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HomeMy WebLinkAboutFIN 25-19PICKE RiNG Report to Council Report Number: FIN 25-19 Date: December 16, 2019 From: Stan Karwowski Director, Finance & Treasurer Subject: Audit and Accountability — Service Review Report Recommendation: 1. That Council receive report FIN 25-19 for information in regards to service review report for Public Wi-Fi; Building Permits & Fleet Management Solutions; 2. That staff be directed to include in the 2020 draft capital budget submission a new fleet management system and where applicable, apply for Provincial grant funding; and 3. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary:On May 21, 2019, the Premier announced the creation of the Audit and Accountability Fund with funding of $7.35 million for large urban municipalities interested in conducting service delivery and administrative expenditure review with the goal of finding efficiencies while protecting front line City services. Council approved staff applying for this grant under report FIN 14-19 (Attachment 1). The City was successful in obtaining grant funding ($100,000) and hired Deloitte LLP to conduct a review of the following three items: provision of Public Wi-Fi; building permit process and fleet management system. Deloitte's report is attached for information and as a condition of the grant funding will be posted on the City's website. The public Wi-Fi section of the report examined the City's current state of Wi-Fi deployment, took into consideration the provision or availability of free public Wi-Fi provided by the private sector and provided options for the City to consider. The building permitting process examined current processes (that is heavily paper based) and identified opportunities and possible efficiencies with a more interconnected (24/7 electronic application system) and its benefits. The City's existing fleet management system and vehicle tracking are "old systems" that need to be replaced in order to FIN 25-19 December 16, 2019 Subject: Audit and Accountability — Service Review Page 2 approve efficiencies and cost savings. In addition, a new system may also lead to increased worker safety and possible insurance premium savings. Based on Deloitte's recommendation and recognizing the need to prioritize the City's investment of critical resources including staffing, recommendation two directs staff to prioritize the delivery of a new fleet management system. In addition, the Province has announced possible future grant funding opportunities under the "Audit and Accountability" umbrella through a Municipal Modernization Program and the fleet management software system would be an excellent candidate due to fact it was increase staff efficiencies that translates into cost savings to the taxpayer. Financial Implications: The Audit and Accountability Fund covered 100 per cent of the City's costs for delivery of the consultants' report. The fleet management system represents for the City, the "best bang for the buck" due to the fact it can deliver possible cost savings up to $308,000 (page 106) per year. The Province under the Municipal Modernization Program has announced grant funding in the amount of $125 million through 2022-23 and City staff will be pursuing this opportunity to help support the cost and implementation of the fleet management system. Discussion: The Audit and Accountability exercise was a beneficial to the City due to the fact it identified "low hanging fruit" from an efficiency and cost savings perspective. With the possibility of further grant announcements related to "Audit and Accountability", the City is well positioned to take advantage of these opportunities due to the fact the background work and justification has been completed through this exercise. Attachments: 1. Report FIN 14-19 regarding Provincial Audit & Accountability Fund 2. Service Review Report on Public Wi-Fi, Building Permits & Fleet Management Solutions Prepared / Approved By: Prepared /Approved By: Original Signed By: Original Signed By: Paul Bigioni Stan Karwowski Director, Corporate Services & City Solicitor Director, Finance & Treasurer FIN 2519 December 16, 2019 Subject: Audit and Accountability -- Service Review Page 3 Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer 1 , . ig zc i 7 cd, DICKERING REVISED Attachment #1 to Report #FIN 25-19 Report to Council Report Number: FIN 14-19 Date: June 24, 2019 From: Stan Karwowski Director, Finance & Treasurer Subject: Provincial Audit and Accountability Fund Recommendation: 1. That Report FIN 14-19 of the Director, Finance & Treasurer be received; 2. That staff be directed to submit an Audit and Accountability Fund: Expression of Interest for grant funding to the Ministry of Municipal Affairs and Housing Central Region by June 30, 2019 deadline; 3. That Council grant the Chief Administrative Officer and the Director, Finance & Treasurer the authority to single source a third party consulting engagement in accordance with the City's Purchasing Policy Item 10.03 and not to exceed $100,000 should the City of Pickering's request for funding be approved by the Ministry of Municipal Affairs and Housing; and 4. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: On May 21, 2019, the Premier announced the creation of the Audit and Accountability Fund with funding of $7.35 million for large urban municipalities and district school boards interested in conducting service delivery and administrative expenditure review with the goal of finding efficiencies while protecting front line services. Projects that are eligible can take the following forms: • A line -by-line review of the municipality's entire budget. • A review of service delivery and modernization opportunities. • A review of administrative processes to reduce costs. As part of the annual budget process, the City conducts a line -by-line review of the operating budget and detailed scrutiny of the capital budget to find savings. Staff are recommending that the review focus on assessing the implementation of free WIFI in all public property and study implementation of new technology to better serve Pickering residents. FIN 14-19 June 24, 2019 Subject: Provincial Audit and Accountability Fund Page 2 Financial Implications: The Audit and Accountability Fund covers 100 per cent of the eligible costs, that includes the costs associated with a third -party consultant. The estimated eligible costs for this project is estimated to be up to $100,000. This cost reflects the total cost of the third -party consultant including non-recoverable HST. In the event the City receives confirmation written or otherwise of the Grant funding being awarded, Recommendation 3 provides staff the authority to proceed with the award of the sole source contract and hence expediting the commencement of the work required. Discussion: In a May 21st news release Premier Ford announced that "the Ontario government is offering to help large urban municipalities protect core public services for future generations by finding savings of four cents on every dollar spent. He announced that the government is providing $7.35 million for large urban municipalities interested in conducting municipal service delivery expenditure reviews to identify potential savings, while maintaining vital front-line services, through the "Audit and Accountability Fund." Through the Audit and Accountability Fund, the Ontario government is offering large municipalities funding to undertake a third -party expenditure review of their service delivery and administrative expenditures with the goal of funding efficiencies and to modernize service delivery while protecting front-line jobs. On May 29th, Pickering was notified that the Expression of Interest (EOI) forms were being accepted for funding until June 28th. EOI submissions will be reviewed on a case- by-case basis. Funding amounts may depend on the available appropriation. This funding covers 100 per cent of the cost of a consultant/third party. Internal municipal costs are considered ineligible. The grant was released May 29th and the application process consists of two steps: June 14, 2019 — notify Ministry of intention to apply followed by a submission of an Expression of Interest (EOI) to the Province by Friday, June 28, 2019. The City notified the Province before June 14th that the City would be putting forward an EOI. By completing this step, staff kept the "Door Open" for the grant funding process, however, the City is not legally bound to complete Step Two. If Recommendation 2 is approved, staff will complete the EOI for submission on or before June 28, 2019. If Council does not approve Recommendation 2 — no application will be submitted. EOI forms will be reviewed and approved by the Province as they are received. Our understanding is that notification of the approval, or denial, of our EOI will be in July. It is our understanding that the eligible cost to date to commence expenditures will coincide with the receipt of verbal or written approval for the grant and that a formal Transfer Payment Agreement will follow for execution later this summer. As part of the funding agreement requirement, Pickering is required to "Publicly post the study results", no later than November 30, 2019. The third -party report needs to be approved by City Council at the November 22, 2019 Council meeting. FIN 14-19 June 24, 2019 Subject: Provincial Audit and Accountability Fund Page 3 The consultant's final report will need to outline the analysis, findings and include any identified specific and actionable recommendations for cost savings and improved efficiencies. The focus is on savings of about 4 per cent of every $1, however, if the study does not yield the desired savings we have been advised that this would not jeopardize our funding. Conversely, if savings and efficiencies are found there is an expectation that they be implemented. If staff's EOI is successful and if the City receives notification by the end of July, the project would basically have three months to complete all project tasks including: • Award of contract to a consultant • Consultant performing the review, completing and delivering the final report to the City • Administration presenting final report to City Council on November 22nd, the last City Council meeting in November • Approved report posted publicly by November 30, 2019 Recommendation Three (Single Source) is required to facilitate completing all tasks within the timelines outlined in the Audit and Accountability grant funding guidelines. Given the very tight timelines provided by the Province under this grant funding program, staff have identified the following services (Preliminary Priority Sequence) to be reviewed: 1. Review implementation of free WIFI in all City owned public property and also review the provision of free WIFI by other municipalities (excluding single tier municipalities.) Single tier municipalities are being excluded from the study to facilitate a more "apples to apples" comparison as it relates to population size and economic capacity. 2. Review and study the implementation of new technology to better serve Pickering residents. The anticipated outcome from this review would be to provide a roadmap or high level plan. As stated above with the tight timeframe and taking into consideration of available staffing resources, the above priority sequence may change. As Members of Council are aware, Finance Department staff is heavily involved in the implementation of a new financial system with a Go -Live date of January 2, 2020 and therefore, Finance staff's availability for this project is constrained. FIN 14-19 June 24, 2019 Subject: Provincial Audit and Accountability Fund Page 4 Attachments: 1. Audit and Accountability Fund: Expression of Interest Prepared By: Approved / Endorsed By: Stan Karwowski Director, Finance & Treasurer Stan Karwowski Director, Finance & Treasurer Recommended for the consideration of Pickering r Council Tony Prevedel, P.Eng. Chief Administrative Officer Ontario ATTACHMENT# 1 TO REPORT# Fd _ F19 Ministry of Municipal Affairs and Housing Audit and Accountability Fund: Expression of Interest To apply to the Audit and Accountability Fund: 1.) Complete all required fields of this Expression of Interest. 2.) Ensure that the completed Expression of Interest has been attested to by the appropriate municipal staff. 3.) Include an outline of your project timeline and costs (procurement documents, a project charter, a project work plan, or any other document as appropriate). 4.) Email this Expression of Interest and any additional supporting materials to municipal.programs@ontario.ca by June 30, 2019. Attestation I have reviewed this expression of interest and the supporting material and can verify that it is accurate to the best of my knowledge and understanding. Signature Date (DD/MM/YYYY) Legal Name of Municipality Name of Signatory Position Title Applicant Information Mailing Address Name of Primary Contact Position Title Email Address Telephone Number o I acknowledge that it is a program requirement that the proposed third -party review project result in a publicly posted report by November 30, 2019. What is the anticipated cost of your proposed third -party review project? Note: only the cost of a third -party service provider should be included. Attach a document to support the timeline and costs of your project. Have you included a resolution of council demonstrating support for the proposed third -party review project? Note: this is not a program eligibility requirement. O Yes (If yes, please attach a copy to this Expression of Interest form) O No CONFIDENTIAL ONCE SUBMITTED. Not to be copied or distributed without written consent of the owner. Page 1 of 2 Review Project Description 1.) Provide a brief description of your proposed third -party review project. 2.) Provide a summary of the objectives of your proposed third -party review project. 3.) Provide a summary of expected outcomes of your proposed third -party review project. CONFIDENTIAL ONCE SUBMITTED. Not to be copied or distributed without written consent of the owner. Page 2 of 2 Attachment #2 to Report #FIN 25-19 Deloitte. City of Pickering Service Review Report on Public Wi-Fi, Building Permits & Fleet Management Solutions November 2019 1 Table of contents Table of contents Executive summary 1 Public Wi-Fi business case 4 Background and context 5 Current Wi-Fi deployment details 7 Jurisdictional scan 12 Wireless local -area networking components 14 The case for public Wi-Fi 16 Technological change impact 19 Risk assessment and legal liability strategy 22 Options analysis 27 Conclusion 31 Appendix - Public Wi-Fi 32 Building permitting system report 42 Background 44 Key findings 46 Cost -benefit analysis 54 Opportunity areas 61 Technology options 65 Functional Requirements 66 Non -Functional Requirements 73 Conclusion 84 Fleet management system report 86 Background 88 Key findings 90 1 Table of contents Cost benefit analysis 102 Opportunity areas 107 Technology options 112 Functional requirements 113 Non-functional Requirements 117 Conclusion 127 © Deloitte LLP and affiliated entities. Introduction Executive summary The City of Pickering engaged Deloitte to conduct a review of three functions which the City hopes to continue to develop over the next several years. The review included analysis and discussion on the provision of a free public Wi-Fi deployment, the building permitting system and the fleet management system. This report is written to inform the reader on the current state of these functions, to provide analysis on solutions which are available to enhance current functionality, as well as to provide potential options and considerations for a path forward. Each of the three assessment topics has a section within the report which presents the detailed analysis around that topic. In order to successfully implement the options mentioned in each section of the report, the City will need to assign internal resources with the appropriate skillset to perform the work required as part of those initiatives, as well provide ongoing maintenance of the new capabilities deployed. Public Wi-Fi The City of Pickering's tax payer funded free public Wi-Fi deployment has been expanded over the past several years and has received positive feedback for the value and quality access to the Internet that it provides to citizens. There is a need to ensure that their Wi-Fi deployment covers both the requirements of the City, as well as those of citizens using City buildings and parks. Currently, the private sector provides access to 25% of the free Wi-Fi available within the City of Pickering with the Pickering Town Centre being the largest of the deployments. A list of these locations is provided within this report. There are several factors which may have an impact on the City's strategy moving forward, including new wireless technologies, locations and reach of a potential deployment, level of service to be provided and needs of the City's potential new Internet of Things (IoT) technologies. The public Wi-Fi section of this report is written to: 1. Provide information on the current state of the Wi-Fi deployment at the City of Pickering, including usage at the various City locations and investment over the past 5 years. 2. Show what similar size municipalities in Eastern Ontario have accomplished with their Wi-Fi deployment. 3. Define benefits and consideration points when managing a public Wi-Fi deployment. 4. Introduce insights on new technologies available in the market today as well as technologies which will impact Wi-Fi deployments of the future. 5. Present potential options for the City to consider when planning for the future, including costs and benefits of each option. Building Permitting The City's current building permitting process is heavily reliant on paper and lacks the ability to automate key permitting tasks such as application submission, permit review, online payment processing, and automatic inspection assignment. The lack of integration and functionality required in order to realize efficiencies and reduce costs is resulting in the following challenges experienced by the City staff: • Added delays in issuing permits as staff is manually inputting data, processing payments, along with reviewing, and stamping plans for compliance on paper. • The current system lacks the ability of applicants to review their permit status in real-time, which results in delays as the City informs residents of additional information requests, outstanding payments, or status inquiries in person, or on the phone. • The current manual scheduling process for inspections is inefficient and it has resulted in scheduling errors, along with inspector task lists for inspections not being generated correctly. 1 © Deloitte LLP and affiliated entities. 1 Executive summary • Increased costs associated with paper consumption and clerical data entry. In efforts of achieving the City's expected outcome of 24/7 electronic application submission, built-in tracking functionalities, reduction in staff and paper expenditures, along with faster issuance of building permits, it is recommended that a formal system selection be conducted. A system selection will include formal scoring and detailed solution demonstrations. Based on the initial cost -benefit analysis in this report, the potential annual savings of deploying an e - permitting system would be $56,550 (CAD expressed throughout report), along with an acceleration of permit revenue of $645,000, as a result of faster issuance of building permits. The assumptions used to calculate these figures are estimates, and actual cost savings, along with revenue increases will vary depending on the level of permit volumes. It should be noted that many of the vendors highlighted in the report support an e -portal for citizens who wish to submit an application for a variety of reasons, meaning that the solution may be able to support other lines of business beyond building permits, including the online portal, inspections booking and payment processing for Fire, Parks, Tax for example. When conducting a deeper analysis, considerations should be given to these other areas to ensure that a potential investment is maximized. Additional benefits of implementing an e -permitting system include enhancing client service and staff productivity from automating key permitting tasks. The high-level benefits include, but are not limited to, electronic applicant submission, electronic review, and automatic assigning as well as routing of inspections to inspectors. This will result in faster issuance of permits as the City will not only increase permit revenue, but also increase municipal tax revenue as a result of an adjustment to the tax roll from the betterments added under the work permits. Fleet Management The City's existing fleet management and vehicle tracking solutions are legacy applications that have limited integration and functionality required in order to realize efficiencies, save costs and improve day-to-day activities. Based on interviews with the City staff, the main challenges around fleet management and vehicle tracking are: • The current solution does not provide fleet maintenance functionalities such as schedule maintenance appointments, does not record the frequency or cost of maintenance, and does not provide long-term asset utilization analysis of vehicles. • The current solution does not promote routing and dispatching optimization, which could improve the service reaction time and citizen's satisfaction rate. • The current solution does not provide part management functionalities that would record part usage and enable cost analysis on individual vehicles. • The current solution does not support the City's reporting needs due to disparate data housed outside of the system in paper format, and limited ad-hoc custom reporting functionality. In the efforts of achieving the City's expected outcome of lower risks associated with fleet investments, lower operating cost, higher volume of work output, increased worker safety, higher integration level across different departments and improved resident satisfaction, it is recommended that a formal system selection be conducted. A system selection will include formal scoring and detailed solution demonstrations. Currently, the City is spending $72,775 annually (the average of 2016 - 2019 total spending) on fleet management and vehicle tracking software solutions. A potential annual incremental cost savings of $308,667 could be achieved by upgrading Pickering's fleet management and vehicle tracking systems to ensure the City's requirements for Vehicle Maintenance, Dispatching and Routing, and Inventory Management are met. For additional information on how these potential cost savings may be realized, please see the full analysis within the fleet management section of this report. 2 © Deloitte LLP and affiliated entities. 1 Executive summary In an environment of scarce resources, including both staff and funding, the City will need to prioritize in order to best allocate the available resources to public Wi-Fi, building permit system, and fleet management system. Based on the facts pointed out by the research described in this report, priority should be given to fleet management project given it is the area where the highest potential savings have been identified. Upgrading the fleet management software would also improve the City's public service delivery, and increase the overall resident satisfaction on this subject. 3 © Deloitte LLP and affiliated entities. Public Wi-Fi business case Public Wi-Fi business case Executive summary Analysis on Public Wi-Fi The City of Pickering is considering expanding their tax -payer funded public free Wi-Fi to all City owned public property (buildings and parks) and has engaged Deloitte to assist in developing a business case with options and considerations regarding free Wi-Fi services to be provided by the City. This study has investigated what other similar size municipalities are doing regarding the provision of free W-Fi in order to provide a comparable scenario for the City of Pickering to consider. The objectives of the Public Wi-Fi analysis as determined by the City were to answer the following questions: 1. Identify what buildings and/or facilities that currently have free public Wi-Fi. 2. What is the current cost of providing these services both externally and internally? 3. What is the current usage of the provided public Wi-Fi (volume) and type of usage (i.e.,, emails, web -searches and video streaming)? 4. What would be the cost of implementing and/or providing free public Wi-Fi in City buildings and parks? Define the phased rollout implementation strategy for equal level of service among the three wards over several years. 5. What are the "definable and measurable" benefits of offering free public Wi-Fi? If the benefits of free public Wi-Fi cannot be quantified, then what are the "evidence based" qualitative analysis factors? 6. What are the liability and reputational risks associated with the provision of free public Wi-Fi? The Intelligent Community Forum (ICF) has recognized Pickering as a Smart2l Communities of 2017 and 2018. The award program recognizes the world's leading municipalities that are successfully leveraging the power of technology to develop inclusive and prosperous communities. The following reports aims to answer these questions and provides additional information by informing the reader of the topic and its intricacies, provides details on internal and external factors and trends which may have an impact on a potential decision, and provides options and a recommendation based on a cost -benefit analysis for potential paths forward. 4 © Deloitte LLP and affiliated entities. 1 Background and context Background and context Background Municipal public Wi-Fi is playing a growing role in enabling people to stay connected to the Internet. There is a strong global trend towards increased access to free public Wi-Fi provided by carriers and municipalities, enabling people to be connected to the Internet and other devices everywhere.' In Eastern Ontario (region where Pickering is located), the trend is similar with significant and growing access to free pubic Wi-Fi in municipal facilities, town centres and private businesses. According to a Pickering Library study performed in 2016, 18% of Pickering residents do not currently have access to the Internet, either due to financial situations or lack of broadband availability in rural Pickering. This creates a digital divide and creates barriers in accessing online content relating to education, social inclusion, healthcare, government services and employment. In Eastern Ontario communities, there is a full range of municipal Wi-Fi offerings, from no service at all, to public Wi-Fi in all municipal facilities and town centres. As in other parts of the world, public Wi-Fi is established first in public libraries and cafes, before expanding to other public venues. Many communities have plans to expand pubic Wi-Fi service to additional recreational facilities, private locations, municipal offices and town centres. The most significant trends in public Wi-Fi are the growing demand for connectivity 'everywhere, all the time', the growth in carrier class Wi-Fi services, and the proliferation of venues where Wi-Fi is offered.2 There is an emergence of Smart Cities that use information and communications technology (ICT) to manage their operations and assets, including IT functions, transportation systems, power plants, law enforcement, 1 Municipal Public Wi-Fi a Sound Investment? https://www.eorn.ca/en/resources/Municipal-Wi-Fi/EORN_WP_WiFi_FINAL.pdf 2 https://cira.ca/resources/corporate/factbook/canadas-internet-factbook-2019 5 © Deloitte LLP and affiliated entities. Background and context community services, schools and libraries. The Internet of things (IoT) is an important and growing part of this initiative. These cities use Wi-Fi for operations and for public access to the Internet, and the more people are connected, the more relevant connectivity becomes to them. They access more and more information over the Internet and become dissatisfied when disconnected. In response to the increased demand for connectivity, many municipalities are providing public Wi-Fi. The following analysis includes a sample of findings from other Eastern Ontario municipalities of similar size to Pickering, and provides an overview of their current public Wi-Fi deployment. Municipal Wi-Fi Networks includina overview of denlnvment locatic There are many municipalities, in Canada and around the world, that own and operate Wi-Fi zones to serve their downtown areas and Wi-Fi hotspots to serve more limited areas such as libraries, recreational facilities and other municipal facilities. These systems operate increasingly on municipally owned fibre networks, but also on public networks where the municipality pays for service. Municipal Wi-Fi systems can support a variety of applications for the City's operations including fleet services, smart lighting to reduce energy usage, traffic management to improve mobility, parking meters and security video management that help make cities safer and greener. This constitutes the Smart City model. The same infrastructure can support free public Wi-Fi hotspots or zones. Fredericton, New Brunswick's Fred-eZone, Stratford, Ontario's Stratford Free and Olds, Alberta's O -NET are notably successful Wi-Fi networks hosted on municipally owned fibre networks. Because these communities own their fibre backhaul facilities, there is no incremental backhaul cost to their public Wi-Fi services on top of the infra -structure they already have in place. Many municipalities have public Wi-Fi in their municipal offices, which might be used by employees and the public. Often this service is provided in council chambers and meeting rooms as well as common areas. If the municipal office is in a central location, people may stop by to use the Internet. If it is more remote, the service is used mainly by people visiting the office for service or meetings. In the older stone municipal buildings, Wi-Fi signal does not extend beyond the room in which the access point is located. Often recreational facilities, including indoor recreation centres, arenas, community centres and outdoor facilities like parks, baseball fields and soccer pitches would have municipal public Wi-Fi, as this type of service is expected by the clients of these facilities. If they are used in sporting tournaments, results or scores are communicated. Sometimes video or live data from the game is posted, however this requires significant backhaul capacity and could be costly. If the facility is rented out, the venue may have more appeal and value if there is public Wi-Fi, which could lead to increased revenue. 6 © Deloitte LLP and affiliated entities. 1 Current Wi-Fi deployment details Current Wi-Fi deployment details Buildings which currently have free public Wi-Fi in the City of Pickering The following table outlines all city buildings by ward, including details of Wi-Fi deployment per building. Location Access Points* Annual Usage Westshore Community Centre 1 280 GB George Ashe Community Centre 1 404 GB Delaney and O'Brian Arena 1 282 GB Fire Station 2 1 1040 GB Fire Station 5 2 1240 GB Fire Station 6 1 1130 GB Don Beer Arena 5 2535 GB Don Beer Meeting Rooms 0 None currently East Shore Community Centre 1 771 GB Pickering Operations Centre 4 854 GB Kinsmen Park 1 Unknown Millennium Park 1 295 GB Esplanade Park 1 369 GB Civic Centre 16 5210 GB Whitevale Community Centre 1 169 GB Pickering Village Museum 1 Unknown Brougham Hall 0 None currently Animal Shelter 1 128 GB Fire Station 4 2 675 GB CHD Recreation Centre 15 7920 GB Dr. Nelson F Tomlinson Community Centre 1 114 GB Greenwood Community Centre 0 None currently Mt Zion Community Centre 0 None currently *The number of access points listed above is indicative of a location having an area where public Wi-Fi is available but does not include details on how much Wi-Fi coverage is implemented, for example some facilities only have Wi-Fi coverage in the reception area. The analysis could be taken further to understand what would be required for full coverage by analyzing current usage with a heat map. Locations with 0 access points will be discussed further in the options analysis section later in this report. 7 © Deloitte LLP and affiliated entities. 1 Current Wi-Fi deployment details Current cost of Drovidina free Wi-Fi internally and externally (inclusive of staffina cost` The following table outlines the known costs that have been spent to maintain and expand the Wi-Fi network at the City of Pickering for the past 5 years. The cost for the City to extend the use of the internal Wi-Fi network to the public is nominal, as the amount of data used is the only incremental cost because hardware can be used for both City use and public use. Note that many of the costs below are for hardware needing to be replaced due to damage or compatibility issues with new devices. Cost Item Amount Year Cost Occurrence (CAD) Incurred Service Fee Access Point Maintenance for 67 APs $7,870 2019 Recurring Licensing System Management $220 2019 Recurring Data Usage Additional data for Wi-Fi $1,780 2019 Recurring Hardware Wi-Fi upgrades for arenas, squash courts, $13,240 2019 One-time west shore, fire stations Hardware Wi-Fi upgrades for museum, west shore, $7,850 2018 One-time fire station #5, and recreation complex Hardware Wi-Fi for facilities and public spaces $10,050 2017 One-time Hardware Wi-Fi for facilities and public spaces (Esplanade Park, Kinsmen Park, Millennium Square) $18,830 2016 One-time Hardware Wi-Fi for recreation complex and meeting $7,790 2015 One-time rooms Hardware Wi-Fi for city parks $2,850 2015 One-time Hardware Wi-Fi for civic complex $16,770 2014 One-time Hardware Wi-Fi for arenas $5,530 2014 One-time Total Annual $9,870 n/a Recurring Total One-time $84,690 2014-2019 Hardware Total 5 Year Cost $134,0400 2014-2019 The information above shows what the City needs to pay on an annual basis to maintain the current Wi-Fi service and infra -structure as well as a baseline for estimating additional expansion costs. It helps provide a baseline for assumed expansion costs when discussing options for the future of the free public Wi-Fi network, depending on how much hardware and access points are required. 8 © Deloitte LLP and affiliated entities. 1 Current Wi-Fi deployment details Analysis on current usaae of public Wi-Fi and tvoe of usaae The following chart shows the amount of data that has been consumed at the various City's locations from January 2019 to June 2019. It provides an understanding of the scale of use and which types of locations should be emphasized in future development efforts given historical usage. Based on the results, it is apparent that community centres provide the most value as visitors typically spend their time waiting and passing time via connected devices. Locations Data Usage by Location Rec Complex Civic Centre Firehall Don Beer OPS Center East Shore George Ashe Community Centre 1101 Kingston Road Esplanade Park Millenium Square Delaney and O'Brien Arena West Shore Community centre Whitevale Community centre Animal Shelter 7,919.10 GB, 32.61% 5,210.45 GB, 21.46% 4,566.49 GB, 18.81% 1 2,535.38 GB,10.44% 853.61 GB, 3.52% 771.11 GB, 3.1.8% El 404.98 GB, 1.67% 384.64 GB, 1.58% 368.90 GB, 1.52% 294.74 GB, 1.21% El 282.54 GB, 1.16% 279.61 GB, 1.15% / 169.29 GB, 0.70% 128.31 GB, 0.53% Dr. Nelson F. Tomlinson Community...) 114.12 GB, 0.47% 0 Usage (GB) 5,000 10,000 9 © Deloitte LLP and affiliated entities. 