COMMUNITY SERVICES AND ENVIRONMENT COMMITTEE
	TO:	Mayor and Members of Council
	FROM:	Stan Bertoia, P.Eng., General Manager, Construction & Utilities
	PREPARED BY:	Jerry Klaus, General Manager, Waterworks
	DATE OF MEETING:	2004-Nov-15
	SUBJECT:	Progress Report on 2004 Waterworks Operational Review

RECOMMENDATION:

That the report entitled “Progress Report on 2004 Waterworks Operational Review” be received.

PURPOSE:

To update Council on the implementation of recommendations from the Waterworks Operational Review presentation to the Committee of the Whole, January 27, 2004.

BACKGROUND:

Council on January 27, 2004, approved the following recommendations from the Waterworks Operational Review:

1. Finalize Waterworks organizational structure and staffing plan in the first quarter of 2004

2. Finalize and implement strategy for attracting and retaining staff including compensation in first quarter 2004

3. Develop process and protocol to review and communicate statutory and regulatory requirements to staff and Council

4. Complete Service Level Agreements (SLA) with supporting departments in first Quarter of 2004

5. Develop Implementation plan for 2004-2006 recommendations

6. Provide regular progress report to Council on recommendations

7. Report to Council Quarterly on water quality compliance and annually to MOE in accordance with Regulation 170/03

8. Staff to review new technologies to determine what can be applied to move Waterworks back to technological leading edge and report back

OPTIONS/DISCUSSION:

1. Finalize Waterworks Organizational Structure and Staffing Plan in the First Quarter of 2004 - COMPLETED

Organizational structure and three year staffing plan was finalized. The organizational structure and 2004 staffing plan were presented to Council and approved on April 5, 2004. Council was also presented with the staffing plan for 2005 and 2006. The 2005/2006 staffing plans were received and are subject to Waterworks obtaining Council approval each year.

With assistance from Human Resources, Waterworks interviewed many prospective candidates. for the required positions. Finding qualified and experienced staff was very challenging due to overall shortages and competition for staff in the Engineering and Waterworks market. This resulted in some delay in filling the vacant positions. However, we are pleased to report that eight positions have been filled. The remaining three positions are in progress and should be filled by end of 2004.

Waterworks is now preparing their Capital and Operating Budgets and will be presenting these and a staffing plan for 2005 to the Budget Sub-Committee for consideration..

2. Finalize and Implement Strategy for Attracting and Retaining Staff including Compensation in First Quarter 2004 – COMPLETED

With support from Human Resources, senior staff and Consultant, Wood-Sloan Inc., the compensation for various non-bargaining positions was reviewed. A report for the non-union positions and compensation strategy was presented and approved by Council on April 5, 2004.

The new compensation levels for non-union staff significantly improved the Town’s ability to attract qualified and experienced staff.

Compensation for unionised positions is also being addressed through the 2004 bargaining process.

3. Develop Process and Protocol to Review and Communicate Statutory and Regulatory Requirements to Staff and Council - COMPLETED

The process and protocol is in place and was prepared in collaboration with the Legal Department.

Also, Council is regularly informed by Waterworks on our Water Quality through Quarterly and Annual regulatory report.

With respect to other regulatory requirements, Council is informed through reports prepared by Waterworks or by joint reports usually with the Legal Department. For example, on Council/Owners responsibilities and obligations under the Regulation 128/04 and 129/04 the Council was advised in a joint report dated June 28, 2004.

4. Complete Service Level Agreements (SLA) with Supporting Departments in First Quarter of 2004 – SIGNIFICANTLY ADVANCED AND ONGOING IN 2005

The completion of SLAs with supporting Departments was overly ambitious in timing and it indicates not having enough experience and resources to complete the SLA process. Also, the initial timing was based on a full Waterworks staffing complement at the beginning of 2004.

Waterworks has identified eight SLA areas. All SLAs were initiated and are in various stages of completion. The SLAs with IT and Asset Management are substantially completed and are expected to be signed by end of 2004. The SLAs with Operations, HR, Finance, and Engineering should be completed by end of first Quarter 2005. The Legal and Construction & Utilities SLAs will be completed by second Quarter of 2005.

5. Develop Implementation Plan for 2004-2006 Recommendations – EXTENDED TO 2005

Because of the delayed hiring in Waterworks in 2004, the prioritisation and implementation plan for the Delcan recommendation is now targeted to be completed by first quarter of 2005.

A separate report on this matter will be provided to Council including plan, schedule, and associated costs.

6. Provide Regular Progress Report to Council on Recommendations - ONGOING

This report serves as an update report to Council. Additional regular update reports will be provided.

7. Report to Council Quarterly on Water Quality Compliance and Annually to MOE in accordance with Regulation 170/03 - COMPLETED

Council received the 2003 year-end report on May 10, 2004, and regular quarterly reports on June 7, 2004 and September 13, 2004. The third Quarter report will be completed and submitted to the Community Services and Environment Committee on November 15, 2004, and the fourth Quarter and the Annual MOE report will be completed by February 28, 2005.

Also, as requested by Council, Waterworks is working with Corporate Communications to develop a more customer friendly version of the Quarterly and Annual water quality reports. The first of these reports is planned for the first quarter of the 2005.

8. Staff to Review New Technologies to Determine What Can be Applied to Move Waterworks Back to Technological Leading Edge and Report Back – ONGOING AND EXTENDED TO 2005/2007

This will be an ongoing process as the new technologies become available, are evaluated and can be implemented.

During the summer of 2004, Waterworks utilized non-disruptive directional drilling sewer technology to install a sanitary sewer from Cricklewood Pumping Station (P.S.) to the Region’s trunk sewer by trenchless methods. This allowed for the elimination of the Cricklewood Pumping Station without major inconvenience to the Cricklewood customers and with lesser costs than conventional open cut method. It also reduces our energy needs for pumping.

In 2005-2007, Waterworks will investigate implementation of SCADA, real time water audit, as well as real time individual meter reading, real time data gathering and reporting, online water quality testing and analysis, new trenchless and non-invasive repairs and replacement technologies and other technologies.

CONCLUSION:

Waterworks staff, along with supporting Departments (Human Resources, Legal, Finance, and IT), and Senior Management have made significant progress on the recommendations and work plan submitted and approved by Council on January 27, 2004.

Many Delcan recommendations were completed in 2004 and many are well underway. We are now reviewing and prioritising all Delcan recommendations and their timing. Waterworks will be reporting on a new schedule to Council in early 2005.

In summary, out of eight recommendations, Waterworks has met and satisfied four recommendations fully and is well under way in advancing the remaining four recommendations.

Stan Bertoia, P.Eng.

General Manager, Construction and Utilities

Peter Loukes Director, Operations & Asset Management

Jim Sales Commissioner of Community and Fire Services

Q:\Commission Share\Operations and Asset Management\Reports\2004\C & U\Waterworks\Progress Report on 2004 Waterworks Op Review-Nov.15.doc