2005 Audit Recommendations  -  Status Tracking
Document 3
Audit:  Drinking Water Services     (EMC Lead:  R. Hewitt / Staff Lead:  Ken Brothers)
  Audit Recommendation Management Response Comments  Budget Implications
2007 or Beyond		 Related Council Motions Status Update
    Audit Management Response Action Required Based on DCM Implementation Plan Management Timelines    (Q1- Q4) (Risks, issues regarding implementation, etc) ($$ if known)    
1 Drinking Water Services (DWS) should evaluate options to modify the Carp Communal Well System in the event that regulations change with respect to the parameter Dibromochloromethane. Management agrees with the intent of this recommendation. Staff are continuing to follow the development of this water quality guideline. The actual imposition, level and compliance timeline are unknown at this time. Drinking Water Services will complete a Treatment Feasibility and Functional Design Report by Q4 2006. This information will be used to develop 2007 capital budget requirements for any required upgrades or improvements. Treatment Feasibility and Functional Design Report.

Develop Capital Budget requirements for upgrades or improvements.		 Design Report
Q4 2006		   Complying with this new regulation will likely involve capital spending in 2007 and modest increased operating costs thereafter.   Aug 31 - Drinking Water Regulations have in fact, now changed. The only impact of this drinking water quality standard change will be for the Carp system.
• Initial Internal Pilot Work Completed.
• Terms of Reference for functional Design Study issued.
• Work to commence imminently.
• Fed-Prov Guidelines issued.
• Functional Design Report by Q4 2006.
2 That representatives from DWS, the FSUs and Accounts Payable develop a mutually acceptable solution to address DWS' information requirements with respect to utility invoices such as Hydro Ottawa. Management agrees with this recommendation. The first priority for Hydro Ottawa invoices is that they be paid within the time limits established. Staff will work together to find a mechanism to provide the consumption information and other data required by DWS by Q3 2006. Ensure Hydro Ottawa invoices paid within time limits.

Work to find mechanism to provide consumption info.		 Q3 2006       Aug 31 - Invoices being paid within time limits and work is ongoing to ensure consumption information is provided and reviewed to confirm billing
3 That the service level agreements between DWS and COEs be reviewed jointly by both parties on an annual basis as part of the budgeting cycle and adjusted to document actual or expected service levels. Management agrees with this recommendation. This review will be initiated in conjunction with the work related to Recommendation 24. Annual review of SLAs Q3 2006       Aug 31 - The review of SLAs will be undertaken after resolution of the governance structure (Rec # 24)
4 Responsibility and accountability for the maintenance program for water meters and remote receivers should be clearly defined and acceptable service levels established, with priority given to areas where the potential for lost revenue is greatest. Management agrees with this recommendation. Service standards need to be established for repair times and better communication introduced between the two work groups. Both groups need to understand the priority setting mechanism and look at the revenue loss and customer service when establishing work plans. A review will be undertaken in 2006. Establish repair time service standards.

Improve communications.

Review priority setting.		 2006 Repair time service standards are based on current level of resources.  Priority setting is a balancing act between competing pressures between customer service, revenue loss and maintaining the PWS infrastructure.     Aug. 31 - Review has started. Formal documentation initiated. Completion by year end.
5 The approach for gaining access to customer premises should be improved by placing more reliance on By-law enforcement and/or service termination to ensure access to the premises on a timely and efficient basis. Management agrees with this recommendation. A review will be completed by Q3 2006. Review system. Q3 2006       Aug. 31 - Completed. Formal procedures in place and documented.
6 The rationale for meter reading frequency should be reviewed as part of the study of meter reading technology, taking into account the benefits to customers and water volume accountability of frequent, accurate readings. Management agrees with this recommendation. A study of meter reading frequency will be undertaken to determine the most cost-effective frequency. The frequency issue could be improved dramatically through the introduction of Automatic Meter Reading technology. Consolidated management of all aspects of meter maintenance and meter reading may provide improved productivity, water accountability and information reports. Study of meter reading frequency.