1 Current Wi-Fi deployment details The following chart shows the amount of data used for particular activities, which indicates where value is being delivered to users of the Wi-Fi service. It is clear that the "other" category is the main use, which encompasses general web browsing, with video streaming following in second place. Activities Public Wi-Fi Usage by Activities Other 8,990GB, 36% Video Social web Music VoIP, software updates, email, advertising 1,960GB, 8% 1,353GB, 5% Online backup - 700GB, 8% 4,370GB, 18% 7,420GB, 30% 0 2,000 4,000 6,000 8,000 10,000 Usage (GB) The following chart shows the amount of data used by various devices operating systems. It provides a rough understanding of the type of devices that are being used to consume the Wi-Fi service. iOS (Apple) is the main user as many mobile Apple devices are found in the technology ecosystem today (e.g., iPad, iPhone, Apple Watch). 10 © Deloitte LLP and affiliated entities. 1 Current Wi-Fi deployment details Operating System iOS Data Usage by Operating System MO 14,890GB, 61% Android 5,410GB, 22% Other 1,823GB, 8% Mac OS X ■ 1,090GB, 4% Windows 10 ■ 1,070GB, 4% 0 5,000 10,000 15,000 20,000 Usage (GB) 11 © Deloitte LLP and affiliated entities. 1 Jurisdictional scan Jurisdictional scan As part of the analysis of free public Wi-Fi, a jurisdictional scan was conducted in order to understand what other municipalities in Southern Ontario of equal size to the City of Pickering have implemented regarding Wi-Fi services. Based on this, the cities of Niagara Falls, Waterloo, Cambridge, St Catharines, Oshawa and Burlington were selected as they have released some information on their public Wi-Fi deployments publically. This chart below shows their population size, number of facilities, how the Wi-Fi service is funded, how much it costs and whether ads are used to generate revenue. The latter is done by launching advertisements on the login page of the Wi-Fi network as a means to recoup a portion of the costs of offering the service. For larger Wi-Fi deployments in cities not listed here, this is sometimes used as an avenue to support a much more robust rollout of free public Wi-Fi with more access points and further reach. City Population Public Facilities with Wi-Fi Funding Cost (CAD) Use of Ads Wi-Fi Niagara Falls 88,071 Yes 6 Facilities incl.: 100% Not available No City Hall funded by City Parks City Community Centres Libraries Waterloo 104,986 Yes 18 Facilities incl.: City 100% $6,552/year No Hall funded by ongoing Public Square City Cambridge 129,920 Yes 12 Facilities incl.: 100% Not available Yes Civic Square funded by Community Centres City Recreation Arenas Gardens St. Catharines 133,113 Yes 2 Facilities incl.: City Hall Public Libraries Partnership Not available Yes with Bell Smart Kiosk Oshawa 159,458 Yes 2 Facilities incl.: 100% Not available No Council Chambers funded by Public Libraries City Burlington 183,314 Yes 17 Facilities incl.: 100% Not available No City Hall funded by Libraries City Community Centres This table shows that most of the deployments are managed and paid for fully by the lower tier municipality, which is the current case at Pickering. Only one municipality (St Catharines) has partnered with a service provider (Bell) in order to provision free public Wi-Fi. This may be an option for the City of Pickering in the future if it plans to have more access points per square foot to enhance the public Wi-Fi offering (Note: details of such an arrangement have been outlined in the options analysis). 12 © Deloitte LLP and affiliated entities. 1 Jurisdictional scan The following table outlines additional details from the jurisdictional scan which relate to the operation and characteristics of the public Wi-Fi deployment. Filtering factors are ways in which a City could choose to filter content consumption but is not being done at this time. Filtering systems are described in more detail later in this report but at a high-level are ways in which the City controls what the Internet is being used for. The City asks users to "agree" to basic terms of use and runs software which monitors usage (sample terms and conditions provided in the Appendix section). The chart also highlights plans and efforts underway to improve or change the public Wi-Fi deployment. Filtering Filtering System Factors Other program details Niagara Falls Basic terms None According to Niagara Falls Wi-Fi deployment overview: & conditions • Public Wi-Fi improves citizen's sense of belonging, economic vibrancy, health behaviors and civic engagement and this will be accomplished by creating a digital ecosystem that makes 'invisible' members of society visible and by developing reimagined connectivity hubs that enable participation by all; and • Plans to expand free Wi-Fi programs to include existing community gathering places (i.e., churches, school, social halls, etc.) through partnerships with local broadband providers. Waterloo Basic terms Inappropriate & conditions content Filtered & unfiltered workstations at Library Not available Cambridge Basic terms None & conditions Not available St. Basic terms None Catharines & conditions Not available Oshawa Basic terms None & conditions According to Oshawa Wi-Fi deployment overview: • The City implemented an extensive consultation process to undertake an evidence based approach to assessing the needs of the community, possible challenge areas and deciding on a priority issue. Activities conducted including: commissioned the Oshawa Needs Assessment Study, which analyzed and summarized existing community focused studies conducted over the last five years, commissioned an Intelligent Communities Forum Report Card, Participated in the CIRA (Canadian Internet Registration Authority) Broadband Speed Test Study, Registered to become ISO 37120 certified with World Council on City Data (WCCD) in 2018; • Residents who do not have access to the internet at home can now check out a mobile hot spot from their local library, which provides them with unlimited Internet access for a week. Currently, the program has a waiting list of over 100 families. Burlington Basic terms None & conditions Not available 13 © Deloitte LLP and affiliated entities. 1 Wireless local -area networking components Wireless local -area networking components The following section outlines the components of a Wi-Fi deployment, including an overview of the hardware and software required to effectively operate a large public network. It is important for the City to have an understanding of what is included in a physical network so that the options can be better understood.3 Wireless Access Points: A simple Wi-Fi hotspot requires an access point (AP) and an Internet connection. The AP enables multiple devices to be connected to the Internet using a single connection. There is a large offering of networking equipment on the market. Currently, the City has 67 APs and the fee paid was roughly $150 for each AP (Note: based on average cost over the past 5 years). Installation costs for each AP has varied over the years and accounts for a significant portion of overall costs. The estimated cost of Wi-Fi deployment is made up of the capital cost to deploy the equipment and the operating cost to manage and maintain the system. Understanding the cost element is the first step for the city to tailor a service offering that fits within the budget. Network management and monitorini Monitoring and maintaining a single router takes little time. However, as the number of Wi-Fi hotspots a municipality operates increases, it becomes more onerous. Municipalities that have centrally managed Wi-Fi networks, have said that the cost and effort required to upgrade their systems have paid off in terms of their ability to manage them well. Several municipalities that have distributed systems stated that they are planning to move to a single controller for central management of their Wi-Fi networks. Performance management system Performance management is the collective techniques that enable, manage and ensure optimal performance levels of a computer network. Network performance management generally requires the performance and quality service level of each network device and component to be routinely monitored. These tasks are typically managed within a management system which the City licenses. Guest accesr Wireless "open" (unauthenticated) access is the easiest connectivity strategy for users. Users/guests have historically struggled with how to physically get password credentials for networks where there is no help desk and as such, will have a system where a login page is used to "apply' to the Wi-Fi network by inputting personal information. This should be the continued strategy for the City of Pickering as there is no helpdesk at any of the locations for external use. Intrusion detection systems/wireless intrusion detection systems A network device that monitors the radio spectrum for the presence of unauthorized access points (intrusion detection), and can automatically take countermeasures (intrusion prevention). This is 3 https://meraki.cisco.com/solutions/government 14 © Deloitte LLP and affiliated entities. 1 Wireless local -area networking components needed for the City to ensure that there are no attempts to enter into the internal side of the network available from the access points. Devices that have both GPS and Wi-Fi can be used to send information about a network back to a GPS company so that they can determine where the network is. These location services can help with City with applying additional details to logins to the network, just making the information on the logins more relevant for analysis. The City may want to explore the details of this factor in the future as it could aid in making data consumed on the network more valuable for potential commercialization. Bandwidth Requirements The type of activity users perform on the Internet drives the bandwidth required for the network. Although this information is not available for lower -tier municipalities, in town centres or sports venue of higher -tier municipalities, the typical on -the -go Internet activities are not data intensive. In the case of the City's free Wi-Fi, the usage breakdown is as follows: 30.55% of video streaming, followed by 17.98% of social media viewing and 8.07% of music hearing. It is clear that much of the use is for personal reasons like keeping users entertained during their visits to the various locations. In a public Wi-Fi, the connection to the Internet requires sufficient bandwidth to support the expected traffic. Public Wi-Fi is provided on a best effort basis, but if there is truly not enough backhaul capacity to support users, they will be dissatisfied, causing a negative reaction to the service.4 A potential problem with public Wi-Fi is that a few people may attempt to use too much data. While most guests will engage in low bandwidth on -the -go activities, some may want to download large files, such as video files and will slow down the service for everyone else. To ensure that a few prolific file downloads do not disrupt the service for others, limits can be set for download and upload speeds. These limits should be established based on the expected use of the service and the total available bandwidth. The City can also establish limits on the daily data transfer per user. The town of Perth in eastern Ontario imposes a limit of 50 Mbps per user per day as an example. A municipality offering free public Wi-Fi is a provider but is not an ISP and provides service on a best effort basis. 4 https://meraki.cisco.com/solutions/government 15 © Deloitte LLP and affiliated entities. I The case for public Wi-Fi The case for public Wi-Fi Defining the (ace for the City's public Wi-Fi Developing a business case for public Wi-Fi provides details on internal and external facts which may have an impact on the City's decision, and provides options and recommendations based on a cost -benefit analysis. As municipal public Wi-Fi is typically provided at no direct cost to the user, the benefits are in the form of value to the municipality, its residents and businesses. While it is difficult to quantify the benefits of public Wi-Fi, they can be identified in qualitative terms. However, all costs currently are born by the tax payer. This report provides details on costs and benefits based on assumptions and feedback from the City of Pickering's IT staff, legal counsel and industry reports. Jigh-level qualitative benefits of free public Wi-Fi Before deploying or expanding municipal Wi-Fi, a community should assess the value the service can bring. Typical benefits to municipal public Wi-Fi are presented below. Wi-Fi provided by private enterprise can offer many of the same benefits to a municipality. Encouraging businesses to offer free public Wi-Fi can be a good way to get some of the desired benefits without spending tax payers' money to provide it. The areas where public Wi-Fi tends to have the most impact are: business activity, community branding, support for municipal programs and services, and Internet service to low income residents and residents without broadband access at home. Public Wi-Fi can enhance the vibrancy and attractiveness of communities, retaining and attracting young people and business and tourists5. For the purpose of this analysis, the benefits of public Wi-Fi service are presented in qualitative terms. The following are elements a municipality should consider when weighing the value of Wi-Fi service in their community against the costs of installing and maintaining the Wi-Fi infrastructure. Business activity benefits Providing Wi-Fi in public places, whether downtown zones, recreational facilities or private businesses, encourages people to spend time and money in the community6. Social media users love to share photos of themselves and their friends. People sharing photos of themselves having a wonderful time is great promotion for the City. People will prefer free Wi-Fi over cell service if there is no cellular signal, if they have no mobile data plan, or if they are trying to stay within the usage allowance of their mobile data plan'. Splash screens, the screen users see when they log onto Wi-Fi, can suggest things to do in Pickering or be routed to the City's homepage. They may suggest a local market or festival, a municipal service or activity or they can direct users to a business, perhaps for an advertising fee. Splash pages can also be used to conduct short focused surveys on relevant community issues and demographics. Answering a short survey can be included as part of the acceptance of the terms and conditions for using and signing into the free Wi-Fi. 5 Municipal Public Wi-Fi a Sound Investment? https://www.eorn.ca/en/resources/Municipal-Wi-Fi/EORN_WP_WiFi_FINAL.pdf 6 https://www.alepo.com/solutions/carrier-wifi/ https://www.symantec.com/content/dam/symantec/docs/reports/2017-norton-wifi-risk-report-global-results-summary- en.pdf 16 © Deloitte LLP and affiliated entities. The case for public Wi-Fi Public Wi-Fi adds value to facility rental, attracting sporting events, fairs, festivals and meetings. Often, event organizers simply cannot hold events in venues that do not have public Wi-Fi. They need it for operations and their customers demand it. Presentations often include web links. Many sporting events require Wi-Fi to post results and to satisfy the fans' need for constant access. For example, Wi-Fi in arenas will attract more and bigger tournaments. The City of Ottawa confirmed that when they rent conference rooms, they charge an additional fee to activate Wi-Fi. The meeting room Wi-Fi service draws more meetings to their facilities and is profitable. Retaining young residents in areas is important to the continuity and vitality of communities, especially since only 10% of the population is aged 20-298. Another key metric for City of Pickering is that around 25% of is population had immigrant status at a point in time9, in order to appeal to immigrants, City services like free public Wi-Fi may help in early connectivity. Connectivity is extremely important to these demographics as they would like to stay connected to their peers and access key public resources available online. Public Wi-Fi makes connectivity cheaper and more available to them and signals that the community is right for them. Service to Low-income residents Rural family income levels are 15 per cent lower than levels in metropolitan Ontario10 and the high cost of access to Internet and mobile data can be a hindrance to equality in access to education, employment, health and social connection. There are certainly opportunities to support low income residents11: • Affordability of Internet service: Rural service can be limited and expensive. • Affordability of mobile data plans: Residents who have cell phone plans may choose small data plans or no data plans, knowing that they can rely on public Wi-Fi in certain places. It is very expensive to supply a family with multiple children with data plans (defined further in unlimited data plan analysis). • According to a Pickering Library study performed in 2016, 18% of Pickering residents do not currently have access to the Internet, either due to financial situations or lack of broadband availability in rural Pickering. This creates a digital divide and creates barriers in accessing online content relating to education, social inclusion, healthcare, government services and employment. Through public Wi-Fi, low income residents can gain access to the benefits of Internet connectivity, including: • Social connection (e.g., Social media, advertising, researching events, local outreach etc.). • Improved public access to government services and information. • Business potential: The ability to search for jobs online, to apply online, to operate home based businesses, to telecommute, to do online banking and investing. • Educational: The ability to take online courses, to do coursework at a bricks and mortar institution from home, to submit assignments from home, to do online research, to read online material. • Health care: To access health services (eHealth Ontario, online lab results, online consultations with medical professionals in another community), to use eHealth monitoring services (alarms, glucose monitors, etc.), remote diagnostics, to research health related topics, to find appropriate health services. Meet The Increased Demand r.%••• The - As more people carry mobile devices, especially smartphones, but also tablets and laptops, there will be more demand for data on the go. This will have an impact on the demand for data service.12 As the City creates more public spaces that cater to the various wants and needs of the population, there will be a growing demand to use the Internet at these facilities. Beyond the benefit that a Wi-Fi deployment will give to citizens, it will also provide wider access for City staff. As the City continues to implement new systems, 8 https://www.pickering.ca/en/business/Demographics.aspx 9 https://www.pickering.ca/en/business/Demographics.aspx 1° Focus on Rural Ontario Fact Sheet, http://www.farms.com/news/focus-on-rural-ontario-fact-sheets-show-rural-incomelevels- and-trends-101871.aspx 11 Municipal Public Wi-Fi a Sound Investment? https://www.eorn.ca/en/resources/Municipal-Wi-Fi/EORN_WP_WiFi_FINAL.pdf 12 Economics of Public WiFi (Potts 2014) 17 © Deloitte LLP and affiliated entities. The case for public Wi-Fi there will be a growing demand for data to access critical business information and conduct day-to-day tasks. Improve Business Activity Public Wi-Fi provides cities a way to improve business activity by means such as increasing sales of local businesses and through social media promotion of the region and its events supported by the community. Providing Wi-Fi in public places, such as downtown zones, recreational facilities or private businesses can connect people with the services they want, encourage them to spend time and money in the community.13 In some cases, the Wi-Fi network can generate revenue, including but not limited to: • Facilities can be rented at a higher price, and more frequently if they have public Wi-Fi. • Splash screen advertising and other ad -based revenue programs. • Exclusive rights to places where Wi-Fi hotspots are located and can be sold. • Add value to the renting properties that are near a location which provides Wi-Fi. Wi-Fi Zoning Analytics Data usage on the public Wi-Fi network is considerable at this time but in the future it is set to rise. Data on user traffic can be sold, used by the municipality, or made available to community members for a variety of purposes, similar to how it is done today by applications and service providers. The type of data available is aggregated in real-time data based on the number of users by area or by type of device, but could be captured with additional details so that additional analysis and mining tasks could be performed. Support Applications for Municipal Operations The municipal Wi-Fi network can support a variety of applications for municipal operations that could help make Pickering safer and better connected, such as14: • Fleet services — Access points around the City could be used for updating key information on fleet vehicles as they make stops at specific locations • Smart lighting - Devices are available at an additional cost in the marketplace which turn City lighting in Wi-Fi enabled lights, providing citizens with light for seeing at night and access to view the content which they desire — Connected smart lighting systems also allow for more active management to respond to daily changes in light conditions • Traffic management — Connected traffic management devices help Cities provide quicker responses to traffic and road use, potentially supporting development efforts • Information kiosks — Connected kiosk devices currently found in many major municipalities help citizens with staying informed on events around them, weather conditions and public service announcements — Connected kiosks also help with expanding public Wi-Fi in locations that may otherwise not have Wi-Fi (outdoor public spaces) • Cloud -based business software — Access to cloud applications will increase as the City implements the newest tools on the market — Many of these tools require an internet connections to conduct day-to-day tasks and information monitoring, furthering the need for expanded connection options 13 Municipal Wireless Broadband: Policy and Business Implications of Emerging Access Technologies (Lehr, Sirbu and Gillet, 2014) 1a https://www.alepo.com/solutions/carrier-wifi/ 18 © Deloitte LLP and affiliated entities. Technological change impact Technological change impact Innovation Technology Insight – State of Unlimited Data Plans and rollout of Wi-Fi 6 and 5G To optimize city's planning and deployment decisions, infrastructure and operations leaders responsible for managing network infrastructure need to understand the technological advantages that can potentially be utilized for a longer term. This section outlines two topics which should be understood before moving forward with any potential investments, namely Wi-Fi 6 (802.11ax) and 5G cellular. Building on the progress made by 802.11 technologies over the past 20 years, 5G represents a shift in focus to go beyond consumer handsets, to address the networking needs of a much broader group of wireless devices with very divergent requirements.15 Market reports show that people want either all of the data or none at a1116. Wanting unlimited data plans could be the result of clever advertising campaigns by the major carriers, or of all the extra perks that now come with these plans. On the other hand, consumers who are looking for plans with little to no data could be trying to save money by opting to utilize Wi-Fi as much as possible. In the past year there has been an extra push in an ongoing effort by the Canadian Radio -Television and Telecommunications Commission (CRTC) to review mobile wireless services. This has been brought on for many factors, however there are two that are noteworthy for the purposes of this report. 1. Affordability of data plans for all Canadians 2. Planning for implementation of 5G across Canada and the impact this will have on competitiveness The City of Pickering will likely be involved in the move to implementation of 5G infrastructure in the region as service providers will need to work with the City to develop appropriate implementation locations for the new network and assess the demographics to provide plans which meet the needs of the population. For a detailed explanation of the results of the review on wireless services in Canada by the CRTC, see the Appendix section. Mobile Data Trends Over the past 3 years, there has been a trend when it comes to mobile data. There has been a clear steady rise in preferences for both zero data plans and unlimited data plans.17 Note: 'Unlimited' in many cases refers to more data than customers can typically use with soft data caps on unlimited plans ranging from 20- 50GB, while searches for plans with 1-5GB of data have decreased at almost the same rate. It seems that there are two main groups of people—those who use a lot of data and those who just want the minimum amount. As described within this report, the regulators and market in Canada are still attempting to formulate an official standpoint and strategy on how to create right -size products for various groups of consumers. Many reports highlight 2020 as a year where many of these conclusions will be defined as 5G begins implementation across Canada and products will be rolled out to service the new paradigm.18 15 Innovation Tech Insight for Wi-Fi 6, Gartner, Inc. 16 https://cira.ca/resources/corporate/factbook/canadas-internet-factbook-2019 17 https://www.whistleout.ca/CellPhones/Guides/comparing-rogers-infinite-unlimited-data 18 Predicts 2019: 5 CSP Technology Trends to Plan for 5G, Open Source, Virtualization and Private Networks (Gartner 2018) 19 © Deloitte LLP and affiliated entities. 1 Technological change impact There is a significant number of people who need very little data (less than 6GB), potentially utilizing public Wi-Fi to access the Internet. In fact, people are using Wi-Fi from their cell phones 3.75 times more than their cellular data, which may be an attempt to save money on their phone bills. 19 There a number of reasons for these trends over the past few years, the following are some of the causes: • The availability of Wi-Fi has increased dramatically resulting in consumers needing little to no mobile data. • Unlimited plans have become more available and affordable resulting in consumers opting for unlimited data vs a small data allowance (e.g., 5GB). • Unlimited plans may also seem to provide more value for money but benefits are difficult to calculate at this time. Typical unlimited data plans start at roughly —$60 CAD for data only plans and from —$100 CAD for voice, text and data. As 5G begins rollout in 2020 it will become more apparent how unlimited data plans are priced and delivered to the consumer. • Carriers tend to promote their unlimited plan more than their other plans, which is set to continue as bandwidth continues its growth. Wi-Fi 6 Benefits of Wi-Fi 620 Wi-Fi 6 or 802.11ax has many benefits compared to the current Wi-Fi 5 which is in use at the City today. These benefits may be beneficial to the City due to the nature of use at their locations. A full description of the benefits are available in the appendix section however at a high-level these benefits are: 1. Backward Compatibility 2. Higher Data Rates 3. Device Battery Life Improvements 4. Connection for more devices 5. Data use balancing based on needs of the phone 6. Newer technology to increase lifespan of deployment Use Cases for Wi-Fi 6 and impact of IoT Public Connectivity Public areas are a combination of lower inter -device interference and high-density user environments. The ability to scale up easily and support higher bandwidth makes 802.11ax an improved Wi-Fi standard to support high-density user environments. For sport venues, shopping malls, convention centres and other more heavy usage environments, Wi-Fi 6 improves the ability to support and enhance faster Wi-Fi networks discovery and authentication processes. Public Wi-Fi provided by Private Sector Companies The biggest private providers of public Wi-Fi in Ontario are Bell Mobility and Cogeco (service providers or carriers). Hotspots are also provided by many coffee shops, restaurants, inns, hotels, marinas and smaller Internet service providers (ISPs). Cogeco Free Wi-Fi is available mostly in the Kingston area, where there are 90 hotspots. There are also hotspots in Peterborough, Belleville, Kemptville and Smiths Falls. This service is a variant of the public free Wi-Fi model, as service is available only to Cogeco Internet subscribers at no additional cost. It is nominally free, as the service is paid for as part of subscribers' Internet service fee. The Cogeco hotspots are located in restaurants, cafes, stores, inns, medical clinics and other customer facing outlets. 19 https://cira.ca/resources/corporate/factbook/canadas-internet-factbook-2019 20 Municipal Wireless Broadband: Policy and Business Implications of Emerging Access Technologies (Lehr, Sirbu and Gillet, 2014) 20 © Deloitte LLP and affiliated entities. 1 Technological change impact Bell Mobility provides unlimited access to free public Wi-Fi in participating Tim Horton's, McDonald's and Chapters Indigo locations. There are over 1000 participating locations in Ontario. There are more of these locations in high density areas, but they are also present in small towns21. The following restaurants offer free WI -FI within the City of Pickering: Tim Horton's (9); Starbucks (3), McDonalds (2), Burger King (1); Swiss Chalet (2); Wendy's (1); Mary Brown's (1); Kentucky Fried Chicken (1) and St. Louis Bar and Grill (1). It appears that every food chain restaurant big or small now offers free Wi-Fi. At a minimum, there are at least 25 locations in Pickering that provide free Wi-Fi, of which the Pickering Town Centre is the largest. As mentioned above, many business owners, including coffee shops, restaurants, retailers, hotels, clinics and others offer public Wi-Fi to their customers. Normally, businesses expect and appreciate it when Wi-Fi users buy something but it is usually not mandatory in order to have access to their WI -FI. Most retailers who offer public Wi-Fi service find that it keeps customers in their facilities longer and see a correlation between having public Wi-Fi and increased sales. In Central Frontenac, North Frontenac Telephone Company is providing public Wi-Fi service to visitors at Sharbot Lake beach. The original plan was to fund the service by selling advertising on splash page, however the population was not large enough for this model to be successful. There are several examples of successful free public Wi-Fi services across the world. Many of these deployments are in cities with populations over 1 million and as such have not been included in this report. If the reader would like to get a flavour of one of these examples, Link NYC is a success story of a Public - Private partnership which has made free public Wi-Fi accessible across New York City. Link NYC is powered by CIVIQ Smartscapes solutions. These solutions have started being tested within the City of Toronto in recent years. One of the key elements of these carrier supported free Wi-Fi deployments are the monetization methods. Direct monetization, that is charging for Wi-Fi access, is a valid but declining revenue channel. Other monetization opportunities play an increasingly important role. These include advertising, analytics, SME solutions, IoT, and others, as well as using Wi-Fi as a differentiator or last mile for mobile broadband. The combination that makes the most sense depends on the operator's context but regardless, it is likely that more than one monetization channel will be needed for cost recovery. Drivers for carrier Wi-Fi include22: 1. Cater to the demands from newly evolving smart cities 2. Compensate for gaps in network coverage 3. Expand services and complimentary infrastructure 4. Keep pace with competitors and market trends 5. Create compelling B2B (Business to Busienss) products 6. Protect and increase market share 7. Stopgap and augment 5G services 21 https://www.bell.ca/Mobility/Bell-Wifi-Internet-Locations 22 https://www.alepo.com/wp-content/uploads/2019/09/Alepo_Solution-Brief_Carrier-WiFi-in-the-5G-Era.pdf 21 © Deloitte LLP and affiliated entities. Risk assessment and legal liability strategy Risk assessment and legal liability strategy There are manageable risks associated with providing public Wi-Fi, particularly in the area of security and liability. Using proper security practices and policies will help mitigate security risks. Liability factors for Wi-Fi network issues should be understood by the City and any organization that provides the service to the public. The following section aims to highlight these factors and provide an overview of why these are relevant to the City. The City of Pickering's legal counsel was consulted when developing this section and were instrumental in assessing any legal liabilities. -filtering System and Best Practices for Wi-Fi Zones Different zones should be established in the network to support users with different privileges. Establish a guest (or public) zone that is a subset of the zones for employees. Zones can be implemented with Virtual Local Area Networks (VLANs) with access restrictions enforced by an upstream device such as a gateway, AP controller or firewall. This will allow for City staff to have a secure connection in areas where they are required to conduct their day-to-day operations and will allow the public to access the network in areas where they choose to consume the Internet. Public Access Public Internet access via Wi-Fi can either be secured or accessed without a password. The choice to provide security might hinge on the expected use. A public Wi-Fi zone on a street, where users are likely to engage in popular on -the -go activities (get directions, look for a restaurant, check the weather, use Twitter, check sports scores) might be suitable for no password required access. A meeting room or library, where users do work, would be a candidate for better security. If the network is secured, a password is required, along with agreement to a Terms and Conditions of Use Statement. Both appear on a splash page to log -on. If the network is not secured (no password) the Terms and Conditions of Use Statement should be agreed to at log -on. Use of a password provides protection for the network operator and other Wi-Fi users. The survey of upper -tier municipalities in Eastern Ontario revealed that of those communities that provide public Wi-Fi, 33% require a log -in with password, 42% leave their Wi-Fi network completely open and 25% have a combination of some open hotspots and some protected by password. The City has elected to provide access in an no password needed fashion, with users having to agree to Terms and Conditions on appropriate use upon access. This method is suitable going forward as it ensures that everyone who would like to access the network is in agreement of the guidelines and City of Pickering reputational risk is mitigated. Access Points The default SSID name on access points should be changed to something unique and that will help people identify the right network to join. Do not use the default name. The City should ensure that all access points across all locations follow the same naming convention so as to ensure consistency for users accessing the network from different locations. 