HomeMy WebLinkAbout; ; WATER SERVICE IN THE CARLSBAD AREA - FINAL REPORT; 1979-09-01-... --,...., -' --..
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September, 1979
WATER SERVICE
In The
CARLSBAD AREA
Final Report
Prep a red by:
Ralph Andersen and Associates
1446 Ethan Way
Suite 101
Sacramento, California 95825
(916) 929-5575
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TABLE OF OJNTENTS
Chapter I
THE STUDY IN PERSPECTIVE
Chapter II
LEGAL FRAMEWORK GOVERNING CHANGES IN DISTRICT ORGANIZATION
.Chapter I II
THE CARLSBAD MUNICIPAL WATER DISTRICT -A PROFILE
Chapter IV
Page
Number
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5
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THE CITY OF CARLSBAD -A PROFILE . . . . . . . . . . . . . . . . . 42
Chapter V
ORGANIZATION PLAN FOR A OJMBINED WATER OPERATION ......... 69
Appendix ................................ 101
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Chapter I
THE STUDY IN PERSPECTIVE
WATER SERVICE IN THE CARLSBAD AREA
The provision of water service to the City of Carlsbad and the unincorporated
area north, south and east of the City is provided primarily by the City and
the Carlsbad Municipal Water District, and to a lesser extent by the Oliven-
heim, San Marcos, Buena Colorado, and Vista Water Districts.
The City Of Carlsbad Assumed Responsibility For The Deli-
verY Of Water To The "Did Carlsbad Area" In 115~' •
Between about 1915 and 1958, retail water service was pro-
vided to a 7,000 acre service area known as the "Old Carls-
bad Area" by the Carlsbad Mutual Water Company and the
Terramar Water Company. In 1958, the City purchased the
two water companies with the proceeds from the sale of a
$767,000 revenue bond issue and established a City water
utility.
Since the City's purchase of the water companies, the stor-
age and distribution systems have been improved substan-
tially and the number of ret,:il customers now exceeds 5,600
with an annual water consumption of approximately 5,000
acre feet.
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The Carlsbad Municipal Water District (CMWD) Was Formed In
1954 To Supply Imported Water To The Carlsbad Area
The CMWD was formed in 1954 to supply imported water to the
City of Carlsbad and the surrounding unincorporated area
comprising a service area of about 20,000 acres. More
specifically, the District was formed to:
-Annex to the San Diego County Water
Authority so as to receive Colorado
River water .
Construct the pipelines and reservoirs
necessary to bring water from the Water
Authority's aqueducts.
-Establish an organization to operate
and maintain the new facilities.
The District currently provides the City with all of its
wholesale water and in addition serves about 2,875 retail
customers with an annual consumption of approximately 5,000
acre feet. Of the 2,875 retail customers, approximately
200 are located in the unincorporated area north, south and
east of the City and the balance are in the incorporated
area of the City.
The San Marcos, Olivenheim, Buena Colorado and Vista Water
Districts Also Provide Retail Water Service To City
Residents
In addition to CMWD, the San Marcos and Olivenheim Water
Districts also provide retail water service to City
residents. They currently provide service to a combined
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total of approximately 3,000 retail customers. Water service
is.also provided to a limited nurrber of City residents on the
northern boundary of the City by the Buena Colorado Municipal
Water District and the Vista Irrigation District .
BOTH CM~/D AND CITY OFFICIALS HAVE EXPRESSED AN INTEREST IN COMBINING THE
OPERATION AND MAINTENANCE OF THE DISTRICT AND CITY WATER SYSTEMS
Over the past eight years, both CMWD and City officials have expressed an
.interest in combining the operation and maintenance of the District and City
water systems. As early as 1971, the District proposed that it conduct all
water operat i ans under a contractua 1 agreement with the City. Agreement on
this proposal was not reached. The issue of a consolidated water operation
has since been raised by CMWD in 1973, and by the City in 1974 and 1976. None
of these proposals has resulted in the establishment of a combined water ser-
vice .
The most recent proposal for a consolidated water operation was made by the
City in late 1978 when the City Council agreed to:
Consider the establishment of CMWD as a subsidiary district
of the City.
Retain a consultant to develop a comprehensive plan for the
integration of the City and District water operations.
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THIS STUDY IS DESIGNED m DEVELOP A MODEL ORGANIZATION FOR THE CREATION OF A
COMBINED WATER OPERATION
• Based on the above, the City Council has sponsored this study. The principal .. -..
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study goal is the development of organization plan for the creation of a com-
bined water operation through the establishment of the Carlsbad Municipal
Water District as a subsidiary district of the City. More specifically, the
study is designed to accomplish the following:
The District Reorganization Act provides that a district
may be established as a subsidiary district of a city if
70% or more of the taxable or assessable land area is with-
in the boundaries of the city; and if 70% or more of the
registered voters of the district reside within the city .
In light of the above requirements, an important part of
the study is a determination as to whether or not CMWD
meets these requirements.
Development of an organization plan for the combined water
operation, including a complete and factual analysis of the
costs and benefits.
A careful analysis and recommendations regarding the salar-
ies and fringe benefits of District and City employees and
the practical personnel problems that may occur when merg-
ing District and City employees.
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Chapter II
LEGAL FRAMEWORK GOVERNING CHANGES IN DISTRICT ORGANIZATION
THE CARLSBAD MUNICIPAL WATER DISTRICT IS SUBJECT 1D THE PROVISIONS OF THE DIS-
TRICT REORGANIZATION ACT
In 1965, the State Legislature adopted the District Reorganization Act. This
Act sets forth uniform procedures for accomplishing a change in the organiza-
tion of a special district. Unless specifically excluded, the Act clearly
applies to all special districts. The Act does not specificany exclude a
municipal water district, and consequently the Carlsbad Municipal Water Dis-
trict is subject to its provisions.
The broad scope and mandatory nature of the District Reorganization Act inso-
far as its applicability to a change in the organization of a special district
may be seen in the following provisions:
"District means an agency of the state, formed pursuant to
general law or special act, for the local performance of
governmental or proprietary functions within limited bound-
aries .
This division shall provide the sole and exclusive authority
and procedure for the initiation, conduct and completion of
changes of organization or reorganization. On and after the
effective date of this division, all changes of organization
and reorganizations shall be initiated, conducted and com-
pleted in accordance with and ~i provided in this division.''
THE DISTRICT REORGANIZATION ACT PROVIDES THREE ALTERNATIVES FOR CHANGING THE
ORGANIZATION OF A DISTRICT
Provisions of the District Reorganization Act are intentionally broad so as to
provide a conrnunity with maximum flexibility insofar as organizing to deliver
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specific services locally. In terms of accomplishing a basic change in organi-
zation, however, the Act sets forth three principal alternatives:
Subsidiary District
Under this alternative, the District would continue in
existence as a separate governmental entity. All of the
provisions of the Municipal Water District Law of 1911
would continue to apply, except that the City Council would
also serve as the District Board of Directors. This would
be similar to the 'present responsibility of the City Coun-
cil to also serve as the Board of Directors for the Rede-
velopment Agency.
Merger
This alternative provides for the elimination of the Dis-
trict through its merger with the City. The City would, in
effect, assume all of the assets, obligations and responsi-
bilities of the District.
