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ADMINISTRATIVE REPORT
Date: June 16, 1998
Author/Local: D. Alexander/323-7676
CC File No.: 5654TO: Standing Committee on City Services and Budgets
FROM: General Manager of Engineering Services
SUBJECT: Coin Collection Operations Re-Engineering
A. THAT the Coin Collection and Parking Meter Maintenance Operations be combined as a new Engineering Services Operating Branch.
B. THAT the four existing Temporary Full Time Coin Collector positions be confirmed as Regular Full Time.
C. THAT the Coin Collector I and II positions be combined into a single classification with some meter maintenance duties. Salary level to be initially established at the Coin Collector II level subject to job classification by the Director of Human Resources.
D. \THAT two regular full time exempt staff positions of Manager and Assistant Manger be established subject to job evaluation by the Director of Human Resources. The cost of these positions will be offset by parking meter revenues and by the elimination of 1 existing full time Foreman position.
E. THAT staff establish the hours of work to meet the operational requirements for the combined operation over the next two months.
F. THAT initial operating expenses totaling an estimated $213,000 and ongoing annual costs of $128,000, as detailed in the report, be approved.
The Coin Collection Operations proposals submitted to Council achieve a more business-like approach to what has become a major revenue generator for the City. The addition of a supervisor coupled with the addition of four regular employees (converted from temporary) reflect the growing scale of the operations and are more than offset by revenues increases. As a result, the General Manager of Engineering services RECOMMENDS approval of A to F.
There is no policy directly applicable to this re-engineering project. However, changes should be accompanied by matching cost savings, related revenue increases or management improvements.
SUMMARY
Due to operational issues, the Coin Collection group was transferred from Corporate Services to Engineering Services in mid-December, 1996 subject to a report back on potential service and process improvements.
Since that time, increased meter rates and hours of operation changes have put pressure on the collection process. With staff input, coin collection routes have been modified and priority collection has been introduced for the more heavily used metered areas. The result has been an increase in collection revenues well in excess of those attributable to the rate and hours of operation adjustments alone.
To further improve the operation, it is proposed that the Coin Collection and Meter Maintenance operations be amalgamated as a new operating branch within Engineering Services. Reporting to the Assistant City Engineer, Transportation, the branch will be administered by two exempt Managers. The branch will operate initially six days per week, Monday through Saturday, to ensure collection and maintenance meets the current demand. As Sunday revenues increase, the branch will move to a seven day per week operation. The amalgamation will result in improved coordination of repair, installation and collection demands, a reduction in meter downtime due to out-of-order's and, consequently, a further increase in meter revenues.
Two options for housing the new operating branch are being considered. The first is the office component of the new impound facility proposed at Granville and Beach and the second is the Cambie Yard replacement in the Burlington Flats. Both options are up to two years from completion. A final decision will be made in the next several months.
As part of the implementation process, it is proposed that the existing Coin Collector I and II classifications be combined and minor meter maintenance responsibilities be added. In addition, it is proposed to establish the current staff level of twelve (12) collectors for the branch and that the four (4) Temporary Full Time positions be made Regular Full Time. Hours of work for the new Branch will be reviewed following amalgamation.
The security of the collection process has also been reviewed and the present operation falls short of our objective of a "closed" system. The existing collection cart design is inadequate. As there is no suitable design available in the market place it is proposed that a new cart be designed to meet our specific needs. In addition, to ensure the overall security of the collection process, it is proposed that an independent review be conducted by a security consultant after the first three months of operation and annually thereafter.
The approved recommendations will be implemented as a package after necessary discussions with the involved Unions.
PURPOSE
The purpose of this report is to provide Council with information on our review of the City's coin collection operation and to recommend organizational improvements.
BACKGROUND
In mid-December, 1996, due to operational issues, the Coin Collection group was transferred from the Treasury Branch of Corporate Services to Engineering Services subject to a detailed review and report on potential process improvements. This transfer was done without the transfer of any supervisory staff from Treasury. At that time, the Yards Superintendent was temporarily re-assigned to oversee the review.
