DATE: August 24, 2015 REPORT NO. PW Chair and Members Committee of the Whole Operations & Administration

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1 PUBLIC WORKS COMMISSION DATE: August 24, 2015 REPORT NO. PW TO: FROM: Chair and Members Committee of the Whole Operations & Administration Russ Loukes, P.Eng., PTOE Acting General Manager, Public Works Commission. 1.0 TYPE OF REPORT CONSENT ITEM [ ] ITEM FOR CONSIDERATION [X] 2.0 TOPIC Transition Plan for Bringing the Operation and Maintenance of Wastewater Treatment Facilities In-House FY2015 Q2 Report [Financial Impact $11,513] (PW ) 3.0 RECOMMENDATION A. THAT Report No. PW titled Transition Plan for Bringing the Operation and Maintenance of Wastewater Treatment Facilities In-House FY2015 Q2 Report BE RECEIVED; and B. THAT Council APPROVE the filling of the Supervisor of Treatment Operations position in November 2015 to ensure the smooth transition of the wastewater treatment operations. 4.0 PURPOSE This report will provide an update regarding the transition plan for bringing the operation and maintenance of wastewater treatment facilities in-house and also seek council approval to fill the Supervisor of Treatment Operations position in November BACKGROUND Brantford s wastewater treatment system consists of a Wastewater Treatment Plant (WWTP) and 8 sanitary pumping stations. The WWTP has a rated capacity of 81,800 m 3 /d and is operated by the Ontario Clean Water Agency (OCWA) under a contract with the City. The City owns one stormwater pumping station which is also operated by OCWA.

2 Date: August 24, 2015 Page 2 The existing service contract with OCWA expires on December 31, Based on an evaluation of service delivery options for various criteria such as quality of service, cost of service, asset protection, continuity of service, control over system, compliance with regulations, flexibility and adaptability of operations, and transitional impact, it was recommended that the operation and maintenance of wastewater facilities be brought in-house. City staff has experience in managing drinking water treatment operations. The management of the wastewater treatment operations can also be delivered in-house efficiently. It will give the City full control over all aspects of operations, maintenance and finances. It offers flexibility in implementing process changes for optimization of the treatment process, Quality Management System and an asset management plan using the experience of in-house resources. Following the direction provided by City Council in September 2014 to bring the operation and maintenance of wastewater treatment facilities in-house upon expiry of the current contract, staff have prepared quarterly updates which provides the status of the transition plan to date. 6.0 CORPORATE POLICY CONTEXT Efficient management, operation and maintenance of wastewater facilities align well with the City s long-term desired outcome of Brantford will be recognized as a fiscally responsible and well-managed City that provides efficient and effective government services under the goal of Excellence in Governance and Municipal Management. 7.0 INPUT FROM OTHER SOURCES Staff has consulted with the Finance and Human Resources Departments regarding the transition plan for the operation and maintenance of wastewater treatment facilities. During the process, these departments will be involved in various components of the transition. 8.0 ANALYSIS This report provides the status of the implementation plan for bringing the operation and maintenance of wastewater treatment facilities in-house on January 1, The following areas will be addressed prior to and during the transition: Changeover Date Communication with OCWA and City Staff Human Resources Regulatory Compliance Service Contracts Chemical and Other Supplies Fleet Requirement Insurance Capital Projects

3 Date: August 24, 2015 Page 3 Changeover Date The current contract between the City of Brantford and OCWA expires on the 31 st day of December The City will assume the operation of WWTP from OCWA on January 1, Communication with OCWA and City Staff The City has advised OCWA that it does not wish to re-negotiate the agreement at the end of the current term. City staff in the Environmental Services Department have been notified of the changes to the organizational structure to accommodate wastewater treatment operations as approved by Council. Staff from OCWA and the City are meeting regularly to assure the transition happens in an orderly manner. Human Resources The City reached agreement with the Union (International Brotherhood of Electrical Workers, Local 636, Unit 41) and entered into a Letter of Understanding (LoU) regarding the terms and conditions of employment for applicable new positions to integrate wastewater treatment operations with water treatment operations. OCWA currently has a staffing level of 8 FTEs for wastewater treatment operations. Council approved maintaining that staffing level in The treatment operator and maintenance technician positions will be posted and hired in the Fall of 2015 with the starting date as January 1, It is essential that the Supervisor for Treatment position be filled and started by November 2, 2015, as a result of the recent resignation of the Manager of Water Operations and the retirement of the Supervisor of Water Operations in early This early hiring of the Supervisor with appropriate operator certification is necessary for establishing daily operational duties, preparation of Standard Operating Procedures (SOPs) and emergency plans, setting up of the operator training schedule and participating in interviews to hire appropriate field staff. Early hiring of the Supervisor position will increase the 2015 wastewater payroll budget by $20,647. However due to gapping from the Manager position, there is a saving of $9,134. The net increase to 2015 payroll budget will be $11,513. Regulatory Compliance Expected completion: November 2015 The compliance group is preparing to look after the regulatory requirements of the wastewater treatment operations. Expected completion: September 2015

4 Date: August 24, 2015 Page 4 Service Contracts A list of all service contracts that are currently in place are being made available by OCWA to the City to ensure that there is a continuity of services after January 1, Purchasing Department is preparing the documents required to tender the service contracts. Chemicals and Other Supplies The Purchasing Department is preparing the documents required to tender the contracts for chemicals in August City and OCWA staff will ensure that there are enough chemicals available for the transition period and chemical suppliers will be able to deliver chemicals if there is a need to do so. Fleet Requirement A preliminary evaluation shows that two vehicles need to be added to the fleet. The applicable cost has been included in the estimated budget for Work Order System Expected completion: November 2015 The current work order system used by OCWA is not compatible with the City s work order system. City staff will evaluate the steps needed to transfer the information in OCWA s work order system. Insurance Paper work necessary to have the insurance coverage from January 1, 2016 has been completed. Capital Projects For the 2015 calendar year, there is one capital project being administered by the City. The project is the aeration control system upgrades that is in progress and will be completed by the end of the year. 9.0 FINANCIAL IMPLICATIONS Expected completion: December 2015 Filling the Supervisor of Treatment Operations position effective from November 2, 2015 will increase the 2015 payroll budget by $11,513. This additional expense will result in a reduction of the annual operations transfer to wastewater reserve from $8,107,384 to $8,096,518.

5 Date: August 24, 2015 Page CONCLUSION In conclusion, the transition plan for the merger bringing the operation and maintenance of wastewater treatment facilities in-house will ensure that the City has full control over all aspects of operations, maintenance and finances and deals with improvements in planning and management, operations and staffing requirements. Council will continue to receive quarterly status reports throughout this important transition process. Selvi Kongara, P.Eng., Director of Environmental Services Russ Loukes, P.Eng., PTOE Acting General Manager, Public Works Commission In adopting this report, is a by-law or agreement required? If so, it should be referenced in the recommendation section. By-law required [ ] yes [ x ] no Agreement(s) or other documents to be signed by Mayor and/or City Clerk [ ] yes [ x ] no Is the necessary by-law or agreement being sent concurrently to Council? [ ] yes [ x ] no