22 © Deloitte LLP and affiliated entities. Risk assessment and legal liability strategy Web Filtering System (or secure web gateway) Secure web gateway (SWG, also known as web filtering) is the technology and market category for tools that filter users web browsing content to enforce acceptable use and protect against malicious content and reputational risk of the provider. SWGs have become key protection technologies for enterprises as the web evolves. The various types of malicious content can be detected using distributed filters on endpoints or gateways as well as cloud -based facilities by combining Uniform Resource Locator (URL) lists, reputation systems, real-time content detection, and blended techniques. An effective web filtering system can protect users from malware and online phishing exploits, filter inappropriate content, filter applications such as instant messaging (IM), multiplayer games, Web storage, wikis, peer-to-peer (P2P), public voice over IP (VoIP), blogs, data -sharing portals, Web backup, remote PC access, Web conferencing, chat, streaming media, blogging activity, and micro-blogging activity. As the City is currently using a management tool with some level of web filtering available, and no issues have been raised on improper use, there is no apparent need to make any changes going forward. It can also protect users from web -based exploits. Web -based attacks are implemented in many places, and may use blended techniques. Attacks are quite diverse, but tend to fall into a few basic categories23: • User -dependent: Social engineering using deceptive content that induces the user to take inappropriate action, such as download a Trojan horse malware file or give up personal information, perhaps simply by logging into the fake site. • Vulnerability dependent: Web code or scripts that trigger a flaw in the browser or browser plug-in code, thereby enabling a buffer overflow or some other remote code -execution exploit that takes control of the running process and ultimately the computer. • Protocol or content dependent: Attacks that take advantage of multi -site interactions, such as cross -site scripting attacks that inject code from one site to the other, or iFrames used to hide clickjacking attacks. Wi-Fi Deployment Components and Use Cases In order to understand a Wi-Fi deployment, it is critical to understand what comprises a Wi-Fi system. The following are the mandatory and optional components needed in order to have a successful deployment of Wi-Fi. The City currently has access to and uses all of the Wi-Fi deployment components in day-to-day operation of the network. Market leading cloud -based tools are being used, which ensures that the City is running the network on the latest versions of the software. Mandatory SWG components • Web filter, or gateway (enforcement point) • URL lists or reputation database • Management console (may be web -based) • Security research center Optional SWG components • Additional analysis engines in the cloud • Centralized management system, with optional separate policy database and/or reporting database "Assessing secure web gateway, Gartner, Inc 23 © Deloitte LLP and affiliated entities. Risk assessment and legal liability strategy Other Considerations Endpoints physically located in sites that are directly connected to the Internet, or mobile endpoints travelling outside the firewall, do not get filtered by the SWG unless the organization: • Backhauls all network traffic from the site to the data center via virtual private network (VPN) for filtering Backhauls all network traffic from the mobile endpoint to the data center via VPN for filtering. • Configure the endpoint to direct web traffic to specific SWGs along with mobility, demand for computationally intensive real-time content inspection and larger URL lists is also driving need for more distributed gateway topologies, or cloud -based topologies that can throw more horsepower at the problem than premise -based ones. Increased complexity of policy requirements and protection objectives demands integration with related security infrastructures such as anti -spam and data leakage protection (DLP). Throughout it all rides the imperative to maintain performance and may result in slower Internet. The City must ensure that all locations are managed in a centralized manner. For some of the locations which are remote, cellular Wi-Fi deployments are being used with additional monitoring licenses. The City should review these deployments and have them all managed within the same monitoring system network. Neither the Canadian Radio -television and Telecommunications Commission (CRTC) nor Industry, Science and Economic Development Canada have made statements about liability for activity conducted over a public Wi-Fi network or requirements relating to logon records, browser history or router logs. The information presented is based on common practices described in a research paper on public Wi-Fi.24 Public Wi-Fi network operators can protect themselves from liability for illegal activity on their networks by: • Securing their network • Terms and Conditions of Use Policies At a minimum, organizations should consider implementing URL lists or reputation databases to prevent users from unknowingly visiting sites with high malware or phishing risk. Beyond reducing malware and phishing, AUP enforcement can reduce risks to productivity and liability. In most cases, users are required to review and agree with the Terms and Conditions which specify that users can not use the Wi-Fi service or allow anyone to use the service on mobile device, for any unacceptable use. An example for Terms and Conditions: • Invading another person's privacy; misrepresenting yourself by posing as someone else; unlawfully promoting or inciting hatred; unlawfully using, possessing, posting, transmitting or disseminating obscene, profane, hate, terrorist or child pornographic material; • Posting, transmitting, distributing, disseminating, uploading or downloading content that is unlawful, threatening, harassing, abusive, libellous, slanderous, defamatory or otherwise offensive or objectionable; or encouraging conduct that would constitute a criminal offence, give rise to civil liability, or otherwise violate any municipal, provincial, federal or international law, order, rule or regulation; • Accessing any computer systems, software, data, or confidential, copyright -protected, patent -protected material or personal information of any other person without the person's knowledge and consent; making unauthorized attempts to gain access to any account or computer resource not belonging you, or otherwise gain unauthorized access to, alter or destroy information of another person by any means or device; 24 Municipal Public Wi-Fi a Sound Investment? https://www.eorn.ca/en/resources/Municipal-Wi-Fi/EORN_WP_WiFi_FINAL.pdf 24 © Deloitte LLP and affiliated entities. Risk assessment and legal liability strategy • Uploading, posting, publishing, defacing, modifying, transmitting, reproducing or distributing information, software or other material that is confidential, protected by copyright or other intellectual, property or proprietary right, or related derivative works, without obtaining permission of the copyright owner or right holder; • Disrupting our network, directly or indirectly; use the service to restrict, inhibit or interfere with the ability of any other person to use or enjoy use of our products or services or the Internet, including, without limitation, knowingly posting or transmitting information or software that contains a virus, lock, key, bomb, worm, Trojan horse or other harmful, debilitating or disruptive feature; • Sending unsolicited email ("spamming"), large quantities of unwanted or unsolicited email messages ("mail bombing") or VoIP messages ("voice casting"); attempting to overload a system ("flooding"); participating in broadcast attacks; interfering with service to or by any user host or network; engaging in counterfeit, subterfuge or malicious activities; making inappropriate postings to news groups; sending false commercial messages; or engaging in any other abuse of email or news group servers; • Violating any system or network security measures, including engaging in unauthorized access or use of our network, data or information; • Using, intending or attempting to use, or allowing the use of our service in a way that violates any municipal, provincial, federal or international law, order, rule or regulation; • Using the service in a way that violates the decisions, orders, policies or other requirements of the Canadian Radio -television and Telecommunication Commission or any other regulatory body with jurisdiction over the service or the city; • Engaging in any activity which we advise you, in our sole and unfettered discretion, is an unacceptable use of telecommunications services, or is otherwise deemed an unacceptable use of our service will result in suspension of use of the Wi-Fi network. After reviewing the City's terms and conditions, it is evident that there is full coverage of these industry suggested features. The City should review their terms and conditions on a periodic basis and make adjustments as required. Issues and breaches should be escalated to the necessary City staff in order to conduct any investigation and propose recommendations for the issue resolution. Privacy Considerations 25 Despite many of the positive benefits mentioned in this report regarding access to the Internet, there are also considerations regarding privacy of data transmitted through an open network. These are risks which users should be aware of when accessing a public Wi-Fi network, regardless of who the operator is. The following are examples of such considerations: Man in the middle attacks One of the most common threats on these public Wi-Fi networks is called a Man -in -the -Middle (MitM) attack. Essentially, a MitM attack is a form of eavesdropping. When a computer makes a connection to the Internet, data is sent from point A (computer) to point B (service/website), and vulnerabilities can allow an attacker to get in between these transmissions and "read" them. So what the individual thought was a private interaction with the network, no longer is. Unencrypted Networks Encryption means that the information that is sent between the computer and the wireless router is in the form of a "secret code," so that it cannot be read by anyone who does not have the key to decipher the code. Most routers are shipped from the factory with encryption turned off by default, and it must be turned on when the network is set up. If an IT professional sets up the network, this should be verified to ensure the encryption feature is enabled. 25 https://us.norton.com/internetsecurity-privacy-risks-of-public-wi-fi.html 25 © Deloitte LLP and affiliated entities. Risk assessment and legal liability strategy Malware Distribution A software vulnerability is a security weakness found in an operating system or software program. Hackers can exploit this weakness by writing code to target a specific vulnerability, and then inject the malware (computer virus) onto your device. Snooping and sniffing Cybercriminals can buy special software kits and even devices to help assist them with eavesdropping on Wi- Fi signals. This technique can allow the attackers to access everything that a person might be doing online — from viewing whole webpages visited (including any information filled out while visiting that webpage) to being able to capture login credentials, and even hijacking the corresponding accounts. Reputational and Brand Protection Considerations The City should continue to monitor any attacks on its reputation and brand, particularly when offering a public service such as Wi-Fi. Systems and tools are already in use at the City to restrict access to dangerous content and these should remain in the future. The City should also continue to monitor web links, URLs, domain names and page content that may contain potential threats to its brand and should investigate concerns related to misuse as soon as a potential issue is discovered. Some consideration should be given on what to do in the event of a crises including: • Identifying and preparing a response and mitigation for reputational risks • Using tools and techniques such as crisis simulations • Monitoring potential risks, risk sensing (early risk detection) and defining rapid response communication teams26 26 Risk Angles - Reputational Risk (Deloitte 2019) 26 © Deloitte LLP and affiliated entities. 1 Options analysis Options analysis The City has made significant progress over the past several years in providing tax -payer funded free Wi-Fi at many of its public facilities. Moving forward, the City must determine a strategy for how they will keep supporting and potentially expanding this service to citizens, visitors and businesses and enable them to remain connected to the Internet while within Pickering's city limits. The following section outlines 3 options which the City should consider when developing its strategy for the public Wi-Fi deployment moving forward. The options have been developed based on the information provided within this report. On one hand, the options are unique, on the other hand the options could be assessed and combined as a path forward depending on the City's appetite for expanding the network and adopting new technology which is set to become widely available over the next 12-24 months. Based on the information gathered through the research around free public Wi-Fi, including what other municipalities are doing, the costs and risks involved as well as the benefits, three potential options are presented below for the City's consideration in the decision whether to offer free Wi-Fi in all public areas. It should be noted that these options are not in any particular order and the City may which to choose one option, two options or all options going forward. 1. Expand coverage of free Wi-Fi services provided into all City managed facilities using present day technology 2. Offer public Wi-Fi in all public areas via a public-private partnership in order to reduce the cost to provide the service 3. Keep current Wi-Fi coverage and wait for next generation technologies to prove their models in 2020- 2021 before expanding Option 1 — Expand City Wi-Fi to managed facilities Option 1 — Description Next Steps Costs and Benefits Expand Expand free Wi- Fi into all City managed facilities Opportunity To have access points available at all City managed facilities. Current Operations There are already access points at many City managed facilities which enables staff and the pubic to use the internet. City is continuing to develop the network on an ongoing basis. Benefit Staff and the public will be able to use the internet for work or leisure wherever they choose to go, although speed might be limited in some areas due to the connection strategies used (i.e., cellular Wi-Fi or hardwired). Confirm if access point estimate provided here (Cost and Benefits column on the right) is accurate and would ensure full coverage. Identify if additional access points are required for facilities with aging equipment or limited reach. Contact preferred vendors to obtain cost quotes for additional access points and associated licenses (if required). One -Time Costs Assuming a cost of $650 per access point router and 2 access points required = $1300. Assuming a cost of $150 per access point antennas and 2 access points required =$300. Recurring Costs Assuming a cost of $250 per management cloud controller license and 2 licenses required =$250 recurring. Benefits City of Pickering would be able to claim that there is public Wi-Fi available at all City managed facilities. Access for residents in all 3 wards, further solidifying the 27 © Deloitte LLP and affiliated entities. 1 Options analysis Option 1 - Expand Description Next Steps Costs and Benefits balanced implementation approach. City would continue to fulfill the benefits described in the early sections of this report. Risks/Pitfalls • This approach does not assess the reach of the access points in the current locations, potentially missing an opportunity to expand Internet access into more square feet of buildings with some level of access. Ease of Implementation — Low • Deployment of Wi-Fi access points has been rather straightforward for the City in the past several years as the technology options in use (i.e., Cisco Meraki and Dell/EMC) are plug -and - play. The City has several individuals trained on the maintenance and management of these access points and could deploy the additional access points with its own staff. The following outlines the recommended implementation locations for Option 1 including the amount of access points suggested for each location. The City will need to determine whether additional hardware is required to support the new and expanded locations identified. Historical one-time costs for access points have been between about $600-$700 for an installed router and $100-$200 for an installed antenna. Recurring costs are for the controller management licenses which have ranged between $200-$300 annually. Operating cost will include backhaul and maintenance. Backhaul costs will depend on the type of Internet service available and the bandwidth amount allocated to public Wi-Fi. Pricing will be different for different carriers and services if an additional cellular connection is needed. A municipality that has excess capacity in their connection to the Internet will not incur additional cost for Wi-Fi backhaul. Option 2 - Offer Public Wi-Fi in all public areas via partnership with a carrier Option 2 - Description Next Steps Costs Private Partnership Expand free Wi- Opportunity Fi into all public locations Expand Wi-Fi into all public locations across the City, with an emphasis on outdoor locations and commercial locations (i.e. malls). Partner with service provider(s) (carriers) to implement free public Wi-Fi across applicable City locations. Use advertisements on the access screen to help with a monetization strategy. Current Operations Currently there are no partnerships with Internet service providers to provide Research potential solutions providers (e.g., Alepo, CIVIQ Smartscapes, Bell Canada etc.) and community partners who may be able to support the development of the project. Attempt to meet with other jurisdictions who have deployed an expanded free Wi-Fi systems to gain additional insights. Document detailed requirements (e.g., functional, technical, level of service, geographic reach) for a broader free public Wi-Fi deployment. Costs Several cost models available including: City owned, service provider owned or Public -Private partnership. Detailed cost breakdown is unavailable at this time given each model is affected by a number of factors. Benefits Several monetization models exist in order to recover costs and continue providing free Wi- Fi. Some examples of this include: advertisements (video and static), capturing data using social logins, verification of SMS to connect to capture user data, filling of survey. 28 © Deloitte LLP and affiliated entities. 1 Options analysis Option 2 — Private Partnership Description Next Steps Costs free public Wi-Fi in any of the locations. Consider starting with a pilot of the initiative in key locations that feedback can easily be gathered, and analyze results in order to refine strategy before expanding. Discuss public Wi-Fi partnering agreements with local businesses who are interested in being a part of a larger deployment. General benefits of using a service provider to expand free Wi-Fi at all locations include: lowering operational costs, elimination of coverage gaps, reduction in network congestion, improvement in customer experience, increased ability to drive revenue27. Risks/Pitfalls • Server down-time or inability to manage the level of service provided • Reliant on the provider to offer the service, which could result in a loss of control over certain aspects of the deployment • Lack of choice over locations chosen due to provider participating in the choice of areas and venues covered • Potential concerns regarding ownership of data and user privacy related to the monetization of user information. The City will need to ensure that these concerns are included as considerations when discussing potential solutions with private companies and consult with experts for guidance on policies. Ease of Implementation — High • Longer deployment timeline as the City would need to investigate the option(s) in more detail, meet with potential vendors (service providers) to discuss the options and plan for the implementation • Implementation of the deployment would likely require managing a relationship with a vendor, which would add a degree of complexity • Expanding free Wi-Fi into a wider region would require significant investment (of time, money or a combination of both depending on the type of deployment chosen) and would likely be a multi-year effort to operationalize Option 3 — No immediate action and wait for next generation technologies Option 3 — Wait Description Next Steps Costs and Benefits Wait for next generation technologies to be proven in the next 1-2 years before making an investment Opportunity Allow other organizations to try to the new Wi-Fi 6 technologies and share their results before becoming an early adopter. Work with ISPs to plan for the implementation of 5G across the community. Collect information and proposals from companies who are interested in developing the City's Identify existing deployments which may benefit from enhanced Wi-Fi capabilities available through the potential implementation of Wi-Fi 6. Monitor vendor solutions to assess which have the best combinations of hardware and software to deploy in a larger area at a lower cost. Work with ISPs and other interested parties to plan how 5G will be implemented Costs Time investments by IT and City development team to monitor progress of technologies and work with ISPs. Benefits Allow market to prove next generation technologies allowing the City to learn from other jurisdictions mistakes or wins. 27 https://www.alepo.com/monetize-your-wifi-using-captive-portal/ 29 © Deloitte LLP and affiliated entities. 1 Options analysis Option 3 - Wait Description Next Step,. Costs and Benefits infrastructure and enabling IoT technologies Current Operations Continue ongoing management of existing Wi-Fi network and make adjustments where required without upgrading technology. Benefit Staff can focus on assessing other high priority initiatives which may have a larger impact for the community. across the City. Discuss whether the City can support in the development of cellular towers and where the initial deployments should be located in order to reach the most citizens. Showcase to the public that the City is committed to long-term growth, following a structured path. Risks/Pitfalls • Public perception that the City is not making continued investments in order to expand Wi-Fi access to the residents despite scheduled upgrades and implementation of new hardware happening on an ongoing basis Ease of Implementation — Low • As there is no actual implementation, the effort is generally low at this time as staff will be focused on research and planning of next -gen technologies, installing planned hardware maintenance upgrades, as well as liaising with interested development groups 30 © Deloitte LLP and affiliated entities. 1 Conclusion Conclusion In Closing - Public Wi-Fi (currently funded by tax -payer dollars) brings opportunities for municipalities to provide communications services to their residents, businesses and visitors. It can support the vibrancy of a community through business growth and community branding, by supporting and enhancing other municipal services and by providing Internet connectivity for those who do not have access at home for reasons of income or lack of service availability. The City of Pickering already provides public Wi-Fi access in 19 facilities including almost all of their libraries and most of their other municipal facilities and parks. The City also makes a concerted effort to replace aging hardware and implement new access points on an as needed basis to improve the network coverage. Based on the facts collected as part of this research, particularly the minimal number of additional facilities requiring deployment and the state of next generation technologies, our analysis indicates that any of the options described in the previous section is suitable for the City's public W-Fi strategy. Option 1 allows the City to make a small investment today and wait for next generation technologies to be proven in the coming years before purchasing them now, as described in Option 3. The City may decide to change its strategy on Option 2, if 5G data plans become cost prohibitive for some residents, however as mentioned, the CRTC is in the midst of an investigation and there is some likelihood that pricing for plans will change due to the ongoing scrutiny. If these plans are affordable and the 5G coverage is robust, the City may not need to focus on Wi-Fi as the way of getting access to Internet to its citizens. As for ensuring security and legal coverage, proper security practices and policies mentioned in this report can be used to mitigate security risks to the City providing the Wi-Fi service and network users. Liability risks can be mitigated by providing Terms and Conditions of Use Policies. The City may elect to review their Terms of Use to ensure coverage addresses aspects like privacy and reputation. As stated in the opening section, free public Wi-Fi can provide business and social support to the City of Pickering in many ways for many people and should continue to be offered if costs can continue to be controlled and minimized. Like any purchase made by the City, the investment should be weighed against other priorities to ensure that tax payer dollars are spent in areas that will bring most value and reach more residents. As part of next steps, the City should consider implementing an additional or internal consultation process to undertake an evidence based approach to assessing the broader internet needs of the community. Activities could include: commission a needs assessment study to analyze and summarize existing community studies conducted over the last five years, commission an Intelligent Communities (Smart City) Forum Report Card, and begin to request feedback on the current free Wi-Fi deployment to understand levels of satisfaction. 31 © Deloitte LLP and affiliated entities. Appendix - Public Wi-Fi Appendix -Public Wi-Fi Review Results from CRTC on Wireless Services in Canada The results of the review on wireless services in Canada, including the following: 1. Affordability of data plans for all Canadians28 From a technological perspective, wireless networks in Canada have also evolved, as carriers continue to roll out long-term evolution (LTE) and LTE -advanced (LTE -A) networks, contribute to the growth of the Internet of Things (IoT) market, and transition away from third -generation (3G) networks. Currently, the mobile wireless service market is on the verge of a major transformation, since wireless carriers are poised to begin introducing 5G wireless technology into their networks. This technology upgrade will mean that wireless networks will become exponentially faster, more pervasive, and more versatile. With a predicted maximum throughput of 10 gigabits per second (Gbps), this technology will support innovative and bandwidth -intensive new services, including self -driving cars, smart cities, and a multitude of interconnected devices that form the IoT. In order to begin introducing 5G technology, wireless carriers will be required to make significant investments in network infrastructure, and to negotiate with a variety of stakeholders to secure adequate access to fibre facilities, rights of way, and small-cell sites. It is therefore important to assess whether there are barriers to the introduction of new technologies by carriers, and the extent to which regulatory intervention by the Commission may be required to support investment and competition in the evolving marketplace. The mobile wireless service industry has evolved since the Commission's last review of these services, due to, among other things, technological and market changes, and it will continue to evolve as carriers begin to introduce 5G networks. The Commission is concerned that the fact that (i) retail market concentration remains high (due in part to a series of acquisitions), and (ii) the Commission has been repeatedly required to intervene in the retail market, suggests that certain aspects of this market are not, in fact, sufficiently competitive in their current state to properly protect the interests of users. As a result, the Commission will include a review of the state of competition in the retail market. As part of this review, there will be a definition of the retail market and whether the retail mobile wireless services currently offered by wireless carriers, including prepaid services and lower-cost data -only plans, are meeting the needs of Canadians. Depending on the results of the review, the Commission will evaluate whether any changes to its mobile wireless service regulatory framework are required, which could include, for example, establishing new retail policies and imposing conditions of service. The review may also result in the Commission considering whether to reassert any previously forborne powers in order to apply any regulatory measures that are deemed appropriate. These could be in addition to any wholesale measures that may be required as a result of this proceeding. 28 https://crtc.gc.ca/eng/archive/2019/2019-57.htm 32 © Deloitte LLP and affiliated entities. Appendix - Public Wi-Fi 2. Planning for implementation of 5G 29 • In the coming years, wireless carriers will begin to deploy 5G technology in their networks across the country. One of the first steps toward the introduction of 5G technology is the construction of the cellular network infrastructure that the technology requires. Going forward, carriers will continue to need to acquire and develop high-power cell sites where they can install radio equipment on ground- based masts, towers, rooftops, and other existing structures. Small cell deployment will require a change from the standard model of large macrocell sites delivering wireless signals over relatively long distances to also include numerous small-cell sites packed more densely together. Because small cells will be used in conjunction with high -frequency spectrum, which has limited propagation, a large number of small cells will be required to properly cover any given area. • Given the role that small cells will have in supporting next -generation services, it is clear that investment in these cells by wireless carriers will be of increasing importance in the coming years. In order to successfully deploy small cells, a wireless carrier must, among other things, (i) negotiate with owners (e.g., municipalities) for access to passive infrastructure, (ii) negotiate with carriers (in the absence of a tariff) and hydro companies for access to poles, and (iii) build or acquire access to fibre -based transport sufficient to support the service. retailed Benefits of WIFI 63° Wi-Fi 6 Wi-Fi 6 is the last iteration of 802.11 standards developed through ratification in the past 20 years, starting with the original standard 802.11a (1997) and 802.11b (1999), 802.11g (2003), 802.11n (2009) and 802.11ac (2013). While pre -standard Wi-Fi 6 wireless LAN (WLAN) access points (APs) are available in the market, the 802.11ax standard won't be officially ratified until late 2019. Backward Compatibility • Backward compatibility is an important aspect when a new Wi-Fi standard comes out. Historically the wireless local access network (WLAN) access points offerings included a separate "legacy" radio to support "legacy" devices, namely wireless clients that did not support the"new" technology. • Backward compatibility allows integration with legacy 802.11ac and 802.11n infrastructure. This provides the option for enterprises to gradually upgrade to Wi-Fi 6. • While it is backward compatible with 802.11a/g/n/ac, the full benefits of deploying it will only come into play when wireless clients also support Wi-Fi 6. Compared to the overall global installed base of wireless clients, a rather limited percentage of devices supporting Wi-Fi 6 will be available over the next three years. Higher Data Rates • Wi-Fi 6 promises better user experience and a higher number of users supported per access points. Wi-Fi 6 can provide up to 10 Gbps of wireless throughput operating in the 5GHz frequency band, which is an apparent upgrade from the previous 75 Mbps and 2.4GHz. Today the theoretical data rates of 802.11n at 2.4GHz are 75 Mbps per radio • The potential to deliver theoretical throughput close to 10 Gbps will struggle to find real-life implementation for the city public Wi-Fi due to limitations related to the data subcarrier (signal) modulation scheme. ze https://crtc.gc.ca/eng/archive/2019/2019-57.htm 3° Magic Quadrant for the wired and wireless LAN access infrastructure (Gartner 2018) 33 © Deloitte LLP and affiliated entities. Appendix - Public Wi-Fi Internet of Things (IoT) There have been many reports in the past several years around the IoT which highlight how IoT is changing our world as we know it through the rollout of connected devices. The City has been approached by several companies who would like to implement technologies which will support the development of a connected community and enable the City to use IoT connected devices for many of their operations. These proposals are being assessed on an ongoing basis for appropriateness and viability. Some examples of potential outcomes would include: smart Internet enabled light -posts, environmental sensors, additional cameras, and advanced tracking on fleet vehicles, to name a few. Broader access to free public Wi-Fi has been proposed by many companies, however the City must ensure that the business interest and privacy of the public is taken into consideration when reviewing these proposals, as ownership of user data is a key factor to consider. As a primer, key IoT technologies include: • Digital business technology platforms such as wireless payment processing, or corporate systems run on devices • Edge AI, which means that AI algorithms are processed locally on a hardware device. The algorithms are using data (sensor data or signals) that are created on the device. A device using Edge AI does not need to be connected in order to work properly, it can process data and take decisions independently without a connection. • Event stream processing • IoT edge architecture to ensure devices are running on latest code • IoT integration so that devices can be connected to management systems • Information technology/operational technology (IT/OT) 34 © Deloitte LLP and affiliated entities. 1 Appendix - Public Wi-Fi Key use cases for IoT include autonomous vehicles, building information modeling, indoor location for assets, and IoT enabled product as a service, which could all be applicable to municipalities. The following image shows where key IoT technology are in their development and rollout. It is taken from Gartner's hype cycle which shows the trend line for each of the pieces of the technology and where they are in their general development and roll-out. Hype Cycle for the Internet of Things, 2019 expectations IDT Busrnaric Solutorm Indoor Location +arPao* Ed An1.,les Edge Al tuT-Ereblad Applcal curs InFultlrrecs Even) BPokar Parra telPaaS) 131odtkl*aln and IaT 1oT-Enabted Product as a Sancta Irne:riet of Meet ,- Olgltd Bustnass aacnrrungw 'IBac rn f- tl g i! 11 Twin 11:ITSeau.ity IqT Se ryIcae 9 EwenScream Prccesams kDT Edge}Arsnilacr.+re IoT Pletfarn Ir. Ierrrdl of Tr¢1ds AutDnorauc Vehldef mbar London iar Assets InT IiNOgrglitlh Meneged l T Connectivity Serumal ITJOT Argn me,1 kesek Ptarfornanr gemert MOM of'Tiling" gets Q Building Inrarmadon Mudel.ng 11111.66410 .Ir I IMAM f ezvk Ir1fk11tr3 tw om iatl4n. TIT Iltih Crl4illncl nm rroni +villi rinn.hr ARof July 7AW D P1111iiyro.0I t�rn4UerlWt, Plateau will v F4 pchad. Q less her. year% r -r iourre: Gartner Er -3694 67 tIrne • t; on fp rip. A.n;,rt than i:t 1.5-ae5 tr+frin tllA�yr (Hype Cycle for the Internet of Things, 2019, Gartner, Inc.) Sample Wi-Fi Terms of Use Standard terms of use You must agree to the following text before using our wireless hotspot. Policy Statement Use of this network contrary to the operational and management objectives is unacceptable and prohibited. Scope This Policy applies to all customers and to all other users of this hotspot. Prohibited Uses Examples of prohibited uses of this hotspot are described below. The examples are guidelines and are not intended to be exhaustive. 