SUPPORTS ITEM NO. 1 CS&B COMMITTEE AGENDA SEPTEMBER 28, 1995 ADMINISTRATIVE REPORT Date: September 14, 1995 Dept. File No. CC 27/95 TO: Standing Committee on City Services and Budgets FROM: Medical Health Officer SUBJECT: Vancouver Health Department Telephone Upgrade RECOMMENDATION A. THAT Council approve the upgrading of telephone systems in eight major Health Department worksites at no cost to the City. B. THAT Council approve the allocation of up to $550,000 from Continuing Care Program's accumulated surplus account to cover the cost of the following upgrade. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of A and B. COUNCIL POLICY City Council, on February 4, 1994, resolved that during the term of the 1994-1996 Budget Management Program, any proposed increases in program and/or service levels be offset by corresponding spending reductions elsewhere in the City's operating budget or by increases in non-taxation revenues, subject to Council discretion. PURPOSE The purpose of this report is to seek Council's approval to allocate up to $550,000 from Continuing Program's accumulated surplus account to upgrade telephone systems at eight major Health Department worksites. BACKGROUND The Health Department is closely tied to the community, and provides a range of services that each and every resident of Vancouver will need at some point in their lifetime. The Department currently provides service out of some thirteen different worksites around the City. The initial point of contact for the community is usually by way of a telephone call to a switchboard at one of the many worksites of the Department. This represents telephone traffic numbering in the thousands of calls every working day - indeed, past surveys of switchboard call loads conducted by BC Tel have shown peak period traffic in excess of 200 calls per hour, on occasion. A number of factors thwart the ability of switchboard operators to handle the considerable telephone traffic of the Department efficiently: - There is no direct dialling capability to either individuals or programs in any of the worksites. - There is no local-to-local dialling possible between any of the Department s worksites, even though up to 70% of traffic has been estimated to be intra-worksite. - The lack of voice messaging has meant that switchboard operators spend inordinate amounts of time taking messages, thus taking away from their switchboard traffic and information desk duties. DISCUSSION Improvement of our telephone communications is identified as a major goal within the Department's Strategic Plan. The Department has been working with the Power & Telecommunications Branch of the Engineering Department, and with BC Tel, over the past few years to develop strategies to improve our telephone communications. In the 1993 report "Analysis of Future Directions in Telephony - Health Department Case Study", prepared by Teleconsult Ltd. of Vancouver as part of the City's Future Directions in Telecommunica-tions initiative, the technological issues relating to the Depart-ment s current telephone system were summarized as: Technology Obsolescence: The Mitel switchboard systems at most Health Department locations are approximately eight years old. Most systems were purchased in 1985 and have had no software upgrades or enhancements since that time. An industry average for the lifecycle of any telephone system is 5 to 7 years. While telephone system age is not a problem in itself, many of the systems have grown to capacity and are in need of system upgrades. Telecommunications Bottlenecks: Telephone operators at each of the Department s worksites are a primary source of information for the public. The switchboard functions as an information centre and not merely a telephone traffic control point. The switch-board at each worksite, however, has become a bottleneck due to the lack of direct dial capability to individuals or programs within the Department. The existing Mitel technology installed at most worksites is also limited in providing information to the switchboard operator as to how many calls are in the hold queue, etc. Callers experience prolonged ringing if their calls cannot get through to the operator, and frequent busy signals, and have complained frequently. Direct-in-dial and voice mail capabilities can alleviate some of the current switchboard bottlenecks. Peak Calling Periods: Many staff of the Department spend much of their workday in the field and are only in the office at the beginning and end of the day. These times are the busiest for each switchboard, as staff are all placing calls and returning messages. There are not enough lines to handle these peaks. In addition, much time is spent taking messages for staff who are out of the office. Voice mail will solve that problem, with the added benefit that staff in the field will be able to retrieve messages during the day without tying up additional telephone operator time. The approaches to telephone system upgrading have different financial implications depending on the technology selected, i.e., higher initial capital cost with lower ongoing annual operating costs vs lower initial cost but higher operating costs. The higher initial cost alternative has the advantage of greater flexibility in dealing with system growth down the road. There is, however, no point in embarking on either course unless funding is in place. The Department will continue to work closely with Power & Telecom-munications Branch of the Engineering Department to select a telephone system that achieves the best balance between capital cost and operating costs to insure the flexibility to make changes in order to meet future needs. The Department will report back to Council when the selections of system and vendor are made. FINANCIAL IMPLICATIONS The Continuing Care Program is 100% funded by the Province. Approval of recommendations contained in this report will not result in additional cost to the City. The Chair of the Vancouver Health Board, Mr. Ron Yuen, has been informed about, and supports to, the Department's proposal to proceed with three high priority projects - one of which is an upgrade to the telephone systems at eight major department worksites. The degree of upgrade necessary to meet operational needs is different at each worksite. Estimated cost for upgrading telephone systems at all eight major Health Department worksites are as follow: Burrard Unit $ 70,300 Central Office 51,200 Continuing Care Division 56,100 East Unit 46,700 Environmental Health 44,800 North Unit 69,800 South Unit 66,900 West-Main Unit 104,600 Sub-Total $510,400 Contingency 39,600 Total $550,000 CONCLUSION The telephone is usually the initial point of contact with the department. Efficient and effective telephone systems are essential to maintaining good service to the public and internal users alike. The proposed upgrades can be achieved without additional cost to the City. Council should approved the recom- mendations contained in this report. * * * * *