Report to: General Committee Report Date: September 26, 2007

SUBJECT: Quality Management System Gap Analysis and Delivery Plan

PREPARED BY: Robert Flindall, P.Eng., Ext 2445

Waterworks, Manager of Operations & Maintenance

Eddy Wu, P.Eng., Ext 2737

Waterworks, QMS Controller

RECOMMENDATION:

THAT the report titled “Quality Management System Gap Analysis and Delivery Plan” be received;

AND THAT the Corporation of the Town of Markham assume the roles and responsibilities of the Owner of the Markham Drinking Water System as defined in the Safe Drinking Water Act, and required by the Drinking Water Quality Management Standard;

AND THAT the Corporation of the Town of Markham assume the roles and responsibilities of the Operating Authority of the Markham Drinking Water System as defined in the Safe Drinking Water Act, and required by the Drinking Water Quality Management Standard;

AND THAT Council designate the Corporate Top Management of the Operating Authority for the purposes of the drinking water Quality Management System, as being comprised of the following staff positions: Chief Administrative Officer (CAO), Commissioner of Community & Fire Services; Director of Operations, and the General Manager of Waterworks, and assigns the roles, responsibilities and authorities required by the Drinking Water Quality Management Standard;

AND THAT Council designate the Operational Top Management of the Operating Authority for the purposes of the drinking water Quality Management System, as being comprised of the following staff positions: General Manager of Waterworks, Waterworks Management Staff and the Waterworks Quality Management System Controller with the roles, responsibilities and authorities required by the Drinking Water Quality Management Standard;

AND THAT Council designate the Waterworks Quality Management System Controller as the Quality Management System Representative required by the Drinking Water Quality Management Standard;

AND THAT where services from various departments within the Corporation are required to fulfill the duties of the Operating Authority, the provision of these services will be documented in the Operational Plan for the Drinking Water Quality Management;

AND THAT staff be directed to proceed with the delivery plan for the implementation of the Quality Management System as outlined in this report;

AND FURTHER THAT staff be authorized and directed to do all things necessary to give effect to this resolution;

EXECUTIVE SUMMARY:

A Gap Analysis with respect to the readiness of the Town to implement a quality management system (QMS) in conformity with the provincially mandated Drinking Water Quality Management Standard (DWQMS) has been undertaken and staff are proceeding with the implementation of the QMS. The DWQMS has 21 Elements that govern the management and operation of the drinking water system. These policies, processes and procedures must be fully developed and documented in an Operational Plan for the QMS. Following the development and documentation stage, each Element must be implemented in all Departments that have been given responsibility by the Corporation for the operation, management, maintenance or alteration of system. Implementation is confirmed by an internal audit of the Operational Plan and QMS. The Operating Authority is then able to apply for the Accreditation required under the Safe Drinking Water Act following a successful external audit by the Provincial Accreditation Body.

In total, 13 Elements were found to have major gaps with respect to the requirements of the DWQMS. A Major Gap was defined as any Element for which the percent complete was less that 50%, as assessed by the consultant. Eight of the Elements were evaluated as being in a Minor Gap status. To further evaluate the nature of the gaps identified, staff has assigned a ranking of the effort required to close the gap. A Major Effort is assigned for the gaps identified as Major Gaps and where external specialized consultants are required to resolve the gap. In addition, a Major Effort is assigned where it is known that development and documentation will involve a significant effort by staff, and external consultancy will not be available or suitable for the task. In total, five Elements have been identified as having both a Major Gap and requiring Major Effort to close.

A detailed work plan for the implementation of the QMS is outlined in this report. Markham is required to submit the completed Operational Plan to the Ministry of the Environment, and apply for Accreditation, prior to February 1, 2009. In order to achieve this deadline the Operational Plan, including documentation of critical Standard Operating Procedures (SOPs) and process descriptions, must be completed by mid-year 2008 in order to allow sufficient time for the first full internal audit of the QMS and necessary corrective actions that may be required. The work identifies the first Management Review meeting, and the written endorsement of the Operational Plan by Council will occur in the fall of 2008. The work plan will ensure that sufficient time is provided for full implementation of the QMS, including written endorsement of the Operational Plan, prior to the submission deadline.

