Rec #	Recommendation	Management Response	Est Comp Date	Status Updates (In Progress; Pending; Complete; Requires Resolution)
1	That the City consider establishing water rates based on a fixed meter charge plus a consumption charge as this will provide the water department a more predictable and stable cash flow. In this fashion, a customer that may not consume any water for a prolonged period (i.e. vacant building) would have a minimal meter charge that should cover the cost of the basic infrastructure that is required to provide water to the property.	Management agrees with this recommendation. The City has initiated a comprehensive cost, revenue and rate study. The development of appropriate water and sewer rates are an important element of this study. Among the concepts to be considered will be the development of fixed and variable rate components consistent with the overall service delivery goals of the City. It is anticipated that this comprehensive study will be completed by April 2010.	Q2 2010	December 2009: In Progress. Public consultation on the rate study and rate structure options under consideration was conducted between July 21 and December 10. A report outlining staff’s recommended rate structure is scheduled for Q1 2010. June 2009: Staff identified three options for including a fixed meter charge in its report to Committee and Council in June. Public consultation will follow and a rate structure will be confirmed in Fall 2009. December 2008: The consulting work for a comprehensive cost, revenue and rate study, which is anticipated to be complete by April 2010, is currently underway. Public consultation is anticipated for Q2/3 in 2009. The concepts for the establishment of water rates will be tabled with Council for consideration and review in Q2 2009.
2	That the calculation method for establishing fire protection costs should be reviewed to make certain that all infrastructure and water resources that are dedicated to fire protection services are included in the calculation.	Management agrees with this recommendation. The cost, revenue and rate study will also include a review of all service delivery costs, including those associated with installation, operation, maintenance and rehabilitation/replacement of the fire protection infrastructure to ensure they are included in the overall cost recovery strategy. It is anticipated that this comprehensive study will be completed by April 2010.	Q2 2010	December 2009: In Progress. Fire protection costs are incorporated in the rate study and rate structure report and will be brought forward as part of the Financial Plan report in Q2 2010. June 2009: Fire costs have been recalculated and will be finalized in Fall 2009. December 2008: This key component of the work associated with the cost, revenue and rate study will be developed by April 2010. The City, consultant and the departments are in the process of collecting information related to costs associated with the delivery of fire protection services.
3	That the City undertake a cost of service study which would include a detailed asset management study of the system. Preparation of the asset management plan would include a complete infrastructure inventory and valuation; detailed condition assessments; and repair, replacement, and refurbishment plans. Once all the studies are completed, the water rate should be revised to ensure full cost recovery.	Management agrees with this recommendation. One of the key elements in the cost, revenue and rate study will be the inclusion of an asset management plan. A City of Ottawa Corporate Asset Management Working Group is in the process of developing an integrated asset management plan, expected in Q4 2009. It is anticipated that this report will provide the necessary information for the cost, revenue and rate study. Further refinement and development of these plans will occur beyond Q4 2009, which will include the continuing development of condition-based assessment and individual asset replacement schedules.		December 2009: In Progress. Forecast revenue requirements and rate increases to ensure sustainable funding are incorporated in the rate study and rate structure report and will be brought forward as part of the Financial Plan report in Q2 2010. June 2009: Staff anticipate tabling a Financial Plan in April 2010 that will forecast revenue requirements and rate increases to ensure sustainable funding. The work is currently underway. December 2008: The consulting work for a comprehensive cost, revenue and rate study, which is anticipated to be complete by April 2010, is currently underway. One of the key elements in the cost, revenue and rate study will be the inclusion of an asset management plan. A City of Ottawa Corporate Asset Management Working Group is in the process of developing an integrated asset management plan, which will be completed by Q4 2009. Following that, further refinements to the plan will be made on an ongoing basis.
