic control computer systems and equipment are Year 2000 compliant; and
(2)the Transportation Services Division, Works and Emergency Services Department
present a report in September, 1998 identifying the total costs required to ensure Year 2000
compliance of traffic control computer systems and equipment.
Background:
The Budget Committee on June 25,1998, had before it a transmittal letter (June 17,1998)
from the Urban Environment and Development Committee regarding the extension of
Contract No. T-27-96 - Maintenance of Traffic Control and Related Devices.
The Budget Committee on June 25,1998, referred the matter to the Year 2000 Project
Office for a report to Budget Committee on July 13, 1998 on whether a new contract can be
issued which would incorporate, through a regular maintenance program, the conversion
necessary for the Year 2000 project.
Discussion:
Staff of the Works and Emergency Services Department, Transportation Services Division,
began work in 1997 on assessing the impacts of the Year 2000 issue on the traffic control
systems. The City of Toronto operates a number of traffic control systems, which all consist
of two elements; namely, traffic control computer systems and field equipment. The
following is a summary of the Year 2000 issues affecting these two elements.
A.Traffic Control Computer Systems
In total there are five traffic control computer systems.
1.Road Emergency Service Communications Unit (RESCU)
2.Main Traffic Signal System (MTSS)
3.Arterial Master Signal System (AMSS)
4.SCOOT/UTC System, Version 7
5.SCOOT/UTC System, Version 16
The first two systems have been tested and proven to be Year 2000 compliant. The AMSS
system will be undergoing a Year 2000 upgrade within the next month provided by the
vendor as part of the original supply contract, and testing will follow shortly thereafter. The
supplier of the SCOOT Version 16 system has provided documentation showing Year 2000
compliance. The SCOOT Version 7 system, which currently controls 44 signalized
intersections, cannot be made Year 2000 compliant and a conversion to the newer SCOOT
Version 16 system is required. The SCOOT Version 16 system is also scheduled for testing
in July of 1998 to confirm the supplier's commitment that it is Year 2000 compliant. In this
case, Transportation Services is protected by a comprehensive maintenance agreement to
cover any necessary Year 2000 upgrades.
The costs to replace the SCOOT Version 7 with the Year 2000 compliant version will be
approximately $500,000.00. This includes the specialized requirements of all central
computer and field controller equipment. This work will need to begin this Fall in order to
ensure that the system is converted in time.
B.Field Equipment
At signalized intersections, the traffic signals are operated by traffic controllers located at
the intersection. Other than during maintenance periods and emergencies, the controllers
receive instructions from the central traffic control computer systems, which have been
discussed previously. During these maintenance and emergency periods (which have a
significant impact, especially after storms), the traffic signals are operated by the local
traffic controllers. Some of these controllers include timeclocks and therefore must be tested
for Year 2000 compliance. Communications with our suppliers, along with independent
testing of the field equipment, has revealed minor problems with several of the types of
controllers in use at some signalized intersections. Formal estimates of cost to correct these
problems have yet to be confirmed, but these expenses are believed to be within
$100,000.00.
Secondary systems, communications and controller equipment and off-line application
software tools are also being investigated for Year 2000 compliance. However these
investigations are still at a preliminary stage and final estimates of potential problems and or
costs have yet to be compiled in this area. However the expenses are believed to be within
$100,000.00. Transportation Services staff will complete the tests and report on any
problems concerning these secondary elements and any additional efforts and costs to
achieve Year 2000 compliance by September, 1998.
Implications for Maintenance of Traffic Control and Related Devices Contract
Contract No. T-27-96 provides for the maintenance of traffic control and related devices,
namely the maintenance of traffic control signal hardware at intersections, pedestrian
crossovers on major roads, sign installation on major roads, and incidental pavement
markings. The services at traffic control signal intersections include conflict monitor checks,
annual re-lamp, hardware replacement and emergency response.
The maintenance of the traffic control computer systems is currently outside the scope of
this contract. Transportation Services staff manage the proprietary systems by dealing with
the suppliers directly, in order to minimize costs and simplify accountability. Similarly, the
purchase of traffic signal controllers is currently outside the scope of this contract for the
same reasons. Hence, Year 2000 compliance issues fall outside the scope of Contract No.
T-27-96.
Conclusions:
The total funding required for making Year 2000 changes to traffic control systems and
field equipment will be known by the Transportation Services Division in September 1998.
Staff will report at that time and identify the funds which should be allocated to the
Transportation Services Division to address this issue.
Substantial effort would be required to prepare a tender which would include Year 2000
compliance components in the maintenance contract. There are no demonstrated advantages
to including such components in the maintenance contract. Therefore, the Year 2000
compliance should be dealt with outside the scope of the maintenance contract.