Dissolution
This alternative provides for the outright elimination of
the District. If dissolved, responsibility for providing
water service to the area now served by the District, as
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well as other terms and conditions of the dissolution,
would be determined by the Local Agency Formation Commis-
sion.
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THE DISTRICT REORGANIZATION ACT PROVISIONS INDICATE THAT THE CARLSBAD MUNI-
CIPAL WATER DISTRICT MAY NOT BE MERGED WITH THE CITY OF CARLSBAD
Section 56402 of the Government Code provides that a merger may only occur
when the boundaries of the district are totally within the boundaries of the
city. A review of the District's boundaries indicates that a portion of its
territory is outside the boundaries of the City and, therefore, the provisions
regarding merger do not apply.
THE DISTRICT MAY BE MADE SUBSIDIARY TO THE CITY IF AT LEAST 70% OF THE DIS-
TRICT'S TAXABLE OR ASSESSABLE LAND AREA AND 70% OF ITS REGISTERED VOTERS ARE
LOCATED WITHIN THE CITY'S BOUNDARIES
Section 56403 of the Government Code provides that a special district may be
established as a subsidiary district of a city if 70% or more of the dis-
trict's taxable or assessable land area and 70% of its registered voters are
located within the city's boundaries. Therefore, if the conditions outlined
above are met, the District may be established as a subsidiary district of the
City of Carlsbad.
THE DISTRICT MAY BE DISSOLVED PURSUANT TO DISTRICT REORGANIZATION ACT PROCE-
DURES
The District Reorganization Act contains specific provisions relating to the
dissolution of a ~pecial district. As indicated previously, the Carlsbad
Municipal Water District could be dissolved pursuant to these provisions, and
the responsibility for providing water service would subsequently be deter-
mined by LAFCD.
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SPECIFIC PROCEDURES MUST BE FOLLOWED m ACCOMPLISH A CHANGE OF ORGANIZATION
UNDER THE DISTRICT REORGANIZATION ACT
The District Reorganization Act provides specific procedures for creation of a
subsidiary district, merger, or dissolution. The principal steps involved in
accomplishing a change in organization under any of these alternatives are
similar, and are sumnarized below:
Preliminary Proceedings May Be Initiated By Petition Or By
Application Of Any Affected City, District, Or County
Consideration of a change in organization can be initiated
by a petition signed by·five percent of the resident voters
of the district; or five percent of the registered voters
residing within the territory of the city outside the
boundaries of.the district. A change of organization can
also be initiated by any affected county, city, or dis-
trict. An affected city, county, or district is defined by
the Act as one which contains or would contain territory
for which an organization change is proposed. Based on the
above, a change of organization regarding the Carlsbad
Municipal Water District could be initiated by the County
of San Diego, the City of Carlsbad, the Carlsbad Municipal
Water District and any other affected special district.
LAFCO Must Review And Approve, Conditionally Approve, Or
Disapprove All Proposed Changes Of Organization Initiated
Under The District Reorganization Act
Once the petition or application is filed, LAFCO must give
notice, hold a hearing, and make a determination. In
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sunrnary, LAFCO may either approve, conditionally approve,
or disapprove the proposal. If LAFCO disapproves the pro-
posed change in organization, the proposal may not be con-
sidered again for a period of one year. If LAFCO approves,
the proposed change is referred to the Board of Supervisors
for appropriate action.
The County Board Of Supervisors Must Also Review And
Approve Or Disapprove Proposed Changes In Organization
The Board of Supervisors, like LAFCO, must give notice,
hold a hearing, and make a determination. If the Board of
Supervisors disapproves the proposed change, the proceed-
ings are terminated.
An Election Will Be Reauired If Either The City Or District
Does Not Approve The Proposed Change In Organization
If the Board of Supervisors approves the proposed change of
organization, the proposal is subject to a vote of the
electorate. A vote is not required, however, if both the
City Council and District Board of Directors agree to the
proposed change.
If an election is required, the Board of Supervisors may
direct that it be held only within the District, or both
within the District and within the territory of the City
outside the boundaries of the District. It should be
noted, however, that Section 5641B of the Government Code
requires that an election be held only within the District
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if a valid petition containing no less than 10% of the sig-
natures of the resident voters of the District request a
district-only election.
The Final Decision Is Implemented By The Board Of Super-
visors
Depending upon the outcome of the election, the Board of
Supervisors adopts a resolution that either:
-Confirms the defeat of the proposed
change of organization by the elec-
torate.
-Confirms its approval and orders imple-
mentation of the change of organization
with the terms and conditions set by
LAFCO.
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Chapter I II
THE CARLSBAD MUNICIPAL WATER DISTRICT -A PROFILE
THE RESPONSIBILITIES OF THE DISTRICT INCLUDE THE DELIVERY OF WHOLESALE WATER
TO THE CITY OF CARLSBAD'S WATER UTILITY AND THE PROVISION OF RETAIL WATER SER-
VICE TO RESIDENTIAL, COMMERCIAL/INDUSTRIAL, AND AGRICULTURAL CUSTOMERS
CMWD was created in 1954 under the Municipal_ Water District Law of 1911 to
provide imported water to a 20,000 acre service area comprising the City of
Carlsbad and the surroundin_g unincorporated area to the north, south and east
of the City.
CMWD Provides The City Water Utility With All Of The Whole-
sale Water Supply
CMWD now provides the City of Carlsbad's water utility with
all of its wholesale water supply. During calendar year
1978, CMWD imported approximately 10,000 acre feet of water
of which the City received 5,000 acre feet or about half
the District's supply.
CMWD Provides Retail Water Service To Approximately 2,875
Residential, Commercial/Industrial, And Agricultural Cus-
tomers
In addition to delivering wholesale water to the City of
• Carlsbad's water utility, CMWD provides retail water ser-
vice to approximately 2,875 residential, commercial/indus-
trial, and agricultural customers with an annual consump-
tion in fiscal year 1977-78 of 4,664.2 acre feet. The num-
ber of customers and consumption by category of customer is
as follows:
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~ Number % Total Consumption % Total
Residential 2,606 90.7% 974.8 A/F 20.9%
Comm. /Indus. 130 4.5% 1,019.8 A/F 21. 9%
Agri cu ltura 1 139 4. 8% 2,669.6 A/F 57.2%
TOTAL 2,875 4,664.2
THE DISTRICT WATER SYSTEM CONSISTS OF TRANSMISSION, STORAGE, PURIFICATION AND
DISTRIBUTION FACILITIES
.The District water system consists of a variety of facilities· as follows:
Approximately 75 miles of transmission and distribution
pipelines ranging in diameter from 6 inches to 27 inches .
Joint ownership of the Tri-Agencies Pipeline and the South
Aqueduct Connections valued at $1,5 million and $1.25 mil-
lion respectively .
Squires Dam with a reservoir capacity of 600 acre feet.
Two chlorination stations, one located at Santa Fe Reser-
voir and the other at Squires Dam.
. One pumping station.
Eight distribution reservoirs with a total capacity of 7.35
M.G. as follows:
-Santa Fe -2.5 M.G.
-B-1.0M.G.
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-C -1.0 M.G .
-La Costa -1.5 M.G.
-E -1.5 M.G.