For the purposes of the Safe Drinking Water Act and the DWQMS, The Corporation of the Town of Markham assumes the roles and responsibilities of the Owner and Operating Authority. Council has two roles and responsibilities in this regard:

· Establish policies and the operational framework for the Operating Authority, by means of municipal by-laws and resolutions of Council, to ensure that the system is being operated in compliance with legislation.

· Review and approval of all expenditures within the Town through approval of the annual budget; execution of contracts; and delegation of spending authority.

The DWQMS also requires the identification of the Top Management of the Operating Authority. Within the Town of Markham, Top Management is divided into Corporate Top Management and Operational Top Management. Corporate Top Management has the following responsibilities:

· Make recommendations to the owner with respect to the drinking water system, including the provision of resources.

· Make decisions respecting corporate aspects of the QMS.

· Review the Management Review reports, and communicate the findings to the owner.

Operational Top Management has the following responsibilities:

· Perform Management Reviews, and communicate the findings to Corporate Top Management and the owner.

· Make decisions respecting system-specific aspects of the QMS.

.

The DWQMS requires the Operating Authority identify a QMS Representative. The QMS Representative is the link between management and staff, and also acts as the liaison internally and externally regarding the DWQMS. The QMS Representative, among other duties, reports to Corporate Top Management on the performance of the QMS and any need for improvements. The Waterworks Quality Management System Controller position has been filled as of September 10, 2007. Staff recommend that Council designate this position as the QMS Representative.

1. Purpose 2. Background 3. Discussion 4. Financial

5. Others (Environmental, Accessibility, Engage 21st, Affected Units) 6. Attachment(s)

PURPOSE:

The purpose of this report is to review the findings of the Gap Analysis conducted to determine the readiness of Waterworks and supporting departments to implement a quality management system that will conform to the provincial Drinking Water Quality Management Standard. This report provides information with respect to the proposed delivery plan for the implementation of the Quality Management System as required under the Municipal Drinking Water Licensing Program. This report also identifies the Owner and Operating Authority of the drinking water system, the Corporate and Operational Top Management of the system, and the Quality Management System Representative.

BACKGROUND:

The province has recently brought into force those sections of the Safe Drinking Water Act requiring the Owner of drinking water systems to have an Accredited Operating Authority, and to comply with the requirements of the Municipal Drinking Water Licensing program. The six components of the Municipal Drinking Water Licensing program are:

1. Accepted Operational Plans
2. Accredited Operating Authority
3. Drinking Water Works Permit (DWWP)
4. Approved Financial Plans
5. Permit to Take Water (PTTW)
6. Municipal Drinking Water Licence

The first two components of the licensing program require that the Operating Authority for drinking water system implement a quality management system (QMS) based on the provincial Drinking Water Quality Management Standard (DWQMS). The quality management system will facilitate the Operating Authority’s ability to consistently deliver drinking water that meets applicable legislative, regulatory and owner requirements, and enhances consumer protection through the effective application and continual improvement of the QMS.

Council, in their role as the “directors” of the municipal Corporation, oversees the Accredited Operating Authority of the system and exercises decision-making authority over the system. The reporting responsibility of Corporate Top Management and the Operational Top Management defined in the DWQMS provides the information that Council requires in order to fulfill their obligations under the “Standard of Care” provisions of the Safe Drinking Water Act Section 19. The QMS ensures that Council and Corporate Top Management and other staff exercise the “level of care, diligence and skill in respect of a municipal drinking-water system that a reasonably prudent person would be expected to exercise.” Council and Corporate Top Management should endeavor to become knowledgeable in the principles and practices of drinking water systems in order to make sound decisions in this regard.

The Operational Plan documents a functional quality management system along with the necessary standard operating procedures and process descriptions to satisfy the 21 Elements of the DWQMS. In addition to the procedures and process descriptions, the Operational Plan documents the roles, responsibilities and authorities of the Owner, Operating Authority, Corporate Top Management, and the Operational Top Management. Prior to submission of the Operational Plan, the Owner must endorse the contents of the Operational Plan and the QMS.

