May 4, 1999

To:Audit Committee

From:City Auditor

Subject:Radio Communications System - Toronto Police Services and Toronto Fire Services

Recommendations:

It is recommended that:

1.the Commissioner of Works and Emergency Services report to the Policies and Finance Committee every six months on the status of the Integrated Police and Fire Radio Communications System;

2.the first of such progress reports be submitted by June 30, 1999 and include information on any changes to the final contract price for the system, scheduled completion date, the progress of the implementation, the meeting of prescribed milestones and payments to Motorola, any problems or delays encountered or anticipated, and whether the project will be completed on time and within the contract price; and

3.this report be forwarded to the Budget Committee, as well as the Policies and Finance Committee, for consideration.

Background:

At its meeting on February 25, 1999, the Budget Committee requested that, "prior to the City embarking on the purchase implementation of the new radio system", the City Auditor provide a review of same and report back to the Budget Committee.

Comments:

At its meeting on December 16 and 17, 1998, City Council adopted Clause No. 33 of Report No. 26 of the Strategic Policies and Priorities Committee, which authorized the entering into an agreement with Motorola Canada Limited (Motorola) for the purchase of an integrated Police and Fire radio communications system at an estimated cost of $34.5 million. On December 22, 1998, a contract was executed with Motorola. The total contract price for the system was $29,999,918, exclusive of all taxes. In accordance with the contract, a payment of $2,345,000 plus applicable taxes was made upon the execution of the contract. A payment schedule, based on various prescribed milestones, forms the basis of future payments to Motorola.

Work on this project has started and Police and Fire Services staff have advised that the final cost of the system could be lower than the contract price once the system design and equipment requirements are finalized. Phase 1 of the project is expected to be completed by the end of May 1999. The whole system is expected to be completed and fully functional by August 2001.

At the time of the request from the Budget Committee the purchase of the new radio system had already been approved by Council and the contract with Motorola executed. Consequently, it is not possible to review the system prior to its purchase.

It is, however, important that a project of this magnitude be properly managed to ensure the specified deliverables are received within the contract price and that the radio communication requirements of both the Police and Fire Services are effectively satisfied. Staff have advised that monthly reports are currently provided to the Deputy Chief, Police Services, the Deputy Chief, Fire Services and the Executive Director, Technical Services Division, Works and Emergency Services. It would be appropriate that regular progress reports also be provided to the Policies and Finance Committee. These reports would keep the Committee abreast of the implementation and financial status of the project and allow staff to make the Committee aware of any problems or issues relating to the installation of the system. It would be appropriate for the first of these reports to be submitted by June 30, 1999, and then every six months thereafter, until the project is completed.

The contract with Motorola only covers emergency services. Staff have advised that a consultant has been engaged to evaluate the current radio communications systems of non-emergency divisions such as Parks and Recreation, Transportation, Water and Wastewater and Solid Waste Management. The consultant has completed a draft report resulting from the evaluation and the Commissioner of Works and Emergency Services will report to the Works Committee by the summer of this year on this matter. The Commissioner's report will address the consultant's recommendations, provide the department's plan to deal with the non-emergency communications systems requirements in the short and long-term and associated costs, and outline the process to be followed to meet any additional system needs identified.

Staff have advised that while the current systems generally support the operational requirements of non-emergency staff, there is a need to realign the systems to match the communications capabilities with the new service districts resulting from the amalgamation. The ramifications of the integrated Police/Fire radio system on the non-emergency component will also be addressed.

Conclusions:

The contract for an integrated Police and Fire radio communications system has been executed and work on developing and installing the system has commenced. A project of this magnitude must be properly managed to ensure that all the specifications in the contract are delivered on time and within the contract price. Regular progress reports to the Policies and Finance Committee would keep members of the Committee informed on the status of the implementation and aware of any significant problems or issues relating to the project. With regards to the radio communication requirements of non-emergency divisions in the City, the present radio communication systems have been evaluated and a report will be submitted to the Works Committee shortly.

Contact Name and Telephone Number:

Tony Veneziano, Senior Audit Manager, 392-8353

Jeffrey Griffiths

City Auditor