-D (2) -1.25 M.G. each
-Pump Station -0.1 M.G .
. Five wholesale metering stations.
. 17 pressure regulating stations and one control station.
THE COST OF WATER TO CMWD IS DETERMINED BY THE SAN DIEGO COUNTY WATER AUTHORITY
The solr source of water to CMWD is the San Diego County Water Authority. The
cost of the water to CMWD is determined by the Authority and includes a charge
for the water delivered to the District less agricuHural credits, plus a
capacity charge. For example, the total cost of water to CMWD in January,
1979 was $47,637.97 and can be broken down as fo 11 ows:
Acre Feet Rate Amount
Total Water Delivered 488.9 $ 97 .10 $47,472.19
Agricultural Credits -488.4 34.00 -16,605.60
Capacity Charge(*) 752.08 16,771.38
TOTAL 47,637.97
In addition to the monthly charges described above, the Authority charges the
District its share of other Authority expenses related to the treatment, stor-
age and delivery of water. For example, the Authority imposes charges for
evaporation, pumping, and spillage.
* 1/12 of annual charge based on peak flow of 22.3 c.f.s. X 1.9835 X $4,550.
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THE COST OF WATER TO THE DISTRICT'S RETAIL CUSTOMERS CONSISTS OF WATER CHARGES,
IMPROVEMENT DISTRICT PROPERTY TAX LEVIES, AND A PROPORTIONATE SHARE OF THE
COUNTY'S GENERAL PROPERTY TAX LEVY
The cost of water to CMWD retail customers consists of both property tax
1 evi es and water charges. Currently, the District finances capita 1 improve-
ments with property taxes and the maintenance and operation of the system with
water charges. It should be noted, however, that during the 25 year history
of the District, both water charges and property taxes have been utilized to
finance capital improvemen½s.
Water Charges Consist Of A Ready-To-Serve Fee And A Unit
Charge For Water
The District water charges consist of a ready-to-serve fee and
a direct charge for water as follows:
-Ready-To-Serve Fee
The ready-to-serve fees are based on the size
of the customer's meter and are as follows:
Meter Size Monthly Charge
5/811 $ 4.40
3/411 4.40
1 II 5.50
1-1/211 7.70
2 II 12.65
3 II 19.25
4 II 37. 95
6 II 55.00
8. II 82.50
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-Unit Water Charge
The unit water charge is the cost of
water per 100 cubic feet or 748 gallons
and varies according to type of cus-
tomer.
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Residential
Commercial/Industrial
Agricultural
Unit Charge
40¢
40¢
32¢
The District Receives A Share Of The San Diego County
General Property Tax Levy
Prior to the passage of Proposition 13, the District levied
a general tax rate of 0.14¢ per $100 of assessed valuation
for the purpose of financing capital improvements. In
general terms, the adoption of Proposition 13 permits only
the County to levy a general tax rate and specifically pre-
cludes any other unit of local government, including the
District, from doing so. The any exceptions to this re-
quirement are tax rates levied for the purpose of meeting
debt service requirements of general obligation bonds
approved by the voters prior to the passage of Proposition
13. Proposition 13 was very vague, however, as to how the
property tax revenues generated by the County's general tax
rate were to be distributed among the various local govern-
ment entities such as cities, school districts, and special
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districts. As a consequence, the State Legislature has
adopted implementing legislation that provides, in general
terms, that each taxing agency receive a share of the total
property tax revenue collected in proportion to the percen-
tage their tax rate represented of the total tax rates le-
vied by all local taxing agencies. Based on this legisla-
tion, the District's share of the County general tax rate
was 0.1048506% and generated $116,301 which was about 45%
of the previous year's total. The practical impact on a
District property.owner is that he or she now pays property
taxes to the District equal to about 45% of the amount he
or she paid the previous year.
The District Levies A Series Of Improvement District Tax
Rates
The District has chosen to finance a major portion of its
capital improvements through the use of voter approved
general obligation bonds on four improvement districts.
Improvement Districts 1 and 4 encompass CMWD's entire ser-
vice area and were established to finance the construction
of the transmission and storage facilities necessary to
bring imported water to the Carlsbad area. As a result,
all District property owners pay tax rates to support the
general obligation bonds sold to finance these facilities.
Improvement Districts 2 and 3 were established to finance
the construction of the storage reservoirs and distribution
mains to serve the District's retail service areas east and
south of the "0 ld Carlsbad" area of the City. Tax rates
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to support the general obligation bonds sold to finance
these facilities are paid by the retail customers served by
these improvements. The net effect of the above is that a
District property owner who is also a retail customer of
the District pays a tax rate for Improvement Districts 1
and 4 plus a tax rate for either Improvement District 2 or
3. The current tax rates for the improvement districts are
as follows:
Rate Per $100 A. V.
Improvement District 1 0.04¢
Improvement District 2 0.10¢
Improvement District 3 0.26¢
Improvement District 4 0.02¢
The Average Monthly Cost Of Water To A District Customer
Includes Water Charges And Tax Levies And Varies According
To The Type Of Customer And The Improvement Districts With-.
in Which The Customer Is Included
The average monthly cost of water to a District customer
varies according to a variety of factors including the type
of customer (residential, commercial/industrial, or agri-
cultural), and whether or not the customer is located in
Improvement District 2 or 3. Based on a set of uniform
assumptions regarding market value, assessed value, type of
customer, water consumption, and meter size, the following
conclusions can be reached regarding the average monthly
cost of water to similar residential customers located in
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.. --Improvement District 2 or 3. Because the District's tax -revenues are used solely for capital improvements and debt r -service, and the water charges are used solely to finance ..
the maintenance and operation of the water system, they -.. have been shown separately in the examples below. (The
.. assumptions and detailed calculations supporting these .. examples are included in the Appendix.) -..
Imp. District 2 Imp. District 3 -.. Maintenance & Operatlon
-Ready-To-Serve Fee $ 4.40 $ 4.40 .. Unit Water Charge 6.00 6.00 -Sub tot a 1 10.40 10.40 ---Capital Improvements
.. Improvement District 1 . 83 .83 -Improvement District 2 2.08 -Improvement District 3 5.42 -Improvement District 4 .42 .42 ...
General Tax Levy 1.31 1.31 --Sub tot a 1 4.64 7.98 .. mTAL $14.54 $18.38 ---.. .. -r· --
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DISTRICT POLICY IS ESTABLISHED.BY A BOARD OF DIRECmRS
The legislative and policy making responsibilities of the District are assumed
by a five member Board of Directors that is elected by division for overlapp-
ing four year terms. The policy development and implementation activities of
the Board are supported through the creation of committees composed of two or
three Board members and supported by District staff. These committees are
charged with the responsibility for developing specific recommendations for
consideration by the full Board of Directors. For example, the Finance Com-
mittee, with the assistance of District staff, is responsible. for the develop-
ment of the preliminary annual budget which ultimately is revised, modified
and approved by the full Board.
DAILY MANAGEMENT OF DISTRICT OPERATIONS IS THE PRINCIPAL RESPONSIBILITY OF THE
GENERAL MANAGER
The District established the General Manager position on a full-time basis in
1972. This position was filled until the retirement of the incumbent in Jan-
uary of 1977. Upon the retirement of the incumbent, the position was filled
on an interim basis by the Assistant General Manager for approximately one
year, at which· time he left the position for health reasons. As an interim
measure, the District is contracting with an outside engineering consultant,
who also serves as District Engineer, to assume the responsibilities of Acting
General Manager.