Waterworks has undertaken a review of the Town’s operational processes, procedures and documentation with respect to the requirements of the DWQMS. This review is called a Gap Analysis because its aim is to identify “gaps” or “weaknesses” in the existing processes, procedures and documentation in relation to the Standard. The detailed Gap Analysis was undertaken by a consultant that specializes in the implementation of ISO 9001 and 14001 quality management systems. The selected consultant is also very familiar with the requirements of the DWQMS and the Hazard Assessment and Critical Control Point (HACCP) approach to quality management.

The Gap Analysis provided the necessary information to prepare a strategy and detailed work plan to implement the required Quality Management System, and the steps leading to Accreditation of the Operating Authority, and the application for the Municipal Drinking Water Licence.

OPTIONS/ DISCUSSION:

The following sections of the report provide more detail on the Drinking Water Quality Management Standard; the findings of the Gap Analysis; and the accreditation process for Operating Authorities.

Drinking Water Quality Management Standard (DWQMS)

Applying the concepts of quality management to drinking water systems was recommended in Part Two of the Report of the Walkerton Inquiry. Mr. Justice O’Connor recommended a quality management approach in the context of drinking water to protect public health by achieving consistent good practice in managing and operating a water system. The characteristics of the QMS approach include:

· Adoption of best practices and continual improvement

· Effective operation of multiple barriers to protect public health

· Preventative rather than strictly reactive strategies to identify and manage risks to public health

· Effective communication

· Effective leadership

This recommendation to adopt a QMS approach has been mandated by the provincial government through the SDWA. To address this requirement in the Act, the Ministry of the Environment has developed a quality management standard specific to the needs of the drinking-water systems in Ontario. The DWQMS is applicable to the owners and operating authorities for all municipal residential drinking-water systems, including distribution systems such as the Markham system. The DWQMS sets out a framework for the operating authority to develop a QMS that is relevant and appropriate for the drinking-water system; and for the owner to endorse and accept the QMS. The QMS is the foundation for:

· Establishing and documenting management procedures and operating procedures

· Achieving conformity with the procedures

· Demonstrating conformity through an auditing process

· Continuous improvement.

The DWQMS has been developed specifically to address the needs of the municipal residential drinking water systems in Ontario. The DWQMS contains concepts taken from both the ISO 9001 standard with respect to management systems and the HACCP approach to product safety. Ontario’s standard recognizes the current regulatory structure, and the HACCP component has been modified from the traditional food safety methodology to a Risk Assessment approach which reflects the multi-barriers for drinking water safety and the need to continuously supply safe drinking water.

In general, the concepts outlined in the DWQMS are how owners and operating authorities currently manage and operate their drinking-water systems. The DWQMS however, requires that these concepts be formalized and documented in an operational plan, and that there is a documented commitment throughout the organization to continuously review and improve these practices.

Implementation of the DWQMS is divided into four steps – PLAN, DO, CHECK and IMPROVE. This structure originates from the Plan-Do-Check-Act methodology seen in some international standards. The implementation steps are cyclic so that the quality management system is able to continuously evolve and improve. In total the DWQMS defines 21 Elements that must be addressed in the Operational Plan.

PLAN and DO – Develop and implement the DWQMS operational plan. The Operational Plan defines and communicates the roles and responsibilities of the owner/operating authority, and documents the drinking water distribution activities and processes necessary to ensure safe drinking water. Within most elements, there are PLAN and DO requirements. The PLAN requirements describe the processes or documentation that must be prepared, while the DO requirements describe how to implement the processes developed and documented in the PLAN section.

The PLAN/DO elements are as follows:

Element 1 – Quality Management System

Element 2 – Quality Management System Policy

Element 3 – Commitment and Endorsement

Element 4 – Quality Management System Representative

Element 5 – Document and Records Control

Element 6 – Drinking-Water System

Element 7 – Risk Assessment

Element 8 – Risk Assessment Outcomes

Element 9 – Organizational Structure, Roles, Responsibilities and Authorities

Element 10 – Competencies

Element 11 – Personnel Coverage

Element 12 – Communications

Element 13 – Essential Supplies and Services

Element 14 – Review and Provision of Infrastructure

Element 15 – Infrastructure Maintenance, Rehabilitation and Renewal

Element 16 – Sampling, Testing and Monitoring

Element 17 – Measurement and Recording Equipment Calibration and Maintenance

Element 18 – Emergency Management

CHECK – Review the effectiveness of the QMS and its implementation by conducting internal audits and management reviews. This provides feedback on the workings of the quality management system, the Operational Plan, the currency and effectiveness of operating procedures, and areas for improvement.

