Agenda – Executive Policy Committee – September 17, 2019

Moved by Councillor
That Rule 10(3) of The Procedure By-law No. 50/2007 be suspended in
order that the following item, which was received less than four business days preceding the
committee meeting, be considered by Committee.

ADDENDUM REPORTS
Item No. 13

Investigation into Allegations of Improper Conduct within Property,
Planning and Development

WINNIPEG PUBLIC SERVICE RECOMMENDATION:
1.

That this report be received as information.

1

 ADMINISTRATIVE REPORT
Title:

Investigation into allegations of improper conduct within Property, Planning &
Development

Critical Path: Executive Policy Committee - Council
AUTHORIZATION
Author

Department Head

CFO

Interim CAO

M. Ruta

M. Ruta

N/A

M. Ruta

EXECUTIVE SUMMARY
Over the past five months, the City of Winnipeg’s (City) Human Resource Services Department
(HRS) investigated allegations of improper conduct levelled against inspectors in the Planning,
Property & Development Department (PP&D). The investigation focused on two business units
within PP&D’s Development & Inspections Division, the Commercial Planning Examination &
Inspections Branch (Commercial Branch) and the Housing & Existing Buildings Branch
(Housing Branch).
The extensive investigation determined:





A number of inspectors in the Development & Inspections Division participated in
extended and sometime excessive coffee and lunch breaks on a regular basis.
A number of inspectors misused time by doing personal shopping, running personal
errands, and doing family or personal chores on City time.
A number of inspectors regularly left early; with some found to have been misusing paid
City time, claiming mileage inappropriately, and accepted money as a result.
Management at appropriate levels in the department had suspicion of some issues
related to staff activity, however not enough was done to enforce workplace rules and
they were not adequately connected to the activities of frontline staff in the Commercial
Branch.

A total of 20 staff members received an outcome ranging from non-disciplinary letters up to
termination of employment:





Eight employees were terminated
Seven employees received suspensions
Four employees received a written reprimand
One employee received a letter on file that was non-disciplinary

The respective Bargaining Units, which represent the majority of these employees, have grieved
the disciplinary action taken.

2

 As a result of the findings, the Interim CAO will be working with City departments to implement
the following items:










Prioritize a review of field operations across all City departments to ensure consistency
in procedures and management.
Engage an external consultant to work with the CAO’s Office to assist the PP&D Director
in reviewing all PP&D operations to ensure they are functioning optimally and to identify
any potential issues that might exist beyond the Development & Inspections Division.
HRS will assist PP&D to complete a cross jurisdictional scan of other comparable
municipalities to determine how they measure productivity and estimate inspection time
frames.
In coordination with the Interim CAO, the PP&D Director will prioritize plans to move the
department forward including a review of the department structure, a review of
management, and hiring new staff.
The Acting Chief Innovation Officer will work with all City departments to explore the use
of technology to help with accounting for staff time and tracking productivity, while still
supporting staff to maintain the autonomy needed to do their job.
HRS will work with Unions to review shift start times, end times, and break times for staff
in the Commercial Branch to find a way to better meet customer requirements while still
respecting employee working conditions.
HRS will work with departments to create a new orientation process for all new leaders
to ensure they understand the tools available to them when they are promoted or hired
into a new supervisory role. They will also work to implement stronger training to assist
supervisors across all City departments in transitioning from coworker to supervisor.
Request PP&D explore the use of fleet vehicles for field staff instead of the current
practice of using private vehicles.

RECOMMENDATIONS
1. That this report be received as information.
REASON FOR THE REPORT
On April 16, 2019 the Executive Policy Committee concurred in the recommendation of the
Assiniboia Community Committee and directed the Chief Administrative Officer to make public
to Council a full and detailed report of the employee conduct investigation within the Planning,
Property and Development Department, including findings, within 30 days of the closing of the
investigation.
IMPLICATIONS OF THE RECOMMENDATIONS
There are no implications of the recommendation as the report is to be received as information.