The General Manager supervises the daily activities of the District through
two division supervisors, and typical duties include the following:
Implement District legal responsibilities and policies as
established by the Board of Directors .
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Supervise overall District operations, including the provi-
sion of technical assistance and support to District staff.
Prepare operating and capital improvement budgets, and
related financial information, for Board consideration.
Prepare reports and recommendations concerning District
policies and operations for Board consideration.
Confer with representatives of the public and priv~te
sector, and undertake negotiations as necessary to coordi-
nate and implement District programs and policies.
Develop, implement and administer District personnel poli-
cies and programs.
THE DISTRICT HAS 10 AUTHORIZED FULL-TIME POSITIONS AND ALLOCATES STAFF RESPON-
SIBILITIES BETWEEN TWO DIVISIONS
As indicated on Exhibit 1, on page 22, the District has 10 authorized full-
time positions. With the exception of the General Manager who coordinates all
District activities, District staff is allocated between the Administrative
and Field Operations Divisions. In addition, the Board has retained outside
assistance to perform engineering, legal, and some financial services.
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THE ADMINISTRATIVE DIVISION IS RESPONSIBLE FOR ALL ACCOUNTING, cusmMER BILL-
ING, AND GENERAL ADMINISTRATIVE SUPPORT ACTIVITIES
The Administrative Division has responsibility for all accounting, customer
billing, and general administrative activities, including administrative and
clerical support to the Board of Directors. These responsibilities are car-
ried out by four office employees as follows:
Office Manaqer/Assistant General Manager
This position reports directly to the General Manager and
has responsibility for the day-to-day management of all
Administrative Division activities including:
-Supervision, training, and evaluation
of all office staff .
Responsibility for all customer service
and billing activities.
-Responsibility for a variety of finan-
cial management activities including:
Provision of assistance to the
General Manager in the prepara-
tion and administration of the
annua 1 budget.
Cash management .
General accounting including
accounts payable, payroll,
accounts receivable, and fixed
assets .
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I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I
)
"" "" Field Operations
Systems
Superintendent
Leadman
Meter Reader
Water Operator I, II
f l Exhibit 1
CARLSBAD MUNICIPAL WATER DISTRICT
Organization Chart
I Board of Di rectors : Consultants
Engineering I Board of Di recto~ 1
Legal
I General Manager : Financial
Public Relations ~~al Manager }
Administration
I
Office Manager/
(1) Assistant General Manager
( 1) Executive Secretary
(1) Billing Cl erk
(2) Receptio11j st
(')
( 1)
(1)
(1)
( 1)
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.. Preparation of financial
reports.
Coordinating the conduct of the
annual audit with the outside
auditor.
Supervision and coordination of
bond payments and maintenance
of appropriate records.
Coordination of District finan-
·cial service needs with banks.
-Supervise and coordinate customer ser-
vice and billing activities.
Supervise and coordinate general cleri-
cal support to the Board of Directors,
General Manager and District staff.
Of the tasks described above, the vast majority of the Office Manager/Assistant
General Manager's time is dedicated to financial management activities. The
balance of her time is spent in general office management and the supervision
and training of office personnel.
Executive Secretary
This position devotes nearly full-time to general clerical
support to the General Manager and Board of Directors.
Duties include the preparation of agendas, minutes, resolu-
tions, general correspondence, typing, filing, and respon-
sibility for records management and retention. In addi-
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tion, this position also provides back-up assistance on the
telephone and counter and prepares the daily bank deposit
and types warrants.
Receptionist
Approximately 50% of the time associated with this position
is devoted to customer service and billing activities, in-
cluding responding to customer inquiries on the telephone
and over the counter, stuffing and mailing utility bills,
and opening and sorting utility bill payments by meter
book. The balance of the position's time is dedicated to
pricing work orders, posting inventory records, verifying
and filing bond accounts, and general office duties includ-
ing typing and filing.
Bi 11 ing Clerk
This position is allocated on a full-time basis to customer
service and billing activities. The tasks assigned to this
position include the following:
-Check meter book calculations for
accuracy and compute water bills.
-Prepare water bills including typing
the address on the bill, entering
billing information into the billing
machine, balancing the meter books,
preparing a recapitulation report and
stuffing and mailing the bills.
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-Prepare work orders for new meter in-
stallations and field repairs.
Prepare service requests for turn-ons
and turn-offs.
-Process customer deposits.
-Prepare delinquent lists and follow-up
on co 11 ecti ons.
THE FIELD OPERATIONS DIVISION IS RESPONSIBLE FOR THE OPERATION, MAINTENANCE,
.AND REPAIR OF THE DISTRICT'S WATER SYSTEM
The Field Operations Division is responsible for the operation, maintenance,
and repair of all water system facilities including transmission and distribu-
tion lines, distribution reservoirs, Squires Dam, chlorinators, hydrants, and
meters. In general, the District's method of operation has been to perform
the routine operation, maintenance, and repair work with District employees
and to supplement District employees with outside contractors and the rental
of heavy equipment on major repairs such as main line leaks. The District
contracts for all new construction and a variety of other field services such
as water meter testing and repair, some water quality testing, and major vehi-
cle repairs. More specifically, the Division's day-to-day responsibilities
include the following:
Determine the amount of water to be purchased from the San
Diego Water Authority and insure that it is delivered.
Operate and perform routine maintenance on the treatment
and storage facilities including chlorinators, pressure
reducing valves, storage and distribution reservoirs, and
25
• ---r -.... ,. -.. ---.. --..
• ---.. --
• ---.. ---.. -... .. .. --• --..
pumping station. Maintenance and repair work is performed by
District staff and is augmented by outside contract as required.
Conduct water quality tests including the collection of samples
and the performance of tests for color, turbidity, and chlorine
residuals. Bacterial tests are conducted by an outside con-
tractor.
Conduct the annual backflow prevention testing program. The
District is just in the process of initiating this program .
One employee is certified to conduct the tests and a second
will be certified shortly. Currently there are 10 backflow
devices in service with 50 additional devices in the process of
i nsta 11 ati on .
Install all water meters and perform limited meter testing and
repair work. More specifically, District employees repair and
test all 5/8" meters and the less severely damaged meters up to
4" in size. The testing and repair of the more severely dam-
aged and larger meters are performed by an outside contractor.
Perform a variety of customer service related tasks that
include:
Reading all water meters. This requires about
eight man days per month .
-Responding to customer complaints regarding
water leaks, high meter readings and the like.
-Turning water services on and off.
26
----r • ~ --.. -----.. ---------.. ---..
.. ,
-----------
Maintain and repair the transmission and distribution lines
with assistance from outside contractors as required. As a
general rule, water line repairs are performed by District
staff with assistance from outside contractors and the ren-
tal of heavy equipment. For example, on breaks to steel
pipe, the District contracts for the necessary heavy equip-
ment, operator, and welder, and performs the repair work
with District staff.