Element 19 – Internal Audits

Element 20 – Management Review

IMPROVE - Plan and implement a process to use feedback from internal audits, management reviews, and the external compliance audits in order to make improvements to the QMS.

Element 21 – Continual Improvement

Gap Analysis Assessment

The existing Town of Markham practices and procedures related to the operation, management, maintenance or alteration of the drinking system were reviewed by the consultant in April-May 2007. The Gap Analysis was undertaken to determine conformity with the DWQMS and provides an indication of how large the gap is between the existing status and what would be required for full implementation of each the 21 Elements of the DWQMS. Completion status is expressed as a percentage and took into account whether each element has been developed, documented, implemented and audited. In order to achieve full Accreditation of the Operating Authority the percent complete must be increased to 100%, including completion of a comprehensive internal audit of the QMS and the Operational Plan.

In order to undertake the Gap Analysis staff from the following Commissions and departments were interviewed by the consultant:

Chief Administrative Officer - Legal Services

Town Solicitor

Chief Administrative Officer - Human Resources

Senior Human Resources Consultant

Corporate Services Commission - Financial & Client Services

Manager, Financial Planning

Manager, Purchasing

Development Services Commission, Engineering

Manager, Development Engineering

Manager, Infrastructure & Capital Projects

Community & Fire Services Commission – Fire & Emergency Services

Deputy Fire Chief, Fire & Emergency Service

Community & Fire Services Commission – Operations

Director of Operations

Waterworks General Manager

Waterworks Management Team
Waterworks Supervisory Staff

Waterworks Staff

The Town of Markham currently has no formal Quality Management System in place for the drinking water system. The Town however, does have many processes and procedures in place that can be adapted to meet to requirements of the DWQMS. The Consultant noted specifically that the organizational structure and staffing of Markham Waterworks is very strong and will facilitate the implementation of the QMS.

In addition, the Town has initiated the National Quality Institute - Progressive Excellence Program (NQI- PEP) for quality management. In particular many aspects of the Integrated Quality & Healthy Workplace Progressive Excellence Program support the implementation of the DWQMS. The six drivers of the Integrated Quality & Healthy Workplace Criteria include: Leadership, Process Management, Planning and Financial Management, People Engagement, Leadership, Supplier/Partner Focus, and Citizen/Client Focus. These are all similar drivers to those articulated in the DWQMS.

The overall Gap Analysis assessment estimated that the Town has existing procedures, practices and policies to satisfy 35% of the requirements of the DWQMS. None of the Elements of the DWQMS were completely satisfied at the time of the assessment. However, for several of the requirements of the DWQMS, the consultant determined that acceptable practices were found to be in place but only lacked suitable documentation in written procedures. No formal audit of these procedures has been completed.

The key challenge of the Waterworks and the Town of Markham will be to document all of the processes and procedures required to satisfy the DWQMS, and then to ensure that staff are fully trained and that the procedures are consistently implemented.

In total 13 Elements were found to have major gaps compared to the requirements of the DWQMS. A Major Gap was defined as any Element for which the percent complete was less that 50%, as assessed by the consultant. Eight of the Elements were evaluated as being in a Minor Gap status.

Each of the Elements of the DWQMS will require varying amounts of effort in order to develop, document, implement and audit the management procedures and operating procedures. To further evaluate the nature of the gaps identified, staff has assigned a ranking of the effort required to close the gap. A Major Effort is assigned for the gaps identified as Major Gaps and where external specialized consultants are required to resolve the gap. In addition, a Major Effort is assigned where it is known that development and documentation involve a significant effort by staff and external consultancy will not be available or suitable for the task. In total, five Elements have been identified as having both a Major Gap and requiring Major Effort to close.

In addition to the management procedures developed and documented for the QMS, there are many standard operating procedures, practices and policies that must be developed documented and implemented for each of the activities that are undertaken during the operation of the drinking water system. These standard operating procedures (SOPs) can be documented separately from Operational Plan, but the Operational Plan will reference these SOPs. Therefore, the consistent implementation SOPs related to the provision of safe drinking water will also be subject to audit and verification during the accreditation process. The development, documentation and implementation of the SOPs within Waterworks and the supporting departments will also require a Major Effort. This major effort is spread across all Elements of the DWQMS.

