Agenda Alternate Service Delivery Committee October 22, 2012 REPORTS Item No.

o. 3 Alternate Service Delivery Candidate Report for Custodial Services

WINNIPEG PUBLIC SERVICE RECOMMENDATION: 1. That the Public Service be directed to initiate proceedings through the Modified Managed Competition process for the contracting out of Custodial Services.

ADMINISTRATIVE REPORT
Title: Alternate Service Delivery Candidate Report for Custodial Services Alternate Service Delivery Committee

Critical Path:

AUTHORIZATION

Authors Iain Day Georges Chartier

Department Head Barry Thorgrimson / Mike Ruta

CFO Mike Ruta

CAO Deepak Joshi

RECOMMENDATIONS
1. That the Public Service be directed to initiate proceedings through the Modified Managed Competition process for the contracting out of Custodial Services.

REASON FOR THE REPORT

Potential contracting out initiatives require the Public Service to follow the Modified Managed Competition process, adopted by Council on March 21, 2012, and the Letter of Understanding between the City of Winnipeg and The Canadian Union of Public Employees, Local 500 Re: Change Initiatives.

IMPLICATIONS OF THE RECOMMENDATIONS

The Public Service will follow the Alternate Service Delivery / Modified Managed Competition process with the intention of implementing an alternative operating model for Custodial Services (for office buildings and aquatic facilities). The recommendations for Custodial Services (office buildings and aquatic facilities) may result in potential savings for the City in the order of approximately $1,000,000 annually once fully implemented. It assumes an aggressive timeline for reduction of positions through attrition and redeployment. If Custodial Services for both office buildings staff (30 FTEs) and aquatic facilities staff (23 FTEs), were to be implemented at the same time, the ability of the Planning, Property and Development department to redeploy 53 staff would be limited. 2

HISTORY
Discussion Custodial Services Within the office and other buildings group, a combination of City custodial staff and custodial contractors are currently used. As of 2012, City staff clean approximately 36% of the occupied space while contractors clean approximately 64%. With this initiative, the City will strive to contract 100% of building cleaning within two years beginning in 2013 with the exception of Winnipeg Police Service buildings which require civic staff that clean their buildings to meet Level 3 security clearance requirements. The initiative would impact 30 FTEs. Within the aquatic facilities group, cleaning is currently performed by City staff. With this initiative, all Building Servicer positions whose primary duties are cleaning, will be eliminated and replaced with contracted cleaners. The initiative would impact 23 FTEs. The initial contracts would be awarded in 2013. Planning, Property and Development Department recommends contracting all building cleaning to the private sector through a staged implementation based on the ability of the City to redeploy affected staff.

FINANCIAL IMPACT

Financial Impact Statement Project Name: Alternate Service Delivery Candidates

COMMENTS:

Date:

Sept 14, 2012

The recommendation contained in this report is that the Public Service initiate proceedings through the Modified Managed Competition process for the contracting out of custodial services. The recommendation to contract out custodial services could potentially reduce costs for the City of Winnipeg in the order of $1,000,000 annually once fully implemented. It also assumes an aggressive timeline for elimination of positions through attrition and redeployment. The estimate of potential savings are preliminary in nature and are presented for discussion purposes only. Further due diligence is required prior to presenting the financial implications associated with the potential ASD candidate.

"Original Signed By" Mike McGinn, CA Manager of Finance

CONSULTATION
In preparing this report there was consultation with: Planning, Property & Development, Corporate Finance

SUBMITTED BY
Department: Division: Prepared by: Date: Planning, Property & Development, Corporate Finance Iain Day and Georges Chartier September 18, 2012