4 4	That the City prepares an integrated asset management plan in conjunction with the streets and sewers that address the following five questions. 1. What assets does the City own? 2. What is the condition of those assets? 3. What level of service are the assets providing? 4. When will the assets need to be replaced? and 5. What is the cost of replacement? 6. Are the reserve fund balances sufficient?	Management agrees with this recommendation. One of the key elements in the cost, revenue and rate study will be the inclusion of an asset management plan. A City of Ottawa Corporate Asset Management Working Group is in the process of developing an integrated asset management plan, expected in Q4 2009. Although many of the elements listed by the Auditor are either well underway or have been completed, the remaining items will be addressed as part the further refinement of this plan beyond Q4 2009.		December 2009: In Progress. An integrated asset management plan is incorporated in the rate study and rate structure report and will be brought forward as part of the Financial Plan report in Q2 2010. June 2009: Work is in Progress. December 2008: The consulting work for a comprehensive cost, revenue and rate study, which is anticipated to be complete by April 2010, is currently underway. One of the key elements in the cost, revenue and rate study will be the inclusion of an asset management plan. A City of Ottawa Corporate Asset Management Working Group is in the process of developing an integrated asset management plan, which will be completed by Q4 2009. Following that, further refinements to the plan will be made on an ongoing basis.
5	That the City meet the new financial report standards as per the Public Sector Accounting Board PS 3150, i.e., amortization of tangible capital assets.	Management agrees with this recommendation. The City will meet the new financial report standards as the per the Public Sector Accounting Board PS 3150. This will be completed in Q1 of 2010.	Q1 2010	December 2009: In Progress. Pre-2009 City assets have been valued, approved, and loaded into the TCA solution and SAP production. 2009 asset transactions have been requested and will be included as part of the 2009 financial reporting. June 2009: Work is progressing well. December 2008: The implementation project is progressing on schedule. The process and IT solution is 100% developed. Four out of 28 asset groups have been converted (14%).
6 6	That the City include in their Financial Plans all requirements of O.Reg. 453/07’s Guideline document and Best Management Practices, i.e., a separate cost item associated with source water protection.	Management agrees with this recommendation. To comply with the requirements of the Clean Water Act, the Rideau Valley/ Mississippi Valley Source Protection Authority and the South Nation/ Raison River Source Protection Authority are in the process of developing detailed source water protection plans by the provincially mandated timeline of 2012. Implementation will follow municipal and provincial approval of these plans. The City is required to submit its first financial plan in July 2010. Therefore, it will not be possible to incorporate source protection plan costs into the first plan submission. The first financial plan, being submitted in July 2010, and valid until 2016, will only include those costs that have been determined as of 2010. The financial plan will be developed to allow for inclusion of additional source protection costs, as they become known to the City.		December 2009: In Progress. To the extent that these costs are now known, those costs associated with Source Water Protection are incorporated in the rate study and rate structure report and will be brought forward as part of the Financial Plan report in Q2 2010. June 2009: The Cost, Rate & Revenue Study has identified potential new costs commencing in 2012 for implementation of (yet undetermined) measures under the Source Water Protection Act. Rate model numbers will be adjusted as measures and costs are confirmed by Council. December 2008: Source Water Protection costs are currently under development by the relevant source protection authorities. The rate will be developed such that when these costs are identified, they can be incorporated into water and wastewater rates.
7	That the City consider recovering the Fire Supply Charge from users based on the value of the assets being protected, (i.e. assessed value of the property).	Management agrees with the recommendation. The City will consider a number of revenue options as a part of the cost, revenue and rate study. Fire supply charges were moved to the water and sewer bill based on Council direction on January 25, 2006 in report ACS2006-CRS-FIN-0001. While management will review the recovery of these charges, through its cost, revenue and rate study, it should be noted that fire supply costs and recovery charges must be developed in the context of an overall cost recovery program, and adjusted to the particulars of the municipality for which the revenues are being recovered. A number of factors may affect the strategy in recovering fire supply charges, including the large number of properties owned by other levels of government for which taxes are not collected. It is anticipated that development of an overall cost recovery program that would include fire supply charges would be completed by April 2010.		December 2009: In Progress. Fire protection costs are incorporated in the rate study and rate structure report and will be brought forward as part of the Financial Plan report in Q2 2010. June 2009: Staff will be bringing an interim report on rate structure to Committee and Council in June. Public consultation will occur through the summer and a final rate structure report will be brought back in October 2009. December 2008: Management is in the process of developing all costs associated with the provision of fire supply protection. However, it should be noted that the uniqueness of the City of Ottawa setting may result in a policy consideration.