It should be noted that Waterworks and the supporting departments will have many identified SOPs, only some of which are directly related to drinking water quality and the DWQMS. Only the SOPs necessary for the Operational Plan and accreditation will be developed, documented and implemented prior to the submission deadline of February 1, 2009. The remaining SOPs and processes will be prioritized and addressed through 2009 and 2010 as part of the Continual Improvement process. Detailed “work directions” and “job instructions” to support the SOPs will be also developed and implemented after the first submission of the Operational Plan.

The consultant identified that in many areas Markham is already implementing “best practices” in our day-to-day operations. The Continuous Improvement phase of the QMS will identify further improvements. For example, Element15 – Infrastructure Maintenance, Rehabilitation and Renewal can be further improved through the implementation of Asset Condition Rating programs and Life Cycle Analysis. These improvements will in many instances also require a Major Effort to implement, but they can be phased in over a period of several years and will not impede the Town’s efforts to achieve Accreditation of the Operating Authority.

QMS Delivery Plan

The Owner and Operating Authority are required to submit the Operational Plan, and the applications for the Drinking Water Works Permit and the Municipal Drinking Water Licence on or before February 1, 2009. The Ministry has indicated that three Options are available for the submission of the first Operational Plan. Owners and Operating Authorities can elect to fully implement all 21 Elements of the DWQMS and apply for full Accreditation. Alternatively the Operating Authority may implement the key elements of the DWQMS and receive a Limited Scope Accreditation in the first year. Owners and Operating Authorities that elect for the Limited Scope Accreditation will have up to 12 months to fully implement the DWQMS in order to achieve Full Accreditation.

Based on the current assessment of QMS readiness, Staff have prepared a Delivery Plan to achieve Full Accreditation, and recommend that the Town proceed on that basis. This plan will be reviewed during the 2008 implementation year, and adjusted if necessary. In the event that full implementation of the QMS cannot be achieved prior to February 1, 2009 staff will advise Council accordingly.

The major tasks milestones of the Delivery Plan are as follows:

Major Task or Milestone	Date
1. Endorsement by Council of the designated staff roles of Corporate Top Management and Operational Top Management. This endorsement completes element 3 – Commitment and Endorsement	February 2008
2. Endorsement by Council of the Quality Management System Representative. This endorsement completes element 4 – Quality Management System Representative	February 2008
3. Endorsement by Council of the Quality Management Policy This endorsement completes element 2 – Quality Management System Policy	February 2008
4. Establish Document & Records Control	February 2008
5. Risk Assessment & Risk Assessment Outcomes complete	March 2008
6. Emergency Management Planning complete	April 2008
7. Operational Plan & Essential SOPs- working draft complete	May 2008
8. First Internal Audit and Corrective Actions complete	August 2008
9. First Management Review Meeting with Corporate Top Management	September 2008
10. Endorsement by Council of Operational Plan, following recommendation and Endorsement from Corporate Top Management This endorsement completes element 1 – Quality Management System	October 2008
11. Targeted Internal Audit and Corrective Actions complete	December 2008
12. Submission of Operational Plan to MOE, and request to Accreditation Body for external audit by third party.	January 2009

In order to achieve the submission and implementation deadlines Staff will be supported by a number of external consultants with specialized skills. The anticipated consultant awards include the following.

• Documentation of System Procedures and Standard Operating Procedures in support of the Operational Plan (RFQ #111-Q-07)
• Development and Documentation of an Operational Plan in Compliance with the DWQMS (RFQ #130-Q-07)
• Risk Assessment and Risk Assessment Outcomes Planning for the Markham Drinking Water System (RFQ #202-Q-07)
• Documentation of Emergency Management Procedures for the Markham Drinking Water System (RFQ anticipated March 2008)

Details of the cost and award of these projects will be brought forward separately through reports from the Purchasing Department.