Review possibility of consolidating all aspects of maintenance and reading.		 Jun-06       Aug. 31 - Council approved the AMR project. Meter reading frequency will be increased to once a month when project is implemented.  Cost analysis of maintaining/improving the level of meter reading frequency is being evaluated until AMR is deployed.
7 A formal assessment of the Aquacis system should be conducted to determine if the system can cost-effectively meet user needs and ensure the achievement of divisional and strategic objectives. Management agrees with this recommendation. Once the new meters and reading technology are selected, a review of the Aquacis will be undertaken. This will form part of the 2007 Corporate Services Departmental work plan. Review of Aquacis. 2007       Aug 31 - 2007
8 A formal assessment of the ITX/IIMS system should be conducted to assess the existence and appropriate design of controls and whether they are operating effectively and result in reliable reporting. Management agrees with this recommendation. The recommended assessment will be completed by Q2 2007 as part of the ITX/IIMS replacement project initiated by the Public Works & Services Department. Assessment of controls. Q2 2007       Aug. 31 - The recommended assessment will be completed by Q2 2007
9 Communication regarding customer service requests and work orders between the Customer Accounts, Collection and Customer Services and Operational Support groups should be improved including agreement on narrative descriptions within a service request and the criteria for prioritization or cancellation of requests. Management agrees with this recommendation. All the tools to enable coordination and communication of work order and service request information are currently available in ITX. Improved training and process implementation will improve results. The review of consolidating management of the groups will also address the issue. This will be addressed in 2006. Review consolidating management of groups. 2006       Aug. 31 - Work on this issue has been delayed until after completion of the AMR project as the business processes will change as a result. It is currently anticipated that action on this item will occur in late 2007.
10 A formal communication process for by-passes observed by meter readers, or Customer Services and Operational Support maintenance staff, should be developed by the Customer Services and Operational Support group along with the associated action measures, including notification of By-law Enforcement. Management agrees with this recommendation. A reporting process is already in place, and used by both Meter Maintenance staff and Meter Readers. Open bypasses are not in compliance with the Water By-law, and each reported offence is followed by issuance of a fine to the building owner. Although the process works and is used by both groups, formal and written documentation of the procedures is lacking. This will be resolved in Q1 2006. Implement formal and written documentation of offences. Q1 2006       Aug. 31 - Procedure in place.  No further action required
11 Procedures to reconcile water accounts with property tax accounts (VTAX), meters installed (ITX/IIMS) and building permits issued should be developed to help mitigate the risk of incomplete billings. Management agrees with this recommendation. This initiative will assist in ensuring that all customers are being billed. Currently, this cannot be accommodated within existing resources. Additional resources will need to be identified as part of the 2007 Corporate Services Departmental work plan and budget. Incorporate into CS Workplan. 2007 Additional resources will need to be identified as part of the 2007 work plan and budget.     Aug. 31 - 2007 action
12 Processes related to activating accounts for new development should be reviewed to facilitate identification of developers/contractors that may use water that should be billed or that turn on water without notifying the City. Management agrees with the intent of this recommendation. The Water By-law is very clear on that subject: only City staff are allowed to turn on or off water on the system. The By-law is enforced with fines on every reported infraction. Some water that is used in new developments is unauthorized and unbilled. A review, to be completed by Q1 2007, is currently underway to improve compliance on building construction related usage and a process to bill new developments using water. Review to improve compliance on building construction related usage and a process to bill new developments. Q1 2007       Aug. 31 - Review to be completed by Q1 2007