ACTIONS TO DATE
Coincident with the Coin Collection operation review, the Transportation Division was in the process of implementing previously approved parking meter rate changes and examining the hours of operation. To accommodate immediate changes and because of the labour dispute in 1997, the organizational review was delayed.
On February 20, 1997, City Council approved the extension of parking meter hours to 8:00 pm and expanded the days of operation to include Sundays and Public Holidays. Implementation of both the rate change and extension of hours were completed in April, 1997.
The rate change implementation, the extended hours of operation and, to a lesser degree, the inclusion of Sundays and Public Holidays, created an immediate need for changes to the collection process. Two factors contributed to the urgency.
Firstly, collection routes and crew allocations resulted in collections which, at best, only occurred every second day. Secondly, the routes focused primarily on the number of meters collected and did not take into account the different rates of usage throughout the metered areas. Combined, these factors meant that only about 40% to 60% of the coinage in the parking meters on any given day could be collected. The rate increases and extended hours eroded those figures to the point that without stepped up collection a significant percentage of the meters would become jammed with coins and, therefore, become inoperative. In addition, the risk of theft from the meters and any resulting damage would increase.
To reduce the number of coins left in the meters, an objective of collecting "every meter every day" was established. Staff responded with a proposal for route consolidation, the assignment of priority to collection in the more heavily utilized meter areas and an increase in the number of coin collection crews from three to four daily. Their proposal was implemented in mid-April, 1997.
Since then, meter out-of-orders and thus repair costs have dropped, collection rates have increased to about 90% of coins collected daily, our exposure to external theft has been greatly reduced and revenues have increased significantly. These increases are attributable to the hours of operation changes, rate adjustments, the improved collection levels and to the resulting reduction in meter out-of-orders due to coin jams.
NEXT STEPS
STAFFING ISSUES
1. Staff Complement
On January 6, 1998, net revenue gains were reported well in excess of those anticipated as a result of the rate and hours of meter operation changes introduced in April, 1997. These increases were attributed, in part, to improved coin collection and meter maintenance operations.
Given the significant cost benefits, it is proposed that the staff complement be confirmed at twelve (12) regular full time positions to maintain the four zone collection system. This provides collection coverage for a six day, Monday through Saturday, work week. At present eight (8) of the twelve (12) positions, including the two (2) added on January 6, 1998, are Regular Full Time. This proposal will, therefore, convert the remaining four (4) Temporary Full Time positions to Regular Full Time status.
The level of Sunday deposits does not currently justify expansion to a seven day operation although this may become necessary in the future.2. Additional Duties and Job Reclassification
At present, the Coin Collector category is classified into two levels. The primary distinction between the two levels has been that the Coin Collector II on each team is responsible for determining how each route is to be collected, driving the van and completing the daily collection receipt at the end of the day. In practice, with the exception of new Collectors, these responsibilities are generally shared and there is no other difference in the basic demands of the job. It is, therefore, proposed that all Collectors with over one years experience be classified at the same level. Those with less than one years experience should be classified as trainees and compensated at a lower level.
As part of this reclassification it is proposed that the Collectors also undertake some meter maintenance duties. These would include routine lubrication and minor repair and adjustments to the lower end and coin chute. These functions would add some variety to the Coin Collection process, would help to ensure that minor repairs are completed in a timely manner and would free time to allow the Parking Meter Technicians to spend more of their time on the repair and maintenance of the internal mechanisms and on installations. The changes would also contribute to a higher general level of overall meter maintenance and consequently greater meter revenue.
Subject to a formal classification review, it is proposed that the modified Coin Collector position be compensated at one level and that a one year training level also be established. These changes will introduce additional ongoing costs of about $20,000 per year. It is proposed that these costs be offset by reducing the meter maintenance temporary help budget by an equivalent amount.
ORGANIZATIONAL ISSUES
1. Coin Collection/Parking Meter Maintenance Amalgamation
The major organizational issues identified for solution were:
1. Active supervision of day to day operations.
2. Closer co-operation between meter installations, meter maintenance and meter collections.
3. Organizational responsibility for the collection function.
From mid-December, 1996 to the present, Coin Collection Operations have functioned as an unattached Branch of Engineering Services pending organizational review. As outlined earlier in this report, a number of operational changes, primarily as the result of staff suggestions and input, have been made during that time and significant improvements in revenue collection have been realized.