The first internal audit of the Drinking Water QMS will be scheduled during the second quarter of 2008 once the first draft of the Operational Plan is completed and implemented by staff in all related departments. Internal Audits are conducted by Town of Markham Staff, including staff that may not be directly involved in the drinking water system operations. Any deficiencies in the Operational Plan with respect to the minimum requirements of the DWQMS will be identified during the Internal Audit and corrective actions will be undertaken immediately.

Upon completion of the internal audit, at the first Management Review meeting will take place in September 2008. The Operational Top Management and the Corporate Top Management of the Operating Authority are required to attend this meeting and specific individuals could be invited to attend when deemed necessary.

Following the first Management Review Meeting, staff will recommend that the Owner, Operating Authority and Corporate Top Management endorse the Operational Plan. Formal written endorsement of the Operational Plan is the last requirement prior to submission of the Operational Plan to the MOE and application for the Drinking Water Works Permit and application for the first External Audit of the QMS leading to Accreditation of the Operating Authority.

Designation of Corporate Roles and Responsibilities

In order to move forward with the implementation of the QMS numerous corporate roles and responsibilities must be assigned and endorsed by council.

Owner of the Drinking Water System

In the Town of Markham, the Owner of the drinking-water system is The Corporation of the Town of Markham. The Town's Mayor and Council have two roles in this regard:

· Establish policies and the operational framework for the Operating Authority, by means of municipal by-laws and resolutions of Council, to ensure that the system is being operated in compliance with legislation.

· Review and approval of all expenditures within the Town through approval of the annual budget; execution of contracts; and delegation of spending authority.

Operating Authority

The Corporation of the Town of Markham assumes the roles and responsibilities of the Operating Authority of the Markham Drinking Water System through the assignment of staffing and resources in the various departments that affect the Drinking Water System. The MOE has indicated that municipalities can assume the responsibilities of both the Owner and Operating Authority. Section 14 of the SDWA is now in force and requires that the Owner ensures that an accredited Operating Authority is in charge of the system at all times. Staff are working towards full accreditation under the Municipal Licensing program according to the submission and application deadlines imposed by Regulation 188/07.

Corporate Top Management

The DWQMS provides the following definition of Top Management:

“a person, persons or a group of people at the highest management level within an operating authority that makes decisions respecting the QMS and recommendations to the owner respecting the subject system or subject systems”

For larger municipalities the MOE has indicated that Top Management, for the purposes of the Quality Management System, can be made up of two groups: Corporate Top Management and Operational Top Management. Corporate Top Management is recommended to be comprised of the following staff positions: Chief Administrative Officer (CAO), Commissioner of Community & Fire Services; Director of Operations, and the General Manager of Waterworks, with the roles, responsibilities and authorities required by the Drinking Water Quality Management Standard. This group may be modified from time to time as circumstances require.

Corporate Top Management has the following responsibilities:

· Make recommendations to the owner with respect to the drinking water system, including the provision of resources

· Make decisions respecting corporate aspects of the QMS

· Review the Management Review reports, and communicate the findings to the owner.

Operational Top Management

Operational Top Management, for the purposes of the drinking water Quality Management System, is recommended to be comprised of the following staff positions: General Manager of Waterworks, Waterworks Management Staff and the Waterworks Quality Management System Controller with the roles, responsibilities and authorities required by the Drinking Water Quality Management Standard. This group may be modified from time to time to include management staff from other Departments that have been given responsibility by the Corporation for the operation, management, maintenance or alteration of system, as circumstances require.

Operational Top Management has the following responsibilities:

· Perform Management Reviews, and communicate the findings to Corporate Top Management and the owner

· Make decisions respecting system-specific aspects of the QMS.

This group will be responsible to undertake the annual Management Review of the drinking water system operations and the QMS as required under Element #20 of the DWQMS.

QMS Representative

The DWQMS requires the Operating Authority to identify a QMS Representative. In order to comply with this requirement, the Top Management shall appoint, and authorize a QMS Representative who, irrespective of other responsibilities, shall:

a) administer the QMS by ensuring that processes and procedures needed for the QMS are established and maintained,

b) report to Top Management on the performance of the QMS and any need for improvement,

c) ensure that current versions of documents required by the QMS are being used at all times,

d) ensure that personnel are aware of all applicable legislative and regulatory requirements that pertain to their duties for the operation of the subject system,

e) promote awareness of the QMS throughout the Operating Authority.