35 © Deloitte LLP and affiliated entities. Appendix - Public Wi-Fi Illegal/Criminal Activity This network may not be used in connection with criminal or civil violations of laws, regulations, or other government requirements of any jurisdiction. Such violations include theft or infringement of copyrights, patents, trademarks, trade secrets, or other intellectual property, export control violations, fraud, forgery, pyramid or other prohibited business schemes; and theft, misappropriation, or unauthorized transmission or storage of funds, credit card information, personal information, or online services. Security Violations This hotspot may not be used to violate the security of a network, service or other system. Examples of this may include hacking, cracking, monitoring, or using systems without authorization; port scanning; conducting denial of service attacks; distributing viruses or other harmful software; smurf attacks; and unauthorized alteration or destruction of websites or other information. Threats This hotspot may not be used to transmit or store material of a threatening nature, including threats of death or physical harm, harassment, libel, and defamation. Offensive materials This hotspot may not be used to transmit or store material of an offensive nature, including obscene, pornographic, indecent, abusive and harmful materials, or to transmit to recipients material which is inappropriate for them, including obscene or offensive materials to children. Spam This hotspot may not be used to spam. Spam includes any of the following activities: • Sending any unsolicited email that could be expected to provoke complaints. • Sending email that does not accurately identify the sender, the sender's return address, and the email address of origin. • Sending unsolicited email without identifying in the email a clear and easy means to be excluded from receiving additional email from the originator of the email. • Collecting the responses of unsolicited email. Sending email with charity requests, petitions for signatures, or any chain mail related materials. • Posting a single message, or messages similar in content to more that five online forums or newsgroups. • Posting messages to an online forum or newsgroup that violate the rules of the forum or newsgroup. Security System This hotspot may not be used, directly or indirectly, with systems that are not configured and maintained in a manner which prevents their use by others in violation of this Policy. Examples include improperly securing a server so that it may be used by others to conduct a denial of service attack, improperly securing a mail server so that it may be used by others to distribute spam, and improperly securing an FTP server so that it may be used by others to illegally distribute licensed software. Application visibility Application Visibility and Control (AVC) classifies applications using deep packet inspection techniques with the Network -Based Application Recognition (NBAR) engine, and provides application -level visibility and control (QoS) in wireless networks.31 This is relevant for the City as it will be needed for using enterprise applications at the various facilities where Wi-Fi is present. For example, accessing the ERP to make a request would need application visibility. Factors that will impact equipment selection include: 31 https://www.cisco.com/c/en/us/td/docs/wireless/controller/7- 4/configuration/guides/consolidated/b_cg74_CONSOLIDATED/b_cg74_CONSOLIDATED_chapter_01111.html 36 © Deloitte LLP and affiliated entities. Appendix - Public Wi-Fi • Size of area to be served, which determines the number of access points required and the range of each access point; • Number of devices to be supported; • Mobility, such as if users need transparent handoff from one AP to the next; • Type of activity supported; • Network Control, per AP or centralized; • Spectrum and standards; • Content filtering; and • Indoor vs. outdoor deployment. Other This hotspot may not be used in a manner that damages the owner's reputation or goodwill; violates another ISP's acceptable use policy and/or terms of service; or interferes with another's use of the network. Attempts This hotspot may not be used to attempt an activity prohibited by this Policy — whether or not successful. General Under no circumstances, including, but not limited to, negligence, shall the owner of this hotspot, its subsidiary and parent companies or affiliates be liable for any direct, indirect, incidental, special or consequential damages that result from the use of, or the inability to use this hotspot. You specifically acknowledge and agree that the owner of this hotspot is not liable for any defamatory, offensive or illegal conduct of any user. If you are dissatisfied with these terms and conditions, your sole and exclusive remedy is to discontinue using this service Notable Definitions 1. Gigahertz is a measure of speed vibration 2. Gbps, short for Gigabits per second, a data transfer speed measurement for high-speed networks 3. Orthogonal frequency -division multiple access (OFDMA) is a method of encoding data on multiple carrier frequencies. Multiple access is achieved by assigning subsets of subcarriers to multiple users. 4. Basic Service Set (BSS) Coloring: "BSS Coloring" assigns a numerical identifier (color) based on the channel used by the basic service set (BSS, also known as the AP radio with the associated connected clients). This method is used to identify and mitigate overlapping BSSs, decreasing channel contention problems. 5. Backhaul technology: In a hierarchical telecommunications network, the backhaul portion of the network comprises the intermediate links between the core network, or backbone network, and the small subnetworks at the edge of the network. Visualizing the entire hierarchical network as a human skeleton, the core network would represent the spine, the backhaul links would be the limbs, the edge networks would be the hands and feet, and the individual links within those edge networks would be the fingers and toes. 6. Network topology: Network topology is the arrangement of the elements (links, nodes, etc.) of a communication network. Network topology can be used to define or describe the arrangement of various types of telecommunication networks, including command and control radio networks, industrial field busses and computer networks) Current Deployment Maps The following pages are visual representations of where there is currently free public Wi-Fi at the City. The representations are based on information received by the City and provide a more detailed view of the current Wi-Fi deployment by Ward. A green label indicates current Wi-Fi access, while a red label indicates no current Wi-Fi access. The maps also include the amount of access points at each location. 37 © Deloitte LLP and affiliated entities. Appendix - Public Wi-Fi Legends: • Public Wi-Fi available • Public Wi-Fi not available 38 © Deloitte LLP and affiliated entities. Appendix - Public Wi-Fi HYLI RQ Flunbarto1111 n 455 Point. 'H ERIY'D CORRIDOR 11111111111111.._.__II . . 1 F 7.1 Fire Fire Station. 2 Access Point: 1 George Ashes Community Centre Access Point: 1 Rental Availability: Ye 39 Fefli sli 11 West Shore Community Centre Access Point: 1 Rental Availability: Yes 0 0 121Cji 0 © Deloitte LLP and affiliated entities. 1 Appendix - Public Wi-Fi Fire Station 5 4ccess Point: 1. East Shore Community Centre Access Point: 1 Rental Availability: Yes Fire Station 5 Access Paint: 2 • Don Beer Arena Y i4ccess Point: 5 Don Beer Meeting Rooms • Access Point: 4 WA p Kingsmen Park (---7 Access Point. 1 _Millennium Square L ,'Access Point: 4 • —Pickering Operations Centre Access Point: 4 40 © Deloitte LLP and affiliated entities. I Appendix - Public Wi-Fi p MAL w Fire Station 4 access Point: a {-ULMMI.1 Dr. Nelson F Tamiirrson Community Centre ACOS Point: 1 Keri I AtiVai1abliit': 'fed 1 Whitevale Cornrpurl`tyCentre ACCESS Point: 1 Rental Ava)lability; Na' WARP 3 116.1.• Pickering Museum Village Par Anlmai Smelter Access Poirot: 4 Access Point: 1t 1 Ilk 11111.mrpfripire alifal MOM IL a -a ' FCa IncCentre .s.P t Mid �rl Civic centre 1 Acces Pains: 15 Esplanade Park Access Paint: 4 �I I 41 I Delaney and O'Brian Arena _.Access Point: 1 M'4 7aOPw CP © Deloitte LLP and affiliated entities. Steps 1 Building permitting system report Building permitting system report Introduction Service Review Objective The objective of the building permit report was to identify technology options that can expedite the time to issue building permits, thus increasing productivity in the building permit division, and identify other areas which could realize cost savings, as well as understand the investment in an electronic permitting system. Figure 1: Project Steps Summary: The project steps diagram below illustrates the steps taken as part of this investigation beginning with initial interviews, information gathering, research analysis, followed by development, and finalization of report. Ste. 1 Perform initial interviews Gather and review information Perform researdI Develop report Finalize report Understand potential -fit solution options RPCParrh MPthnrinInr, The research methodology for the building permit report was to first conduct a preliminary analysis of the current building permitting process at the City of Pickering. This consisted of engaging with key members of the building permitting team in order to understand the City's current operational deficiencies, along with researching technological advances in the permitting sector in order to identify current state gaps. Once the current state gaps were identified in terms of functional deficiencies of the current system and industry best practices, follow-up inquiries were made with the permitting team in order to better understand the department's functional requirements for a new system. The scope of the research conducted as determined by the City of Pickering is described below: • Understand the current paper-based building permit application process at the City of Pickering in order to identify deficiencies experienced by users in the current process. • Work with the City's personnel to determine critical requirements for an electronic building permit system. • Perform research on available building permit systems that could assist the City of Pickering in improving its efficiency and productivity in the issuance of building permits. In particular, examining potential solutions that could provide benefits in areas including but not limited to permit intake, review and document management, system integration, payment processing, inspections, and built-in tracking functions. 42 © Deloitte LLP and affiliated entities. 1 Building permitting system report A�nrn=rh In order to conduct the research for the report, the following approach was used: • Research and understand the building permit industry in order to ensure the City of Pickering is in alignment with industry standards in terms of client service, productivity, and cost savings. • Analyze the City's current operational state and identify current state gaps preventing the City from performing at optimal efficiency. • Use functional requirements derived from the City's current state gap analysis developed in the previous step to identify and assess potential -fit building permit technology options. • Provide a cost -benefit analysis in order to quantify the benefits of purchasing and implementing an electronic permitting solution that would meet the City's requirements. 43 © Deloitte LLP and affiliated entities. 1 Background Background Industry Background Municipalities across Ontario and Canada are falling behind their international counterparts in adapting to emerging permitting technologies which is resulting in delays in permit approval time, along with increased construction costs. According to RESCON, "...many developers and builders alike believe that the time it takes to submit all of the required paperwork and receive the applicable approvals, and the building permit itself, is often longer than the actual physical construction of the project."32 Likewise, adhering to Ontario building code requirements takes time, and having a paper-based application system only delays the process. Therefore, it is essential for the City of Pickering to optimize their permitting process through electronic submission and review in order to meet the following corporate priorities as discussed in figure 2 below.33 Figure 2: City of Pickering Corporate Priorities Summary: The City of Pickering's corporate priorities are corporate engagement, corporate best practices, and financial management. The corporate priorities are described in the illustration below as follows: Financial Management By investing into modern electronic processing systems, budgeting, and financial transactions remain transparent while increasing revenue. -911ilip Corporate Best Practices By utilizing technology by the responsiveness of both the community and stakeholders Corporate Engagement Expanding how Pickering communicates with its community 32 Modernizing Building Approvals in Ontario Report, Rescon Residential Construction and Ryerson University, https://www. ryerson.ca/content/dam/cur/pdfs/RESCON/CUR_RESCON_Modernizing%20Building%20Approvals%20in%20 Ontario%20Report_2017.07.05. pdf 33 Corporate priorities derived from Business Case for Electronic Permit Solution 44 © Deloitte LLP and affiliated entities. 1 Background City of Pickering Background Currently, the City's permitting application process is conducted by a paper-based system., and is confined to the City's hours of operations as applicants have to physically visit the City to submit permit applications, and pay permit fees. The submission package is made up of application forms, construction drawings, approvals from other parties, and supporting documentation. This process is inefficient and is resulting in late tax revenue for the City and increased operational costs as a result of storing paper and stationary costs, along with staff performing clerical tasks such as data entry for application submission, and communicating status of application. The building permit department is responsible for the following: • Managing the City's permit submission process • Communicating permit status to stakeholders • Scheduling residential and commercial inspections, and • Issuing permits and resolving permit disputes. The current building permitting software provider Calytera, formally known as CSDC, is a US -based company providing building permitting solutions with options of web -based, cloud, and on -premises data storage. The City has adopted the Amanda system as a back office tool to record permit intakes, schedule inspection requests, and process payments. The City currently pays $25,000 annually in licensing fees for the permitting software. Upon inquiries and meetings with the City, the team learned that the City is currently in the process of transitioning to a system upgrade next year as the existing system is not user-friendly. The City will upgrade to the Amanda 7 system next year as the current version of the software will no longer be supported after January 2021. The Amanda 7 upgrade will cost approximately $190,000 and will enhance greater efficiencies in the permitting process. These improvements include but are not limited to an upgraded user interface with the ability to make user level changes to enhance inter -department workflow, along with advanced search and analytical tools for graphical review and analysis. Therefore it's essential for the new e -permitting system to integrate with the City's existing Amanda system. Based on the above analysis, adopting an e -permitting solution would expedite the timely issuance of permits and will help rectify the critical issues identified in the current process. An e -permitting solution will electronically accept, review, schedule, and assign inspections, while communicating status updates in real- time to both applicants and staff. 45 © Deloitte LLP and affiliated entities. Key findings Key findings The following are the key findings uncovered during interviews with the City of Pickering as part of this service review. These findings were used when determining potential solution providers to include in the assessment described in the Functional and Non -Functional Requirement section of this report. 1. The City's current permitting process is heavily reliant on paper and lacks the ability to automate key permitting tasks such as application submission, permit review, and payment processing. The lack of integration and functionality required in order to realize efficiencies, reduce costs, and improve day-to- day functions is resulting in the following challenges experienced by the City staff: • Added delays in issuing permits as staff is manually inputting data, processing payments, along with reviewing and stamping plans for compliance on paper. The legacy paper-based application system currently takes 3 weeks to review and issue a permit for a detached dwelling home permit, far below the industry standard of a few days under an e -permitting solution. • Increased costs associated with paper, office supplies, and stationary. • Increased clerical costs associated with data entry. 2. The current system does not calculate permit fees correctly and does not notify the City of any overcharges. The overcharges have resulted in $70,000 being returned to residents in 2018 based on the City's internal review. There could be additional miscalculations that the City has still not uncovered, and it is recommended that the City performs an in-depth analysis to further uncover miscalculations in permit fees, and potentially hire external independent consultants to support the assessment. To rectify any future errors in overcharges, the new system needs to integrate with the City's existing ERP system. 3. The current system lacks the ability of applicants to review their permit status in real-time, which results in delays as the City informs residents of additional information requests, outstanding payments, or status inquiries in person, or on the phone. To reduce the paper footprint and call volume of residents visiting or calling in to the City regarding their application status, the new system needs to provide users with the ability to review their application status online in real-time, and show which phase their application process is in (initial review or inspection). A built-in tracking function with active dashboards will enable the City to notify applicants of any pending application tasks such as outstanding payments, submission of plans, or missing application information, which further enhances efficiencies in the permitting process. 4. The current manual scheduling process for inspections is inefficient and it has resulted in scheduling errors, along with inspector task -lists for inspections not being generated correctly which is currently conducted by the scheduler. To reduce errors in scheduling, the new system should provide applicants with the ability to book inspections online, and the system should have the ability to automatically assign, route, and schedule inspections. The system should provide the City with the opportunity to configure the process of automatic scheduling based on custom defined rules and inspector availability. In addition, the new system will need to provide inspectors with the ability to generate and view task lists on mobile devices. 5. As mentioned above, inspectors currently do not have mobile capabilities to make field changes to plans regardless of geographic location. Instead, inspectors are currently logging in through VPN Citrix on their laptops to make changes. Thus, the new system must allow inspectors to view field data in real-time through GIS technology, enabling inspectors to see exactly what changes on the field will look like in real-time. The key features of GIS technology are discussed on page 47 of this report. 46 © Deloitte LLP and affiliated entities. Key findings A new enhanced building permitting system will bring more automation to the current process, and convert documents to electronic format, which will result in improved citizen service, and reduced costs. The flow chart in figure 3 depicts the flow of an e -permitting process enabled by a system. Figure 3: E -Permitting System Process Flow Summary: An e -permitting system can automate a number of functions including submission of applications, payment processing, electronic review of permits, and issuance of permits. The illustration below depicts the process flow of a permitting application. The process flow steps in blue represent responsibilities of the applicants and green represents the responsibilities of the City that can be performed electronically through an e -permitting system. Submit Application + Review Fees Issue Certificate of Occupancy Legend: Applicants Accept Application (Completeness Check) Request Certificate of Occupancy Review Application (Inspection + Fire) City Staff Pay any Outstanding Fees and Submit Drawings, if Applicable Approve Pay Building Application Permit Fees Inspections Construction Issue Permit Current State Gaps The next section looks into current state gaps which were derived during meetings with key members of the building permitting team. During the meeting it was uncovered that the gaps the City is facing with the current building permit system revolve around: • Permit Intake • Review and Document Management • System Integration • Payment Processing • Inspections, and • Built -In Tracking Functions. The table in the next section depicts the current state gaps identified in the existing system. 47 © Deloitte LLP and affiliated entities. 'Key Findings Current State Gaps Permit Intake Review and Document Management System Integration Payment Processing Current System Current System Current System Current System Paper-based application submission in Amanda. The review process is currently conducted manually on paper. Amanda and the current SAP ERP system are not integrated, resulting in fees not being calculated correctly. Payments are currently made in- person at the City Hall. Current State Gaps Current State Gaps Current State Gaps Current State Gaps Applications are submitted on paper and entered into the system by staff which is taking up both time and cost associated with staff performing clerical tasks such as redundant data entry which can be automated. Additional functions required: • Automatic 24/7 electronic application submission. The current review process consists of staff manually reviewing applications for errors and stamping each permit plan for compliance by hand. This is a highly time consuming process and electronic review can help automate this process. Additional functions required: • Staff have the ability to mark- up and stamp applications online through e -review. • Automatic routing of permit workflow to appropriate division (examination or zoning). The Amanda system does not integrate with the City's current SAP accounting system. This has resulted in multiple errors in staff reconciling accounts incorrectly as the Amanda system only showcases sub -totals without illustrating the accounts receivables outstanding. Additional functions required: • Ability to provide daily AR reconciliation summaries in order to avoid overcharges. • Ability to integrate with SAP to enable effective processing of financial data in order to ensure data integrity and avoid overcharges. Payments are currently made by applicants in person. This leads to delay in the building permit process as applicants need to visit the City's offices during business hours to make changes. Additional functions required: • Notify applicants of outstanding payments in real-time. • Ability to mandate fee payments both at the time of application and at the time of permit pick up. 48 © Deloitte LLP and affiliated entities. I Key Findings Current State Gaps Ir=n.--ions Built -In Tracking Function Current System Current System • Calytera's Amanda System is used for scheduling. • Inspectors call into VPN Citrix to make changes. • Calytera Amanda System. Current State Gaps Current State Gaps The scheduler books inspections in Amanda based on user requests (done by phone or online form). This has resulted in multiple scheduling errors. Similarly, inspectors have to login into Citrix VPN on their computer to make changes from the field as they currently do not have mobile capabilities. Additional functions required: • Users schedule inspections through e -portal. • GIS map integration allowing inspector to access data in real-time regardless of geographic location and device used (mobile or laptop). The current system is not user-friendly and it is only accessed by internal staff. Applicants currently do not have any ability to view the status of their application online, instead the back office staff provides status updates by phone or answer questions when residents visit the City office. Additional function is required for: • Dashboards that enable residents to see status of application in real- time. 49 © Deloitte LLP and affiliated entities. 'Key Findings Key Features of E-Permittina System In addition to the current state gaps identified above, further research was conducted to identify other aspects of e -permitting systems deemed as critical capabilities within the permitting industry. These capabilities include but are not limited to payment processing tools, review and document management, built-in tracking functions, data analytics, as well as GIS integration and mobile capabilities. Payment Processing Tools Electronic payment processing tools are becoming a norm in the permitting industry as providers are going beyond normal security standards, while adhering to municipal financial and tax rules. Certain providers are offering financial tracking capabilities that can be audited, along with solutions that support fee creation, payments, waivers, refunds, chargebacks, NSF tracking for cheques, and deposits for prepayments. Given the current deficiencies in the payment processing system at the City, implementing a payment processing tool will enhance efficiencies at the City. As providers are beginning to offer applications that not only integrate with a municipalities existing ERP system, but also provide their own financial systems that can provide daily reconciliation summaries, this further heightens the benefits of implementing an e -permitting solution. Review and Document Management According to RESCON, the industry is moving towards electronic review and document management as a way for the future. 34 Reviewing applications, construction blueprints, and subsequent review documents in paper is leading to an increase in both paper and storage costs. As a result, the City of Pickering's review of building permit applications is highly time consuming, as staff are manually reviewing and stamping documents in order to ensure compliance. Additionally, multiple case studies have demonstrated the inefficiencies experienced by municipalities across the globe. For instance"...Salt Lake City, Utah, reduced paper consumption by approximately 512,000 lbs, recognizing a cost savings of nearly $1.5M (CAD) per year and Miami Florida reduced plans review time from 322 days to 2 months." 35 The municipality's process entailed of processing and reviewing applications 100% on paper. The operational efficiencies experienced by municipalities is a result of certain systems ability to effectively route workflow to appropriate divisions, providing reviewers with the ability to electronically mark-up, approve plans, and request subsequent plans from applicants, while securely managing documents on the e - portal. Given the building department spent just under $6,500 last year in costs associated with photocopying permitting documents, this shows the cost savings opportunity to implement an e -permit review solution, hence leading to a more sustainable environment.36 34 Modernizing Building Approvals in Ontario Report, Rescon Residential Construction and Ryerson University, https://www. ryerson.ca/content/dam/cur/pdfs/RESCON/CUR_RESCON_Modernizing%20Building%20Approvals%20in%20 Ontario%20Report_2017.07.05. pdf. 35 Derived from Business Case for Electronic Permit Solution, provided by City staff. 36 Derived from Information derived from Total Activity Maps, provided by City staff. 50 © Deloitte LLP and affiliated entities. Key findings Built-in Tracking Function Dashboards create user specific reports in real-time which is currently not available in the existing system. Through interactive dashboards, both clients and staff can see exactly what stage of the permitting process their application is at. This further improves cross -functional communication channels between staff members, as users can derive, update, and upload documents, while communicating with clients in real-time. Data Analytics Through data visualization tools, certain systems provide management with the ability to improve service delivery to citizens by generating performance reports catered specifically to divisional results. This allows management to identify areas of critical weaknesses and to implement mitigating measures in a timely manner. GIS Integration and Mobile Capabilities "The use of mobile technology and interactive mapping capabilities allows our inspectors to accomplish their daily tasks more efficiently." City of Washington, DC Through geospatial data from satellite imaging, aerial photography and remote sensors, GIS technology can show exactly what changes on the ground will look like in real-time for effective decision making.37 Considering there is an industry wide trend in performing inspections through mobile -based applications, this will further enhance the City's ability to deliver service excellence to the residents of Pickering as inspectors can view site data via mobile capabilities at any time regardless of geographic location. Similarly, certain providers are offering mobile -based applications or systems that configure with mobile apps, allowing inspectors to derive and update data in real-time, thus reducing the time spent by inspectors on reviews. According to Accela, GIS technologies helps inspectors maximize their time in the field and complete more inspections scheduled for the day. The diagrams depicted on the following pages illustrate the functional and non-functional requirements that the City expects the building permit system to meet. The functional and non-functional requirements are defined as follows: • A functional requirement defines the system abilities that a potential providers system should adhere to. • A non-functional requirement will place constraints on how the system will perform those functionalities. 37 Why GIS is important in Urban Planning, University of Southern California, 2019. 51 © Deloitte LLP and affiliated entities. 'Key Findings Functional Requirements User-friendly System Automation Goal: To research providers that offer user-friendly electronic portals. Functional Pam iiramant Users can easily submit permit applications 24/7 in a user-friendly portal. 52 y Built-in Tracking Function Automation Goal: System enables applicants to view permit status. Functional Requirement System enables users to view permit status in real-time, and submit subsequent information. y Cost Reduction Automation Goal: System reduces operational costs. Functional Requirement Ability of system to automate clerical tasks, thus reducing costs associated with data entry and paper storage. -411i1111111.- 4 System payment configuration Automation Goal: System interfaces with SAP accounting system to enable online fee payments. Functional Requirement Ability of system to easily configure with SAP and other platforms to enable efficient online fee payments. 4 Enables Data Analytics Automation Goal: System enables staff to enhance services through data analytics. Functional Requirement Ability of system to integrate with GIS Maps and produce reports through data visualization tools. y Timely Issuance of Permits Automation Goal: System expedites the building permit process. Functional Requirement Ability of system to automate clerical tasks, resulting in timely issuance of permits. © Deloitte LLP and affiliated entities. 'Key Findings Non -Functional Requirements Ontario Code Requirements Automation Goal: Ensure providers system adheres to Ontario building code requirements. Non -Functional Requirements Provider has presence in Ontario, along with systems ability to easily adapt to changes in legislation. y Cloud/On- Premise Automation Goal: To research providers that offer cloud/on-premise deployment. Non -Functional Requirements Provider offers a choice of either cloud or on premise services. y Data Recovery Automation Goals: To research details on system recovery plans. Non -Functional Requirements The cloud platform must have reliable recovery solutions. y IOW Automation Goal: To research systems with high level of security and compliance. Non -Functional Requirements The system must abide by high standards for security in order to ensure data integrity. y Communication Automation Goal: To research providers that offer alternatives in communicating with users. Non -Functional Requirements Providers offer alternative methods to communicate such as instant e- mail notification or messaging via text and phone. User Support Automation Goal To research providers that offer users with operational support. Non -Functional Requirements The system should offer users with support guides, videos, and self-service tutorials as well as helpdesk. 53 © Deloitte LLP and affiliated entities. ICost-Benefit Analysis Cost -benefit analysis Overview This section looks at the high level cost -benefit analysis of implementing an e -permitting solution. The cost quotes discussed in this section are estimates, and the actual costs will vary depending on the City's selected vendor, system functionality, integration, and deployment option (on -premise or cloud). One of the major deficiencies in the City's existing paper-based permitting system is the time it takes to issue building permits. As mentioned in the Key Findings section on page 42, it currently takes takes 3 weeks to review and issue a permit for a detached dwelling home permit, far below the industry standard of a few days under an e -permitting system. Ultimately, delays in the permitting process, can have a significant financial impact such as delayed recognition of tax revenue. Not only does a paper-based permitting system impact delays in recognition of property tax revenue (as discussed on page 52), but it also has an impact on the housing market as a Fraser Institute report found that a 6 month delay in approvals, reduces growth in new housing supply by 3.7%.38 Thus, the City of Pickering should consider implementing an e -permitting solution in order to avoid a decline in new housing supply and prevent delays in tax revenue. The discussion below illustrates the market costs, benefits, and potential cost savings of implementing an e -permitting system. Also included in this section are results of our research on quotes from vendors providing e -permitting solutions to municipalities across Ontario, and a breakdown of the different cost components. On average the cost of implementing this type of system is between $1M to $1.8M.39 Market Cost & Illustrative Quotes This section looks into the high-level cost estimates derived from meeting minutes and council reports for the City of Windsor and the City of Kingston, which are publicly available. The costs include but are not limited to system installation, software maintenance, implementation, and training fees. The City has the option to purchase the system and host it on -premise or on the cloud through various hosting platforms not limited to Microsoft Azure, Amazon Web Servers (AWS), Google, or Salesforce cloud. Maintenance costs for e -permitting solutions can vary by provider and can be based on percentage of licensing fees, number of applications processed, or the number of subscriptions. Cloud -Based Deployment The costs below were derived from the City of Windsor's deployment of a cloud -based e -permitting system.4° Please note that the costs outlined below are estimates from Evolta based on the City's implementation plan, and actual figures will likely vary depending on the implementation strategy adopted. 