3

 HISTORY/DISCUSSION
Over the past five months, the City of Winnipeg’s (City) Human Resource Services Department
(HRS) investigated allegations of improper conduct levelled against inspectors in the Planning,
Property & Development Department (PP&D) which surfaced through the media in April 2019.
The investigation focused on two business units within PP&D’s Development & Inspections
Division, the Commercial Planning Examination & Inspections Branch (Commercial Branch) and
the Housing & Existing Buildings Branch (Housing Branch). Included in the Appendix are
details of the department’s organizational structure.
All inspections staff is represented by the Canadian Union of Public Employees, Local 500
(CUPE). The inspectors work a seven hour day, and they are entitled to one hour of unpaid
time, as per the collective agreement.
Supervisors are covered under the Winnipeg Association of Public Service Officers (WAPSO)
collective agreement. They also work a seven hour day, and are entitled to one hour of unpaid
time, as per the collective agreement.
The department, consistent with City-wide practice, allowed up to two 15 minute breaks (one
each morning and each afternoon); however, they are not guaranteed under the collective
agreements. Employees typically start their shifts at 8 a.m. or 8:30 a.m., and some employees
have accommodated start times. Employees are expected to be working until 4 p.m. or 4:30
p.m. daily, to correspond with their start times.
When the allegations first surfaced through the media, there were limited controls in place to
monitor or audit the performance or productivity of Commercial Inspectors. Basic control
mechanisms including logging daily activities, sites visited, how long they were there, who they
saw, when they left, how many kilometers they used, and what they specifically accomplished,
in addition to what time they were leaving work for home at end of day were not required. They
were not held accountable to input AMANDA (the computerized building permits work flow
process and record system used by PP&D) entries immediately following appointments.
Commercial Inspectors also were not required to wear City-branded clothing.
The Housing Branch implemented a scheduling and inspection appointment system in 2012 that
has more built-in controls to support assigning work and accounting for employee time. Housing
Inspectors are scheduled for appointments for 150 minutes in the morning, an hour of unpaid
time, and 210 minutes in the afternoon. They have a full day of appointments set before they
leave the office in the morning. They are easily identifiable, wearing City-branded clothing, first
implemented in 2017. Housing Inspectors have less ability to change their schedules and use
time inappropriately.
While the two inspection branches perform similar work, their work flow, work processes and
work environments are very different, which was confirmed throughout the investigation team’s
interviews. The following chart highlights key differences between inspectors in the two
branches up to April, 2019:

4

 Commercial Inspectors
Inspectors self-schedule and work directly with
general contractors and specific trades
Inspectors are asked to leave a list of
inspections that are booked or planned for the
day, they are required to fill-in daily activities
post-inspections as well
There are no standardized time estimates for
commercial inspections – appointment times can
vary significantly

Housing Inspectors
Schedules and lunch times can be set
and/or are entered in to the AMANDA*
system by support clerks
Daily inspections are known before Housing
Inspectors leave for their appointments

Estimated time standards are identified by
inspection type, and time is allotted for the
appointment as set by AMANDA*

Customers contact the inspectors directly to
negotiate appointment times, and clients do not
have regular contact with department staff to
book inspections; Commercial customers don’t
have a support clerks to call for missed
appointments

Customers can see inspector availability by
location/area online; appointments are
booked by support clerks in the department
and customers can contact the office in the
event the inspector does not show up at the
scheduled time, or if there is a problem

Lunches and breaks are taken around
appointment times and need to be somewhat
flexible, as commercial inspection appointments
can take extra time or have delays at the
worksite

Time is allotted between scheduled
appointments for lunch

One hour lunch blocks are not necessarily the
best for Commercial Inspectors as it makes it
difficult to book or take an extended
appointment.

One hour lunch blocks seem to be an
acceptable option with Housing Inspectors.

Expectations for timely reporting in AMANDA*
was not monitored as regularly; there is no
evidence that reports were run by supervisors –
same or next day report inputs were the
expectation.

Submitting reports is required daily and is
encouraged after each appointment, but
many Housing Inspectors still submit them in
the morning; daily reports are run by the
Inspections Supervisor but it is unclear how
in-depth they are reviewed.

*AMANDA is the computerized building permits work flow process and record system used by
PP&D
These differences created opportunities for significant discretion for Commercial Inspectors and
to a lesser degree for the Housing Inspectors.
After the allegations surfaced through the media, an investigation team was assembled
consisting of members of HRS, led by the Labour Relations Division, to review the Commercials
Inspectors Division.