Contact Name:
Ron Stewart, Senior Manager
Traffic Systems
(416) 397-7592
Lana Viinamae, Year 2000 Project Executive
Information and Technology, Corporate Services
RWS; PKH/fc
(Transmittal letter dated June 17, 1998 addressed to the
Budget Committee from the
City Clerk)
Recommendation:
The Urban Environment and Development Committee on June 15 and 16, 1998
recommended to the Budget Committee, the Strategic Policies and Priorities Committee,
and Council the adoption of the report (May 26, 1998) from the Interim Functional Lead,
Transportation, wherein it is recommended that:
"Contract No. T-27-96 with Stacey Electric Company Limited be extended from January 1,
1999, to December 31, 1999, under the terms and conditions of the original contract, by
exercising the "Option of Extension" clause (Part C, Section 15)."
The Urban Environment and Development Committee reports, for the information of the
Budget Committee, the Strategic Policies and Priorities Committee, and Council, having
requested the General Manager, Transportation Services, to:
(a) consult with employee groups during the development of the consolidated service
delivery plan; and
(b)submit a report to the Urban Environment and Development Committee with regard to
the details of the tendering specifications, prior to re-tendering.
Background:
The Urban Environment and Development Committee had before it a report (May 26, 1998)
from the Interim Functional Lead, Transportation recommending that Contract No. T-27-96
with Stacey Electric Company Limited be extended from January 1, 1999, to December 31,
1999, under the terms and conditions of the original contract, by exercising the "Option of
Extension" clause (Part C, Section 15); advising that Contract No. T-27-96 was issued as a
two-year contract from January 1, 1997 to December 31, 1998, with two one-year extensions
in 1999 and 2000, each of which requires the approval of Toronto City Council; that the
Contract was written in this way to achieve cost savings in the area of maintenance of traffic
control devices, while maintaining the quality of maintenance work; stating that these
benefits have been experienced with the current electrical contractor, Stacey Electric
Company Limited; and that the funds for the activities included within this Contract will be
contained in the Works and Emergency Services Current Budget estimates for 1999.
(Report dated May 26, 1998, addressed to the
Urban Environment and Development Committee from the
Interim Functional Lead, Transportation.)
Purpose:
To extend by one year the contract for the maintenance of traffic control and related devices
- Contract No. T-27-96.
Funding Sources:
The funds for the activities included within this contract will be contained in the Works and
Emergency Services Current Budget estimates for 1999.
Recommendation:
It is recommended that Contract No. T-27-96 with Stacey Electric Company Limited be
extended from January 1, 1999 to December 31, 1999, under the terms and conditions of the
original contract, by exercising the "Option of Extension" clause (Part C, Section 15).
Background:
Contract No. T-27-96 encompasses the maintenance of all traffic control signals within the
boundary of the new City of Toronto; and all pedestrian crossovers and illuminated signs on
major arterials which were formally Metro roads. It also includes sign installation and a
small element of pavement markings on major arterials.
Contract No. T-27-96 was issued as a two-year contract from January 1, 1997 to December
31, 1998, with two one-year extensions: 1999 and 2000. Each extension requires the
approval of Toronto City Council.
Discussion:
Considerable staff time and effort was spent in 1995 and early 1996 to research and re-write
our municipal traffic plant maintenance tender. The three principal objectives were as
follows:
(1)to provide greater accessibility for contractors by reducing the barriers to bidding,
through the size, scope and duration of the contract;
(2)to provide incentives for contractors to deliver their services at a lower cost to the
municipality; and
(3)to provide a contract structure which is manageable and contract services which are
efficiently co-ordinated.
The result was a brand new tender which fundamentally changed the structure and
administration of the historical traffic plant maintenance contract.
One of the primary innovations was the change from a "time and materials" base to a "set
price" performance base. The new contract provides a fixed fee per intersection to the
contractor to maintain the traffic control signals, rather than paying for each visit to the site.
Therefore there is an incentive for the work to be of high quality and performed as
efficiently as possible, to avoid repeated site visits by the contractor.
In order to provide for the opportunity for smaller contractors to compete, the tender was
organized into three districts, which lowered the financial obligation required and the
potential investment in equipment and vehicles. In order to fully realize the benefits of their
investment, it was understood that the contract should be three or four years long. However,
because of fundamental changes to the previous contract, it seemed prudent to provide both
the City and the contractor with an option to terminate the contract after two years if it was
not working. The expectation amongst staff and contractors was that the "Option of
Extension" would be exercised by both parties if the quality of work was good, if the
anticipated savings materialized, and if the savings could be sustained by extending the
contract.
The significant effort applied to rewrite the tender has provided the benefits which staff had
hoped for. Not only is the quality of work being performed as prescribed in the contract, the
cost of electrical maintenance in 1997 was 13 percent less than in 1996, a saving of over
$600,000.00.