38 Fraser Institute, The Impact of Land -Use Regulation on Housing Supply in Canada, 2016. 39 City of Windsor Meeting Minutes, June 2018 and City of Kingston Report to Council June, 2014. 40 City of Windsor Meeting Minutes, June 2018. 54 © Deloitte LLP and affiliated entities. ICost-Benefit Analysis Figure 4: Cloud -Based Development and Implementation Costs Summary: The following table outlines the cost estimates for a cloud -based deployment of an e -permitting system. The cost quotes include but are not limited to deployment of a cloud -based software system including development of user interface (both internal and external), mobile capabilities, GIS integration, electronic review portal, and training. Moreover, this includes system configuration and integration with the Amanda system, including implementation of an off-site cloud based system, and built-in tracking functionality enabling users to clearly see stages and progress of both application and inspection results. Cost Scope Cost (in CAD) Phase 1 • $589,000 • Business process development • Departmental staff and customer workshops • Development of user interface software including: online application, engagement and consultation, payment, status updates, and issuance of permit Phase 2 • Development of inspections module • Mobile interface for inspections • Scan code development • $195,000 Phase 3 • Electronic archive development • Document management and search engines • Online document storage systems • $189,000 Phase 4 • $414,785 • System integration and internal staffing costs Phase 5 • Includes the following additional assumptions: — Financing costs • $125,000 — Equipment • $40,000 Contingency (10%) • $150,000 $1,720,8875 Software Management and Maintenance Costs The ongoing system management and maintenance costs for the City of Windsor cover data storage, troubleshooting assistance, and any future upgrades to the system. This consists of both a fixed and variable fee (based on the number of applications processed). The City of Windsor processes approximately 5,400 applications per year, with an annual fee of $9,000, and a variable fee of $40 per application processed. The software management and maintenance costs are estimates, and actual fees will vary depending upon the number of applications processed. On -Premise Deployment The cost estimates discussed in this section were derived from the City of Kingston's request for proposal process for an on -premise system deployment.41 Please note these costs are estimates to provide an 41City of Kingston Report to Council, June 2014. 55 © Deloitte LLP and affiliated entities. ICost-Benefit Analysis illustrative quote that is being offered in the market, and actual costs will vary depending on the City's defined scope and strategy for the implementation, as well as the system selected. The City of Kingston received quotes for deployment of an on -premises system from Accela, Computronix, and Calytera. The costs quoted from these vendors are as follows: $1,233,504 for Accela, $1,896,650 for Computronix, and $1,569,326 for the Calytera System. These quotes are based on the costs for software, hardware, training, along with support, and implementation services. As mentioned above, these are illustrative estimates, and actual costs will vary depending on the scope, solution, level of integration, and implementation strategy selected. The key features of the system quotes include enhancing user experience for both staff and residents through mobile capabilities, built-in tracking functions, document management, and automation of review tasks. Benefits This section describes the qualitative and quantitative (potential cost saving) benefits of implementing an e - permitting system for the City of Pickering, along with the cost savings experienced by municipalities across Ontario and Canada in implementing an e -permitting system. The high level qualitative benefits of implementing an e -permitting solution for the City includes: • Faster issuance of building permits • Increased tax revenue • Reduction in costs associated with paper storage • Increased workforce productivity as staff will be spending less time on clerical tasks, and • Improved communication channels between City Staff and applicants, as users will be able to view application status in real-time through active dashboards. Apart from the benefits discussed above, municipalities both in Ontario, and across Canada have experienced cost savings in multiple areas. According to Rescon and Ryerson University's report on "Modernizing Building Permits", municipalities have experienced the following cost savings as a result of implementing an e - permitting solution:42 • Reduction in manpower by 44% as staff are no longer needed to perform clerical data -entry duties • Reduction in printing costs associated with permit applications by 72%, and • Reduction of storage costs associated with storing permit documents and inspection blueprints by 65%. Along with the cost savings experienced by municipalities across Canada as discussed above, jurisdictions have also prevented delays in recognition of property tax revenue as a result of implementing an e - permitting system. According to the "Evaluation of Current Construction Permitting Process in City of Toronto and Future of Permitting in the Global Construction Industry" report, a one year delay in high-density buildings can result in millions of dollars delayed in tax revenue.43 For example, consider a high-density building with 250 units worth $400,000 each. A one year delay in building approvals at the City of Pickering based on the City's 2018 tax rate of (0.01153004), could potentially result in delayed recognition in tax revenue of $4,612 per unit, and approximately $1,153,005 for the entire building.44These figures are just estimates to highlight the impact of delays in the permitting process can have on property tax revenues. Actual recognition will vary depending on the number of units pending approval, market growth, and current delay in the permit process. 42 Modernizing Building Approvals in Ontario Report, Rescon Residential Construction and Ryerson University, 2017. 43 Shahi, Kamellia, Evaluation of Current Construction Permitting Process in City of Toronto and Future of Permitting in the Global Construction Industry, University of Toronto, Toronto, ON 2018. 44 City of Pickering, Property Taxes, Pickering, ON 2018. 56 © Deloitte LLP and affiliated entities. ICost-Benefit Analysis Potential Cost savinas As discussed above, this section provides an overview of the potential cost savings of implementing an e - permitting system at the City. The analysis includes reviewing areas of the City's expected outcomes (extracted from the Pickering Project description overview) such as implementing built-in tracking functionalities, reducing staff and paper resources, along with expediting faster issuance of building permits as discussed in the potential increase in revenue section on page 56. Based on meetings and information provided by City staff, along with the analysis conducted around permitting activities, the potential cost savings for the City can be realized in five areas: photocopying, scanning, public inquiries (status updates), clerical data entry, and inspection assignment. The goal of this analysis was to identify areas where the e -permitting system can reduce and/or eliminate the time spent by City staff on clerical duties, thus leading staff to spend more time on specialist tasks. Additionally, apart from the cost savings identified in the permitting activity analysis below, the team discovered that costs associated with photocopying of $6,500 (discussed on page 46, and costs associated with scanning documents of $40,000 annually can be reduced significantly, as the City will no longer need staff to scan the permitting documents in the future. Additional cost savings could be realized through automation of other permitting functions that municipalities across Ontario have experienced, including: 1. Public Inquiries (Status Updates) — This activity includes the time spent by Clerks, Zoning Examiner, and Supervisor at the Building Permits department, along with the Supervisor at the Building Inspections department in answering public queries such as status updates. 2. Input into System (Clerical Data Entry) — This activity includes the time spent by the Building Services Clerks in inputting application information into the system. 3. Assign Examiner (Inspection assignment) — This activity looks at the time spent by the Zoning Examiner in assigning inspections to inspectors. The estimated cost savings identified per permitting activity are outlined in figure 5 below. The actual savings will vary depending on level of public inquiries, employee salary metrics, and the actual time spent on each activity, which vary depending on permit type. 57 © Deloitte LLP and affiliated entities. ICost-Benefit Analysis Figure 5: Permit Activity Analysis Cost savings Summary: The information in the chart below shows the staff time spent on each permit type activity, and it was obtained from the Pickering 2017 process maps workbook which was provided by the Building Permitting team. he Pickering 2017 process map workbook shows the time spent by staff in performing key permitting activities for each permit type category. Given the sensitivity of sharing salary information, a conservative estimate of $30/hr has been used to quantify the staff's effort involved in each permit type. Based on those assumptions, the estimated cost savings are outlined below: Annual Cost savings per Permit Type Activity Permit Type Category Public Inquiries (Status Updates) System Input Assign Examiner (Clerical Data -Entry) (Inspection Assignment) Assembly (Finished) City Initiated - Assembly Institutional (Finished) City Initiated Projects - Institutional Residential (apartment) Residential (other) Residential (stacked townhouses) Residential Minor Structures Residential Alteration Business Personal Service Industrial (Finished) Minor Non -Residential Structures Non -Residential Alterations Authority to Occupy Conditional Permit Demolition Permit Change of Use Permit Signs 95 30 5 95 30 5 75 30 5 75 30 5 75 30 5 85 20 5 85 20 5 95 15 5 35 10 5 60 30 20 75 30 10 55 0 0 35 10 5 65 15 5 35 15 0 15 10 0 140 15 5 0 25 25 Total activity (minutes) per month 1195 365 115 Total activity (minutes) annually 14340 4380 1380 Total savings at $30/hr $7,170 $2,190 $690 The City is expected to save the costs outlined in figure 5 as a result of automating key activities in the permitting process. The built-in tracking functionality may gradually reduce the amount of status inquiries from in-person City visits and phone inquiries, as the residents of Pickering can view the status of their applications in real-time. Additionally, the clerical staff may no longer need to input applicant information in the system as applicants can submit their applications online, thus eliminating the amount of clerical data 58 © Deloitte LLP and affiliated entities. ICost-Benefit Analysis entry. Similarly, the zoning examiner may no longer need to spend time in assigning inspections, as the system could automatically assign and route inspections requested by applicants to inspectors. The City should initiate a business case to uncover further cost savings in permitting activities in order to quantity more accurate cost savings of implementing an e -permitting solution. rotal Cost savings Given the data points and assumptions described on pages 53-54 the potential cost savings for the City would be $56,550 per year based on the cost saving areas of photocopying, scanning, public inquiries (status updates), clerical data entry, and inspection assignment. These figures are estimates regarding the level of permit activity and resources in terms of time and effort the City may expect to save as a result of automating key permitting tasks. Figure 6 below provides an overview of the potential cost savings that the City could experience as a result of implementing an e -permitting system. Figure 6: Annual Cost savings Summary: The table below describes illustrative cost savings areas such as photocopying, scanning, public inquiries (status updates), clerical data entry, and inspection assignment. Overall, the costs, benefits, and potential cost savings discussed above are estimates of the level of cost savings the City could experience as a result of implementing an e -permitting system. These are based on the effort levels found in Figure 5 as well as based on information received from the City defining total time spent on the activities described below. 45000 40000 35000 u) a+ • 30000 ea to • 25000 c c ra To 20000 0 r c c 15000 a 10000 5000 0 Annual Cost savings 1 Photocopying Scanning Public Inquiries Clerical Data- Inspection (Status Updates) Entry Assigning Legend ■ Photocopying ■ Scanning Public Inquiries •Clerical Data -Entry ■Inspection Assigning (Status Updates) 59 © Deloitte LLP and affiliated entities. ICost-Benefit Analysis Potential Revenue Increase This section discusses the potential increase in building permit revenue based on estimates provided by leading e -permitting solution providers. Industry leaders in building permitting systems have estimated that on average municipalities that implement e -permitting systems can expedite the issuance of permits by 30-90%. Not only does this lead to faster issuance of building permits as a result of automating key permitting tasks, but it also increases building permitting revenue. As the City's current building permit revenue for fiscal 2018 is $2,150,000, based on the August BP Activity report, a conservative assumption of 60% has been used as a best case scenario in order to conduct a sensitivity analysis.45 The midrange estimate of 60% is based on the average percentage quoted by various industry leaders (high-level 90% and low-end 30%). The team has conducted a sensitivity analysis based on a low-level of 30%, mid-level of 45%, and a high-level of 60% to derive projected revenue increases of $645,000, $967,500 and $1,290,000 respectively. Note that these assumptions are just estimates, and actual increase in revenue will vary depending on permit type, volume, and permitting fee structure. Figure 7: Permit Revenue Sensitivity Analysis Summary: The figure below depicts a sensitivity analysis regarding the potential increase in revenue as a result of implementing an e -permitting system. Both the projected annual increase, along with the total cumulative revenue (assumption based on projected annual increase and 2018 figure of $2,150,000) is illustrated below. Permit Revenue Sensitivity Analysis Ranges 30% 45% 60% (Low- Level) (Mid -Level) (High -Level) Projected annual increase in $645,000 $967,500 $1,290,000 revenue Cumulative Revenue46 $2,795,000 $3,117,500 $3,440,000 The potential cost savings of $56,550 and projected revenue increases of a minimum of $645,000 discussed above are just estimates of the quantitative benefits the City could experience as a result of implementing an e -permitting system. The City should consider initiating a formal business case to further quantify and accurately calculate the expected cost savings of implementing an e -permitting solution. 45 Information derived from August BP Activity report - provided by City staff. 46 Cumulative revenue calculation: 2018 revenue of $2,150,000 + projected annual increase in revenue per sensitivity level. 60 © Deloitte LLP and affiliated entities. Opportunity Areas Opportunity areas Following the discussion in the preceding section, the three system specific cost savings categories identified are: system automation, built-in tracking function, and inspections. Within each category the research has derived an opportunity area that the City can leverage as a result of implementing the e -permitting solution. System Automation Minimize Clerical Data Entry Automate the permitting process and reduce the time spent by staff in performing clerical data entry tasks. Eliminate Paper Storagel Leverage the benefits of the automated system by eliminating costs associated with paper storage. Electronic Pa ment Process Ability of system to configure the payment processing application both at the time of application and at the time of permit pick up. Built-in Tracking Function Real-time tracking of application Enhance service delivery though built-in dashboards in order to provide status updates in real-time Cross -Functional Communication Establish communication between departmental information systems. This will achieve increased accuracy in cross - functional decision making. Inspections Inspection - GIS Maps Mandate a system providing real-time data access to inspectors through GIS Maps, enabling inspections to be requested, assigned, and routed automatically. obile Access , Provide inspectors with greater flexibility in reviewing site data in real-time through mobile access. The existing and potential cost savings in these three areas are based on RESCON and the University of Ryerson data, along with the City's input regarding costing metrics. The team has reviewed each opportunity area, while identifying potential risks, benefits, and cost savings to the City in the following diagrams below. 61 © Deloitte LLP and affiliated entities. (Opportunity Areas System Automation Potential Opportunity Description Next Step:. Potential Savings Minimize time & costs associated with issuing building permits Opportunity • To automate the building permit application process through implementing a 24/7 self - serve electronic permitting system while eliminating the need to store paper. Current Operations • Applications are submitted in person during the City Halls hours of operation (Monday - Friday from 8:30 am - 4:30 pm). • Residents pay for fees in person as there is no online payment processing system set-up. Benefits • Staff can focus on specialist tasks as the automation of the permitting process will eliminate the time spent by clerical staff data - entering applicant information. • Provides residents with the flexibility to submit applications at their convenience 24/7. • Reduction in paper storage costs. • Identify average time spent by City staff in entering application data and processing payments. • Determine current costs associated with storing blue -prints and applications for permits. • Research platforms that can auto - calculate fee payments, and configure the payment processing application both at the time of application submission (collect initial fees) and at the time of permit pick up (collect final payment). • The City will no longer need to hire additional staff to scan documents which will result in cost savings of $40,000 per year. • Eliminate photocopying costs of $6,500 per year, as applications will be stored on e -portal. • The cost savings realized from clerical staff not manually entering applicant information is $2,190 per year (as mentioned on page 54). Risks/Pitfalls • Server down-time or inability to process payments will impact citizen satisfaction. • Citizens may find the system not user-friendly if resources/instructions are not clear. • Staff may be susceptible or resistant to change as they are used to doing tasks in a certain way. Change management will be key in order to have a successful implementation. 62 © Deloitte LLP and affiliated entities. (Opportunity Areas Built -In Tracking Function Potential Opportunity flperrintinn NPxt ctPr Pr1 ntial cauinna Reduce costs associated with communicating permit status and improve cross -functional communication channels Opportunity • Built-in tracking function enabling applicants to see the status of their applications at any time through dashboards, without the need to attend the City's office during business hours. Current Operations • Residents can request for status updates by either calling in or visiting the City during business hours. • City Staff follows up by phone regarding any missing documents. Benefit • Reduces the time spent by staff members communicating status or following up with applicants as currently various level of staff spend 14,340 minutes in answering public inquiries. • Improved communication between departments as the status of applications is viewed in real-time through dashboards. • Identify average time spent by the City staff in communicating status updates. Determine cost savings of staff time saved in communicating status. • The potential cost savings from staff time spent in addressing public inquiries/status updates via phone or in-person City visits is $7,170 (as mentioned on page 54). Risks/Pitfalls • Residents may still call or visit the City for more information if they through the dashboards. are not satisfied with the information provided 63 © Deloitte LLP and affiliated entities. (Opportunity Areas Inspections Potential Opportunity Description Next Steps Potential Savings Improve efficiency in the inspection scheduling process Opportunity • System that provides real-time data access to inspectors through GIS Maps, enabling inspections to be requested, assigned, and routed automatically through mobile access. Current Operations • Inspections are currently booked either by phone or online by filling out an "Inspection Request Form." • There is currently one staff member allocated to scheduling and assigning inspections. • Inspectors run task lists, conduct inspections, and dial in through Citrix Amanda to physically make a change through VPN. Benefit • Eliminate errors and time spent by scheduler coordinating inspections. • Greater efficiency as inspectors can make changes in real-time from the field through mobile access. • Investigate the current time spent in scheduling, and rectifying errors by City staff. • Quantify the cost savings of automating the scheduling process. • Scheduler will no longer need to communicate with residents in order to book inspections, as system will automatically assign and route inspections. • Potential savings of $690 annually if the system auto -assigns inspections to inspectors (as mentioned on page 54). (Due to the limited amount of information available for the inspections process, further investigation is needed to accurately quantify the cost savings.) Risks/Pitfalls • May require supplementary plan in case of service downtime/unavailability. 64 © Deloitte LLP and affiliated entities. ITechnology Options Technology options The research conducted evaluated six potential providers such as Accela, Avolve, BasicGov, Computronix, and Evolta, along with the new edition of Calytera's Amanda System for comparability purposes. In selecting the providers, this study has taken into account companies that were not only industry leaders in automating the permitting application process, but also those that have excelled in reducing operating costs, and enhancing departmental efficiencies in the permitting process. All of the companies selected, except for BasicGov, are internationally -based, therefore having existing establishments or pilot projects in a Ontario or licensing services in a Canadian jurisdiction, was fundamental in ensuring these companies could adhere to the Ontario Building Code Requirements. Other considerations to selecting the providers were: industry reviews through Capterra and Medium, system compatibility with the City's existing ERP system, and the provider's industry success in expediting the permitting process through reviews from multiple municipalities. The following chart provides a high level overview of how each solution meets the City's expected business outcomes. Expected Business Outcomes a'�la a Va... e- f awitEccpv aMNnrr CA LYTE RA 0 COMPUTRONIX' 24/7 application Submission ✓ ✓ ✓ ✓ Built-in tracking Function ✓ ✓ ✓ ✓ Reduction in resource expenditures ✓ ✓ ✓ ✓ Interface with SAP to enable online payments ✓ ✓ Data Analytics - Reports Faster Issuance of Building Permits Automatically reconcile and x x x x track payments Legend: Meet the Expected Outcome Fail to Meet the Expected Outcome 65 © Deloitte LLP and affiliated entities. Functional Requirements Functional Requirements The following section discusses the functional requirements that a building permit application system should meet in order to achieve the City's mandate for each relevant category identified earlier in the report. Electronic Application Submission The chart below for electronic application submission outlines the key functional requirements of an e -permitting tool.cu •a cu J Confirmed Needs further investigation Not core functionality Functional Requirement Ability of system to support electronic portal in which building permit applicants can submit applications in a user- friendly manner 24/7. Ability of system to allow users to submit and review multiple applications for a single personal or business account. Ability of system to print and automatically generate permit and send to applicants. 66 Accela Avolve BasicGov Computronix Calytera Evolta Yes, user-friendly citizen portal through the Accela Civic Platform. Yes, user friendly Yes, user-friendly applicant citizen portal submission through through COTS OAS. software solution. Yes, user-friendly citizen portal through POSSE software solution. Yes, user-friendly citizen portal through POSSE software solution. Yes, user-friendly applicant submission through Lupapiste. Yes, users can submit and review past submission of applications. Yes, users can submit and review past submission of applications. Yes, users can submit and review past submission of applications. Yes, permit is automatically generated and sent to applicants. Yes, system can be configured to allow approved plans to be printed. Yes, option to configure system to notify applicants of updates. Yes, users can submit and review past submission of applications. Yes, users can submit and review past submission of applications. Does not appear to be core functionality, City will have to follow up with vendor to clarify. Not core functionality. Yes, users can submit and review past submission of applications. Yes, system can be configured to allow approved plans to be printed. © Deloitte LLP and affiliated entities. 1Non-Functional Requirements System Functionality and Built -In Trackina Functior' The chart below outlines the essential system functionalities and built-in tracking function to enable residents to review the status of their application in real-time. These functionalities enhance staff productivity in the review process, along with improve citizen services, as residents can update documents and review results. w of w J Confirmed Needs further investigation Not core functionality Functional Requirement Ability of system to auto -detect errors in application submission thereby reducing the lead time of staff reviewing applications. Ability of system to request additional information from builders and deliver pass/fail results via e- mail, or mail. Ability of system to support applicants and process status checking in real-time through dashboards, thereby reducing the time spent visiting/calling City offices. Accela Avolve BasicGov Computronix Calytera Evolta Yes, automatic notifications are sent to applicants informing them of missing content which can be submitted online. Yes, City can configure application requirements to prevent users from submitting incorrect information. Yes, incomplete applications will not be processed. Yes, City can configure application requirements to prevent users from submitting incorrect information. Yes, City can configure business rules to ensure the application is complete and valid from submitting incorrect information. Yes, automatic notifications are sent to applicants informing them of missing content which can be submitted online. Yes, system requests and delivers pass/fail results via phone, email or mail. Yes, applicants can monitor review status and upload additional information. Yes, option to configure system to notify applicants of updates. Yes, option to configure system to notify applicants of updates. Yes, option to configure system to notify applicants of updates. Yes, applicants can monitor review status and upload additional information. Yes, applicants are informed of status in real-time through the Civic Platform dashboard and can respond to corrections and upload revisions. Yes, applicants are informed of status through OAS dashboard in real- time and can respond to corrections and upload revisions. Yes, the portal can be configured to notify applicants of status through the COTS software solution. Yes, customer self- service portal can be configured based on City's needs to deliver status updates. Yes, customer self- service portal can be configured based on City's needs to deliver status updates. Yes, applicants are informed of application status through Lupapiste in real-time. 67 © Deloitte LLP and affiliated entities. 1Non-Functional Requirements Review & Document Management. The chart below depicts the functional requirements involved in order to enhance the City's review process with automatic routing of workflows between departments, along with 100% electronic review, resulting in a reduction of paper, storage, and stationary costs. w w J Confirmed Needs further investigation Not core functionality Functional Requirement Ability of system to route documents to the appropriate division using workflow such as examination staff or zoning review. Ability for multiple reviewers to review plans electronically, mark-up documents, and approve sections of plans simultaneously. Ability of system to support document management and document workflow capabilities, reducing the consumption of paper, supplies, and staff resources. Accela Avolve BasicGov Computronix Calytera Evolta Yes, system can be configured to route workflow to appropriate departments. Yes, system can be configured to route workflow to appropriate departments. Yes, system can be configured to route workflow to appropriate departments. Yes, automatic routing of license applications to all required departments. Yes, multiple reviewers can share, mark-up, comment, and approve plans at the same time. Yes, multiple reviewers can share, mark-up, comment and approve plans at the same time. Yes, reviewers can review plans online and approve plans at the same time. Yes, multiple reviewers can share, mark-up and comment approve plans at the same time. Yes, system supports document management and workflow capabilities. Yes, system supports document management and workflow capabilities. Yes, system supports document management and workflow capabilities. Yes, system supports document management and workflow capabilities. Yes, automatic routing of license applications to all required departments. Not core functionality, only some improvements with documents can be made. Yes, system supports document management and workflow capabilities. Yes, system can be configured to route workflow to appropriate departments. Yes, reviewers can review plans online and approve plans at the same time. Yes, system supports document management and workflow capabilities. 68 © Deloitte LLP and affiliated entities. 1Non-Functional Requirements Payment- Processir The chart below depicts functional requirements associated with the current deviations in the payment processing system including automatic fee calculation, along with the systems ability to configure the timing of fee payments. Confirmed Needs further investigation Not core functionality Functional Requirement Ability of system to auto - calculate fees applicable to applicants. Ability of system to support POS systems, enabling applicants to pay online. Ability of system to configure the payment processing application both at the time of application and at the time of permit pick up. Accela Avolve BasicGov Computronix Calytera Evolta Yes, permit fees are auto -calculated and applicants can pay fees online. Yes, permit fees are auto -calculated and applicants can pay fees online. Yes, permit fees are auto -calculated and applicants can pay fees online. Yes, permit fees are auto -calculated and applicants can pay fees online. Yes, permit fees are auto -calculated and applicants can pay fees online. Yes, permit fees are auto -calculated and applicants can pay fees online. Yes, supports POS system, and applicants can pay fees online. Yes, supports POS system, and applicants can pay fees online. Yes, supports POS system, and applicants can pay fees online. Yes system can be configured to take initial deposit and final fee payment. Yes, system can be configured to take initial deposit and final fee payment. Yes system can be configured to take initial deposit and final fee payment. Yes, supports POS system, and applicants can pay fees online. Yes, system can be configured to change timing of fee structures, but City will have to follow-up with vendor to see if timing can be changed between different intervals. Yes, supports POS system, and applicants can pay fees online. Not core functionality. Yes, supports POS system, and applicants can pay fees online. Yes system can be configured to take initial deposit and final fee payment. 69 © Deloitte LLP and affiliated entities. Yes, open interface that connects with all enterprise applications. Follow up is required to ensure SAP configuration. Yes, integrates with SAP accounting system. Yes, integrates with SAP accounting system. Not core functionality but system integrates with third -party reconciliation systems. Not core functionality. Not core functionality but system integrates with third -party reconciliation systems. 1Non-Functional Requirements Payment Processina and Financial System The chart below looks into the functional requirements of the payment processing tool to provide notifications to clients regarding existing payments, along with the systems ability to integrate with SAP, and provide daily reconciliation summaries. a) a) J Confirmed Needs further investigation Not core functionality Functional Requirement Ability of system to integrate with the payment processing system in order to send automatic notifications to applicants regarding outstanding payments. Ability of system to provide seamless interface with the City's SAP ERP accounting system to send journal entries to GL. Ability of system to provide daily reconciliation summaries tracking all payments, including overcharges. Yes, system can be configured to notify applicants of outstanding payments. Accela Avolve BasicGov Computronix Calytera Evolta Yes, website states system integrates with all ERP systems. Follow-up will be required to ensure SAP integration. Yes, CivicPay reconciles accounts in real-time. Yes, system can be configured to notify applicants of outstanding payments. Yes, system can be configured to notify applicants of outstanding payments. Yes system can be integrated, but will have to follow up with vendor whether e-mail notifications can be sent to notify outstanding payments. System can be configured to send notifications to users. City will need to follow-up to ensure payment notifications can be sent. Yes, system can be configured to notify applicants of outstanding payments. Yes, integrates with SAP accounting system to enable online fee payments. Not core functionality but system integrates with third -party reconciliation systems. Yes, website and Gartner states integrates with payment processing services. Follow-up is required to ensure SAP configuration. Yes, Payment Cart and Fund Accounting modules can track daily payments and delivers accurate reconciliation information. 