July 1, 1998

  To:Corporate Services Committee

 From:Commissioner of Corporate Services

 Subject:Office and Civic Space Consolidation in the City of Toronto - Objectives, Scope and Principles

  Purpose:

 To provide Council with information on the objectives, scope and principles to guide the planning of office and civic space consolidation, including interim criteria to assist staff in managing critical relocations in 1998.

  Funding Sources, Financial Implications and Impact Statement:

 On July 7, 1998 the Budget Committee will consider a request for funding in the amount of $2.7 million from the Transition Reserve Fund to cover Facilities and Real Estate transition related costs. Funding to complete office space planning and 1998 critical relocations for the City comprise $1.9 million of this total amount. This amount will be sufficient to cover anticipated 1998 relocations but will not cover significant furniture purchases or office space renovation. Funding for complete office and civic space renovation and consolidation will be submitted in the 1999 and 2000 budget processes.

  Recommendations:

 It is recommended that:

(1)this report be received for information.

 Council Reference/Background/History:

 The accommodation of Council, office staff and service delivery functions in City Hall, Metro Hall, Civic Centres and City office buildings requires a planned approach and represents a unique opportunity to assist the restructuring and to reduce the costs of accommodation. The project to consolidate office space will require planning through the remainder of 1998 to complete a detailed program for implementation in 1999 and 2000. The City Hall renovation is scheduled for completion in December 1998 and occupancy by Council and the senior staff prior to year-end is required. Departments are currently completing amalgamation and require some degree of staff relocation in 1998 to consolidate organizational leadership, to ensure service delivery and to meet 1998 budget targets. The objectives, scope and principles of the project have been established with the Senior Management Team (Chief Administrative Officer and Commissioners) and are outlined in the Discussion section of this report below.

  Discussion

 Objectives

 The objectives are aligned with the requirement to reduce overall space, relocate staff according to the new structure and provide service delivery in the most cost-effective manner possible. Workspace strategies include i) the updating of space standards, ii) the re-design of common, team and support office space and iii) the implementation of alternative work arrangements.

 Alternative work arrangements involve adjustments to the space and/or scheduling of specific staff functions to improve productivity, increase flexibility and reduce the overall need for space. The project will identify potential opportunities for alternative work arrangements and establish appropriate protocols for use by Departments wishing to leverage their office space and staff investment.

Objectives of the office and civic space consolidation project:

 ito consolidate the office and civic space based on the needs of the new organizational structures of the City of Toronto (ie. priority given to locating staff at City Hall who directly support Council)

ii to reduce the overall office space inventory to lower annual operational costs

iiito align the use of office and civic space with City of Toronto service delivery goals

ivto update workspace strategies to provide improved productivity

vto implement accountability for space utilization at the Department and Division level

vito facilitate the transition into an amalgamated City through use of space to meet short-term relocation needs and long-term corporate culture shifts

 Scope and Timelines

 The scope of the project includes the buildings noted below (general office and civic space owned by the City) and has been established due to the similarity of issues and current portfolio. Separate studies are currently underway for review of fire and ambulance stations, parks and works yards and recreation facilities. The concurrent review of the leased space currently utilized by City staff is resulting in recommendations for terminations of leases that are coordinated with, and incorporated into, the office and civic space project. In addition, a review is being undertaken of the use of City buildings by non-profit organizations and this information will be coordinated with, and incorporated into, the office and civic space consolidation project.

 Scope of the office and civic space consolidation:

to include the following general purpose City-owned office and civic buildings: City Hall, Metro Hall, Etobicoke Civic Centre, North York Civic Centre, Scarborough Civic Centre, York Civic Centre, East York Civic Centre, 590 Jarvis Avenue, 703 Don Mills Road, Old City Hall, 277 Victoria Street, 75-81 Elizabeth Street, 5151 Yonge Street, 5248 Yonge Street and 951 Wilson Avenue

to complete necessary research and data collection to consolidate space

to provide recommendations on reductions and capital investments

to propose a two year implementation plan including budgets (1999-2000) for staff relocations and portfolio adjustments

v.to manage the critical 1998 relocations

 Stage One of the project is currently underway. The objectives, scope, principles and criteria contained in this report will guide the project activities. A consulting team will be retained to assist staff teams in completing the necessary research and planning activities through 1998. A report to the Corporate Services Committee in September 1998 will outline the research findings, conceptual allocations and potential portfolio adjustments. A report in December 1998 will show a detailed office and civic space consolidation plan and an associated implementation plan. Stage Two of the project will be the implementation of office and civic space anticipated to commence in January 1999 and take approximately two years to complete.