The responsibilities outlined· above are performed by a staff of five field
maintenance employees as follows:
Systems Superintendent
This position reports directly to the General Manager and
is responsible for the routine operation, maintenance and
repair of a 11 water system f ac i1 i ti es. The Systems Super-
intendent is required to have a Grade II certification as a
water system operator pursuant to State regulations, and
his duties include the following:
-Implements District management poli-
cies, procedures and priorities .
-Assigns, supervises, trains, and evalu-
ates subordinate field personnel.
-Assumes responsibility for personally
performing water quality tests and lo-
cating District water lines.
27
.. ---r .. . ., __ -------.. -.. ---
,. ----
,. -.. ..
,. -.. -.. -.. --.. ---
Leadman
-Insures that District equipment is pro-
perly maintained by District personnel
and coordinates major repair work with
outside garages.
-Assists in budget preparation and
administration.
This position is expected to perform the full-range water
system operation and.maintenance and to serve as the Acting
Systems Foreman as required. Specific duties include:
Routine maintenance and repair of pres-
sure regulating valves.
-Raise and paint valve cans.
-Install and repair water services.
-Maintain and clean vaults and reser-
voirs.
Conduct daily checks of reservoirs when
the Water Operators are reading meters .
-Assist in supervision of field mainten-
ance operations.
Meter Reader
This position is dedicated on a full-time basis to meter
related activities and is required to be certified to per-
form backflow prevention tests. Specific duties include:
28
----r .. -.. --.. .. --...
,. .. -.. --'W-,,s. .. -.. .. .. -----... -----.. --
-Meter reading.
-Testing and repair of all 5/8" meters
and the less severely damaged larger
meters up through 4" in size .
-Maintenance and cleaning of meter boxes.
-Conducting backflow prevention tests.
-Assisting in all other maintenance and
repair tasks .
-Responds to customer complaints and
collectfog' delinquent accounts .
Water Operator
The two Water Operator positions are expected to perform
the full-range of water system operation, maintenance, and
repair tasks. Specific assigned duties include the follow-
; ng:
Inspect reservoirs on a daily basis
including the reading of the elevation
levels in the tanks and adjusting the
valves to regulate the amount of water
in the reservoir. This task requires
approximately four man hours per day.
-The balance of their time is dedicated
to the routine maintenance and opera-
tion of the water system, facilities,
and meter reading. When time permits,
these employees also flush water lines
and turn valves.
29
• --.. r -.... --.. -------.. ----------------------• ---
ADMINISTRATIVE SUPPORT ACTIVITIES ARE PROVIDED THROUGH A COMBINATION OF DIS-
TRICT STAFF AND OUTSIDE CONTRACTORS
Administrative support services are performed through the combined use of Dis-
trict staff and a variety of contracts with outside consultants and contract-
tors. The District's approach to the provision of administrative support ser-
vices is similar to that taken with water system construction and maintenance,
in that the more routine tasks are performed by District staff, while the more
complex work and major one-time projects are performed by contract.
PERSONNEL SERVICES ARE THE RESPONSIBILITY OF THE GENERAL MANAGER
The General Manager has direct responsibility within Board policy for all per-
sonnel matters including selection, disciplinary actions, compensation and
training.
FINANCIAL SERVICES ARE PROVIDED BY THE ADMINISTRATIVE DIVISION
The District's financial services are provided by the District's administra-
tive staff and include:
Revenue administration
Cash management
General accounting
Preparation of financial reports
30
.. ..
.. ..
• C ..
.. .. .. .. --.. ..
• ..
-.. .. -...... -.. .. --,.
-.. .. ---.. -,-• -.. -
The use of outside financial as.sistance is limited to the conduct of the an-
nual audit and one-time special projects such as the preparation of rate stu-
dies and the services required for the long-term financing of capital improve-
ments .
THE MAJJRITY OF DISTRICT CUSTOMERS ARE BILLED BI-MONTHLY
The District bills all of its 2,900 plus water customers on a bi-monthly
basis, except about 600 major commercial and agricultural users who are billed
monthly. As a result, the .District bills about 1,800 customers per month .
The billing process is designed so that meters are read and customers are
billed in a batch system. The billing is performed manually and involves the
following:
The Meter Reader with the assistance of other field main-
tenance personnel read the meters, enter the amount of
water consumed in the meter book, and compute the consump-
tion .
. The Billing Clerk
-Verifies the Meter Reader's computa-•
ti ons and rates the meter books .
-Calculates each costumer's bill includ-
ing the addition of penalties and
c1rrears.
-Prepares the .bill through the use of an
NCR billing machine.
-Prepares water consumption report.
31
---... r • .. ------
• ---
,. -.. -----------.. ---,., --.. -
. The Receptionist
-Prepares the bills for mailing.
-Receives and processes payments both
over the counter and through the mail.
. The Billing Clerk
-Posts payments and balances the accounts
by meter book.
-Prepares a delinquent 1 ist and follows
up on de 1 ihquent accounts.
THE RESPONSIBILITY FOR PURCHASING HAS BEEN ASSIGNED TO THE GENERAL MANAGER
The purchase of District supplies, materials and equipment is the principal
responsibility of the General Manager. In broad terms, purchase orders are
initiated by either the General Manager, Office Manager, or Systems Superin-
tendent. The General Manager has the authority to approve purchase orders
under $500, while all those over $500 must be approved by the Board of Direc-
tors.
EQUIPMENT MAINTENANCE ACTIVITIES .ARE PERFORMED BY DISTRICT EMPLOYEES WITH THE
ASSISTANCE OF OUTSIDE GARAGES
The District's field maintenance personnel perform all routine maintenance to
District equipment including lubes, oil changes, and tune-ups. Major repair
work is performed by outside garages.
32
• ..
•
•
•
•
..
• ..
•
.. ..
• ..
..
•
.. ..
..
"' .. ..
--
• .. .. -.. ----.. -.. --
r ~-
....
-
PROFESSIONAL ENGINEERING SERVICES ARE PROVIDED BY A CONSULTING ENGINEER
The District Board has contracted with a consulting engineer to provide var-
ious engineering services at a total cost of $54,000 as follows:
Routine engineering services such as attendance at Board
meetings and general engineering assistance are provided on
a retainer basis. These costs totaled approximately
$14,000 in fiscal year 1977-78 .
The engineering tasks associated with private developments
such as plan checks, plan approvals, and construction in-
spection are provided on an hourly fee basis plus reim-
bursement for out-of-pocket expenses and are paid by the
developer through trust accounts established by the Dis-
trict. These costs totaled approximately $30,000 in fiscal
year 1977-78 .
The engineering tasks associated with District sponsored
construction and maintenance projects such as design, con-
struction inspection, and construction management are pro-
vided on an hourly fee basis or fixed price basis depending
on the size of the project. These costs totaled approxi-
mately $10,000 in fiscal year 1977-78.
LEGAL SERVICES ARE PROVIDED BY A PRIVATE LAW FIRM
As with engineering services, the Board has retained the services of a private
law firm to perform a variety of legal services including the attendance at
33
----,.... .. .. --.. -----------
,. -------------,. -.. --
Board meetings, providing legal consultation to the Board and staff, represent-
ing the District in various legal matters, and preparation of required legal
documents. Routine services are provided on a retainer basis at a cost of
$11,400 per year, plus reimbursement for expenses. Non-routine legal services
such as representing the District in an unanticipated law suit are paid on an
hourly fee basis plus reimbursement for out-of-pocket expenses .