The QMS Representative is the link between management and staff, and also acts as the liaison internally and externally regarding the DWQMS. The Waterworks Quality Management System Controller position has been filled as of September 10, 2007. Staff recommend that Council designate this position as the QMS Representative.

Inter-Departmental Roles and Responsibilities

Accreditation of the Operating Authority and maintenance of the QMS is the responsibility of the entire corporation. The Operational Plan documents and formalizes the responsibilities and the service level expectations between Commissions and departments where drinking water quality is affected. The QMS Representative is responsible for ensuring that processes and procedures needed for the Quality Management System are established and maintained. The QMS Representative reports directly to Corporate Top Management on the performance of the Quality Management System and any need for improvement. Corporate Top Management is then responsible to ensure that the necessary improvements to the QMS are undertaken.

Figure 1

FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)

There are no immediate financial implications resulting from the recommendations of this report.

Waterworks is proceeding with several projects related to the implementation of the QMS and development of the Operational Plan. Waterworks is currently reviewing proposals from consultants for the preparation of Standard Operating Procedures (SOPs) and Process Mapping (RFQ 111-Q-07); and proposals for the preparation and documentation of the Operational Plan (RFQ 130-Q-07).

The preparation of the Operational Plan will also require specialized consulting services to address DWQMS Elements #7 – 8 Risk Assessment and Risk Assessment Outcomes; and Element #18 – Emergency Management. These assignments are expected to be initiated later this year and early in 2008. The anticipated costs to develop and document the Operational Plan and the Quality Management System will be provided in a separate staff award reports.

On going implementation of the QMS will result in operational and financial considerations for the supporting departments. The requirement to develop, document, implement and audit management procedures and SOPs will require time, effort and resources from these departments. Is should be recognized that approximately $1.12 million dollars is transferred annually from Water Rate Revenues into General Revenues to fund various corporate support functions necessary for the operation of the drinking water system.

ENVIRONMENTAL CONSIDERATIONS:

Not Applicable

ACCESSIBILITY CONSIDERATIONS:

Not Applicable

ENGAGE 21^ST CONSIDERATIONS:

The Municipal Drinking Water Licensing program and the Quality Management System in particular address several key aspects of the Corporate Goals outlined in the Engage 21st Century Markham project.

Fiscal Stewardship

By adopting a management system approach, operational efficiencies are often identified. The QMS ensures that resources are managed responsibly while at the same time ensuring that drinking water quality is maintained.

Infrastructure Management

The DWQMS ensures that infrastructure maintenance, rehabilitation and renewal is undertaken in a planned and coordinate manner. The Financial Plan ensures that adequate resources are available for infrastructure maintenance, rehabilitation and renewal.

Organizational Excellence

The audit, management review and continuous improvement processes of the QMS ensures continual improvement in the safety of drinking water, and continual improvement in the delivery of services by the Operating Authority. The Operational Plan of the QMS will clearly define the roles and responsibilities within the Operating Authority and provides the mechanism to ensure that those responsibilities and consistently met and improved upon.

Economic Development

The implementation of the QMS promotes consumer confidence in the quality of drinking water and promotes public confidence in the overall management and reliability of the drinking water system. These two factors enhance Markham’s attractiveness to high-tech industries and their employees.

BUSINESS UNITS CONSULTED AND AFFECTED:

Staff from the Development Services Commission, Engineering Department; Asset Management Department; Financial Services Department; Purchasing Department; Information Technology Services; Human Resources, and the Operations Department will all be affected by the implementation of the Quality Management System. Key staff members in these departments have been involved in the Gap Analysis investigation and the ongoing process for implementation of the Quality Management System.

RECOMMENDED

BY: ________________________

Jerry Klaus,

General Manager, Waterworks,

________________________

Peter Loukes, P.Eng.

Commission Lead, Operations and Asset Management

ATTACHMENTS:

Attachment ‘A’ – Quality Management System Gap Analysis and Delivery Plan -

Presentation to Committee

Attachment ‘B’ – DWQMS Gap Analysis Summary

Q:\Commission Share\Operations and Asset Management\Reports\2008\Waterworks\Municipal Licensing Program\QMS Gap Analysis and Delivery Plan (Feb 2008).doc