Year 2000 Vehicle Replacement Strategy

Release of Funds

The Policy and Finance Committee recommends the adoption of the Recommendation of the Budget Advisory Committee embodied in the following communication (January 14, 2000) from the City Clerk:

Recommendation:

The Budget Advisory Committee on January 14, 2000, recommended to the Policy and Finance Committee, and Council, that the Toronto Police Service request to release funds for the Year 2000 Vehicle Replacement be capped at $3.8 million, pending receipt of the requested report.

The Budget Advisory Committee, reports for the information of the Policy and Finance Committee, and Council, having requested the Chairman of the Toronto Police Services Board and the City Auditor, in consultation with the Chief Financial Officer and Treasurer, to report to the Budget Advisory Committee:

(1) providing the annual amount required to maintain the Police fleet at a reasonable rate; and

(2) providing a policy for vehicle replacement for both marked and unmarked cars;

and further requested that all best efforts be made to have the said report before the Budget Advisory Committee when they are dealing with the fleet in February 2000 or otherwise prior to the completion of the Operating Budget.

Background:

The Budget Advisory Committee had before it a report (January 6, 2000) from the Chairman, Toronto Police Services Board, recommending that the Budget Advisory Committee approve the release of $5.36 million from the City Vehicle Reserve.

_________

(Report dated January 6, 2000, addressed to the

Budget Advisory Committee from the

Chairman, Toronto Police Services Board)

Purpose:

To request the Budget Advisory Committee to approve the release of $5.36 million from the City Vehicle Reserve in the year 2000.

Financial Implications and Impact Statement:

The Toronto Police Services Board is requesting that $5.36 million be released from the City Vehicle Reserve. The City of Toronto Budget Committee had acknowledged, during the 1999 budget process, that a draw of $5.36 million from the City Reserve in the year 2000 would be adequate given the vehicle replacements in 1998 and 1999.

Recommendation:

It is recommended that the Budget Advisory Committee approve the release of $5.36 million from the City Vehicle Reserve.

Background:

At its meeting on December 9, 1999, the Toronto Police Services Board was in receipt of the following report November 29, 1999, from David Boothby, Chief of Police, entitled "2000 Vehicle Replacement Budget.

Recommendations:

It is recommended that:

(1) funding of $5.36 million, as per the five year vehicle replacement strategy, be approved from the City Vehicle Reserve;

(2) this report be forwarded to the Budget Advisory Committee for approval, prior to March 2000, for release of funds from the City Vehicle Reserve.

Background:

The Budget Advisory Committee approved a total funding of $7.707 million in 1999 for the replacement of 165 marked vehicles, 100 unmarked vehicles, 14 motorcycles and two horse trailers. Along with this approval, the Budget Advisory Committee requested the Toronto Police Service to revise the five-year replacement program and indicate the reduction in maintenance costs (particularly vehicle parts). The Budget Committee, during the 1999 budget process, also acknowledged that a draw of $5.36 million from the City Reserve in year 2000 would be adequate given the vehicle replacements in 1998 and 1999.

The following information is, therefore, provided, along with a further recommendation for the consideration of the Budget Committee for the year 2000 budget.

I. 1999 Program:

(1) The original request in 1999 was to purchase 37 motorcycles. As recommended and approved by the Budget Committee, the Service purchased 14 motorcycles and is in the process of rebuilding 14 more (nine completed). Therefore, the remaining 9 have been scheduled for replacement in the year 2000.

(2) Two horse trailers were purchased in 1999 and, as recommended, two others were rebuilt. There are no new requests for this type of unit in the year 2000 due to the new units and the extended life of the rebuilds.

(3) Of the 165 patrol vehicles, all have been delivered, 20 of which remain to enter service. In parallel with deliveries, 57 patrol and seven support vehicles have received refurbishing (two support vehicles - complete rebuilds). With the introduction of new vehicles and the cosmetic appearance of older units being maintained, this enabled the fleet to remain current.

The 100 unmarked vehicles are anticipated for delivery in mid December and will be issued prior to year end. Assignments for these vehicles will be as outlined to the Budget Advisory Committee.

(4) The revised five year forecast is outlined below:

II. Expenditure Avoidance and Reduction

(1) When compared to the original replacement request, an average cost avoidance of $2.3 million per year, compared to the original replacement plan, for the next four years will be realized. This cost avoidance is a result of the Budget Advisory Committee/Toronto Police Service review.

(2) Reduction in parts costs are directly related to the delivery of vehicles and/or the manufacturer's build dates. For this reason, the parts expenditure will be approximately $100,000.00 below the budget for 1999. With such a large introduction of vehicles late in the year it is anticipated the year 2000 budget will be set at $479,000.00 less than 1998 actuals. It should be noted that with this initiative, parts expenditures will be the lowest since 1994/1995 as shown below:

III. Year 2000 Proposal:

With the Budget Advisory Committee and the Toronto Police Service initiatives, outlined previously, and the accelerated catch-up program, it is anticipated the year 2000 will be the first year of a level-spending program. It should be noted that established refurbishing and overhaul programs would continue through the year 2000.

The year 2000 vehicle replacement request for $5.36 million is as follows:

Conclusion:

The Toronto Police Service will be undertaking the preparatory work (i.e., tendering) required, to purchase the 2000 vehicles, in anticipation of approval for release of funds. The pre-budget approval for release of funds from the Reserve is being requested in order to meet set order dates for marked police vehicles, and to ensure that other vehicles requiring replacement are kept in service for as short a period as possible in 2000. There are two order dates for marked vehicles (March and September) and the Toronto Police Service would like to place an order in March and receive the vehicles during the year rather than year end.

The savings and cost avoidance outlined in the report are a direct result of the cooperation between the Budget Advisory Committee and the Toronto Police Service. Your support is much appreciated and staff will be available at your convenience to respond to any further inquiries.

Contact Name:

Mr. Frank Chen, Acting Chief Administrative Officer-Policing (808-8005), Mr. Angelo Cristofaro, Acting Director of Finance and Administration (808-7877) and Mr. Norm Henderson, Administrator of Fleet and Materials Management (808-6980) will be present at the Board meeting to respond to any questions.

Conclusions:

The Board approved the foregoing.

Mr. Frank Chen, Acting Chief Administrative Officer-Policing, Toronto Police Service, Telephone No. (416) 808-8005 or Fax No. (416) 808-8002.