A VARIETY OF INCIDENTAL SERVICES ARE PROVIDED BY OUTSIDE CONTRACWRS
_In addition to engineering, legal, and vehicle maintenance, a. variety of inci-
dental services are provided to the District by outside contractors. The type
of service and cost to the District are as follows:
Service
Answering Service
Radio Maintenance
Gardening and Custodial Services
WTAL
Annual Cost
$ 630
575
1,680
$2,885
THE DISTRICT DOES NOT CURRENTLY UTILIZE DATA PROCESSING EQUIPMENT
The District currently does not use data processing applications in the con-
duct of its business. The District is, however, exploring the feasibility of
utilizing data processing equipment and has budgeted an initial $10,000 for
the acquisition of the necessary software and equipment.
•
34
·• .. .. ..
• -.. ..
•
... .. -.. ..
•
• .. --• ..
•
• -
•
• ..
•
• -
•
•
• -
• ..
--
r
-
THE DISTRICT OPERATES ITS OWN COMMUNICATIONS EQUIPMENT
The District operates its own radio equipment from its administrative office
facilities. The equipment is used to contact District employees who are in
the field. Outside normal business hours, emergency calls are received by an
answering service that contacts District staff as appropriate. Field em-
ployees carry pagers so that they can be contacted to respond to emergency
calls on a 24-hour basis .
DISTRICT FINANCE IN PERSPECTIVE
Currently, the District finances the operation and maintenance of the water
system with water charges and its capital improvement program with property
tax revenues. The passage of Proposition 13 has severely restricted the Dis-
trict's property tax revenues and will require the District to develop an
alternative method for financing capital improvements .
In broad terms, the adoption of Proposition 13 permits only the County to levy
a general tax rate and specifically precludes any other unit of local govern-
ment, including the CMWD, from doing so. The only exception to this require-
ment are tax rates levied for the purpose of meeting debt service requirements
of general obligation bonds approved by the voters prior to the passage of
Proposition 13. Proposition 13 was very vague, however, as to how the pro-
perty tax revenues generated by the County's general tax rate were to be dis-
tributed among the various local government entities including CMWD. As a
consequence, the State Legislature has adopted special implementing legisla-
tion that provides, in general terms, that each taxing agency receive a share
of the total property tax revenue collected in proportion to the percentage
35
---.. r • '~ .. --.. ---------.. -.. -.. -.. --
,.
--.. ----•
,. -,.
their tax rate represented of the total tax rates levied by all taxing agen-
cies. Based on this legislation, the District's share of the County general
tax revenue in 1978-79 was $116,301, which is about 45% of the previous year's
total.
The practical impacts of Proposition 13 on the District would seem to be the
following:
The District may continue to levy the tax rates against
each of the four improvement districts to finance the debt
service requirements of the voter approved general obliga-
tion bonds passed prior to the adoption of Proposition 13.
The District may not, however, finance future capital pro-
jects from tax supported general obligation bonds.
With the above in mind, the following will place the District's overall finan-
cial position in perspective.
THE DISTRICT HAS DEBT OBLIGATIONS OF $3.2 MILLION
The District has a total debt obligation of $3,198,000. Of the total,
$2,098,000 is long-term general obligation bonded debt against the District's
four improvement districts with the final payment due in 1991. Debt service
for 1978-79 will amount to $215,728 for principal and interest. The bonds are
being financed by a special voter approved property tax levy against each of
the four improvement districts as follows:
36
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..
• .. r • -....-,~·
•
•
• ..
•
• ..
..
•
•
• .. -.. -
• -
• --
• .. -
• ..
• .. ..
• -.. --..
Rate Per $100 A.V.
Improvement District 1 0.04¢
Improvement District 2 0.10¢
Improvement District 3 0.26¢
Improvement District 4 0.02¢
The remaining $1.1 million represents the District's contribution to the con-
struction of the Tri-Agency Pipeline and South Aqueduct Connection. The Dis-
trict had originally planned to finance the obligation out of the revenues
from its 0.14¢ general tax levy. With the passage of Proposition 13, however,
the District is no longer permitted to levy a general tax rate and is now
exploring alternative financing methods such as the imposition of development
fees and the sale of water revenue bonds. In the meantime, the District has
sold a $600,000 and $500,000 five-year notes and plans to finance the debt
service on this obligation with the District's share of the County's general
property tax levy and other water revenues .
THE DISTRICT'S PRINCIPAL SOURCE OF REVENUE IS DERIVED FROM WATER SALES
A major portion of the District's revenue can be attributed to water sales.
The other significant source of revenue has historically been the property
tax. However, now that the District may no longer levy a general property tax
rate, the only property tax revenue t11e District can rely on over the long
term is that generated by the Countywide 1% and that generated by the tax
rates levied against each of the four improvement districts. Exhibit II on
the following page summarizes District revenues as reported in the annual
audit and budget documents .
37
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,,. ---..
,_ .. .. --•
,. -
An analysis of the District's revenue history suggests the following conclu-
sions:
The District's revenues from water sales have increased
steadily between 1973-74 and 1977-78, and are expected to
increase again in 1978-79. It should be noted, however,
that the magnitude of these increases are, in reality, a
reflection of increased consumption and the cost of water
to the District .
Water sales revenues have represented about 63% of the Dis-
trict's revenue over the past five years. The relative
importance of water sales are likely to increase in the
wake of Proposition 13.
The decline in property tax reveues in the current fiscal
year represents a significant revenue shortfall to the
District.
DISTRICT OPERATING EXPENDITURES HAVE INCREASED SIGNIFICANTLY
Between fiscal years 1973-74 and 1977-78, District expenditures have increased
significantly. Exhibit III on the fo-,lowing page summarizes District operat-
ing expenditures as reported in the annual audit and budget document.
38
11 II lj ll II 11 11 II II ti II II II II II II II II ll
) t ' ..,
Exhibit II
CARLSBAD MUNICIPAL WATER DISTRICT
Revenue
1973-74 1974-75 1975-76 1976-77 1977-7B
Operating Revenue
Water Sales $ 719,733 • $ 730,291 $ 905,495 $ 997,016 $1,247,302
Penalty Charges and Misc. Income 5,573 9,171 9,598 7,262 8,785
Lawsuit Settlement -6,418 ---
Administrative Expense Reimb. 4 748 4 735 9,915 212505 41 780
w Total Operating Revenues 730,054 750,615 929,008 1,025,783 1,297,867 ""
Other Revenues
Property Taxes 382,091 385,294 460, 773 495,575 514,283
Interest Earned 25,630 31,822 32,169 56,792 85,037
CETA Reimbursement -14,136 28,802 3,793
Lease of Property ----6,171
Bond Proceeds
Total Other Revenues 407,721 431,252 521,744 556,160 605,491
lOTAL OPERATIONS AND OTHER REVENUES $1,137,775 $1,181,867 $1,450,752 $1,581,943 $1,903,358
-----.. -----.. -..
--------..
,. -..
--.. -
, .. .. --
, .. ---
r,
-
An analysis of the District's expenditure history reveals that the cost of
water consistently represents over 75% of the District's maintenance and
operation costs, and that the cost of water to the District has increased
approximately 86% since fiscal year 1973-74. All other operating costs have
increased at a moderate rate.