5

 Investigators formulated the following questions to help guide their investigation into the
allegations:
1. Did inspectors participate in extended and often excessive coffee and lunch breaks?
2. Did inspectors do personal shopping, run personal errands, and/or do chores on City
time?
3. Did inspectors leave early and misuse paid City time?
4. Did it take months for inspections to be undertaken on electrical permits and related
work?
5. To what degree was management aware, and what is their role and responsibility?
The investigation team conducted a thorough investigation into the matter. They conducted
nearly 100 staff interviews, reviewed 63 employee files, had access to over 80,000 records,
pulled 1,500 work logs, conducted 16 employee electronic searches, and downloaded three
months of mileage claims and data from January 1, 2019 to March 31, 2019. In addition, the
investigation team reviewed more than 20 hours of video and surveillance material, which was
obtained on June 21, 2019 for a cost of $18,000 from an external group.
Considering all of the findings, the information provided, and the responses of those
interviewed, the outcome of the investigation determined the following:






It was proven that a number of inspectors in the Development & Inspections Division
participated in extended and sometime excessive coffee and lunch breaks on a regular
basis.
It was proven that a number of inspectors misused time by doing personal shopping,
running personal errands, and doing family or personal chores on City time.
It was proven that a number of inspectors regularly left early with some found to have
been misusing paid City time, claiming mileage inappropriately, and accepted money as
a result.
It was not proven that it takes months for final inspections on electrical work.
It was proven that management at appropriate levels in the department had concerns
related to staff activity however, they did not do enough to enforce workplace rules and
they were not adequately connected to the activities of frontline staff in the Commercial
Branch.

The investigation team contemplated a number of considerations, in addition to consulting with
external legal counsel, before disciplinary outcomes were decided.
Among the considerations was the basis that the relationship between employees and their
employer is one that is based on trust, and employees should not have to be told or reminded of
the requirement to be honest. In addition, a balanced approach to assessment of the facts was
required to determine accountability, and therefore both leaders and employees were
considered for their role in this situation.
It was also considered that dishonesty may arise in a variety of situations including lying,
falsifying documents, or giving false statements. However, there is a principle in labour and
employment law that in every employment relationship, employees owe to the employer an
implied obligation of honesty and good faith. This was interpreted to mean that employees are
obligated to answer the reasonable inquiries of their employer, they are required to answer

6

 honestly, and, where there are concerns about their trustworthiness, they are obligated to
provide an explanation for their behaviour.
This investigation looked at employee time theft, where an employee is paid for work that he or
she did not do which can happen by coming in late, leaving early, asking another employee to
clock in for them, taking extended breaks, or spending time on other things (including personal
matters) rather than working. While time theft is often difficult to detect and prove, and the most
effective way to prevent theft of employer time is to carefully monitor employees.
It is also grounds for discipline or termination when an employee is leaving work without
permission. The underlying legal principle is that employees are required to attend work when
scheduled, and not to leave without permission. Lateness is also an independent ground for
discipline or discharge, particularly where it is chronic and without reasonable explanation.
And finally, theft, including submitting false expense claims, is also, in most cases, considered
to be just cause for discipline or termination.
A total of 20 staff members received an outcome ranging from non-disciplinary letters up to
termination of employment:
 Eight employees were terminated
 Seven employees received suspensions
 Four employees received a written reprimand
 One employee received a letter on file that was non-disciplinary
In addition, all remaining employees involved received a letter/email of expectation to reaffirm
and reset the workplace, and to ensure workplace rules, policy, practice, administrative
standards, and expectations are clear.
The respective Bargaining Units that represents each of these employees has grieved the
disciplinary action taken.
As a result of the findings, the Interim CAO will be working with City departments to implement
the following items:






Prioritize a review of field operations across all City departments to ensure consistency
in procedures and management.
Engage an external consultant to work with the CAO’s Office to assist the PP&D Director
in reviewing all PP&D operations to ensure they are functioning optimally and to identify
any potential issues that might exist beyond the Development & Inspections Division.
HRS will assist PP&D to complete a cross jurisdictional scan of other comparable
municipalities to determine how they measure productivity and estimate inspection time
frames.
In coordination with the Interim CAO, the PP&D Director will prioritize plans to move the
department forward including a review of the department structure, a review of
management, and hiring new staff.
The Acting Chief Innovation Officer will work with all City departments to explore the use
of technology to help with accounting for staff time and tracking productivity, while still
supporting staff to maintain the autonomy needed to do their job.

