January 26, 2000

To: Administration Committee

From: City Clerk

Subject: COUNCILLOR'S USE OF CORPORATE VEHICLES

Purpose:

At the Administration Committee meeting held on January 11, 2000, the City Clerk advised that a report respecting various options for Councillors' use of corporate vehicles would be presented to the next Administration Committee meeting scheduled to be held on February 8, 2000.

Funding Sources, Financial Implications and Impact Statement:

Annualized savings may be achieved in the 2000 or 2001 Council Operating Budget depending upon the service delivery option selected by Council.

Recommendations:

It is recommended that Council consider one of the following options respecting the delivery of Council transportation services.

Option No. 1 Maintain the status quo in 2000 and request the new Council to review the program based on the service needs of the next Council.

Option No. 2 Reduce the driver and vehicle complement from six (6) to four (4) in 2000.

Option No. 3 Reduce the driver and vehicle complement to one (1) for protocol purposes only.

Option No. 4 Eliminate entire program in 2000.

Council Reference/Background/History:

At its meeting of January 11, 2000 the Administration Committee considered the recommendations from the Audit Committee meeting held on December 13, 1999, in conjunction with a report from the City Auditor dated November 30, 1999 regarding the Councillors' use of corporate vehicles; a Memorandum from Councillor Brad Duguid (December 10, 1999); a report from the Acting Commissioner, Corporate Services and a communication from the President, Local 79, concerning the same subject, copies of which are attached hereto.

The City Clerk at the meeting held on January 11, 2000, advised the Administration Committee that a report would be provided respecting various options for Councillors' use of corporate vehicles to the Administration Committee at the next meeting scheduled to be held on February 8, 2000.

Comments:

The proposed 2000 Operating Budget estimates for Council Transportation Unit is $348,000. This estimate includes provisions for salaries and benefits for six (6) Council drivers as well as operating costs for six (6) Council vehicles. The total number of trips serviced by this Unit for 1999 was 4,231.

During the discussions concerning the operation of the Council Transportation Unit, the comments that we have received range from the service is necessary and will become more so, to the service is not required at all.

Specific concerns that have been raised are that the cars are not fully utilized and that it would be less expensive to use an outside limousine service or taxicabs.

We have conducted informal interviews with Councillors Offices respecting the demand for Council Transportation Services and the feedback we received indicates that the demand for the service will remain approximately the same in 2000, and the same in 2001, even with a reduced size of Council.

Given that the demand will remain about the same in 2000 and likely in 2001 as well, although this is difficult to quantify prior to the election, we have identified four (4) options to address the comments pertaining to the Council transportation program.

Option No. 1 Maintain the status quo in 2000 and request the new Council to review the program based on the service needs of the next Council.

Given that the composition of Council will change in nine (9) months time, Council may wish to direct the Clerk to survey the new Council to determine their anticipated utilization of the service, and then have the Clerk report through the 2001 budget process on the necessary resources to deliver the service.

Option No. 2 Reduce the driver and vehicle complement from six (6) to four (4) in 2000

Assuming that the demand for the transportation service will remain the same at the 1999 level Council may direct the Clerk to reduce the number of Council Drivers and vehicles from six (6) to four (4) effective June 2000. This action would result in a year 2000 savings of $53,500.00 and a 2001 savings of $107,000.00.

Option No. 3 Reduce the driver and vehicle complement to one (1) for protocol purposes only.

If Council were to decide that transportation service be provided for protocol purposes only in order to host visiting dignitaries or to allow the Deputy Mayor or other Councillors to represent the Mayor at official celebrations, ceremonial events or to speak on behalf of Council, this service could be provided internally by way of one (1) Driver and vehicle.

The cost of one (1) internal Driver plus any casual vacation relief, and vehicle is approximately $65,000.00 per annum, while the cost of a limousine two (2) days per week is approximately $50,000.00 per annum. The utilization of a full-time internal resource would minimize the time spent on coordinating the service, ensure confidentiality, and allow us to use the Driver's available time for courier delivery for the Council offices.

If Council decides to pursue Option No. 3 and provide one (1) Driver and vehicle for protocol purposes, then an amount of $2,000.00 will have to be added to each Council Office Global Budget to offset the additional cost of taxicabs, based upon 5,000 taxicab trip's per annum. This amount was identified as a total amount of $118,000.00 in the City Auditor's report dated November 30, 1999.

Option No. 4 Eliminate entire program in 2000

This action would result in a year 2000 savings of $174,000.00 and a 2001 savings of $348,000.00. However, an amount of $2,000.00 will have to be added to each Council Office Global Budget to offset the additional cost of taxicabs at a total cost of $57,000.00 for 2000 and $88,000.00 for 2001. In addition an amount of $50,000.00 per annum will have to be added to the Council budget to offset external limousine services.

Conclusions:

Access to Council transportation services for Councillors is more efficient and convenient than using taxicabs, especially when Councillors are required to attend numerous meetings and events within their wards and throughout the City. Most Councillors, while enroute in the vehicle, are able to return telephone calls, review agenda material, or discuss City issues with other Councillors or staff.

Toronto is the largest city in Canada and is well recognized internationally. Taxicab service, while economical, does not meet international protocol standards when hosting foreign dignitaries.

External limousine services meet protocol standards; however, staff recommend that this service not be provided externally as Councillors use the Council vehicles as an extension of their office and conduct a great deal of official business while in the vehicles. We believe that City staff are more knowledgeable of the City's operations and trained to provide security and maintain the confidentiality of any confidential discussions that may be carried out in the Council vehicles.

Based on informal discussions with Councillors Offices, it would appear that there is a continuous demand for service and that the service demand on the Council Transportation program will be similar to the 1999 levels.

This report identifies four (4) options which address comments received for Council Transportation services.

Contact:

Jim Hart, Director, Council and Support Services at 392-8676 [jhart@toronto.ca.]

Novina Wong

City Clerk

1/26/00 8:56 AM

C:\in\it005