40
---Exhibit III -CARLSBAD MUNICIPAL WATER DISTRICT ,---Expenditures --1973-74 1974-75 1975-76 1976-77 1977-78 --Operating Expenses -Cost of Water Sold $441,268 $461,375 $534, 969 $645,636 $ 820,873 -Pumping 1,992 1,667 2,248 3,086 3,046 -Water Treatment 10,178 19,154 17,245 19,786 12,246 -Transmission and -Distribution 71,224 86,788 67,639 86,421 67,607 -Customer Acctg. 2,197 10,471 26,606 25,654 29,031 -Administrative -and General 123,350 140,758 138,222 173,656 173,828 -TOTAL OPERATING .. EXPENSES $650,209 $720,213 $786,928 $953,639 $1,106,631 ------------.. -------41
,. ···-•"~~--
----r -~. -.. --.. .. -... -------'-· ----... -.. ---.. ---,.... ----
Chapter IV
THE CITY OF CARLSBAD WATER DEPARTMENT -A PROFILE
THE RESPONSIBILITY OF THE CITY WATER DEPARTMENT IS THE PROVISION OF RETAIL
WATER SERVICE TO APPROXIMATELY 5,700 RESIDENTIAL, COMMERCIAL, AND AGRICULTURAL
WATER CUSTOMERS
Between about 1915 and 1958, retail water service was provided to a 7,000 acre
service area known as the "Old Carlsbad Area" by the Carlsbad Mutual Water
Company and the Terramar Water Company. In 1958, the City purchased the two
water companies with the proceeds from the sale of a $767,000 revenue bond
issue and established a City water utility.
The City currently provides retail water service to approximately 5,700 resi-
dential, commercial/industrial, and agricultural customers with an annual
consumption in calendar year 1978 of 4,828.2 acre feet. The number of cus-
tomers and consumption by category is as follows:
~ Number % of Total Consum~tion % of Total
Residential 5,156 90.5% 3,724.3 A/F 77 .1%
Conrnerci al/Industrial 468 8.2% 766.4 A/F 15.9%
Agricultural 75 1.3% 337.5 A/F 7.0%
TOTAL 5,699 4,828.2
42
• -.. .. r .. --.. -.. .. -
• -.. -
• -------... -.. -.. -.. -.. .. ----..
THE CITY'S WATER SYSTEM CONSISTS OF A VARIETY OF DISTRIBUTION FACILITIES
The City's operating water system consists of a variety of distribution
facilities as follows:
Three distribution reservoirs with a combined capacity of
8.0 M.G.
Approximately 93 miles of transmission and distribution
pipelines .
. Approximately 650 fire hydrants .
. Three pumping stations as follows:
-Buena Vista
-Ellery (This station will no longer be
used when the Tri-Agency Pipeline is
completed, but will continue to be
maintained for emergencies.)
-Number 5. This station is currently in
a standby status
. Nine pressure reducing statinns .
. Approximately 1,620 gate valves .
In addition to the facilities listed above, there are a number of facilities
in a custodial status including:
43
-.. --,-
• -•e' ... --------.. ---------,.
-...
---.. ----.. -----,.
Wells in San Luis Ray Valley -Aqua Hedianda Creek and
related pumping and transmission facilities.
. Lake Calevara storage facility.
Water rights to 3,400 A/F per year in San Luis Rey Valley.
The water qualify is such that it is not usable at this
time.
,THE mTAL COST OF WATER m -THE CITY IS DETERMINED BY CMWD
The sole source of water to the City is CMWD. The cost of water to the City
is determined by CMWD and includes a unit water charge established by the San
Diego Water Authority (SOWA), plus an override charge and chlorination charge
established by CMWD. For example, the current cost per acre foot of water to
the City in January, 1979 was $146.40 and can be broken down as follows:
SOWA Unit Water Charge*
Override
Chlorination
Tota 1 Cost/ AF
$131.40
14.00
1.00
$146 .40
The purpose of the override charge is to defray the cost of operating and
maintaining that portion of CMWD storage and transmission system attributable
to the volume of water transported by CMWD to the City. The chlorination
charge is established by CMWD to defray purification costs of the water deli-
vered to the City .
*The unit water charge established by SOWA varies from month to month based on
the cost of delivering the water to CMWD.
44
.. -------.. -----
----•
• -----.. -... -..
-
ff ---
In addition to the above, CMWD also charges the City for the costs associated
with operation and maintenance of the transmission pipelines located in CMWD's
Improvement District 3 that benefit City wa.ter customers. It should be noted,
however, that these costs are not billed by the City to the customers that
benefit directly from the facilities. Rather these charges become part of the
City's total cost of water and are distributed proportionately among all City
water customers.
THE COST OF WATER TO THE CITY'S RETAIL CUSTOMERS CONSISTS OF WATER CHARGES,
CMWD IMPROVEMENT DISTRICT PROPERTY TAX LEVIES, AND A PROPORTIONATE SHARE OF
THE COUNTY'S GENERAL PROPERTY TAX LEVY SUBVENTED TO CMWD
The cost of water to City retail customers consists of water charges levied by
the City and property taxes imposed by CMWD.
Water Charges Consist Of A Ready-To-Serve Fee And A Unit
Charge For Water
The City's water charges consist of a ready-to-serve fee
and a unit charge for water as follows:*
-Ready-To-Serve Fee
The ready-to-serve fees are based on
the size of the cu~tomer's meter and
are as fo 11 ows:
* The City is currently in the process of revising its water charges.
45
--.. ..
-C --.. ------------' ----
·--.. -------... -~,,. ----
Meter Size Monthly Charge
5/811 $ 3.85
3/411 4.70
1 II 6.35
1-1/211 8.00
2 II 13.00
-Unit Water Charge
The unit water charge is the cost of
water per 100 cubic feet or 748 gallons
and is currently 43¢ per unit for the
first 200 units and 28¢ per unit there-
after.
City Water Users Also Pay Property Taxes To CMW0
The City of Carlsbad service area is included in the
genera 1 taxing area of CMWD as we 11 as Improvement
Districts 1 and 4. As indicated in Chapter III, CMWD may
no longer levy a general tax rate since the passage of
Proposition 13, but does receive a proportionate share of
the County's general property tax revenue which will amount
to about 45% of CMWD's previous year's total in 1978-79.
The practi ca 1 impact on a City property owner is that he or
she now pays general property taxes to CMWD equal to about
45% of the amount he or she paid the previous year to
CMWD. In addition, City residents also pay tax rates for
CMWD Improvement Districts 1 and 4 which are currently
0.04¢ and 0.02¢ per $100 assessed value respectively.
46
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• ----· ------------... ..
,--.. --
The Average Monthly Cost Of Water To A City Customer
Includes Water Charges And Property Tax Payments
The average monthly cost of water to a City customer con-
sists of City water charges and property tax payments to
O,,WD. Based on a set of uniform assumptions regarding
market value, assessed value, type of customer, water
consumption, and meter size, the following conclusion can
be reached regarding the cost of water to a residential
customer. Because the City uses approximately 8¢ of its
43¢ unit water charge to defray debt service on its water
revenue bonds, that amount has been shown separately along
with the tax payments to O,,WD which are also used for debt
service and capital improvements. (The assumptions and
detailed calculations supporting this example are included
in the Appendix.)