Process reviewed and improved. Fines issued when developers / contractors use unbilled water.
13 Procedures should be developed to address the issues associated with new meter specifications, communication of new meter information, and potential By-law impacts. Management agrees with the intent of this recommendation. We believe there are no issues with meter specifications. The meter specifications are part of the Water Specifications Guidelines that include all water related parts and materials. They are reviewed regularly following a process managed by the Infrastructure Services Branch. The communication of new meter information issue relates to the transfer of information between Customer Accounts and Meter Maintenance. The issue was addressed in Q4 2005.   Completed       Aug. 31 - Issue resolved.
14 That CSOS review options to improve compliance (reporting and payment) by flusher hydrant users including the cost-effectiveness of creating dispensing stations and the use of stronger By-law enforcement. Management agrees with this recommendation. The Flusher Hydrant Program is an honour-based system, relying on the user to self-report water usage. It is expected that some users will not report some of their usage. Staff attempted to quantify theft, as reported in the Audit. Staff will be assessing the cost / benefit of constructing bulk water dispensing stations through the City to ensure full metering, regulated water withdrawal flow rates, surge protection and backflow safety features. This assessment will be completed by Q4 2006. Assess cost / benefit analysis of constructing bulk water dispensing stations. Q4 2006       Aug. 31 - This assessment will be completed by Q4 2006.
15 The internally established collection target should be re-evaluated by Revenue and Collections management. Management agrees with this recommendation. This target will be reviewed in 2006. Review collection target. 2006       Aug. 31 - This target will be reviewed as part of the year end review in 2006.
16 The data input and trending analysis of all tested parameters from the distribution system water quality sampling program should occur on a regular basis by dedicating staff time or by contracting out this service to the private sector. Management agrees with intent of this recommendation. With the implementation of the new WaterTrax Water Quality monitoring software, this functionality now allows staff to do this.   Completed       Aug. 31 - Completed.
17 The City should implement a cross-connection control program in accordance with the InfraGuide's Best Practice of Methodologies for Implementing a Cross-Connection Control Program. Management agrees with the intent of this recommendation. We do not believe this is a high risk item that would require it be a priority action item at this time. Staff, if requested, would bring a report forward in Q2 2007 outlining a proposed program and long term cost for Committee’s consideration. Report outlining propose program and cost, if required. Q2 2007 May have Capital and Operating Budget Implications     Aug. 31 - Bring a report forward in Q2 2007.
18 The City should implement a proactive lead services replacement program. Management agrees with intent of this recommendation. The Branch is fully aware of the recommendations contained in the Walkerton Report. The City currently treats drinking water so that it will remain in compliance with all federal and provincial guidelines for lead content in drinking water. Monitoring programs have confirmed the effectiveness of this approach. A report will be presented in Q3 2006 outlining a proposed strategy to Council for addressing lead services. Report on proposed strategy for addressing lead services. June 2006.   Review of Treatment Technologies - $50,000, Preparation and Distribution of Updated Lead in Drinking Water Brochure - $100,000 and a 2007 Pilot Lead Service Replacement Program - $1.0 million. ISB staff will be asked to include an ongoing annual $1.0 million capital account for Lead Service Replacement, assuming ongoing support for program. Jul-06 Aug. 31 - Council approved a Proactive Lead Service Replacement program, also involving a review of treatment technologies and the distribution of an updated Lead in Drinking Water brochure, in July. Staff are currently working to develop 2007 Capital Budget options for replacement of all lead services by 2012, as directed by Council.
19 The City should develop a by-law that requires all private water systems with more than one connection to the City's distribution system to have written maintenance procedures and requires prior notification to the City of any activities on the private water system that may impact water quality. Management agrees with the intent of this recommendation. This initiative should be developed in conjunction with the Cross Connection Control Program referred to in Recommendation 17. A proposed by-law will be presented to Council in Q3 2007 addressing perimeter metering and back-flow prevention for private systems. Proposed by-law on private water systems. Q3 2007       Aug. 31 - A proposed by-law will be presented to Council in Q3 2007.
20 DWS should implement a Quality Assurance/Quality Control program on organizational positions that conduct the water sampling collection program to regularly verify the completeness of their tasks, including the sampling of all sites identified, and on the processes and procedures they must follow. Management agrees with the intent of this recommendation. While staff are confident of the information gathered by our current monitoring program and procedures, we will review our procedures to provide this additional level of security and confidence in our results. This review will be completed by Q4 2006. Review of procedures to provide additional levels of security and confident in results. Q4 2006       Aug. 31 - This review will be completed by Q4 2006.
21 The City should identify a specific group to lead and be responsible for all water loss reduction programs. Management agrees with this recommendation. A report came forward in Q1 2006, to outline the Water Loss Control program to reduce water losses. The Branch will coordinate a steering committee to improve overall water accountability. The DWS division will be responsible for water leakage reduction. Coordinate steering committee to improve overall water accountability. Report: Q1 2006       Aug. 31 - Water Loss Control report presented and approved in spring 2006. Work underway.

Drinking Water Services have been identified as the Division responsible for all Water Loss Control programs.
22 Utility Services should bring forward a report to Council addressing all elements of their water loss strategy. Management agrees with this recommendation. A report covering this program has been prepared and was tabled with Committee in Q1 2006.   Completed       Aug. 31 - Completed with report to Council April 2006. Work ongoing.
23 Utility Services should implement a full Quality Management System for all environmental programs (biosolids, solid waste, water and wastewater). Management agrees with the intent of this recommendation. This initiative is already well underway with the development of the Utility Services Quality Management System and is in place for the Bio-solids Program. Its implementation will be phased in the remaining programs. The Province has recently released the new Drinking Water Quality Management Standard. Staff are currently reviewing this new Standard and expect to report to Committee in Q1 2006 on this issue.  Funds were approved in the 2006 Budget to address this likely regulatory requirement. Review of new Drinking Water Quality Management Standard. Report: Q1 2006       Aug. 31 - A Consultant has been retained to assist with the preparation of Ottawa’s Operational Plan to meet the requirements of the DWQMS. (The consulting team has unique previous experience in the development of the pilot Operational Plan for London.) Work to begin imminently.
24 The governance structure of the delivery of water services should be reviewed and restructured to ensure accountability of an individual below the level of the City Manager for the water fund and services funded by the water fund. Management agrees with the intent of this recommendation. The first step should be to identify a specific individual to oversee the entire system. Whether to move to one distinct separate organization should be fully studied to determine the costs and benefits of doing so. This review will be initiated in Q3 2006. Identify specific individual to oversee fund. Q3 2006       Aug. 31 - This review will be initiated in Q3 2006.
25 That Financial Services re-examine the allocation of costs to the water fund and identify current costs for all elements. Management agrees with this recommendation. This review will be completed by Q4 2006 consistent with the rules of the report “Watertight: The case for change in Ontario’s water and wastewater sector” (if adopted) and allocation methodology adopted through OMBI. Review allocation of costs to the water fund. Q3 2007       This review is a major piece of work that requires the attention of Financial Planning and given the other Corporate priorities such as the LRFP and budget, the resources in this area are limited.  It is anticipated this review can be completed for Q3 of 2007.