When Contract No. T-27-96 was awarded in 1996, bids were received from three
contractors and the contract was awarded to the lowest bidder, Stacey Electric Company
Limited. The annual total bid prices submitted were as follows:
Stacey Electric$4,033,072.00
Guild Electric$4,514,406.00
Cliffside$12,692,272.00
Stacey Electric Company Limited have agreed to an extension of the contract with no
increases to the current bid prices, and under the terms of the existing contract. Therefore
staff recommend that Contract No. T-27-96 with Stacey Electric Company Limited be
extended from January 1, 1999 to December 31, 1999.
The one-year extension lends itself to the on-going amalgamation process. The current
contract is based on three districts, but, as a result of amalgamation, the number and area of
each district will be different. Secondly, maintenance of traffic plant under the jurisdiction
of the former municipalities is currently delivered through a combination of in-house and
contracted out service arrangements. Therefore, a consolidated service delivery plan will be
developed in 1998 and a tender re-write will be undertaken early in 1999 to prepare for the
new service delivery requirements in the year 2000.
Conclusions:
Contract No. T-27-96 was written in order to achieve cost savings in the area of
maintenance of traffic control devices, while maintaining the quality of maintenance work.
These benefits have been experienced with the current electrical contractor, Stacey Electric
Company Limited, and staff recommend that the contract be extended by one year according
to the provisions of the contract.
Contact Name:
Peter K. Hillier, Senior Manager, Traffic Regions, 416-392-5348.
July 17, 1998
To:Budget Committee
From:General Manager, Transportation Services
Subject:Extension of Contract No. T-27-96:
Maintenance of Traffic Control and Related Devices and
Year 2000 Computer Compliance Issues - Supplementary Report No. 2
Purpose:
The purpose of this report is to clarify the relationship between Year 2000 Compliance
Issues and the Extension of Contract No. T-27-96 - Maintenance of Traffic Control and
Related Devices.
Funding Sources:
It is estimated that the Transportation Services Division of the Works and Emergency
Services Department will require approximately $700,000.00 to make the necessary
modifications and replacements to the traffic control computer systems and equipment to
ensure Year 2000 compliance.
Recommendations:
It is recommended that this report be received for information.
Background:
On June 25, 1998, the Budget Committee had before it a transmittal letter (June 17, 1998)
from the Urban Environment and Development Committee regarding their recommended
extension of Contract No. T-27-96 - Maintenance of Traffic Control and Related Devices.
The Budget Committee on June 25, 1998, referred the matter to the year 2000 Project
Office for a report to Budget Committee on July 13, 1998 on whether a new contract can be
issued which would incorporate, through a regular maintenance program, the conversion
necessary for the year 2000 project.
On July 13, 1998, the Budget Committee deferred consideration of this matter until their
July 28, 1998 meeting.
Discussion:
In a report to the Urban Environment and Development Committee (UEDC) dated May 26,
1998, Transportation Services staff discussed the one-year extension of Contract No.
T-27-96, the Maintenance of Traffic Control and Related Devices, to the end of 1999. This
extension was recommended by UEDC at their June 15, 1998 meeting.
At the request of the Budget Committee, Lana Viinamae, Year 2000 Project Executive,
discussed the issues of Year 2000 computer compliance as they relate to traffic control
computer systems and equipment, in a report dated July 8, 1998. One conclusion within that
report is that substantial effort would be required to prepare a tender which would include
Year 2000 compliance components in the maintenance contract, and there are no
demonstrated advantages to including such components in the maintenance contract.
Therefore, the Year 2000 compliance should be dealt with outside the scope of the
maintenance contract.
In order to further clarify the absence of relationship between the Year 2000 compliance
work and the maintenance contract, staff wish to reiterate that the maintenance contract
encompasses routine repair, inspection and replacement activities at traffic control signals
and pedestrian crossovers, as well as sign installation on major roads and incidental
pavement markings.
The identification of the required hardware and software replacement acquisitions, as well
as the specialized services required to undertake the Year 2000 compliance work, are outside
the scope of the maintenance contract. The most cost-effective method of attaining Year
2000 compliance will be accomplished through a process other than the extension of
Contract No. T-27-96.
Conclusions:
Contract No. T-27-96 should be extended for one year to the end of 1999. Staff should
report back in September identifying the funds which should be allocated to the
Transportation Services Division to address the issue of Year 2000 compliance, and whether
the compliance activities will be best undertaken by in-house staff or contracted services, or
a combination thereof.
Contact Name and Telephone Number:
Peter Hillier, Senior Manager
Traffic Regions
(416) 392-5348
David C. Kaufman
General Manager, Transportation Services
Barry H. Gutteridge
Commissioner, Works and Emergency Services
PKH/jr
