Report to: General Committee                                                    Report Date: January 24, 2008

 

 

SUBJECT:                          Emergency Purchases – Winter Operations 2007

PREPARED BY:               Paul Ingham, General Manager, Operations

 

 

RECOMMENDATION:

That the report entitled ‘Emergency Purchases – Winter Operations 2007’ be received;

 

That the Finance Department be authorized to increase Purchase Orders and approve purchases as per “Attachment A” in order to be aligned with the emergency invoice payments approval for winter maintenance contracts and supplies for 2007;

 

And that the over expenditure of $1,412,071 in account 700 504 Winter Controls, be offset by Townwide favourable variances in the 2007 Operating Budget.

 

And that the Operations Department report back to Finance and Administrative Committee, following the 2007/2008 winter season, to provide detailed financial reports on the year to date costs for winter maintenance operations, as well as estimated costs to provide service for the balance of the 2008 budget year;

 

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

 

EXECUTIVE SUMMARY:

Not applicable

 

 

PURPOSE:

This report has been prepared to report to Council on the over expenditure in winter operations incurred by the Operations Department for winter maintenance for 2007.

 

 

BACKGROUND:

The Operations Department experienced a significant increase in winter maintenance activity through November and December 2007.  To respond to snow and freezing rain conditions from late November through to the end of December, sanding/salting operations were undertaken on primary roads 26 times, with continuous 24 hours service required on 5 different occasions.  In addition, full snow plowing of local roads was completed twice for major storms (greater than 15 cm) and once for a minor storm (7.5 to 15 cm) during this same period.  Combined with the cost of sidewalk winter maintenance, winter materials and snow removal on Yonge Street, Main St. Unionville and Main St. Markham, the Operating Budget for winter maintenance was overspent by $1,412,071 in 2007.

 

OPTIONS/ DISCUSSION:

When preparing both tender documents and annual budgets, the Operations Department uses four year averages to determine the estimated frequency of snow fall events that will require everything from sanding/salting operations on primary roads to full local road plowing and sanding, including snow removal operations for our business areas.

 

The hired equipment required to respond to winter maintenance operations for 2007 far exceeded the estimates we had established using our four year averages.  The total precipitation received in December was greater than any amounts experienced since January 1999.  Conversely, the mild weather we experienced through November and December of 2006 resulted in an $ 857,107 favourable variance for winter operations at year end.

 

The Operations Department schedules staff on night shift from Monday to Friday (11:30 p.m. to 8:00 a.m.) throughout the winter season.  This shift schedule provides the Department with the resources required to operate in-house equipment for plowing and sanding operations on primary roads in preparation for the morning rush hour traffic.  Although we have overspent our personnel budget by approximately $26,000, a majority of the personnel costs for overtime are mitigated through the application of this shift schedule.

 

The winter maintenance demands on Operations staff’s time have resulted in decreased productivity in other areas. Regular activities such as sign maintenance, illumination patrols and mandatory road patrols were delayed in an effort to meet our winter level of service. Our opportunity to collect inventory for the Tangible Capital Asset project mandated by the Public Sector Accounting Board was further impacted by the increase in winter activities.

 

FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)

 

The following table is a summary of the financial considerations for this report:

 

 

 Personnel 

 Non-Personnel

 Revenue

Total

2007 Operating Budget  

 (Account # 700-504) 

 $ 1,328,150

 $ 4,493,855

-$ 601,276

 $ 5,220,729

 Total 2007 Expenditure/Revenue

 $ 1,354,109

 $ 5,757,598

-$ 478,907

 $ 6,632,800

 Budget Remaining / (Shortfall)

-$     25,959

-$ 1,263,743

-$ 122,369*

-$ 1,412,071

*The cancellation of the winter maintenance agreement in November and December 2007 with York Region Transit for bus shelter snow removal resulted in decreased in operating costs and a corresponding revenue shortfall.

 

Please refer to Attachment A for a detailed schedule of the affected Winter Maintenance accounts and the corresponding Purchase Orders that require increases.

 

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Not Applicable

RECOMMENDED BY:

 

 

 

________________________                                                ________________________

Paul Ingham,                                                                             Peter Loukes,

General Manager, Operations                                                   Commission Lead, Community and Fire Services

 

 

 

ATTACHMENTS:

Attachment A: Cost Summary – Winter Control Account – Non Personnel