May 6, 1999

To:Corporate Services Committee

From:Commissioner of Corporate Services

Subject:KPMG Fleet Review Update

Purpose:

To provide an update on the status of the KPMG Fleet Review.

Source of Funds:

There are no financial implications in this report.

Recommendations:

It is recommended that:

(1) this report be received for information; and

(2) information and consultation sessions be undertaken with Fleet Management Services' clients, unions and the Finance Department, prior to presenting implementation recommendations to the new Administration Committee at its meeting of July 13, 1999.

Council Reference/Background/History:

In June 1998, KPMG began a comprehensive review of fleet management and maintenance operations of the former municipalities with the following objectives:

• identifying opportunities for savings and efficiency improvements;
• best practices for fleet management and maintenance;
• developing an organizational design for a centralized fleet management service; and
• development of an implementation plan.

Comments and/or Discussion and/or Justification:

On April 30, 1999, KPMG submitted a draft report of the Fleet Review. The following steps will be undertaken prior to presenting the report, together with implementation recommendations to the new Administration Committee at its meeting of July 13, 1999.

• Fleet Management Services will review the report to assess its recommendations for impact on public service, implementation potential and compliance with the terms of reference;

• the Fleet Review Steering Committee will consider acceptance of the report and approve next steps;

• information and consultation sessions will be undertaken with Fleet Management Services clients, unions and the Finance Department;

• information and consultation sessions will be scheduled for members of the Administration Committee and the new Policy and Finance Committee.

Concurrent with the presentation of the KPMG review, Fleet Management Services staff will make recommendations on implementation priorities, garage closures, and key policy directions on fleet replacement and procurement based on consultations with key client departments and union representatives.

The implementation of the approved recommendations will be led by a Project Manager with the assistance of a Steering Committee to include Fleet Management Services clients, and staff from Fleet Management Services, Finance and the CAO's office. This Steering Committee will report back on a regular basis on the status of the implementation.

Contact Name:

Stan Burrows

Director, Fleet Management Services

Telephone: 392-7791

Fax:392-7301

Margaret Rodrigues

Commissioner, Corporate Services