Water and Wastewater Operational and Resourcing Structure Review

Is the Ontario Clean Water Agency (OCWA) a private, for-profit operator?

No. OCWA is a Crown agency of the Government of Ontario that provides water and wastewater operations, maintenance, and management services to municipalities and other public-sector system owners across the province. OCWA was established in 1993 under the Capital Investment Plan Act, operates on a cost‑recovery basis (not for profit), and reports through the Minister of the Environment, Conservation and Parks.

Are Town jobs being lost as a result of this decision?

No. Supporting Town staff and maintaining continuity of employment was a key consideration in Council’s decision. In partnership with the Ontario Clean Water Agency (OCWA), the Town will facilitate employee transfer agreements so that affected employees have the option to remain working in the community as OCWA staff. These agreements recognize existing service, benefits, vacation entitlements, and applicable pension contributions.

What do Employee Transfer Agreements actually mean for staff?

Employee Transfer Agreements are intended to support a seamless transition by allowing benefits to apply immediately, recognizing existing service and vacation entitlements, transferring applicable pension contributions, and offering employment within a non‑competition framework. Staff who transfer to OCWA would become OCWA employees, and OCWA positions are unionized through OPSEU. This approach helps maintain both employment continuity and operational stability.

Does this decision mean the Town is privatizing water or wastewater services?

No. This is not privatization. The Town will retain ownership of all water and wastewater infrastructure, maintain local oversight, and continue to be responsible for compliance and customer service. OCWA is a provincial Crown agency that currently provides operational services on behalf of 170 municipalities across the province.

Why is the Town choosing a third‑party operator instead of keeping services fully in‑house?

The water and wastewater sector across Ontario is experiencing significant labour shortages, particularly for licensed operators. Following a detailed review, Council determined that partnering with OCWA provides enhanced operational resilience, access to a larger pool of licensed professionals, and continued strong regulatory compliance, while maintaining local ownership and oversight.

Will service change for residents?

Residents will not experience any change to service. Water and wastewater services will continue exactly as they do today, without interruption. All current standards for safety, reliability, emergency response, and regulatory compliance will remain fully in place, ensuring consistent, dependable service for all residents.

Who will be responsible if something goes wrong with the system?

OCWA will be responsible for day‑to‑day operations under a service agreement, while the Town will continue to own the infrastructure and provide oversight. This shared model strengthens accountability and risk management.

Will this decision increase water rates or taxes?

Council reviewed both short and long‑term financial impacts as part of the decision. The selected model supports long‑term sustainability and helps manage future cost pressures while minimizing impacts to residents.

How was this decision made?

The decision was informed by a comprehensive operational review that evaluated multiple service delivery options against criteria including customer service, regulatory compliance, environmental stewardship, financial sustainability, and operational risk. Council made its decision based on what best supports long‑term service delivery for the community.

What happens next?

The Town will finalize a service agreement with OCWA and bring forward the required bylaw for Council approval. Transition planning will continue, with ongoing communication to staff, residents, and stakeholders.

I have noticed my water bill fees have increased. Why?

Water and wastewater rates and fees are reviewed periodically to ensure the system remains safe, reliable, and compliant, and that user fees cover the costs of operating, maintaining, and renewing the infrastructure. For details on the most recent update, including what changed and when it takes effect, please review the Town’s Notice of Intent (December 8): https://www.penetanguishene.ca/news/notice-of-intent-to-update-the-fees-for-water-and-wastewater-services-for-2026/.

How does OCWA’s operating cost proposal compare with the Town’s current water and wastewater operating costs?
OCWA’s pricing reflects operating costs only and does not include capital expenditures. To ensure a fair comparison, major maintenance items and additional operational allowances were incorporated to align with the Town’s existing budget framework. All capital planning decisions remain the responsibility of the Town, with technical input provided by OCWA as required.

Does entering into an agreement with OCWA limit the Town’s ability to modify or exit the arrangement in the future?
OCWA agreements are established for defined terms and include clear renewal and termination provisions. Contract modifications may be initiated through a formal change process by mutual agreement. All infrastructure and equipment remain municipally owned, and OCWA does not have authority to sell or dispose of Town assets.

Would OCWA’s operating approach result in a reduced level of service for the Town?
OCWA employs a locally based operating model supported by regional and corporate technical resources. This structure provides municipalities with access to a broader range of engineering, compliance, and operational expertise than is typically available through a standalone municipal operation, without diminishing day-to-day service delivery.

How does OCWA’s regulatory compliance performance compare to that of the Town, and what are the implications for system safety, reliability, and risk management? OCWA manages over 1,000 water and wastewater facilities across Ontario under a structured, multi layered compliance management framework. This includes on site compliance staff supported by regional managers and a centralized corporate compliance team, ensuring consistent application of regulatory requirements and best management practices.

During the 2024–2025 inspection period, OCWA achieved an agency wide average compliance score of 98.84%, with over 74% of inspections receiving 100% ratings. OCWA has established processes to promptly address deficiencies, mitigate risk, and support continuous improvement. This operational scale and oversight structure contribute to system safety, regulatory reliability, and consistent performance across diverse and complex facilities.

December 12, 2025

Penetanguishene, ON - The Town of Penetanguishene is launching a review of its water and wastewater operational and resourcing structure to address ongoing labour challenges and improve service delivery.

Currently, water and wastewater services operate as two separate teams with dedicated resources. While some structural changes were introduced earlier in 2025, maintaining this dual-team approach is no longer sustainable. Several factors including personnel matters and long-term viability require the Town to explore alternative models.

Two primary options will be presented to Town Council:

1. Full amalgamation of Water and Wastewater operations under continued Town management – Combining Water and Wastewater operations under the Town, creating one cross-trained, consolidated team to address staffing challenges and increase resilience.
2. Outsourcing to a third-party organization – Outsourcing water, wastewater or both combined operations to one external provider. Under this potential model, the third-party organization would determine its required staffing levels.

Our goal with this process is to enhance service quality, address province-wide labour shortages, improve response times to customers, and share workloads among resources. Financial impacts will be assessed during the review, however, minimizing taxpayer impact remains a priority for the Town and our Council.

"This review is about finding a model that ensures long-term viability, improves service delivery, and supports our dedicated staff while being mindful of taxpayer impact. We owe it to our community to make decisions that strengthen our infrastructure and prepare us for the future." – Mayor Doug Rawson, Town of Penetanguishene.

We are committed to transparency and respect for our tremendous team throughout this process and the Town will provide future updates. This review process, communicated to staff and Union partners earlier this month, will officially begin in early 2026.