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May 31, 2002
Municipal Service Board Recommended for City of Toronto Water and Wastewater Services
After a six month review, City of Toronto Chief Administrative Officer Shirley
Hoy is recommending to a joint meeting of the Policy & Finance and Works
Committees that the City's Water and Wastewater Services be provided through a
Municipal Service Board (MSB).

A water and wastewater MSB would be a hybrid, a new type of city agency
designed, under a new legislative authority, to specifically serve the City's
water and wastewater needs.

A Municipal Service Board would act as a local board of the City. Members would
be appointed by Council to operate and manage the City's water and wastewater
services. In this governance model:

· Council appoints Board members
· Council approves the operating and capital budgets
· Council sets the water rate (upon recommendation from the Board)
· City owns all assets
· Meetings are open to the public
· Employees remain City staff, and
· Conflict of Interest Act and the Municipal Freedom of Information and
Protection of Privacy Act apply

"The review explored ways to address a number of issues facing Water and
Wastewater services, including its current reporting relationship to the
political structure," said Chief Administrative Officer Shirley Hoy. "We
reviewed the approval processes for rates and funding, internal charges that
may need to be adjusted to reflect the true cost of services provided and the
need for more strategic political focus. The municipal service board model
offers the best opportunity for future infrastructure needs to be addressed
through long-term strategic planning, full-cost recovery, and a focus on the
business and policy needs of the service."

The recommendation comes from a CAO-led team that reviewed three options for
the City's water and wastewater service: retaining or modifying the status quo;
establishing a municipal service board; or creating a municipally-owned

Each of the options were assessed using four sets of criteria:

· Accountability and transparency
· Capacity for innovation and flexibility
· Efficient and effective operations
· Quality assurance and environmental responsibility

The study included consultation with affected bargaining units, the general
public and stakeholder groups, specifically environmental groups, service
suppliers, industrial users and neighbouring municipalities. The public was
invited to provide comment through the City's Web site, 24 hour phone/comment
line, e-mail, fax, and several open houses.

The joint Policy & Finance and Works Committees meeting will take place on June
11-12, 2002. Members of the public who wish to make a deputation should contact
Trudy Perrin in the City Clerk's Office at 416-392-8027.

The report is available in PDF file format on the City?s Web site at:

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