70 © Deloitte LLP and affiliated entities. 1Non-Functional Requirements Inspections The chart below depicts the functional requirements necessary to enable the inspections department to be more efficient, thus reducing errors in the scheduling process through system automation initiated by applicants. w on w J Confirmed Needs further investigation Not core functionality Functional Requirement Accela Ability of system to allow applicants to request inspections online, thus mandating the system to assign, route, and schedule inspections automatically. Ability of system to allow inspectors to access field inspection data in real-time and connect with GIS-ESRI. Ability of system to provide mobile -based applications in order to ensure inspectors can review the checklist and update data in real-time, regardless of geographic location. Avolve BasicGov Computronix Calytera Evolta Yes, inspections are requested online and scheduled, assigned, and routed automatically. Yes, inspections are requested online and scheduled, assigned, and routed automatically. Yes, inspections are requested online and scheduled, assigned, and routed automatically. Yes, inspections are requested online and scheduled, assigned, and routed automatically. Yes, applicants can request inspections via the E -plan portal or by phone. Yes, inspections are requested online and scheduled, assigned, and routed automatically. Yes, GIS capabilities produce interactive maps and data visualizations. Yes, plans anywhere allows staff to have field access through geo-location. Yes, partnered with two-way GIS sync solution. Yes, integration with GIS maps to track and compare data onto a visual map. Yes, the system provides embedded GIS for inspector to access data in real- time and connect with GIS maps. Yes, GIS integration is available. Yes, mobile -based Yes, mobile -based Yes, mobile -based Yes, mobile -based Yes, mobile -based Yes, configures with app available. app available. app available. app available. app available. mobile interface. 71 © Deloitte LLP and affiliated entities. Yes, system integrates with API connections. Not out of the box but vendor offers option to develop custom solution. 1Non-Functional Requirements Data Analvtics and System Intearation The chart below depicts the high level functional requirements of whether the potential solutions can generate performance reports through data visualization tools, along with the systems ability to integrate with key operating systems at the City. c J Confirmed Needs further investigation Not core functionality Functional Requirement Accela Ability of system to produce performance reports through data visualization tools in order to enhance the services delivered by management to residents. Ability of system to integrate with existing Amanda platform (Parthos Technology). Ability of system to support document record retention and integrate with the City's current retention system Laserfiche. Avolve BasicGov Computronix Calytera Evolta Yes, reporting and dashboard functionality allows users to derive insightful reports. Yes, analytical reports available to derive insightful reports. Yes, reporting and dashboard functionality allows users to derive insightful reports. Yes, browser -based business intelligence tool allows users to derive insightful reports. Yes, Amanda analytics creates reports that allows users to derive insightful reports. Yes, reporting database is provided for custom/ad-hoc reports. Yes, system integrates with API connections. Yes, system integrates with API connections. Yes, system integrates with API connections Yes, Accela is a Yes, Avolve is a Yes, Salesforce Laserfiche partner. Laserfiche partner. integrates with Laserfiche. Yes, system integrates with API connections. No, specific mention of integration with Laserfiche, therefore City will need to follow up as Posse claims to integrate with all platforms via API. The City is in the process of integrating with Parthos. Yes, integrates with Laserfiche. 72 © Deloitte LLP and affiliated entities. 1Non-Functional Requirements Non -Functional Requirements The following section discusses the non-functional requirements that a building permit application system should meet in order to achieve the City's mandate for each relevant category identified earlier in the report. Compliance The diagram below looks into whether the system has the ability to comply and adopt to new legislative changes associated with the Ontario Building Code requirements. Confirmed Needs further investigation Not core functionality Non -Functional Requirement Ability of system to adhere to Ontario Building Code requirements. Ability of system to be flexible and easily adapt to legislative changes in building code requirements. Accela Avolve BasicGov Computronix Calytera Evolta Yes, system aligns to building code jurisdiction. Yes, system aligns to building code jurisdiction. Yes, system aligns to building code jurisdiction. Yes, system aligns to building code jurisdiction. Yes, system aligns to building code jurisdiction. Yes, system aligns to building code jurisdiction. Yes, system is flexible and can be configured to new rules at any time. Yes, system is flexible and can be configured to new rules at any time. Yes, system is flexible and can be configured to new rules at any time. Yes, system is flexible and can be configured to new rules at any time. Yes, system is flexible and can be configured to new rules at any time. Yes, system is flexible and can be configured to new rules at any time. 73 © Deloitte LLP and affiliated entities. 1Non-Functional Requirements IT Security & Sunnor* The diagram below depicts the systems ability to offer cloud and on -premises deployment of the system including details on data hosting solutions, along with the provider's security practices in terms of recovery plans. Confirmed Needs further investigation Not core functionality Non -Functional Requirement Ability of system to offer cloud/ on -premise deployment. Details on cloud hosting solutions and associated data center locations. Details on recovery plans in order to protect information in the event of natural disasters or site -wide outages. Accela Avolve BasicGov Computronix Calytera Evolta Yes, both cloud and Yes, both cloud and Cloud Only. on -premise on -premise deployment. deployment. Microsoft Azure and data center location in Canada. Microsoft Azure and data center location in Canada with option to implement additional encryption depending on City needs. Salesforce and data center location in Canada. On -premise deployment. Not applicable. Yes, both cloud, and Yes, both cloud and on -premise on -premise deployment. deployment. AWS and data center location in Canada. Google cloud platform (GCP) and data center location is in Canada. Data is stored securely via synchronized disaster recovery sites in multiple remote locations. Data is backed up and accessible on own private network segment. Data is stored in two separate locations, transactions are replicating in real- time to other location for data recovery. Data is backed up to various host servers to support disaster recovery solutions. Yes, data is backed up to secondary database server. Databases are backed up to a secondary database server in real-time to ensure recoverability. 74 © Deloitte LLP and affiliated entities. 1Non-Functional Requirements Other F .,n,'+inri=liti The diagram below depicts the other areas of research that the advisory team conducted research on which will enable the City's permitting process to be more efficient. Confirmed Needs further investigation Not core functionality Non -Functional Requirement The options available for City staff to communicate with applicants (instant e- mail notifications, messaging or phone). Ability of system to allow review staff to electronically markup documents. Ability of system to provide users with support through help guides, videos, and tutorials. Other reporting functionalities or reports generated by system. Accela Avolve BasicGov Computronix Calytera Evolta Yes, system can be configured to notify applicants of tasks outstanding through dashboard, phone, and e-mail notifications. Yes, system can be configured to notify applicants of tasks outstanding through dashboard, phone, and e-mail notifications. Yes, system can be configured to notify applicants of tasks outstanding through dashboard, phone, and e-mail notifications. Yes, e-mail notifications sent based on specific triggers. Dashboard available for applicants to see status. Yes, mark up plans and insert comments using text, images, shapes or sketching. Yes, markup plans and insert comments using text, images, shapes or sketching. Yes, digital remarks are available. Yes, mark up plans and insert comments using text, images, shapes or sketching. Yes, support guides are available for users. Yes, a combination of videos and support guides available. Yes, support guides are available for users. Yes, support guides are available for users. Yes, new notification tool alerts users based on custom rules. City will have to follow up with Calytera based on the level of customization. Not core functionality. Yes, support guides are available for users. Yes, system can be configured to notify applicants of tasks outstanding through dashboard, phone, and e-mail notifications. Yes, digital remarks are available. Yes, support guides are available for users. Highly flexible and can produce multiple reports. City will have to follow up with specific report adherence. Highly flexible and can produce multiple reports. City will have to follow up with specific report adherence. Highly flexible and can produce multiple reports. City will have to follow up with specific report adherence. Highly flexible and can produce multiple reports. City will have to follow up with specific report adherence. MPAC and Statistics Canada reports available. MPAC, Tarion and Statistics Canada reports available. 75 © Deloitte LLP and affiliated entities. 1Non-Functional Requirements Core Cancer. - The following diagram discusses core concerns derived from costumer reviews of their permitting solution and findings from the research conducted. Confirmed Needs further investigation Not core functionality Non -Functional Requirement Core concerns derived from customer reviews and our research. Accela Avolve City of Seattle experienced problems with the rollout of the system, as immediately after the system went live, the system could not handle a large number of applications, resulting in system crashes and glitches. Instead of automating tasks, staff were forced to leave their ordinary duties and assist applicants with their problems, resulting in more applicants visiting the City. 47 According to Capterra, users have found the software not to be user-friendly and not conducive for effective communication. A product demonstration will be needed to evaluate the user- friendly nature of the portal. BasicGov No Canadian municipality has implemented this solution, however Province of Manitoba will be adopting the salesforce platform (Deal negotiated 2019/09/16). Computronix Calytera Evolta High price is one of the drawbacks of the solution which can be expensive for municipalities. According to Capterra, users have had problems with the stability of the platform including system crashes, and have found the provider to be slow in responding to inquiries when the system is down. No customer testimonies or accolades/ success rate mentioned outside of Finland. 47 The Seattle Times, Rocky Launch of Seattle's new construction -permit system causes delays, August 2019. 76 © Deloitte LLP and affiliated entities. Technology options Provider portfolio The sources for the technology options research include: Gartner report "Market Guide for U.S. Community Development and Regulation Applications", the providers' official websites, solution brochures provided by the providers, and customer reviews available on the web. Accela is a cloud -based software solution which automates all aspects of the building permit process. This solution moves the building permit process online, thus removing paper, manual steps, and errors, while dramatically cutting the time and cost of permit processing. Highlights • Accela is headquartered in California and was founded in 1999. • Accela provides market -leading SaaS solutions that empower state and local governments to build thriving communities, grow businesses, and protect citizens. • Accela specializes in land management, licensing, emerging regulations (such as cannabis regulation), asset management, code enforcement, and citizen relationship management. • Industries: Supports a number of industries on an international level. • https://www.accela.com/ Accela Core Strengths • According to a testimony from the Chief Building Official from the City of Texas, the Accela solution was "...able to reduce turnaround times for residential permits from approximately 3 weeks to 3 days, and for commercial permits, from two months to 5-10 days." • GIS integration provides intuitive visualizations to access land parcel permit history, view code and zoning details, and map as well as route inspections efficiently. • According to Accela, agencies become "greener" due to less consumption of paper and reduce the public funds needed to process permits. Figure 8: Accela Application Portal Summary: The image below illustrates the user interface of the portal for submitting applications, scheduling payments, and submitting additional information. Ycw government - anywhere. anytime - name [iiJiutnq Punkas Pia/miry limns/AN RequEsL r:. new 1 SeaI I. • E~annalr ;Sate Plan - I-lnjl REEIM :f tW ! :f.IfflEirle llirl,tffNfi.N1) Demi& are Lar4 kar [Email IninrmaFlory iT!loct Ram 78 o.did Nrre n.,..gormr Si . n4nti r mcwwri © Deloitte LLP and affiliated entities. A vnlvn Tnrhnnlnnir Avolve is a secure on -premises and cloud -based software vendor dedicated exclusively to electronic building plan review. Avolve provides the option to customize the electronic review process in accordance with municipal requirements. Avolve offers efficient and user-friendly services to stakeholders resulting in faster building permit issuance. Highlights • Avolve Software is headquartered in Scottsdale, AZ and provides services across 150 Cities in North America. • Avolve has provided building plan review services since 2008, and has emerged as an industry leader in defining the building permit licensing process. • Industries: Supports a number of industries including government and municipalities on an international level. • https://www.avolvesoftware.com/ Core Strengths • According to the Fiatech assessment, jurisdictions using a -Plan technology approval times between 30-40% on average. • According to customer testimonies, ROI has been 80% as a result of reduced review times. • Avolve is well known for its ability to integrate with SAP. • Service is available 24/7, allowing applicants to receive status updates in real time. okie 5oftvvare have reduced plan review and ExrrlitiNewesd Aa runes plan a nywhe II!IwInr. C'J',ri irrni Hr. -man' is inn (Dnin7 Appowal it niinp ert rwnerR St10LILL'iHN1 LhwtF 4n rater 79 Project Rni urtYLg © Deloitte LLP and affiliated entities. BasicGov BasicGov's provides a cloud -based SaaS solution for building permits that can automate and streamline operations to cut costs, meet the ever changing demand for citizen services, and evolve into a more open, transparent, and collaborative organization. fr BasicGov Highlights • BasicGov was founded in 1985 and is headquartered in Vancouver, Canada. • The BasicGov COTS software solution provides multiple modules, including Permitting, Inspections, Code Enforcement, Licensing, Planning, Esri GIS Map Viewer & Sync, Fund Accounting, Payment Cart, and Citizen Portal for applications and payments. • Industries: Supports a number of government agencies across North America. • https://www.basicgov.com/ Core Strengths • Solutions are secure to the highest government standards and monitored 24/7 for any breach attempts. • BasicGov automates key tasks for planners, reviewers, inspectors as well as stakeholders involved in a project. • BasicGov uses the Salesforce Platform to enable cost-efficient delivery of services by allowing municipalities to improve the speed and efficiency of the inspection and permitting process. Figure 9: BasicGov Application Portal Summary: The image below illustrates the user interface portal for submitting applications, through the BasicGov System. BasicGov wnunbaagaovw+n r..{ 11 TIM •. f I.#.M1T+ fl I.rr eazi Gov �Ihr l��4r, rtnl ,I low skrl._ • • 11 vI r 121 giu.LuhAJ +�-ntl Ml xti,u, ▪ g.▪ .fYQr in,A1621. = r] 81.RTSrre pr.EM, ual,� al 11.41�l,.., , y-- - r �•. 4..• •-I N.+.v, k I- rosi-q ,F.. Ru F.I r -r+-. :J CMOS IZZECI2 ▪ r.. J rI':Y:fi IYLISYI J rR'r2' Iiera mi ▪ FA !» IIYYI I I 1,:MSSi Ii.YilLI I5Yi 5-- imam! .-50.•OUT! 80 © Deloitte LLP and affiliated entities. Calvter Calytera provides automation software to government agencies, providing a mobile and web user experience, along with delivery support. Calytera offers the Amanda E -Plan review system which is a comprehensive case management and flexible process automation platform that can be configured as private cloud, SaaS or on -premises. Highlights • Calytera is headquartered in Austin, Texas and provides services across more than 350 Cities across North America. • The e -permitting solution allows municipalities to log, route, manage and report on all requests, improving responsiveness and security while ensuring compliance with regulations and reporting. • Industries: Supports a number of government municipalities across North America. • https://www.calytera.com t 1711!1; C A L Y T E RA Core Strengths • Compared to the City of Pickering's current edition, the latest — I• . edition of Amanda, allows users to submit applications online and configure the payment process to auto -calculate permit fees. • The latest edition of the Amanda system provides embedded GIS, for inspector to access data in real- time and connect with GIS maps. • The new system includes advanced analytics to allow users to see information in real-time. • z. -- Figure 10: Calytera Application Portal Summary: The image below illustrates the user interface portal for submitting applications, through the Calytera system. 2 riles! tllRwuU,l Fleaav 111.111: 3 4 5 81 © Deloitte LLP and affiliated entities. -Imnutroniy Computronix is a software development company, providing the Public One Stop Service (POSSE) line -of -business process automation solutions for government organizations in North America. POSSE specializes in providing licensing, permitting, inspection, code enforcement, and a wide variety of other process automation solutions. COMPUTRONIX• Highlights • Computronix is headquartered in Lakewood, Colorado and has been recognized consistently by Urban and Regional Information System Association (URISA) for exemplary systems in Government. • POSSE software has also been inducted into the Smithsonian Institution's collection of innovative software. • The system can integrate to multiple ERP platforms. • Industries: Supports a number of government municipalities on an international level. • https://www.computronix.com/ Core Strengths • According to the City of Edmonton, the implementation of the POSSE software has resulted in greater efficiency and cost savings such as: — Time to issue permits was reduced from days or weeks to minutes or hours. — Number of wasted inspections reduced from 31% to 3%. — Reducing the number of inspectors needed by 50%. • Adaptable system allows new workflows to be easily configured as the system is highly flexible and can adapt to changes in rules at any time. Esn-Omin your Meru% Wnws, 01 100 or ;Ji li Select trrrle plods and watt Mif data dprram olt, upda! e Figure 11: Computronix Application Portal Summary: The image below illustrates the user interface portal for deriving plans and performance reports. mai amnim 82 ACdO'r• 96Y#rC hr:171 tr rrn •e • • • 14rµn1 4 cuLula r Lanni. HR. halms.. DEP Oar 07E' f.a r.lw.i: C r.ln;a L��nr L I+N rxtrar rn; rim rrm onkho reared rra(. TN 7r.{.1 41.3"F ,3eI Jwnpl.No kr? T}p4 t'Ir..1 rvwJrr In ck.y • 4110 © Deloitte LLP and affiliated entities. Evolta Evolta is a globally oriented company focusing solely on the digitalization of building permits. The fully integrated on -premises, and cloud based solution is highly innovative, which allows government agencies to become more efficient, accessible, and responsive to the needs of the public. Highlights • Evolta is headquartered in Finland and currently serves 60% of the municipalities in Finland. • The system is able to integrate with SAP and payment system associated with SAP. • Industries: Supports a number of government municipalities on an international level. — Currently branching out to Canada with the City of Windsor. • https://evolta.fi/en/ Qevolta .4 • kpranra I d Bulldog Manc Core Strengths • Application customer times have reduced up to 90% for municipalities in some cases. • 24/7 service availability with massive efficiency savings for authorities and time savings for applicants. • Permit processing times have typically reduced from several weeks to just a few days. Figure 12: Evolta Application Portal Summary: The image below depicts the user interface for application submission. SU!! a .few {FF Ujr Q. uza 83 0 0 4 0 © Deloitte LLP and affiliated entities. Conclusion Based on the information gathered in this report, there is a gap between the current permitting software and the expected outcomes set by the City. The current permitting system in not aligned with industry best practices. The current paper-based permitting system has limited capabilities for electronic review and application submission, payment processing, system integration, and data analytics. In the efforts of achieving the City's expectation of improving service delivery, expediting the time to issue permits, reducing operational costs from both staff and paper consumption, along with seamless integration with the City's current ERP system, a list of functional and non-functional requirements have been developed, and potential providers of building permitting solutions have been assessed against the requirements. Please note that the analysis in this report has been conducted based on information made available during meetings and interviews with the City. The functional and non-functional requirements generated on pages 62-72 serve for the purposes of scanning e -permitting solutions offered in the market. A formal system selection with potential vendors and a full list of functional business requirements is needed in order to thoroughly assess the solutions and to accurately quantity the cost savings. A system selection will include formal scoring against the City's defined criteria and detailed solution demonstrations based on real case scenarios. Below are the expected outcomes of implementing an e -permitting solution as demonstrated in this report: • Citizen service will be improved as residents of Pickering will have the ability to submit applications electronically, and dashboards will enable residents to receive notifications of their applications in real- time. • E -permitting solution will eliminate the consumption of paper in the permitting process leading the City to contribute to a more sustainable environment. • The City will reduce operational costs and will no longer experience delayed tax revenues as result of delays in the permitting process. The annual potential cost savings of deploying an e -permitting system could be around $56,550, along with a potential expected increase in permit revenue of $645,000, as a result of faster issuance of building permits and tax revenues from tax roll reassessments. The estimation of potential increase in permit revenue and savings are described in the cost -benefit analysis section of this report. These figures are estimates, and actual cost savings as well as increases in permit revenue will vary depending on the level of certain parameters such as permit volume. In some cases, the City may be able to expand the scope of the tools mentioned above to support other application processing requests, which could further increase the potential costs savings of such a solution and enhance citizen experiences with the City. In order to successfully implement such a solution, the City will need to review their internal resourcing levels to ensure adequate support for a transformational project and ongoing maintenance. It is recommended that the City initiates a formal business case to further quantify the benefits and cost savings of a e -permitting solution and develop a strategic roadmap before proceeding with the software procurement in order to accurately quantify the cost savings and justify the investment to the City council and residents. 84 © Deloitte LLP and affiliated entities. "Choose good fleet management software and use it in decision making. The main goals of any fleet management system are to provide information to improve efficiency, decrease downtime and in-service breakdowns, reduce inventory, lower ownership cost and avoid waste." 48 48 Fleet Management Tips For Municipal Decision Makers, The Municipal Technical, Advisory Service, The University of Tennessee Fleet management system report Introduction Service Review Objective; The objective of the fleet management and vehicle tracking service delivery review report was to identify technology options that can minimize or remove risks associated with the investment on a fleet management system, increase productivity in the maintenance facilities and identify other areas which could realize cost savings. Figure 13: Project Steps Summary: The project steps diagram below illustrates the steps taken as part of this investigation beginning with initial interviews, information gathering, research analysis, followed by development and finalization of report. Prajed Steps 5t.p 1 Step 2 Perform initial intervigwr, Gather and ra w iota information L Perform Develop r...arrh report Stop 5 Finalize report Research Methodology The research methodology for the fleet management and vehicle tracking service delivery review report was to first conduct a preliminary analysis of the current operations of fleet management at the City of Pickering. This consisted of interviewing staff from operations, the municipal garage and fleet services department in order to understand the City's current operational deficiencies, along with researching technological advances in the fleet management industry in order to identify current state gaps. The current state gaps and automation opportunities will help the advisory team to identify the functional requirements that the new fleet management software should be able to meet. Scope The scope of the research conducted as determined by the City of Pickering is described below: • Understand the current fleet management and vehicle tracking systems in place. (See Current State Gaps section on page 88-89) • Work with the end-users to determine critical requirements for a new system. (See Current State Gaps section on page 88-89) • Perform research on the key features and functionalities of available fleet management and vehicle tracking systems that could assist the City of Pickering in improving its efficiency and productivity. In particular, examining potential solutions that could provide benefits in areas including but not limited to vehicle telematics (GPS tracking and diagnostics), vehicle management, driver management, speed management and fuel management. (See Key Features section, page 90) 86 © Deloitte LLP and affiliated entities. 1 Fleet management system report Annrnnrh The following approach was used during the research: • Research the fleet management industry and identify technological advances which could provide opportunities to improve the City's operational efficiency and productivity. • Analyze the City's current fleet management and vehicle tracking systems and identify gaps in functionality. • Use the functional requirements developed in the previous step as the criteria to identify and assess potential -fit fleet management technology options. • Provide a cost and benefit analysis in order to quantify the benefits of purchasing and implementing a new fleet management and vehicle tracking solution that would meet the City's requirements. Figure 14: Fleet Management Wheel Summary: Fleet management can include a range of functions, such as fleet strategy, fleet acquisition, fleet services, fleet maintenance, fuel management, risk management (safety and compliance), tools and technology (telematics), and disposition and remarketing (asset utilization) DISPOSITION & REMARKETING TOOLS & TECHNOLOGY RISK MANAGEMENT FLEET STRATEGY ENERGY MANAGEMENT MAINTENANCE MANAGEMENT FLEET ACQUISITION FLEET SERVICES 87 © Deloitte LLP and affiliated entities. Background Background Information in this section was obtained from the City of Pickering website, the Region of Durham website, and during meetings/interviews with the City. The current fleet size, vehicle type, services provided by the Operations and Fleet Services department, the City's technology provider and the related cost are introduced in this section as they are essential in understanding the City's current fleet operations. leet Vehicle Currently, the City has 212 vehicles that include Public Works Vehicles, Fire Vehicles and other "one-off" vehicles custom made to suit the City's needs. The fleet is expanding at a 2% to 5% rate annually. In 2018, the City added six new vehicles and five new vehicles in 2019. The number of the fleet vehicles changes frequently as the City auctions off equipment and vehicles at the end of their lifecycle. Overall, this is a reasonably modest sized49. The City has a partnership relationship with the Region of Durham for tire management. Tires are ordered and managed by the Durham Tire Co-op. The benefits of the partnership include opportunities to tender for larger and more lucrative contracts. A detailed list that outlines the type, quantity, and size of the City's vehicles and equipment can be found on section Cost Benefit Analysis (page 98). Services Operations and Fleet Services department is responsible for the following: • Public Works — Manage the City's municipal fleet — Repair, maintenance, and construction of roads — Winter control operations — Installation and maintenance of playgrounds — Boulevard and parkland grass cutting • Fire operations • Animal control services Fleet Management Solution The City's current fleet management software provider is RTA, a U.S.-based company that provides hybrid (either cloud or on-site data storage) vehicle tracking and inventory management solution. The cost is $1,000 per year for maintenance and is considered minimal by the maintenance staff and facilities management team. RTA is also used for part procurement currently. The City is in the process of securing an in-house parts supplier which will create a synchronization between the supply and demand of parts inventory. Upon the City's request, parts will be ready within 12 to 24 hours. No inventory would be kept by the City. This will promote operational efficiencies throughout the maintenance facilities. 49 Fleet Maintenance Software — City of Pickering, Ladder Up Consulting Ltd, 2019 88 © Deloitte LLP and affiliated entities. I Background Asset Manaaement Solutior The City uses VFA for asset management and capital planning purposes. VFA was implemented four years ago and provides services such as asset life cycle analysis. The annual licensing/maintenance fees for the VFA software in 2019 was $31,497.36 (excluding HST). GPS/AVL Solution The City's current GPS/AVL (Automatic Vehicle Locator) solution provider is Focus, a fleet and fuel optimization system. Focus enables the City to remotely monitor the location of the vehicle fleet. The software maintenance and hardware cost of the Focus solution is $39,000 per year. More detailed costing information can be found in Current Spending on Fleet Management and Vehicle Tracking Software section on page 99. On Nov 5th, 2019, a public facing portal went live on the City of Pickering website. This portal allows residents to track the status of snow plows in the events of snow. 7uel Management Solution The City works with Coencorp for fuel management and uses their internet-connected peripheral devices on some of the fleet to adopt Internet of Things (IoT) technology in fuel management. 89 © Deloitte LLP and affiliated entities. Key findings Key findings The following are the key findings addressed during interviews with the City of Pickering. These findings are used when determining potential solution providers to include in the assessment included in the Functional and Non -Functional Requirement section of this report. 1. The City's existing fleet management and vehicle tracking solutions are legacy applications that lack the integration and functionality required in order to realize efficiencies, save costs and improve day-to-day functions within several maintenance facilities: • The current solution does not provide part management functionalities that would record part usage and enable cost analysis on individual vehicles. • The current solution does not provide fleet maintenance functionalities such as schedule maintenance appointments, record the frequency and cost of maintenance, and provide long-term asset utilization analysis of vehicles. • The current solution does not promote routing and dispatching optimization, which could improve the service reaction time and citizen's satisfaction rate. 2. Currently, staff are required to record information regarding the fleet vehicle conditions on paper, which results in delays in maintenance services and limited access to usable information such as maintenance needs identified by the technicians. 3. The City is in the process of securing an in-house parts supplier which will create a synchronization between the supply and demand of parts inventory. Upon the City's request, parts will be provided by the supplier within 12 to 24 hours. No inventory would be kept by the City. This will promote operational efficiencies throughout the maintenance facilities. The new fleet management and vehicle tracking systems need to be integrated with the part supplier's system to ensure proper cost and part tracking. 4. The City has a partnership relationship with the Region of Durham for tire management. Tires are ordered and managed by the Durham Tire Co-op. The benefits of the partnership include opportunities to tender for larger and more lucrative contracts. 5. The City works with Coencorp for fuel management and uses their internet-connected peripheral devices on some of the fleet to adopt Internet of Things (IoT) technology in fuel management. The new fleet management and vehicle tracking systems can potentially replace Coencorp and provide an integrated fleet solution. 6. The City adopted VFA for facilities capital planning and asset management. According to the end users, the VFA software has been working well and is able to provide asset life cycle analysis, which is important in supporting asset replacement and vehicle financing decision makings. The new fleet management software will work in conjunction with VFA to track and analyze total cost of ownership, compare and contrast different vehicle options and create budgets for capital spending. 7. The City's current GPS/AVL (Automatic Vehicle Locator) solution provider is Focus. Focus enables the City to remotely monitor the location of the vehicle fleet. However, it does not meet the City's expectation due to: • Inability to display work orders assigned to each vehicle. 90 © Deloitte LLP and affiliated entities. Key findings • Inability for the mechanics to update the work order status and communicate task progress with the central operations team. • Inability to track material usage such as salt usage. 