November 19, 1998.

To:Strategic Policies and Priorities Committee

From:City Clerk

Re:Public Health - Site Rationalization

Recommendation:

The Budget Committee on November 18, 1998 reports having received the transmittal letter (October 16, 1998) from the City Clerk regarding the subject matter.

Background:

The Budget Committee on November 18, 1998, had before it a transmittal letter (October 16, 1998) from the City Clerk forwarding a transmittal letter (October 9, 1998) from the Secretary, Board of Health Budget Subcommittee regarding Public Health Site Rationalization.

City Clerk

Barbara Liddiard/cp

Item No. 3

Attachment

c.Chief Financial Officer and Treasurer

Director of Budgets

Chief Administrative Officer

Medical Officer of Health

Committee Secretary, Board of Health

(Transmittal letter dated October 16, 1998 addressed to the

Budget Committee from the

City Clerk)

Recommendation:

The Board of Health recommends that the Budget Committee and the Commissioner of Corporate Services give high priority to site rationalization because of the potential cost saving benefits inherent therein.

Background

At its meeting on October 13, 1998, the Board of Health gave consideration to a report (October 9, 1998) from the Secretary, Board of Health Budget Subcommittee respecting Public Health Site Rationalization recommending that the Board of Health adopt the appended report (October 7, 1998) from the Medical Officer of Health recommending that further work by public health staff on site rationalization and staff relocations be completed in concert with corporate initiatives currently underway be adopted.

The Board of Health adopted this report and also made the foregoing recommendation to the Budget Committee and the Commissioner of Corporate Services.

(Transmittal letter dated October 9, 1998 addressed to the

Chair and Members, Board of Health from the

Secretary, Board of Health Budget Subcommittee)

Recommendation:

The Budget Subcommittee recommends the adoption of the report (October 7, 1998) from the Medical Officer of Health.

Background:

The Board of Health Budget Subcommittee, at its regular meeting on October 7, 1998, had before it the report (October 7, 1998) from the Medical Officer of Health, recommending that further work by public health staff on site rationalization and staff relocations be completed in concert with corporate initiatives currently underway.

The Subcommittee's action is noted above.

(Report dated October 7, 1998 addressed to the

Board of Health Budget Subcommittee from the

Medical Officer of Health)

Purpose:

To update the Board of Health Budget Subcommittee on the potential for budgetary savings related to relocation of public health staff from current leased facilities to municipally owned properties.

Source of Funds:

N/A

Recommendation:

It is recommended that further work by public health staff on site rationalization and staff relocations be completed in concert with corporate initiatives currently underway.

Background:

At its meeting on September 11, 1998, the Board of Health Budget Subcommittee requested an urgent consideration to a consolidation and site rationalization of Public Health area offices.

Comments and/or Discussion and/or Justification:

Public Health (including Animal Services) currently occupies 28 sites across Toronto. Of this total, 16 sites are located in municipally owned facilities and 12 are in leased premises. The total cost to Toronto for these leased spaces is approximately $1.6 million. The total leased space occupied is approximately 75,000 sq. ft, accommodating approximately 430 Public Health staff. This represents approximately one-third of the space and staff assigned to Public Health.

Of the leased sites, one is located in the former city of Scarborough, three in the former city of North York and eight in the former city of Toronto. The leases have various expiry dates some as early as May of 1999 and one as late as October 2005. Several of the sites are clinic sites that have been placed in these locations to best meet the service needs of the community. At this point in time, Public Health staff have been unable to determine if alternative municipal sites could be obtained for the provision of clinical services that would ensure equal access to services.

If we assume that sites with 20 staff or less are located primarily to enhance the provision of service and an alternative municipal site is available, the relocation of Public Health staff from leased facilities to municipal sites would reduce annual operating costs by approximately $1.28 million. This would require the relocation of approximately 400 Public Health staff to alternative sites. Savings realized from relocation would be offset by the cost of staff relocations and site preparations. These costs can be quite prohibitive if existing furniture and equipment do not meet the corporate standard for the new site and would need to be replaced. The total cost of relocating staff can easily exceed $5,000 per individual if new furniture and significant upgrades to the new sites electrical, computer and telephone systems are required.

Finally, it should be noted that the Commissioner of Corporate Services has issued reported statements advising all divisions that relocations of staff, functions and equipment can not proceed except through the Real Estate and Facilities Division.

Conclusions:

Clearly there is potential for Public Health to obtain savings from site rationalization. However, at this point in time we do not have the staff resources to do a thorough analysis of the space and location requirements of Public Health. This work is best completed along with the development of the regional structure for Public Health service delivery and in concert with the corporate initiative on site rationalization and space allocation.

Contact Name:

Fred Grady

East York Office

Tel: 469-8543

fgrady@borough.eastyork.on.ca