  Principles and Impact

 The principles set the framework for office and civic space planning and assist the organization in understanding the use of space to deliver service. However, it is recognized that the principles must be measured against the short and long term fiscal realities and must stand up to scrutiny on a business case basis. With the foregoing in mind the following impacts for each principle are noted below.

   The focus of office and civic space consolidation is organization of staff and space to provide convenient service delivery to the public

location requirements for service delivery determine the location of staff

improved service delivery layout at key civic buildings will require re-design costs

staff training and technology links are required to support service delivery

 The City will endeavour to move people not furniture to reduce relocation costs and improve speed and flexibility of ongoing organization change

reduced costs for staff relocation when an organization contracts, expands or changes focus to meet needs

reduced downtime when implementing change in organization

increased organizational flexibility

standard office layout

common access to information technology to allow "briefcase moves"

 Space and furniture are corporate resources to be adjusted according to the City's priorities and administered through the Corporate Services Department

centrally managed inventory of space and furniture

sharing of common space such as meeting rooms, serveries, copy rooms ¼

centralized booking for meeting rooms

 Functional space standards and alternative workplace arrangements will be utilized to meet the objectives of the project and the service delivery goals of Departments

allocation of space based on function (eg. staff person whose job requires large-size drawing and/or plan review requires a larger individual space)

improved space optimization increases productivity

space reduction options available to Departments

changes in management style and organizational culture required and promoted (eg. performance management to objectives rather than time, productive use of common and team space)

 Departments are accountable for their use of space

specific use of space and associated costs justified by Department

appropriate benchmarks of space and open-book accounting of costs required of Corporate Services

space standards are guideline to measure appropriate utilization

    Space will be accounted at full-cost and charged back to Departments at the Division level

all operating, replacement and capital costs of space included

costs of space measured against industry and market benchmarks

realistic evaluation of space requirements

space reduction incentive and budget flexibility for individual Departments

cost of accommodation becomes a management criteria (eg. review of service delivery will incorporate facility costs into options prior to decision)

 Leased space will only be retained by the City to meet financial and/or service delivery objectives

relocation of many City functions currently in leased space into City-owned buildings

evaluation of lease terms and costs against full costs of City-owned space

evaluation of service delivery requirements and catchment areas of functions in leased space

 Space planning must assist in meeting environmental and social objectives

minimizing staff travel time to reduce vehicle use and pollution

support a culture to enhance employees work and family life

 Criteria for 1998 Relocations

 As the City restructures the need to relocate functional units either centrally and/ or de-centrally becomes important in achieving the fiscal goals and service delivery requirements. This pressure to relocate now must be weighed against the potential increased cost of additional relocation in the future once an overall approved concept plan for use of office and civic space is established. In addition there are limited financial and planning resources to complete the priority relocation of Council and the senior administration in City Hall in late 1998. On this basis the criteria outlined below will be utilized to limit the number and scope of relocations in 1998 to only those relocations considered absolutely critical.

 Criteria to prioritize relocations necessary in 1998 to consolidate employees in amalgamated Departments:

the structure for the Department and applicable Division has been approved by the Chief Administrative Officer

the Director level (level four) leadership is hired for the functional unit being relocated

the Department is able to demonstrate a compelling reason (financial and/or service delivery effectiveness) that necessitates relocation in 1998

the functional unit is able to detail space requirements

the relocation generally meets the anticipated direction of office and civic space consolidation in the opinion of the Commissioner of Corporate Services

construction and/or new furniture is not required

vii.the size and scope of the relocation are reasonable, given the detailed planning currently underway and the limited resources available, in the opinion of the Commissioner of Corporate Service

 Conclusions:

 This report outlines the objectives, scope, and principles of the office and civic space consolidation project and the criteria for management of critical 1998 moves. The office and civic space consolidation project will result in a cost-effective portfolio of accommodation for city services and staff. There is the potential for surplus property to be released from the City of Toronto portfolio resulting in initial asset sale revenue and long-term operating cost reductions. Staff has already begun the planning necessary to complete the initial stage of this project by December 1998.

 Contact Name:

Mark Davies

Project Team Lead397-0805Fax:397-0825

Facilities and Real Estate mark_davies@metrodesk.metrotor.on.ca

 Commissioner of Corporate Services