7

 




HRS will work with Unions to review shift start times, end times, and break times for staff
in the Commercial Branch to find a way to better meet customer requirements while still
respecting employee working conditions.
HRS will work with departments to create a new orientation process for all new leaders
to ensure they understand the tools available to them when they are promoted or hired
into a new supervisory role. They will also work to implement stronger training to assist
supervisors across all City departments in transitioning from coworker to supervisor.
Request PP&D explore the use of fleet vehicles for field staff instead of the current
practice of using private vehicles.

Immediate changes were made by PP&D management in response to the allegations. Some of
these changes were communicated to Executive Policy Committee at their meeting on July 9,
2019, and these changes remain in place:










Commercial Inspectors are now required to provide a detailed daily log of the day’s
activities outside of the office, including tracking what time they left, time arrived on site,
time they leave the site, break times (start and end), and time leaving work for home at
end of day, and they are required to leave them for the supervisors before they leave for
the day
Any flex start time arrangements are now documented outside of business hours (8:30
a.m. – 4:30 p.m.) and are kept on file
Commercial Inspectors will begin wearing City-issued shirts/uniforms
Management will continue to conduct audits of daily logs and mileage claims
Commercial Inspectors must submit a list of daily planned inspections, before leaving to
perform inspections
Commercial Inspectors must enter field notes into online tracking forms in real time
The Director of PP&D directed management to remind staff of existing protocols related
to time keeping, record keeping, customer service, mileage tracking, data usage on
iPhones and iPads, and work alone protocols with inspectors
Department hired three additional support clerk positions to support the Commercial
Branch with implementing and arranging scheduled appointments for external calls,
similar to the process used in the Housing Branch

The department has been actively recruiting for new positions, has adjusting workloads to assist
areas that require support, and has enacted a strategy to enable staff to better respond to
inspection and occupancy requests in a timely manner.
The department has also been supported by Occupational Health & Safety and Workplace
Restoration teams through the Employee Assistance Plan to support staff and the department
with recovery efforts over the summer of 2019.
PP&D has operationalized a new Commercial Inspections Intake Centre to review, triage,
prioritize, and process building and plumbing/mechanical inspection requests.
In addition, over the summer of 2019, PP&D continued to monitor inspection times and
implemented an Interim Commercial Inspections Operation Strategy (Interim Strategy) to
mitigate project delays while maintaining service levels during this period of time where they are
not fully staffed.

8

 The focus of the commercial inspections team has been on major/complex inspection requests.
For the remaining requests, PP&D looked specifically at Section 483(3) of the City of Winnipeg
Charter which states: “For the purpose of an inspection, the city may rely on a certificate of or
representation by an engineer, architect, surveyor or other person with expertise respecting the
thing being certified or represented, and where the city relies on such a certificate or
representation, it is not liable for any loss or damage arising from the negligence of the person
giving the certificate or making the representation.”
The projects which PP&D deemed eligible for this path are those projects which are determined
to be less complex and to date, they have worked with the industry to develop specific
documentation to help these types of projects proceed. The Strategy has been working as
expected, allowing efficient responses to requests for service.
Consultations included the Manitoba Association of Architects (MAA), Engineers Geoscientists
of Manitoba (EGM), and the Association of Consulting Engineering Companies (ACEC). As a
result of those consultations, feedback was incorporated into the progress and final inspection
documentation. However, the MAA feedback indicated that there are professionals who have
expressed concerns with the alternative approach in providing certifications in lieu of City
inspections.
PP&D is continuing to monitor the Interim Strategy and will continue to make adjustments as
required.

9

 FINANCIAL IMPACT

Financial Impact StatementDate:

Date: September 11, 2019

Project Name:
Investigation into allegations of improper conduct within Property,
Planning & Development
COMMENTS:
As the recommendation is that this report be received as information, there are no financial implications
associated with this report.