Organizationally, the group logically falls under the umbrella of the Transportation Division whose responsibilities include Parking, Parking Enforcement and Traffic Operations which includes Parking Meter Maintenance.
Parking provides the design function related to on-street parking activities while Parking Enforcement, as the name implies, deals with parking violations. Only Traffic Operations, and more specifically, Parking Meter Maintenance, have job functions which overlap and are mutually supportive.
Both Parking Meter Maintenance and Coin Collection staff have access to the internal meter mechanisms and both are involved in the collection of coin (Meter Technicians often must empty the meter to perform repair duties). In addition, many of the out-of-order reports provided to Parking Meter Maintenance come from Coin Collectors and, conversely, adjustments to collection routes result as new installations, removals or relocations are completed by the Parking Meter Technicians.
The balance of the work performed by the Traffic Operations Branch bears little direct similarity to those of the Coin Collection and Meter Maintenance operations. Amalgamation of these two separate operations as an independent Branch provides the opportunity to ensure greater coordination. This will ensure a clear definition of their primary mandate which is the security and protection of the City's parking meter assets. The efficiencies realized will also result in reduced meter downtime due to out-of order's.
2. Hours of Work
At present the Coin Collection staff work a four day week within a six day, Monday through Saturday, operation. The Parking Meter Maintenance staff work a five day week from Monday to Friday. Parking meters are in operation seven days a week from 9:00 am to 8:00 pm although, at present, Sunday usage is only 15% to 20% of that in the balance of the week.
We are presently in the process of expanding Meter Maintenance operations to include Saturdays. It would be advantageous to have all staff in the new Branch working similar schedules for coverage. However, until the groups are combined it is difficult to determine the most effective operating schedule. It is, therefore, proposed that the hours of work for this group be reviewed after the amalgamation and that the new management staff report back with an appropriate hours of work recommendation.
3. Office location/facilities
It is important from a supervision and group dynamics point of view to have both the Coin Collection and Meter Maintenance sections of the new branch located in the same facility. It is also desirable to have the offices as centrally located as possible to minimize downtime lost to travel. Two options are currently available.
City Council approved proceeding with the development of a new vehicle impound facility at Beach and Granville. An office component is required on the Beach Avenue face of the parkade to provide a buffer to the residential development to the south. The office space is well located and preliminary design considerations indicate that this site could be considered as a potential home for the new operation. The design/build process is expected to take about eighteen to twenty-four months.
In addition, Engineering Services is currently developing plans for the relocation of a number of the operations in our Cambie Works Yard to a new site in the Burlington Flats. The timetable for these changes is also in the eighteen to twenty-four month range and the needs of the new operation will be included in the design considerations.
A final decision on a permanent location will be made in the next several months. In the interim, we propose to begin the process of integration while continuing to operate from the existing facilities. While this will introduce some logistical difficulties, temporary relocation is not a cost effective option.
4. Equipment
The four zone collection system, the proposed changes to the coin collection carts, establishment of a new operating facility and the management changes creates a need for some additional equipment.
Since the implementation of the four zone system in April, 1997, we have been using a van from our Equipment Branch as a temporary collection vehicle for the added crew. This van is not suitable for extended use and a properly equipped new van is required. This will bring the total number of outfitted vans for the collection group to five. The spare van serves as a backup in the event of a breakdown in one of the regular vans andprovides a vehicle for the Assistant Manager. It is proposed that car allowance be approved for the Manager position at an annual cost of $5,000. Funding is already in place for the ongoing maintenance of the van.
The existing coin collection process involves the use of an in-vehicle safe for the temporary storage of coin bags and a standard truck dolly for transferring the bags from the vehicles to the bank at the end of the day. The proposed change to sealed canisters makes the existing vehicle safes unsuitable and they will need to be replaced. In addition, the standard truck dollies presently in use will not be functional for transferring the canisters. New flat-bed dollies will be required.