8. The current fleet management software used by the City does not support the City's reporting needs due to: • Disparate data housed outside of the system in paper format. • Limited ad-hoc custom reporting functionality resulting in the need for IT intervention for additional reports. 9. Currently, the City is able to react to emergency work orders promptly. The vision and long-term goal of the Operations team is to automate the fleet operation processes such as part sourcing and procurement, maintenance planning, dispatching and routing, and reporting. Essentially, a "hands-free" fleet management and vehicle tracking system can free up more resources and time, which can be put into efforts to improve resident satisfaction. Figure 15: Key Findings of the City's fleet management and vehicle tracking systems Summary: The City's part management solution, fleet management and vehicle tracking systems, and the ERP system (SAP S4/HANA) can all be integrated and have the technical capabilities to do so. These systems also work toward the same end goals - lower risks associated with fleet investments, lower operating cost, higher volume of work output, increased worker safety, higher integration level across different departments and improved resident satisfaction, however these are not integrated properly. Vehicle Tracking and Fleet Management •The current provider RTA and Focus do not meet the City's expectations •Looking for a new solution •In the process of securing a vendor (RFP drafted) •The new fleet management and vehicle tracking system need to be integrated with the part sup •tier's s stem to ensure •roper cost tracking In-house Parts Supplier SAP System •SAP is the City's ERP system •The new fleet management and vehicle tracking system need to be integrated with SAP 91 © Deloitte LLP and affiliated entities. Key findings Current State Gans Based on information obtained through interviews with different end users, the advisory team concluded that the gaps the City is facing with the current fleet management and vehicle tracking systems revolve around the following areas: Routing & Dispatching Current system Parts Management Current system Maintenance Scheduling Current system User Interface Current system RTA, Focus • CityWide and VFA are used for asset tracking, asset planning, and budgeting • Vailtech is used to record invoices, to be replaced by SAP • RTA is used for parts procurement RTA RTA Current State Gaps Current State Gaps Current State Gaps Current State Gaps Currently, work orders are being processed manually on a excel spreadsheet. The current GPS tracking solution also does not display the work orders assigned to each vehicle. There are opportunities to improve routing and dispatching efficiency, and increase work output: • System automatically generates and tracks work orders for each vehicle • Optimize routing and prioritizing work orders by adopting dynamic routing • Schedule work orders in real-time and enabling faster response to work orders received The current system tracks parts ordered by department/cost centres. However, there is no information regarding which vehicle the parts ordered are related to. Additional function is required for: • Accurately track cost information to increase operational efficiency by tagging cost to specific vehicles and asset utilization for different types of vehicles Vehicle maintenance is mostly reactive rather than preventive. Additional function is required for: • Maintenance scheduling: alert for regular maintenance appointment base on the type and condition of vehicles • Record and retrieve data regarding the number of times the vehicle comes in for services; long-term maintenance requirement and life of the vehicle The current system is not user friendly and the technicians are reluctant to input data electronically due to the inexistence of data entry fields for certain types or information such as remaining life of the vehicle, historical maintenance records, outstanding repair and maintenance requirements, etc. Additional function is required for: • Note -taking: enable the technicians to record findings and information such as worn out tires • Image tagging: enable the technicians to include a photo evidence of the findings such as worn tires • Easy data retrieval: enable the technician and management to search keywords in the system 92 © Deloitte LLP and affiliated entities. Key findings Vehicle & Equipment Reporting Current system Labour Cost Reporting Job Cost Reporting RTA RTA RTA Current State Gaps Current State Gaps Current State Gap5 The system does not meet the reporting needs for vehicle and equipment analysis due to disparate data housed outside of the system in paper format and the limited ad-hoc custom reporting functionality resulting in the need for IT intervention for additional reports. Additional function is required for: • Ability to provide reports on vehicle and equipment utilization, cost of ownership analysis, and other ad-hoc requests • Compare operational efficiency and asset utilization of different types of vehicles • The report can be used as a strong support in budgeting and funding decision makings The current system does not accurately track and bill mechanics labour to their cost centres. Discrepancy exists in the mechanics' actual labour rates and the amounts charged back to the cost centres in the SAP system. Additional function is required for: • Labour cost information in the backend maintenance system should transfer to the SAP system accurately • The fleet management system should be fully integrated with the SAP system The current system does not accurately record the cost for each job or work order. Management has no means to evaluate the cost for different activities such as sign replacement, and pothole repairs. Additional function is required for: • Custom reports to provide analysis on the costs of different job types or different work orders • The report can be used as a strong support in budgeting and funding decision makings 93 © Deloitte LLP and affiliated entities. Key findings Key Features of Flet* Manaaement System In order to paint a fuller picture of the features encompassing fleet management solutions, an analysis has been done on Vehicle Financing, Vehicle Maintenance, Vehicle Telematics, Driver Management, Speed Management, Fuel Management, Health and Safety Management, Dispatching and Routing, Public -facing Snow Plough Tracking, and Insurance Benefits. These are the areas that the City expects to see improvements on with the help of a new fleet management and vehicle tracking solution. Vehicle Financing Figure 16 Factors affecting the Economic Life of a vehicles° Summary: From an economic perspective the optimal point to replace fleet assets is when the total cost of ownership is at its lowest. Fleet acquisition and fleet replacement decisions are made base on the estimation of a vehicle's economic life, trade in values, and operating costs. Trade values can be estimated using the information of the fleet life cycle, travel length per year, and purchase price. This type of calculation and analysis can sometimes be done in a fleet management solution in order to assist vehicle financing decision makings. Some other fleet management software functionalities related to vehicle financing and asset utilization are as follow: 0 4 Economic Lite total cost Time • Describe the trend in operation and maintenance costs for the vehicles • Reduce fleet capital and operating costs to the City through targeted lifecycle analysis, which can determine how long assets can remain in the fleet before the operation is no longer cost-effective. The goal is to spread capital costs over as long as period as possible. This functionality is possible from a fleet management system or through an ERP system. Vehicle Maintenance Preventive maintenance is a regular part of fleet ownership, but additional repairs due to aggressive driving and vehicle misuse are an unnecessary cost to a fleet. Market research suggests that excessive maintenance -related costs are primarily driven by aggressive driving behaviors such as hard accelerations, harsh cornering, and harsh braking, which cause harmful wear and tear on critical vehicle components, drastically increasing a vehicle's variable rpm. These effects materialize as reduced tire life, reduced brake life, more frequent scheduled maintenance, and more frequent non-scheduled maintenance and repair. These non-scheduled events often result in large losses to organizations that rely on its fleet assets for day- to-day operations. In fact, a non-scheduled maintenance interruption can result in lost profits of $530 to $928 per day, in addition to the cost of repairs.51 The Organization for Economic Co-operation and Development (OECD) reports that telematics technology can help a company reduce maintenance and repair costs by as much as 14%.52 As described above, much 5o H. Greene & R.E. Knorr, Managing Public Equipment, American Public Works Association, Kansas City, 1989 51 Understanding the true cost of fleet vehicle downtime. (n.d.) Retrieved from http://fleetanswers.com/content/understanding-true-cost-fleet-vehicle-downtime 52 Towards smarter supply chains. OECD Observer, No 279, Wright, J. May, 2010 94 © Deloitte LLP and affiliated entities. Key findings of these savings are tied to driver behavior, and therefore real-time driver management tools and in -cab alerts are the best way to minimize unnecessary wear and tear on fleets. Vehicle Telematics A Fleet Telematics System (FTS) allows the information exchange between a vehicle fleet and the Operations team. A FTS typically consists of mobile Vehicle Systems (VS) and a stationary Fleet Communication System (FCS). The FCS may be a stand alone application maintained by the motor carrier or an internet service running by the supplier of the system. The FCS usually includes a database in which all vehicle positions and messages are stored. Digital maps are often included which allow visualization of vehicle positions and traces. Communication with the FCS is realized by trunked radio, cellular, or satellite. Positioning of vehicles is usually realized by satellite positioning systems and/or dead reckoning using gyroscope and odometer.53 GPS can add value in both the tracking and optimization of cyclical work. It can support fuel reduction efforts and provide driver level feedback on performance as well as provide accurate time and location data in the event of a Motor Vehicle Accident (or to refute a claim against the City). Using the vehicle telematics to flag engine sensor issues early can alleviate costly unplanned failures. Driver Management Electronic on -board recorder/Tachograph can be used to analyze driver behavior and defend innocent drivers accused of causing accidents. This function enables additional compliance capabilities. Increased worker safety can also be achieved through GPS tracking and the ability to know where fleet assets or drivers are at all times. Geo -fencing technology allows users to set virtual boundaries. This helps manage a group of vehicles within a region to keep time traveling between jobs to a minimum. When drivers are organized within a specific area, response rates are quicker and the area is more attentively covered. Peer-to-peer and dispatcher -to - driver messaging can connect drivers for instant communication, messaging, and knowledge sharing. Most of these functionalities are tailored to large, long distance, remotely located and highly mobile fleets. As fleet size increases, the absolute payback on these types of investment increases and they become more attractive. At scale, these benefits begin to outweigh the costs (direct and indirect) of these approaches. Speed Management Certain fleet management solutions provide in -vehicle, proactive coaching with customized messaging and rules to limit speed, such as: • With in -cab real-time alerts, an audible buzzer reminds drivers when unsafe driving is detected, allowing them to correct the behavior immediately • In -vehicle, proactive coaching with customized messaging and rules These functionalities are tailored to large, long distance, remotely located and highly mobile fleets. More research need to be conducted to determine if the quantifiable benefit can outweigh the cost considering the size of the City's workforce. As fleet size increases, the absolute payback on these types of investment increases and they become more attractive. At scale, these benefits begin to outweigh the costs (direct and indirect) of these approaches. 53 Fleet Telematics: Real -Time Management and Planning of Commercial Vehicle Operations. 95 © Deloitte LLP and affiliated entities. Key findings Fuel Management For many fleets, fuel is one of the largest expenses. Managing fuel costs can be a complicated endeavor involving a number of variables, including fluctuating gas prices and inconsistent driver behavior. In fact, the U.S. Department of Energy reports that rapid acceleration and heavy braking can reduce fuel economy by up to 33% for highway driving and 5% on city roads. Idling and speeding can also have drastic impacts on Miles per Gallon (MPG). Telematics Wire Market research has shown that the effective use of telematics can reduce fuel costs by as much as 14%.Driver coaching is instrumental in achieving these cost reductions. For example, for every 5 mph over 50 mph, a driver can reduce their MPG by approximately 7-14%. Therefore, getting drivers to slow down and observe the speed limit translates into monetary savings. Furthermore, real-time driver idling alerts can be used to drastically cut down on vehicle idling costs and wasted fuel. Health and Safety Management Collisions, speeding, and aggressive driving behaviors were found to be a contributing factor in 31% of all fatal crashes, while seat belt use was found to decrease the risk of a fatality by between 45% and 60% according to Guidelines for Employers to Reduce Motor Vehicle Crashes. Aggressive driving behavior can have a big impact on a fleet's safety-related operating costs. The City can improve savings by monitoring driver behaviors and proactively coaching drivers via the use of telematics. Certain fleet management solutions provide the following functionalities to reduce accidents and minimize risk: • In -cab driver feedback tools and real-time audible alerts can drastically reduce the likelihood of an on - duty accident. • The driver safety program includes real-time monitoring of aggressive driving and video analytics to increase self-awareness and accountability on the road. Again, these functionalities are tailored to large, long distance, remotely located and highly mobile fleets. As fleet size increases, the absolute payback on these types of investment increases and they become more attractive. At scale, these benefits begin to outweigh the costs (direct and indirect) of these approaches. Dispatching and Routing Operations and Fleet Services department receives work orders for the following types of services: • Repair, maintenance, and construction of roads • Winter control operations • Installation and maintenance of playgrounds • Boulevard and parkland grass cutting The routing and scheduling for work orders can be achieved by using one of the three strategies described below: • Static Routing, which is driven by semi-annual or annual route plans in defined geographic areas, built around forecast work orders, and designed to maximize customer service. • Dynamic Routing, which is driven by daily -built route plans, built around both daily and forecast work orders, and designed to increase efficiency, increase resident satisfaction, and decrease response time of work orders. • Real-time Dynamic Routing, which is driven by daily -built route plans designed to efficiently deliver pre - orders and real-time work orders within its expected time window. 96 © Deloitte LLP and affiliated entities. Key findings Dynamic routing will allow drivers respond to areas based on priority and traffic, and ultimately to increase the level of service delivered to citizens. In municipalities, the distribution of the work can be either highly variable (i.e., the work locations can be new every day due to road repair, utility maintenance, etc.) or highly programmed and controlled/routed (e.g., street sweeping, snow plowing, garbage pickup, automated water meter reading). The City's situation is vastly different from private sector services and it is rare for the fleet assets to be 'optimally dispatched' on a daily basis to respond to new and unique destinations. Dynamic Routing would result in improved resident satisfaction. However, more detailed analysis need to be conducted to determine if the routing optimization can provide quantifiable benefits which outweigh the costs in investing in the required technology. Public -facing Snow Plough Tracking Operations & Fleet Services department is responsible for the repair, maintenance, and construction of roads, and winter control operations. It is important to ensure transparency and accountability for Public -facing Snow Ploughing. Aligning on meaningful and impactful performance indicators will ensure that improvement is quantified and measured with accountability. Possible KPIs are as follows: • Equipment turnover rate/refill rate • Slip and fall claims vs. labour hours cleaning vs. snow levels • Maintenance cost per km per equipment unit • Minimize standby travel time A fleet management solution can benefit the winter maintenance in areas such as: providing real-time snow plough vehicle locations, ensuring transparency of asset usage, track time spent at job sites, and providing preventive maintenance reminders. Insurance Benefits Insurance companies have reported a 45% reduction in accidents and a 50% reduction in accident payout costs via the use of telematics.54 Moreover, this reduction in accident claims can translate into a 5% to 25% reduction in comprehensive insurance costs.55 Please note that these figures are not specific to municipalities and might vary depending on the area and size of cities. A fleet management solution can potentially help reduce insurance premiums in areas such as: • Provide historical reports that provide proof of safety driving record, making sure improvements are reflected in insurance rates. • Use GPS fleet tracking to locate stolen vehicles, increasing the chances for recovery and reducing insurance claim costs. • Provide telematics data that can be shared with insurance companies, improving fleet driving safety standards which could reduce insurance spend. • Provide accident detection and instant notification, and detailed second -by -second data that helps prove no-fault to insurance provider. The diagrams on the following pages illustrate the high-level functional and non-functional requirements that the new fleet management and vehicle tracking systems should meet in order to achieve the City's expected outcomes. 54 Attention Fleet Manager: Fleet Safety is Important Too! Driver's Alert, Taylor, V., October 13, 2014. ss How Telematics Can Help You Save on Car Insurance. Navigators Insurance, Zhukov, K, March 31, 2014. 97 © Deloitte LLP and affiliated entities. Key findings A list of more detailed requirements can be found on page 109-115. The functional and non-functional requirements are defined as follows: • A functional requirement defines the system abilities that a potential providers system should adhere to. • A non-functional requirement will place constraints on how the system will perform those functionalities. 98 © Deloitte LLP and affiliated entities. Functional Requirements Ability to perform dynamic routing for all work orders I Key findings Functional Requirements Asset Utilization Automation goal: reduce fleet capital costs through targeted lifecycle analysis Functional Requirements Ability of system to provide lifecycle analysis and to recommend strategies to reduce costs ..41111111111\ - 99 Fuel Management Automation goal: reduce overall fuel cost y Functional Requirements Ability to test and implement innovative fuel management strategies, driver behaviour training, and anti -idle technology Dispatching & Routing Automation goal: enable faster response to work orders Inventory Management Automation goal: manage part inventory and tires Functional Requirements Ability to provide a robust part inventory and tire inventory control system y Reduce Insurance Automation goal: reduce insurance costs Functional Requirements Ability to provide proof of safety driving record and/or partner with insurance companies. © Deloitte LLP and affiliated entities. Key findings Functional Requirements Automation goal: enable the city to track fleet assets and drivers Functional Requirements Ability to use GPS tracking technology in order to know where the fleet assets or driver are at all time 100 Functional Requirements Ability to collect data on engine status and to provide preventative maintenance planning Automation goal: preventative maintenance planning & scheduling Automation goal: manage driving behaviors and provide driving assistance Functional Requirements Ability to detect and track aggressive driving behaviors and provide in -cab trainings Automation goal: provide geographical information system based planning and visualization Functional Requirements Ability to provide GIS Maps to the driver and interpret GIS data Automation goal: provide custom reports that facilitate budgeting and funding decision making Functional Requirements Ability to provide reports on vehicle and equipment utilization, cost of ownership analysis, and other reporting © Deloitte LLP and affiliated entities. Key findings Non -Functional Requirements System Integration Automation goal: Integrate with other systems city-wide Non-functional Requirements Ability to integrate with SAP to speed up information flow and align information in different systems 101 y Non-functional Requirements Users can add fleet information, retrieve historical fleet data/reports and carry out intended action easily in the system User Interface Automation goal: Intuitive and easy to navigate user interface y System Integration Automation goal: available software support guide and user manuals Non-functional Requirements Software offers user with support guides, videos, and self- service tutorials. Automation goal: cloud deployment Non-functional Requirements Provider offers a cloud -based solution. User Suppo Automation goal: Ensure compliance and data security Non-functional Requirements Ability to protect personal data such as emails, passwords, and vehicle information; maintain relevant records to facilitate audit and ensure compliance © Deloitte LLP and affiliated entities. 1 Cost benefit analysis Cost benefit analysis Market Cost and Illustrative Quotes Most fleet management providers structure their software and services fees on a case-by-case basis. Factors that affect the pricing include the size of the fleet, the geographical location of the user, functionalities required, and others. The following table describes the cost information that is publicly available for the three potential providers analyzed in this report. Questions Coencorp RTA SAP Which entity use the software provided by this vendor? Ottawa Airport Winnipeg uses RTA and other supporting spreadsheet and timekeeping programs Edmonton's fleet maintenance is primarily supported through the Plant Maintenance Module How much is the initial $72,865 deployment cost of the software? on software maintenance and technical support Purchased in 2002 for approximately $44,25556 The Plant Maintenance Module can be added at no additional cost since City of Pickering is using SAP as their ERP solution What is the size of the 200 units City's fleet? Approximately 1,700 units57 Over 5,000 units currently58 What difficulty did the City No concerns found on the By 2010, nearly $2 million experience with this public -facing websites has been expended on IT software? consulting services with the fleet management information system still not fully implemented59 Efficiency and effectiveness was reduced significantly when the Plant Maintenance application software replaced the old legacy fleet management software which had been custom developed over 20 years; The adoption of the Plant Maintenance Module has proven to be more difficult than initially anticipated Current Spending on Fleet Management and Vehicle Tracking Software The following table outlines the known costs that have been spent to manage and monitor fleet assets at the City of Pickering for the past four years. The costs include the maintenance fee incurred for the current fleet management system RTA, the current asset management and facility capital planning software VFA, and the current vehicle tracking software Focus. A new fleet management software could potentially replace RTA in managing fleet maintenance, work order scheduling, and analytics; replace Focus in tracking fleet locations and monitoring driver behaviors; replace 56 Winnipeg Fleet Management Performance Audit Final Report, January 2010. 57 https://www.winnipeg.ca/fleet/ 58 https://www.edmonton.ca/city_government/city_organization/fleet-services.aspx 59 Winnipeg Fleet Management Performance Audit Final Report, January 2010. 1 Cost benefit analysis VFA in tracking and analyze total cost of ownership, comparing and contrasting different vehicle options and create budgets for capital spending. Cost Item Amount (Net of Year incurred One - Tax) Time/Recurring Maintenance RTA system $4,000.00 2016-2019 Recurring maintenance fee Licensing/ VFA licensing and $31,497.36 2019 Recurring Maintenance maintenance fee Licensing/ VFA licensing and $29,478.65 2018 Recurring Maintenance maintenance fee Licensing/ VFA licensing and $28,074.90 2017 Recurring Maintenance maintenance fee Licensing/ VFA licensing and $26,738.00 2016 Recurring Maintenance maintenance fee Licensing/ Focus Public Facing Maintenance Portal $1,130.00 per month starting October 2019 $3,390.00 2019 Recurring Maintenance Focus GPS all- inclusive fees and cellular service $39,006.60 2019 Recurring Hardware Focus GPS/AVL hardware for 4 additional Vehicles $902.50 2019 One-time Maintenance Focus GPS all- inclusive fees and cellular service (assume same rate as in January 2019) $37,500.60 2018 Recurring Maintenance Focus GPS all- inclusive fees and cellular service (assume same rate as in December 2016) $35,693.28 2017 Recurring Maintenance Focus GPS all- inclusive fees and cellular service $26,318.16 2016 Recurring Hardware Focus GPS/AVL hardware for 79 vehicles (installation fee included) $28,500.41 2016 One-time Total Recurring $261,697.55 2016-2019 Total Recurring Total Hardware $29,402.91 2016, 2019 Total One-time Total Cost $291,100.46 2016-2019 Total Annual Cost Cost benefit analysis The information above shows what the City needs to pay for software in a four-year period to run its fleet operations. It helps provide a baseline for assumed costs when discussing technology options for the future of fleet management and vehicle tracking. ,avings The benefit for the City to upgrade its fleet management and vehicle tracking solutions can be grouped into four main areas: Safety, Asset Management, Maintenance and Repair, Productivity. These savings shown in the table below were observed in a use case of a company with a fleet size of 303 units and an average vehicle mileage of 10,920.81 miles. This fleet is similar to Pickering's 212 -unit fleet and the potential savings are expected to be comparable to Pickering's. Type Annual Cost Savings for Annual Cost Savings for Annual Cost Savings for one HD Vehicle one MD Vehicle one LD Vehicle Safety $6,519 $1,240.2 $1,113 Asset and Fuel $6,519 $858.6 $524.7 Management Maintenance and Repair $4,611 $381.6 $318 Productivity $5,724 $763.2 $763.2 Municipal Benchmarking Network Canada defines light-duty (LD) vehicles as less than 4,500 kg, medium - duty (MD) vehicles as less than 9,000 kg but higher than 4,500 kg and heavy-duty (HD) vehicles as greater than 9,000 kg. The table below outlines the type, quantity, and size of the City's vehicles and equipment. As of February 13, 2019, the City has 69 units LD vehicles, 22 units MD vehicles and 17 units HD vehicles. ?uantity Size (Tare Weight) Full-size SUV 3 Light-duty Mid-size SUV 25 Light-duty 4x4 Pick-up Truck 2 Light-duty 1/2 Ton Pick-up Truck 13 Light-duty Cargo Van 6 Light-duty Utility Vehicles (UTV) 3 Light-duty Skid -Steer 2 Light-duty Trackless Sidewalk Tractor 9 Light-duty Wide Area Mowers 6 Light-duty LD Vehicle Sub Total 69 units 1 Ton Pick-up Truck 10 Medium -duty 1 Ton Truck 2 Medium -duty 1 Ton Van 1 Medium -duty 2 Ton Pick-up Truck 7 Medium -duty 2 Ton Truck 1 Medium -duty 1 Cost benefit analysis Quantity Size (Tare Weight) 3 Ton Truck 1 Medium -duty MD Vehicle Sub Total 22 units 4 Ton Dump Truck 12 Heavy-duty 5 Ton Dump Truck 3 Heavy-duty Road Grader 2 Heavy-duty HD Vehicle Sub Total 17 units Snow Blower 5 N/A Chainsaw 20 N/A Plow and Wing Attachments 14 N/A Skid -Steer 2 N/A Equipment Sub Total 41 units Fire Vehicles (aerial truck, etc.) Unknown Depends on the size/type Tractors 5 units Depends on the size/type Other Custom Made Vehicles Unknown Depends on the size/type To determine the current fleet management system's performance level and its potential cost saving opportunities, 11 expected outcomes (extracted from the Pickering Project Description and listed in the table below) have been used as a benchmark. Insurance Benefit, SAP Integration and User Friendly System, are excluded from cost saving analysis as no direct and measurable cost saving would be derived from them. Telematics, Driver/Speed Management, Fuel Management and Vehicle Financing are also excluded since the City is currently working with other solutions (Focus, Coencorp, and VFA) to address these areas. The table below illustrates that, for the 3 expected business outcome analyzed, each outcome would lead to potential cost savings in one area. The estimated potential incremental cost saving (%) represents the incremental cost saving that could be achieved if the new fleet management system meets three of the City's expectation outcomes. An annual incremental cost savings of $308,667 can be estimated by multiplying the estimated annual cost saving for each vehicle type (see table on page 100), the quantity of the Pickering's fleet vehicle (see above table on page 100), and the % of estimated potential incremental cost savings (see table below): Expected Business Type of Cost Saving Outcome Opportunities Estimated Current Cost Saving with RTA (%) Estimated Potential Incremental Cost Saving (%) Estimated Potential Incremental Cost Saving ($) Vehicle Maintenance Maintenance and Repair 0%; The City schedules maintenance appointments manually. Vehicle maintenance is mostly reactive rather than preventative. 100%; There are opportunities in collecting data on engine diagnostics and provide preventative maintenance and schedule regular maintenance based on the vehicle type. $108,724.20 Part Inventory Asset and Fuel Management Management 80%; The current RTA 20%; Additional system does not meet functionality such as the requirements cost tagging can assist based on the Current cost reduction $33,183.30 Cost benefit analysis Gap Analysis on page 88. strategy, asset utilization strategy and support better fleet acquisition and replacement decision - makings. Dispatching and Routing Productivity 0%; Dispatching and routing are done manually. 100%; There is an opportunity to increase productivity by re- designing routes to reflect dynamic data such as vehicle locations travel time, and incoming work orders (see page 107 for opportunity Areas - Productivity). $166,759.20 Total $308,667.00 Detailed calculation of estimated cost savings for each area is shown below: Expected Business Outcome Type of Cost Saving Opportunities Potential Incremental Cost Savings for HD Vehicle Potential Incremental Cost Savings for MD Vehicle Potential Incremental Cost Savings for LD Vehicle Estimated Potential Incremental Cost Saving ($) Vehicle Maintenance Maintenance and 78,387.00 8,395.20 21,942.00 $108,724.20 Repair = 17 units*4,611.00 = 22 units*381.60 = 69 units*318.00 Part Inventory Management Asset and Fuel Management 22,164.60 = 17 units* 6,519.11*20% 3,777.84 = 22 units* 1,240.20*20% 7,240.86 = 69 units* 1,113.00*20% $33,183.30 Dispatching and Routing Productivity 97,308.00 16,790.40 52,660.80 $166,759.20 = 17 units*5,724.00 = 22 units*763.20 = 69 units*763.20 Total $308,667.00 Opportunity areas Opportunity areas Following the discussion in the preceding section, the four cost saving categories identified are: Safety and Compliance, Capital and Operating Cost, Maintenance and Repair, and Productivity. Each cost saving category is considered an opportunity area that the City can improve and potentially achieve savings on. An analysis has been done for each opportunity area, including a description of the automation opportunity identified, the current state of the City's operations, potential benefits, risks, and potential cost savings. Safety & Compliance Minimize Aggressive Drivin Ability of system to provide real-time alert to the driver and correct aggressive driving behaviors and/or provides visual in -cab training. 107 Asset & Fuel Management Maintenance & Repair Reduce Fuel Costs Find a fleet management solution that provides fuel management functionalities that meet the City's needs. Optimize Fleet Replacement Strategy System provides custom reports that can assist cost reduction strategy, asset utilization strategy and support better fleet acquisition and replacement decision -makings. Ensure Scheduled Repair System enables maintenance scheduling. Ensure all maintenance appointments attendance. Minimize Non-scheduled Repair System collects data on engine diagnostics and provides predictive maintenance that helps maintain vehicle with minor repair cost. Productivity Dynamic Routing Re -designs routes to reflect dynamic data such as vehicle travel time, and incoming work orders. © Deloitte LLP and affiliated entities. Opportunity areas Safety and Compliance Potential Opportunity Area Description Next Steps Potential Savings Monitor and correct aggressive driving behaviors Opportunity • Monitor and correct aggressive driving behaviors such as hard accelerations, harsh cornering, and harsh braking that cause harmful wear and tear on critical vehicle component. Current Operations • The current RTA fleet management system does not provide driver management or measures to minimize aggressive driving behaviors. Benefit • Decrease a vehicle's variable Cost per Mile (CpM). • Increase tire life/brake life. • Less frequent scheduled maintenance and non- scheduled repair. • Fewer speeding incidents. • Identify non-scheduled maintenance and repair and the costs incurred with them. • Key components of total downtime costs are: the cost of labour, replacement parts, diagnostic fees and towing costs. • Quantify the potential cost savings based on the current speeding violation costs, average non-scheduled maintenance cost that could be prevented from monitoring and correction of driving behaviors. • Find a solution that provides real-time alert to the driver and correct aggressive driving behaviors and/or provides visual in -cab training. • A non-scheduled maintenance interruption can result in losses of $530 to $930 per day per vehicle. Assuming: Non-scheduled repair results in inability to fulfill work orders for at least one full day. The figures represent the average downtime cost for fleet industry in North America. Risks/Pitfalls • Change may be met with resistance as the driver behavior will be monitored and analyzed. Experienced drivers may find driving behavior management intruding and unnecessary. 