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

10

 CONSULTATION
This Report has been prepared in consultation with:
Human Resource Services
Planning, Property & Development
OURWINNIPEG POLICY ALIGNMENT
n/a
SUBMITTED BY
Department:
Division:
Prepared by:
Date:

Office of the CAO
Office of the CAO
Michael Ruta, Interim Chief Administrative Officer
September 9, 2019

Attachments:
Appendix: Organizational Structure

11

 PLANNING, PROPERTY & DEVELOPMENT (PP&D) ORGANIZATIONAL STRUCTURE
The following chart illustrates the department’s organizational structure:

Director, Planning, Property
& Development

Executive Assistant

Chief Planner,
Urban Planning & Design

Manager,
Municipal Accommodations

Manager,
Economic Development

Manager,
Real Estate & Land
Development

Manager,
Development & Inspections

Manager,
Strategic Support Services

Manager,
Asset Management Office

Manager,
Finance & Administration

Manager,
Human Resources

Manager,
Information Systems &
Technology

A dotted line denotes a dual reporting relationship to respective Chief / Director.
As at April 1, 2019

Note, a dual reporting relationship exists for the Manager of Finance & Administration, Manager of
Information Systems & Technology, and Manager of Human Resources. These positions report directly
to the Corporate Finance Department, Innovation Department, and Human Resource Services
Department, respectively, and indirectly report to the Director of PP&D.
Division Manager is the term given to the manager that oversees one of the department’s divisions.
They have overall control and accountability for their functional area as it relates to identifying
resources, creating organizational structure, hiring and discipline (up to termination), and are
responsible for setting workplace practices and rules in accordance with the City’s Administrative
Standards.

12

 As of April 1, 2019 there were a total of 668 employees in the department.

PP&D EMPLOYEE COUNT
as at April 1, 2019
DIVISION

EMPLOYEE COUNT

Director’s Office
(includes Economic Development, Strategic Support
Services, and Asset Management)

14

Human Resources

7

Financial Services

16

Information Systems & Technology

8

Urban Planning & Design

47

Real Estate & Land Development

80

Municipal Accommodations

320

Development & Inspections

176

DEPARTMENT TOTAL

668

Note: Division Managers are included in their respective division counts. Employee counts also include
all employees whether they are actively working or on paid or unpaid leave, or seasonal workers.

13

 DEVELOPMENT & INSPECTIONS DIVISION
The Development & Inspections Division, which was the subject of the investigation, is segmented into
the following four branches:
1. Commercial Plan Examination & Inspections Branch
2. Housing & Existing Buildings Branch
3. Operations Support Services Branch
4. Zoning & Permits Branch
The following chart illustrates the division’s organizational structure:

Administrative
Assistant

Division Manager
Development & Inspections

Operations Support
Services Branch

Housing & Existing
Buildings Branch

Commercial Plan
Examination & Inspections
Branch

Zoning & Permits
Branch
As at April 1, 2019

The title Branch Manager refers to the individual heading up a branch of the Development & Inspections
Division. The Branch Manager is the closest to the work, managing workplace issues, dealing with
escalating supervisor issues, and escalating any larger issues to the Division Manager.
As of April 1, 2019 there were 176 employees in the Development & Inspections Branch.

DEVELOPMENT & INSPECTIONS DIVISION EMPLOYEE COUNT
as at April 1, 2019
BRANCH

EMPLOYEE COUNT

Commercial Plan Examination & Inspections

61

Housing & Existing Buildings

49

Zoning & Permits

45

Operations Support Services

21
DIVISION TOTAL

176

14

 COMMERCIAL BRANCH
The Commercial Branch primarily focuses on commercial buildings, ensuring the applicable building,
electrical, and plumbing codes are followed.
The following chart illustrates the organizational structure of the Commercial Branch’s inspections side
of the business unit:

Branch Manager,
Commercial Plan Examination and
Inspections

Administrator
Commercial Inspections

Supervisor
Mechanical Inspections

Supervisor
Building Inspections

Supervisor
Electrical Inspections

Mechanical
Inspectors
(6)

Buildings
Inspectors
(8)

Electrical
Inspectors
(10)