The maintenance operation involves fairly frequent handling and delivery of parking meter heads and other heavy bulk items. The loading and unloading of these materials requires the use of a forklift. As the forklift used in our Cambie Yard has other yard uses, a new unit will be required for the new facility.
The costs of these expenditures are summarized in Appendix "A". Additional office equipment costs will be identified in a separate report related to the impound facility development.
Supervision
Currently Coin Collection and Meter Maintenance operations combine to generate approximately $12,000,000 in revenue annually. At present, all of this revenue is collected as coin. The related collection and maintenance processes involve activities from heavy labouring to fairly complex technical repairs and installations. Given the direct money handling aspect of the work, staff must also be highly trustworthy and responsible.
Supervision of this group involves all aspects of the hiring process including screening and selection. The supervisory staff will also be responsible for staff scheduling, performance and discipline as necessary, monitoring of collections and for adjustment of beat structure to ensure optimal efficiency. Due to the monetary nature of the work, disciplinary activities may involve sensitive and highly confidential legal investigations and actions.
Financial responsibilities include the annual budget preparation, security of the collection process, equipment purchases/repairs/maintenance and on-going system review and improvements. It is also anticipated that the supervisory staff will become more directly involved in the design and decision making processes related to future expansion or adjustment of the metered parking areas including the selection and purchase of appropriate parking meter devices.
As branch operations must cover six days of operation per week, the supervisory responsibilities must be shared by two separate positions. One of the positions, however, will be accountable for overall branch management and direction. These positions will report directly to the Assistant City Engineer, Transportation and will exercise considerable independent judgement and initiative.
It is, therefore, proposed that two exempt positions of Manager and Assistant Manager be created to fulfill these duties. The cost of these positions will be offset by the elimination of one Foreman position and by parking meter revenues. The net cost is estimated to be $118,000 annually.
SECURITY ISSUES
1. Coin Collection Carts
At present the coin collection operation falls short of our objective of a "closed" system. In addition, the large metal canisters on the existing collection carts are ergonomically too cumbersome and heavy to use as primary collection containers. Unfortunately, given the current ergonomic standards there is no suitable design presently available in the marketplace. A new and innovative cart design is, therefore, required.
Preliminary discussions with a design consultant have indicated that a new cart could be designed and manufactured at a reasonable cost and could generate some potential revenue through product sales to other Cities and Municipalities in the future. The estimated costs for the new carts are detailed in Appendix "A".
2. Security Consultant
The parking meter operation involves the collection and handling of significant amounts of cash on a daily basis. It is incumbent on the City to ensure that adequate measures are taken to protect that resource and to minimize any possibility of related risk to the employees involved in the collection process. This report presents recommendations for organizational improvements to enhance collections and system maintenance but a more detailed review of the overall security of the operation needs to be implemented.
Such a review should be conducted by an independent security consultant to ensure objectivity and it is proposed that $40,000 be set aside for implementation within three months of the new operation's start up. In addition it is proposed that an ongoing budget of $5000 be established for annual reviews.
FUNDING IMPLICATIONS
As reported on January 6, 1998, meter revenues in 1997 exceeded those anticipated due to meter rate and hours of operation changes introduced in April, 1997 by $875,000. Revenues for 1998 are expected to exceed our initial estimates by over $1,000,000.
The total costs of the proposed one time changes for 1998 will represent approximately 21.3% of these extra revenues. Additional annual operational expenses represent only 1.1% of gross revenues generated.
PERSONNEL IMPLICATIONS
A copy of this report has been sent to CUPE Local 15 and the Foreman's Association.
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New coin collection carts
Design $ 13,000
Tooling 60,000
150 Canisters 5,000
10 Carts 20,000
$ 98,000
New Collection Van 25,000
Forklift 40,000
Security Consultant 40,000
Re-fit Vans for canisters 6,000
New dollies for canisters 4,000
Sub-total $ 213,000
Net annual Management costs $ 118,000
Annual security review 5,000
Car allowance for Manager 5,000
Sub-total $ 128,000
Grand Total $ 341,000
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