108 © Deloitte LLP and affiliated entities. Opportunity areas Asset and Fuel Management Potential Opportunity Area Description Next Steps Potential Savings Reduce fuel costs and Opportunity fleet capital costs • Fuel costs could be reduced by minimizing speeding incidents and limiting idle time. • Reduce fleet capital costs through targeted lifecycle analyses on specific fleet groups. Current Operations • The City works with Coencorp and uses their internet-connected peripheral devices on some of the fleet for fuel management. • Parts and tires are not linked to vehicles, which makes it difficult to accurately analyze fleet costs and make informed decisions around fleet acquisition and fleet replacement. Benefit • Reduce fleet capital cost by making more informed decisions around fleet acquisition and replacement with the help of accurate fleet cost analysis. • Reduce fuel usage. • Inquiry the fleet's consumption of fuel per trip/per engine hours worked/per time spent idling in order to quantify the current level of preventable fuel wastes. • Find a fleet management solution that provides fuel management functionalities that are aligned to the City's needs. • Find a fleet management solution that provides data analytics functionalities that can assist with cost reduction strategies, asset utilization strategies. • The optimal fleet acquisition and replacement strategy will lead to lower replacement rate, longer service time, and lower operating costs. Risks/Pitfalls • Fleet acquisition and replacement decisions involve a lot of factors and may involve policy changes. 109 © Deloitte LLP and affiliated entities. Opportunity areas Maintenance and Repair Potential Opportunity Area Description Next Steps Potential Savings Minimize scheduled and Opportunity non-scheduled repair • Collect data on engine diagnostics and provide predictive maintenance that helps maintain vehicle with minor repair cost. • Track regular maintenance based on the vehicle type and set up alerts for regular maintenance to have those vehicles pulled into the shop when needed. Current Operations • The City schedules maintenance appointments manually. • The City uses maintenance triggers such as odometer readings, vehicle breakdowns, and notes from drivers and mechanics. Benefit • Be notified of minor or major defects before critical breakage occurs, helping minimize downtime and prolong vehicle health. • Allow for better planning and scheduling for regular maintenance to ensure vehicle health. • Inquiry the cost of reactive (unplanned) vehicle maintenance and quantify the potential cost savings if minimizing the reactive repair. • Analyze historical repair and maintenance data to identify cues and triggers for maintenance needs. • Find a fleet management software that enables maintenance scheduling and/or engine diagnostics functions. • The Organization for Economic Co- operation and Development (OECD) reports that telematics technology can help reduce maintenance and repair costs by as much as 14% and much of these savings are tied to driver behavior, and therefore real-time driver management tools and in -cab alerts are the best way to minimize unnecessary wear and tear. • The cost savings vary based on vehicle type and annual mileage. Risks/ Pitfalls • Lack of accountability from drivers can be detrimental to vehicle utilization and this issue will not be addressed solely with the assistance of a fleet management software. 110 © Deloitte LLP and affiliated entities. Opportunity areas Productivity Potential Description Next Steps Opportunity Area Potential Savings Increase routing and Opportunity dispatching efficiency • Dynamic routing: re -designs routes to reflect dynamic data such as vehicle locations travel time, and incoming work orders. Current Operations • Static -routing: uses a forecast of daily/weekly work orders to build the appropriate path a driver would take on each day/shift during the course of the week. Benefit • The ability to reroute and create new plans throughout the day provides fleets with bigger flexibility. Routing can be adjusted for additional incoming work orders, weather changes, etc. • Create scheduling and routing automatically much faster, reducing the time spent on manual adjustments. • Quantify amount (cost/time) of work required in routing and dispatching. • Quantify the cost saving if adopting dynamic routing technology. • Analyze trending historical data to identify pain points and identify opportunities to revise the current shift structure to improve efficiency of routing and dispatching in complex areas. • Cost savings vary based on the vehicle type. Municipal Benchmarking Network Canada defines light-duty vehicles as less than 4,500 kg, medium -duty vehicles as less than 9,000 kg but higher than 4,500 kg and heavy-duty vehicles as greater than 9,000 kg. • $477 per month per heavy-duty (HD) vehicle with 80,000 miles. $64 per month per medium -duty (MD)/light-duty (LD) vehicle with 24,000 miles. • The above mentioned cost savings are under the assumption that the current routing operation resulted delay in work order fulfillments. Additional cost incurs when drivers and vehicles being idle instead of being on the road as they are supposed to be if routing and dispatching is handled more efficiently. Risks/Pitfalls • Dynamic routing might change the daily routine for drivers and might be met with resistance from staff. 111 © Deloitte LLP and affiliated entities. 1 Technology options Technology options Based on the expected outcome identified by the City in the project description document and the high-level requirements described in this report, eight potential solution providers were selected: Verizon Connect, Fleet Complete, Coencorp, Geotab, Trimble Transportation, along with the new version of RTA, SAP plant maintenance module, and Focus for comparability purposes. The companies selected are not only industry leaders in fleet management, but also those that have experience in working with government fleets or municipal fleets. Verizon Connect and Trimble Transportation are U.S. based companies and SAP is a German company. The remainder of the companies on the list are Canadian -based companies. Further information regarding the providers can be found in Provider Portfolio section on page 117. The following table provides an overview of how each solution performs in each functional area identified by the City as in scope of this assessment. Expected Business Outcome verizon/ gcFy tC pe connect CCIeoPa GEOTAB a'z.Trimble FOCUS Vehicle Maintenance ✓ ✓ x Telematics ✓ ✓ x x Driver Management ✓ ✓ x Speed Management x Fuel Management x ✓ ✓ ✓ Part Inventory x x Management x Dispatching and Routing x x Insurance Benefit x Integration with SAP User Friendly System x Legend: Meet the Expected Outcome Fail to Meet the Expected Outcome 1 Functional requirements Functional requirements In order to achieve the City's expected outcomes of the new fleet management and vehicle tracking system, 14 functional requirements were identified and used as the criteria in assessing the 8 technology options. - hie'I T - The fleet vehicle tracking and telematics system allows the information exchange between a vehicle and the operation team from the City. The chart below outlines the key functional requirements related to vehicle tracking and telematics. c a) a) J Confirmed Needs further investigation Not core functionality Functional Verizon Requirement Connect Ability to provide GPS tracking of assets Geo -fencing capability Ability to provide engine diagnostics Ability to provide maintenance scheduling This function is This function is Requires a supported supported separate vendor contract to enable GPS tracking This function is supported Geotab GO7 expandable plug & play telematics device enable GPS tracking Trimble's Fleet & Asset Trackers provide GPS visibility, event monitoring, and remote asset data on a near - global basis Not core This function is functionality supported This function is Not core Not core supported functionality functionality Fleet Complete RTA Coencorp Geotab Trimble SAP Focus Not core functionality This function is This function is This function is Not core supported supported supported functionality This function is supported This function is Not core supported functionality This function is This function is This function is Not core supported supported supported functionality Not core functionality This function is This function is This function is This function is This function is This function is This function is This function is supported supported supported supported supported supported supported supported 113 © Deloitte LLP and affiliated entities. 1 Functional requirements Sunnly Chain Tires, part inventories and fuel are three major components of the fleet supply chain. The chart below outlines the key functional requirements for the fleet supply chain. Confirmed Needs further investigation Not core functionality Functional Verizon Fleet Requirement Connect Complete Ability to track, record the procurement of tires Ability to track, record the procurement of part inventory Ability to track, record and reduce fuel usage RTA Coencorp Geotab Trimble SAP Focus This function is Not core This function is Not core Not core Not core Not core Not core supported functionality supported functionality functionality functionality functionality functionality Not core Not core This function is Provides part Provides part Not core Not core Not core functionality functionality supported inventory inventory functionality functionality functionality tracking tracking and ordering Not core Provides fuel Allows fuel This function is This function is Provides fuel Provide reports This function is functionality usage reports usage tracking supported supported theft detection on fuel supported and tank level consumption monitoring per kilometer driven 114 © Deloitte LLP and affiliated entities. 1 Functional requirements 1u r MananPmPnt The chart below outlines the key functional requirements related to driver management and enablement functionalities that promote driver -to -driver, dispatcher -to -driver communication, driving behavior coaching, and geographical information system -based capabilities. D c (1) (1) J Confirmed Needs further investigation Not core functionality Functional Verizon Requirement Connect Ability to enable Enables real-time driver messaging communication between drivers and dispatchers Provides visual in -cab training With in -cab real-time alerts, an audible buzzer reminds drivers when unsafe driving is detected Fleet Complete RTA Coencorp Geotab Not core functionality Not core Not core functionality functionality Includes real- time monitoring of aggressive driving and video analytics with in -cab coaching Geographical Information System (GIS) - based capabilities Records, collects, manipulates, analyzes and interprets all types of spatial or geographical data This function is supported Electronic on- board recorder/Tacho graph This function is supported Vision dash cam uses sensor technology to track driver performance Not core Not core functionality functionality Trimble This function is This function is supported supported Provides in - vehicle, proactive coaching with customized messaging and rules This function is supported Not core Not core functionality functionality Not core functionality Not core Not core functionality functionality Provides an interactive, easy-to-use interface with 2D, 3D and Driver Safety views Geotab's GPS vehicle tracking and telematics starts recording as soon as the driver begins driving Provides a platform that brings forward - facing camera technology and PeopleNet's Onboard Event Recording (OER) into an integrated system SAP Not core functionality Not core functionality Not core functionality Focus Provides instant messaging between drivers and dispatchers This function is supported This function is supported Not core Not core functionality functionality 115 © Deloitte LLP and affiliated entities. 1 Functional requirements FIPPt Antimi7atinn The chart below outlines the functional requirements related to optimization of the fleet operation, productivity increase by adopting technology such as dynamic routing. Functional Verizon Requirement Connect Dynamic dispatching and routing Ability to reduce insurance premiums Ability to provide custom reports to assist decision making Fleet Complete This function is This function is supported supported Provide proof of safety driving record; Verizon works with a number of insurance companies to leverage the telematics data, improving fleet driving safety standards Partnered with Intact Insurance to offer clients significant saving This function is This function is supported supported RTA Not core functionality Coencorp Geotab This function is This function is supported supported Not core Not core functionality functionality Not core Not core functionality functionality Assist to prove no-fault to insurance by providing safety driving records; No partnership with insurance companies Trimble -o a) rn a) J Confirmed Needs further Not core SAP Not core Not core functionality functionality Focus This function is supported Not core functionality Not core Not core functionality functionality This function is This function is This function is This function is supported supported supported supported 116 © Deloitte LLP and affiliated entities. 1 Non-functional Requirements Non-functional Requirements In order to achieve the City's expected outcomes of the new fleet management and vehicle tracking system, 7 functional requirements were identified and used as the criteria in assessing the 8 technology options. IT - Integration & Compatibility The diagram below shows requirements that a fleet solution should be able to meet in order to achieve a direct integration with the City's other applications and connect to Internet of Things (IoT). a) a) J Confirmed Needs further investigation Not core functionality Non - Verizon Fleet Functional Connect Complete Requirement Ability to achieve direct integration with SAP IoT application enablement RTA Coencorp Geotab Trimble SAP Focus Can be Can be API* features Can be Fleet telematics API features This function is This function is integrated with integrated with enabled integrated with data can be enabled supported supported SAP SAP SAP integrated into City's other system by leveraging software development kit (SDK)** This function is This function is This function is This function is This function is This function is This function is This function is supported supported supported supported supported supported supported supported *An application programming interface (API) is an interface or communication protocol between a client and a server intended to simplify the building of client -side software. It has been described as a "contract" between the client and the server, such that if the client makes a request in a specific format, it will always get a response in a specific format or initiate a defined action. **The SDK is available in the following ways: HTTP JSON web service, Native C# library and Native JavaScript library 117 © Deloitte LLP and affiliated entities. This function is This function is This function is This function is This function is This function is This function is This function is supported supported supported supported supported supported supported supported This function is This function is supported supported Fleet Complete RTA Coencorp Geotab -o c a) a) J Confirmed Needs further investigation Not core functionality Trimble SAP Focus Received complaints for poor customer support and issues with engine diagnostics synchronization , system glitches, and mileage tracking 1 Non-functional Requirements TT — nanlnvmint anti cnnnnrtc The chart below depicts the system's ability to offer cloud -based solution and provide a user-friendly platform with fast issue resolution support. Non - Verizon Functional Connect Requirement Ability of system to offer cloud -based solution Ability to provide intuitive and easy to learn user interface Ability to provide fast issue resolution supports Received complaints from current users within the City This function is RTA Fleet supported Management offers the following support options: FAQs, Forum, Knowledge Base, Online Support, Phone Support, Video Tutorials This function is This function is This function is This function is This function is supported supported supported supported supported This function is This function is This function is This function is This function is supported supported supported supported supported 118 © Deloitte LLP and affiliated entities. 1 Non-functional Requirements SPrurity R Safi{ The chart below depicts the system's ability to ensure data security and safety to protect personal data such as emails, passwords, and vehicle information. Non - Verizon Functional Connect Requirement Data Security Details on Cloud Hosting Fleet Complete RTA Coencorp Geotab a) a) J Confirmed Needs further investigation Not core functionality Trimble SAP Focus Comprehensive data privacy policy in place to ensure personal data such as emails, passwords, and vehicle information are protected Networks and systems are secured, monitored and managed centrally to protect against unauthorized access or abuse Comprehensive data privacy policy in place to ensure personal data such as emails, passwords, and vehicle information are protected Comprehensive data privacy policy in place to ensure personal data such as emails, passwords, and vehicle information are protected Comprehensive data privacy policy in place to ensure personal data such as emails, passwords, and vehicle information are protected Comprehensive data privacy policy in place to ensure personal data such as emails, passwords, and vehicle information are protected Comprehensive data privacy policy in place to ensure personal data such as emails, passwords, and vehicle information are protected Comprehensive data privacy policy in place to ensure personal data such as emails, passwords, and vehicle information are protected Within the United States of America Within Canada The service is controlled, operated, and administered by RTA within the United States of America Within Canada (Quebec) All Geotab server infrastructure is hosted in Google Cloud Platform Within the United States of America Depends on the location of SAP Cloud Platform (SCP) Vendor has data centres in Canada 119 © Deloitte LLP and affiliated entities. Technology options Provider portfolio The sources for the technology options research include: Gartner report "2018 Market Guide for Transportation Mobility Technology", the providers' official websites, solution brochures provided by the providers, and customer reviews available on the web. Verizon Connect offers a cloud -based, software -as -a -service (SaaS) platform. It provides innovative fleet tracking solutions with advanced GPS tracking to seamlessly monitor and manage the entire mobile workforce. verizon ' connect Highlights • Verizon Connect (formerly Verizon Telematics) is a U.S.-based company that offers telematics, field service management, routing and scheduling and analytics. • Verizon Connect has become the largest global fleet telematics provider after its acquisitions of Telogis and Fleetmatics in 2016. • Industries: Supports a number of industries including government and municipalities on an international level. • https://www.verizonconnect.com/ca/solutions/gps-fleet-tracking-software/ Core Strengths • According to Gartner Research's Market Guide, Verizon is a large vendor with global reach that offers broader solutions, not only in telematics but also IoT. • With in -cab real-time alerts, an audible buzzer reminds drivers when unsafe driving is detected. • Verizon Connect uses asset utilization reports to make better use of the equipment and provides actionable suggestions to sell off rarely used assets and scale back on daily maintenance costs. • Enables reshuffle and prioritization of stops on the fly to decrease the distance traveled between jobs, improving response times. • Historical reports provide proof of safety driving record, helping lower insurance rates. Verizon also works with a number of insurance companies to leverage the telematics data, improving fleet driving safety standards which could reduce insurance spend. -leet Complete Fleet Complete is a cloud -based fleet management solution for (lirrFleetComplete businesses of all sizes. It is a leading global provider of mission -critical fleet, asset and mobile workforce management solutions to over 6,000 customers worldwide. Highlights • Fleet Complete is a Canadian company based in Toronto, Ontario. • With a reported growth rate above 53% in 2018, Fleet Complete currently ranks as one of the fastest growing telematics companies among the top international aftermarket solution providers in fleet management. • Industries: Supports a number of industries including government and municipalities on an international level. • www.fleetcomplete.com Core Strengths • The driver safety program includes real-time monitoring of aggressive driving and video analytics with in - cab coaching to increase self-awareness and accountability on the road. • Fleet Tracker collects over 20 data points from the vehicle's onboard computer, along with Diagnostic Trouble Codes. It notifies the fleet manager of minor or major defects before critical breakage occurs, helping minimize downtime and prolong vehicle health. • Fleet Complete partnered with Intact Insurance to offer clients savings and contribute to stable insurance costs. 121 © Deloitte LLP and affiliated entities. RTA Fleet Manaaement Software RTA Fleet Management software is an integrated vehicle tracking and inventory management solution designed for transport businesses of all sizes. The solution can either be installed locally on -premises or hosted on a secure cloud facility. Highlights • RTA Fleet Management is a U.S.-based company. • RTA was founded in 1979 and based in Glendale, Arizona. • Industries: Supports a number of industries including government and municipalities in North America. • www.rtafleet.com/rta-mobile/ 4r. fleet Management Software Core Strengths • RTA Fleet Management software offers a robust inventory management feature, allowing fleet managers to manage parts inventory, assign unique numbers to each item and keep a record of parts usage. It provides Vendor Tracking, Cost Markup, Unlimited Cross -Referencing, Warrant Tracking, and Back Order Tracking. • The solution also tracks warranties for each item and measures vendor performance. • Tire management: RTA provides Tire Size Tracking, PSI Tracking, Tires in Inventory List, Tire History, Tire Tread Depth Tracking, and Tires in Inventory. Figure 17: RTA Dashboard Summary: The dashboard shows a facility's vehicle availability, inventory count/values and labour hours. ® DEFAULT - Facility: 00001 File IEtitp8 Exit 0 it Region Facility c Reload 02/04/2016 11:21 A.M. PM Info PO Info WO Info - Past Due 23 Due Now 3 - Due Soon 34 PMs Due A PMs Past Due:I 15 IJ D PMs Past Due:I 7 ICE] Completed PCs. Open POs Aged POs. Requisitions Pending: PTD Purchases. D I 77 $48,370.85 Open WC Lines: 42 JOpen WOs: J Drake Jobs Due: ] WWOs Open Over 45 Days: _.2J Open Warranty Claims: Vehicle Availability Vehicles Down'. 0 54 100 162 216 '. Available Vehicles: Total Vehicles: Unavailable Vehicles: 202 216 I 14 Available 202 - Unavailable 14 Vehicle Status: J J ▪ Tank: 0020 D 10000 Inventory 0 36 3 Mechanic Hours Parts Cycle Count Oompletipn: 0 out of 651 = OD% Net Parts Adjustments. I 51,659°75 MTD Direct Labor Hours: MTD Hours Paid: • MTD H ours Worked: Parts Inventory Value: I $98.304.051j]I Parts Warranty Count. I 0 Tank: 0010 U 10000 7500 7500 5000 2500 0 5000 2540 0 Direct 2 Indirect 3 Mechanics D Irect/Indirect Jobs. 209.9 I 1,400.0 I 227.0 I • 122 © Deloitte LLP and affiliated entities. Coencoro Coencorp is a leading innovator of automated fleet and fuel management solutions. Site Manager 2 (SM2) is Coencorp's web - based software platform that incorporates dedicated hardware COMI-1CORP peripheral devices to provide a fully integrated hardware and software solution. Highlights • Coencorp is a Canadian company founded in 1991 and headquartered in Montreal. • Industries: Supports a number of industries including government and municipalities on an international level. • www.coencorp.com/ Core Strengths • Coencorp aims to reduce environmental footprint, monitor fuel loss through leakage using the electronic system, and aid operators in recognizing the potential problem and halting the leak before both fuel is lost and damage to the environment is caused. This has a direct impact on insurance costs, labor and health expenses, as well as giving a potential extra access to green funding. • SM2 automatically monitors the remote generators and engine status, provides seamless and accurate updates of critical maintenance planning data such as mileage, engine hours, and fuel consumption. Figure 18: Coencorp Dashboard Summary: An example of Coencorp's custom dashboard that can be configured according to the user's needs. 1 coencopa t F 131.01130310 Noma. WI K 030x. ro.u1 1. . 0.31000 11030 • 00 0a0 0 10000 100 00010 1011:14 an Noe..Ntik 1YN*t'l p1 i, 00•11.101•1 011 En, 0330 . 1j00000. M.we.H..wee.Won 003 .. Van C003 0.010v103wa00! a030 003 uu nw3m. Hw an11000 303caN v..N aka e a 1 1000.101, w n... 1 16000 30 3009111,1•.• 110110001 1 ,_rvT 3010 11131011 - _IitL 1E k t1 t.. MOW MOW HMO u. oir 100 0 21010 1011 123 © Deloitte LLP and affiliated entities. Geotab Inc. Geotab Inc. is a privately held company that specializes in the area of global positioning system, fleet management and vehicle tracking. GEOTAB management by measurement Geotab focuses on building a platform where businesses are able to customize their solution, access data, and discover actionable insights on one web -based software solution. Highlights • Geotab was founded in 2000 and is headquartered in Ontario, Canada. In June of 2018 Geotab acquired FleetCarma, a telematics player in the electric vehicle fleet management space. • In 2018 Geotab announced the launch of "IoT Data Insight Solutions". This publicly available tool helps enable smart cities, leveraging data collected from over 1 million vehicles equipped with Geotab telematics devices. • Industries: Supports a number of industries including government and municipalities on an international level. • www.geotab.com/ Core Strengths • Geotab has been included in Deloitte's Technology Fast 500 list in North America for 5 years (2010- 2014). In 2014, Geotab was in the top 20 in the Software sector of the Fast 500. • Geotab uses customized driver "zone" for geo-fencing and provides exception reporting and notifications for exiting defined "zones". • The system provides electronic logging device (ELD) compliance with alerts to minimize Hours of Service (HOS) violations with in -app driver warnings; Real-time alerts for violations and drivers not logged in; Compliance managers can track driver logs, violations and hours remaining. • Visibility into trends on fuel usage and fill -ups, access to critical engine data for proactive vehicle maintenance; Tracks key fuel metrics: Fuel consumption, Fuel economy (the actual MPG), Fuel level, Fuel idling, Engine faults (such as faulty oxygen sensor). Trimble Transportation, formerly PeopleNet, a Trimble (NASDAQ: TRMB) Company and leading provider of fleet mobility technology. r;�Trimble Highlights • In 2018, Trimble unified PeopleNet, TMW and 10-4 under a singular brand, articulating its approach in providing a comprehensive fleet mobility, management and logistics platform, enabling customers to connect all aspects of their business—trucks, drivers, freight and assets—to make more informed decisions and reach new levels of productivity, efficiency and safety. • Industries: Supports a number of industries including government and municipalities in North America. • www.transportation.trimble.com Core Strengths • The system is capable of engine management and tele -diagnostics, and has options for extensive customization. • The platform utilizes a professionally managed network that uses satellites and wireless carriers to return all telematics data to the data centers almost instantly. The data stored in the system can be accessed via any web based software application, mobile devices, or 3rd party platform with an access to the API. • Trimble's Fleet & Asset Trackers provide GPS visibility, event monitoring, and remote asset data on a near -global basis. • The system provides an interactive, easy-to-use interface with 2D, 3D and Driver Safety views; Safe, accurate and truck -legal spoken turn -by -turn navigation. 124 © Deloitte LLP and affiliated entities. SAP Fleet Solution SAP is a German multinational software corporation that makes enterprise software to manage business operations and customer relations. SAP offers a fleet management solution that can be added and integrated into its existing suite of solutions. Highlights • SAP is the City's new ERP system and was included in the research given the City already has a software contract in place with the vendor. • Key SAP fleet management features are: - Fleet Administration: Fleet administration manages the procurement, leasing, insurance, depreciation, and personnel allocation of fleet objects. — Fleet Maintenance: Fleet maintenance includes repair, tire management, and warranty management. — Transportation Logistics: This process includes capabilities for vehicle tracking, scheduling, and routing to improve fleet efficiency, productivity, accountability, and profitability. — Fleet Analysis: Fleet -specific reporting that analyzes the cost of fleet, performance analysis, transportation logistics analysis, fleet consumption analysis. — Capacity Planning Capacity requirements planning can help determine which fleet objects are available and when to assign them to order operations. Core Strengths • As a standalone solution, SAP S/4HANA's sophistication makes it a popular choice for fleets that form part of a larger supply chain. • SAP partners with companies in the fleet management sphere as well. These include a mix of global players: Telogis, ARI, TomTom, Chevin, and others. • The fleet object can be used as a reference object for maintenance or service tasks, notification or an order. User can also perform maintenance planning for a fleet object. 125 © Deloitte LLP and affiliated entities. Fnr1 rc Focus was established in 1972 and initially involved in the radio communication service industry. Focus later launched projects to develop cloud -based vehicle tracking software that transferred GPS data to fleet dispatchers and started to provide a solution that fully integrates fleet tracking, fuel inventory monitoring and maintenance management. FOCUS 5x41AFZ7 r : L' C : ORT IN11zATION Highlights • Focus is the fleet management provider for the Ministere des Transports du Quebec. • Focus is a Canadian company founded in 1972 and headquartered in Quebec. • Industries: Supports a number of industries including government and municipalities on a national level. Core Strengths • Focus introduced its new fuel management system integrated with its fleet management solution with electronic driver and equipment I.D. These new services were designed to help users optimize productivity and achieve fuel savings. • Focus has a task management feature that monitors material resources used in predefined tasks. • The system generates calendar -based, mileage -based, and hour -based maintenance alerts. • Focus Fuel extension controls the activity of fuel tanks, supervises filling activities per equipment, per employee and per supplier, and provides analytical reports on fuel consumption. • For City of Pickering, Focus installed GNX-5P on -board model in each vehicle. It was the latest model offered by manufacturer and supports multiple wireless communication options including General Packet Radio Services (GPRS), 4G, 3G High Speed Packet Access (HSPA) and 2G Code -Division Multiple Access (CDMA). Figure 19: Focus Repair Report Screen Summary: Focus provides mechanical history for each vehicle, maintenance work category, mechanics, cost, and time spent associated with each repair. la A€NNRREPWIT ,_ AEPA1(REPOAT LUISA-11S. 4F111IRE 6174 14611FIKMT 6571 6FSCR(TI66.1 HSTF anc.oew 01611tu1TF 41104164( (CMG • I'JV.)w 1 s IAa I s 6 N((( Truck 647 26:1-040. R.Ry1 he GdrtpeR$1G 16,c,c k5-.-U.1i 211,13 Mock 511.2 3.3141,511 T1rt !Yung. WE. r.0. Camp. 50C Ge56 5813 Truk 152 751111-15 {y Amkp Pk C,-1.511 Y Fk REAM? `n- 0.7.715 RM6 h17p1102 651.1115 ripen M/s HERM he Gam ;5 } R R53.11.• M3115 5601 MUM • Tr14(E72 106716-11 6 Ms 5.X6 4m56 1110.1 502 70]6-1]-61 rlR SGCi 016 In.. E•3 .31343415.15 014 GME 4.6.1. r4*R0ew11$:1 (epwl$: Cstegu5 d: Prowre}¢►: ti Sire E3 $711x1 EV,271111Fr • URF61767 • P46611E6 MI- • S RIRTh - SNOOP • roux • Th). 612 AfNr r>ire0ekis c t 646E 1.65E O405 rrutl 452 Afpa Gam* RBC - lupi 6.053 SAC Truck 661 •]Y Paola CRr10011 I 1.3.J05 19U 1i.% 61.716 n #16 126 © Deloitte LLP and affiliated entities. Conclusion Based on the information gathered in this report, there is a gap between the City's current software capability and processes, and the desired performance of its fleet operations. The City's existing fleet management and vehicle tracking solution has aged. It lacks the functionality required to realize efficiencies, save costs and improve day-to-day functions. These functionalities are well- developed in some fleet management software on the market today. The current software has very limited capabilities in fleet data analytics, vehicle tracking, and maintenance scheduling, which were the areas identified with the most significant opportunities for improvement. In the efforts of achieving the City's expected outcome of lower risks associated with fleet investments, lower operating cost, higher volume of work output, increased worker safety, higher integration level across different departments and improved resident satisfaction, a list of functional and non-functional requirements for a new fleet management software has been developed, and 8 potential providers of fleet management and vehicle tracking solutions have been assessed against the requirements. Please note that the analysis in this report was conducted based on information that was made available during the meetings and interviews with the City. The requirements generated are high-level and serve the purpose of scanning the potential fleet management and vehicle tracking solutions available on the market. A formal system selection with potential vendors and a full list of detailed functional and non-functional requirements is needed in order to thoroughly assess the solutions and to accurately quantify the cost savings. A system selection will include formal scoring and detailed solution demonstrations and should follow the City's bylaws for software procurement and potentially a RFP (Request for Proposal) process. An estimate of potential cost savings is calculated based on the 108 vehicles that have been actively managed by the Operations team and the cost savings observed in a use case of a similar sized fleet. An annual incremental cost savings of $308,667 could potentially be achieved by upgrading Pickering's fleet management and vehicle tracking system, assuming the new solution meets the City's requirements around Vehicle Maintenance, Dispatching and Routing, and Inventory Management. In order to successfully implement such a solution, the City will need to review their internal resourcing levels to ensure adequate support for a transformational project, including system implementation, process changes and ongoing maintenance. 127 © Deloitte LLP and affiliated entities. Deloitte. www.deloitte.ca About Deloitte Deloitte provides audit & assurance, consulting, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500® companies through a globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights and service to address clients' most complex business challenges. To learn more about how Deloitte's approximately 264,000 professionals -9,400 of whom are based in Canada—make an impact that matters, please connect with us on Linkedln, Twitter or Facebook. Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. © Deloitte LLP and affiliated entities.