As at April 1, 2019

The Building Inspectors perform skilled inspections work enforcing compliance with the Winnipeg
Building By-law 4555/87 and Manitoba Building Code, and are responsible for inspecting designated
buildings with regards to occupancy permits. This position is also responsible for identifying deficiencies
and reviewing proposals for correction of defects, including alternative design proposals, initiating
enforcement of violations, and responding to complaints.
The Electrical Inspectors perform skilled inspections work enforcing compliance with the Winnipeg
Building By-law 4555/87, Manitoba Building Code, Winnipeg Electrical By-law 86/2018, and Canadian
Electrical Code, and are responsible for inspecting designated buildings with regards to occupancy
permits. This position is also responsible for identifying deficiencies and reviewing proposals for

15

 correction of defects, including alternative design proposals, initiating enforcement of violations, and
responding to complaints.
The Electrical Inspectors also respond to after-hours electrical inspections requests, sometimes in fire
damaged buildings or other extreme circumstances, and makes assessments of the suitability of reenergizing the installation. They also attend special events and inspect for potential public safety
hazards of an electrical nature.
The Mechanical Inspectors perform skilled inspections work enforcing compliance with the Winnipeg
Building By-law 4555/87, Manitoba Building Code, and Manitoba Plumbing Code, and are responsible
for inspecting designated buildings with regards to occupancy permits. This position is also responsible
for identifying deficiencies and reviewing proposals for correction of defects, including alternative
design proposals, initiating enforcement of violations, and responding to complaints.
The Inspections Supervisor is responsible for the day-to-day operations of the unit, including the
effective and consistent enforcement and interpretation of various codes, standards, regulations, and
building and electrical bylaws. Responsibilities include assigning daily work, staff leadership, problem
solving, understanding employee workload, reporting unusual events to managers, and the continual
review, evaluation, and improvement of the Branch programs and systems.
External occupational training for code inspections is not readily available therefore, job shadowing and
mentoring is relied upon for training on technical aspects and application of various code inspections.

16

 HOUSING BRANCH
The Housing Branch primarily focuses on ensuring building, electrical, mechanical, and plumbing work
for housing construction follow applicable codes and bylaws. The following chart illustrates the
organizational structure of the Housing Branch’s inspections side of the business unit:

Branch Manager
Housing & Existing
Buildings

Supervisor
Housing Inspections

Assistant Supervisor
Housing

Housing
Inspectors
(10)

Existing Buildings
Inspectors
(4)

District
Housing Inspectors
(15)

Senior
Housing Inspectors
(4)

As at April 1, 2019

The Housing Inspectors perform skilled inspections enforcing compliance of all electrical, plumbing, and
building requirements of the Winnipeg Building By-law 4555/87, Winnipeg Electrical By-law 86/2018,
Canadian Electrical Code, Manitoba Plumbing Code, and referenced standards related to the
construction or alteration of one and two-family dwellings, including row housing and related residential
structures.
The Existing Buildings Inspectors perform skilled inspections and office work in the enforcement of
various bylaws, standards, and regulations pertaining to existing buildings, structures, and properties.
They inspect properties and structures following established processes and enforcement methodology,
determine compliance or violations under the appropriate legislation, document the results and prepare

17

 corresponding Orders for Service upon the responsible party. Follow-up is conducted and further
enforcement actions are taken where non-compliance.
The Supervisor Housing Inspections is responsible for the day-to-day operations of the Branch, including
the effective and consistent enforcement and interpretation of various codes, standards, regulations,
and bylaws. Responsibilities include assigning daily work, staff leadership, problem solving,
understanding employee workload, reporting unusual events to managers, and the continual review,
evaluation, and improvement of the branch programs and systems.
The Housing Branch moved to combined inspections in early 2000’s, meaning a single inspector will
review all trade work (e.g. electrical, plumbing, and building) instead of multiple trade-specific
inspectors attending the building site. A new employee will have a specific trade’s ticket in building,
plumbing, or electrical, or a Certified Engineering Technologist (C.E.T.) designation in the electrical or
building trades. Once onboard, the employee will review the Winnipeg Building By-law 4555/87, and
take in-house courses on plumbing, electrical, HVAC, and building led by trade and specialized Senior
Housing Inspectors. For example, the plumbing course is five full days, including on-site inspection
training. Inspectors are signed-off by a Senior Housing Inspector before completing inspections
independently. Both groups continue training and protocol reviews through regular staff meetings. They
also receive email updates and direction from supervisors, Human Resources, and managers as required.

18