Maintenance and Operation
Ready-To-Serve Fee
Unit Water Charge (M&O)
Sub:tota 1
Capital Improvements
Improvement District 1
Improvement District 4
Genera 1 Tax Levy
Unit Water Charge (Debt Service)
Sub tot a 1
TOTAL
47
$ 3.85
5.25
9.10
.83
.42
1.31
1.20
3.76
$12.86
• ---r • ~ ---------
• ---..
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---,-----
CITY POLICY IS ESTABLISHED BY THE CITY COUNCIL
The legislative and policy making responsibilities of the City are assumed by
a five member City Council. The City Council makes policy decisions for a
wide range of municipal services including water regarding service levels,
capital improvements, finances and the like. The City Council implements its
policies and programs through an appointed City Manager who is responsible for
the administration and management of the City organization.
THE UTILITIES ANO MAINTENANCE DEPARTMENT IS RESPONSIBLE FOR A WIDE RANGE OF
MUNICIPAL SERVICES INCLUDING WATER SERVICE
The Utilities and Maintenance Department is responsible for a wide range of
municipal ~ervices including:
Maintenance and operation of the City water system within
the City's service area.
Maintenance and operation of the sewage collection system
and storm drains within the City's service area.
Maintenance of streets, curbs, and sidewalks on a City-wide
basis.
Maintenance of the City buildings and equipment on a City-
wide basis.
These activities are performed by a staff of 53 positions allocated among four
division: Building Maintenance, Utilities, Streets, and Mechanical Mainte-
nance. The department is under the direct supervision of the Director of
48
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,. -----.. --.. ---.. ..
Utilities and Maintenance who currently reports through the Public Works
Administrator to the City Manager. It should be noted, however, that the City
Council has recently approved a reorganization plan that will require the
Director of Utilities and Maintenance to report directly to the City Manager
and will result in the elimnation of the Public Works Administrator position
and the reassignment of his responsibilities to the City Manager and Director
of Utilities and Maintenance. This reorganization is scheduled to take place
by January 1980.
DAILY MANAGEMENT OF THE WATER. SYSTEM IS THE RESPONSIBILITY OF THE DIRECTOR OF
UTILITIES AND MAINTENANCE
The Director of Utilities and Maintenance is principally responsible for
managing and coordinating the operations and related business affairs of the
City's water utility. Approximately one-third of the Director's time is dedi-
cated to water related operations and maintenance activities and typical
duties include the following:
Implement City's legal responsibilities and policies as
they relate to water service.
Supervise overall water operations, including the provision
of technical assistance and support to City's staff.
Coordinate water related engineering needs with the City
Engineer and Public Works Administrator.
49
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-· ..
• .. ..
. Prepare operating and capital improvement budgets, and
related financial information, for consideration by the
Public Works Administrator, City Manager, and City Council.
Prepare reports and recommendations concerning water
policies and operations .
Implement and administer City personnel policies and •
programs as they relate to water operations personnel.
Coordinate water related activities with other City depart-
ments and divisions, and with outside agencies.
The Director's immediate staff consist of a Secretary who dedicates approxi-
mately one-third of her time to water related administrative and clerical
duties. The principal water related duties assigned to this position include
responding to customer inquiries, pricing work orders, posting invoices to
work orders, and general office tasks such as typing, filing, and preparing
routine correspondence.
THE CITY HAS ALLOCATED 16.5 POSITIONS m WATER OPERATIONS
As indicated on Exhibit IV, the City bas 16.5 authorized positions allocated
to water operations, in addition to the partial allocation of the Director of
Utilities and Maintenance and his secretary. These positions are all assigned
to the Utilities Division and are supplemented by other City departments such
as Legal, Finance, and Engineering which provide a wide range of water related
support services.
50
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•
• ..
.. ..
.. ..
..
•
... .. .. .. .. .. .. -..
...
... -----.. .. --.. -
• -
,. -
C
'-
,-
I
Water Pumping
I
Water Pump Foreman (1)
Water Pump Operator (2)
Water Mechanic
Maintenance (1)
Exhibit IV
CITY OF CARLSBAD
UTILITIES DIVISION
Organization Chart
City Council
City Manager
Public Works
Administrator
Director of Utilities
and Maintenance (1/3)
Secretary (1/3) I
I Utilities Superintendent (1/2) I
Water Maintenance
Water Maintenance
Foreman ( 1)
Heavy Equipment
Operator (1)
Sr. Water Serviceman (2)
Water Serviceman (2)
51
Sr. Eng. Aide (1)
Sr. Stenographer Clerk
I Meter
I
Meter Shop Foreman (1)
Sr. Water Serviceman (1)
Water Serviceman (2)
(1)
•
•
• -r • -·-
• --------
• -.. -
• -,_ .. -.. .. .. .. --... -.. ---,--.... __ ~
• -..
THE UTILITIES DIVISION IS RESPONSIBLE FOR THE OPERATION, MAINTENANCE, AND
REPAIR OF THE CITY'S WATER SYSTEM
The Utilities Division is responsible for the operation, maintenance, and
repair of all water system facilities including transmission and distribution
lines, pumps and regulators, distribution reservoirs, hydrants, and meters.
All these activities are performed by a group of 16.5 employees as follows:
The Utilities Superintendent Is Responsible For All Field
Operations Activities
The Utilities Superintendent is directly responsible to the
Director of Utilities and Maintenance for field operations
associated with the water system. This responsibility is
carried out through three Foremen who directly supervise
the activities of the field crews. In addition, the
Utilities Superintendent's irrmediate staff includes a
Senior Engineering Aide and Senior Clerk Stenographer. The
responsibilities of the Utilities Superintendent and his
iITTT1ediate staff are as follows:
-Utilities Superintendent
The Utilities Superintendent's duties
involve operational responsibility for
both the water system and sewage col-
lection system. Approximately one half
of the Superintendent's time is allo-
cated to the water system and primary
duties include:
Identification of water system
maintenance and construction needs .
52
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•
• -----------
------... -------.. -
-----
r
-
-
.. Planning, assigning, and directing
the three field foremen.
.. Assisting in budget preparation
and administration.
Assisting the City's engineering
office in the review of water
system plans and the inspection of
new facilities.
.. Supervision of limited office
.engineering activities.
Coordination of water field
operations with other City
departments and divisions, and
with outside agencies.
Senior Engineering-Aide
This position is dedicated on a full-
time basis to water related office
engineering activities and duties
including the following:
.. Minor design and drafting of
water line improvements.
Maintain water system as built
drawings.
•. Assist the City's engineering
staff in the review of water
system related plans.
•• Maintain water system records
and maps.
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• ---r -~------
,. ------
,. --""'-''~ --------
, .. -
,. ------.. -
.. Prepare water related reports
to a variety of regulatory
agencies.
Subject to the review of the
City's engineering staff, pre-
pare legal descriptions for
easements.
-Senior Clerk Stenographer
This position is responsible for a
variety ·of· clerical duties related to
water operations and works in coopera-
tion with the Secretary to the Director
of Utilities and Maintenance. Prin-
cipal duties include responding to
customer inquiries, pricing work
orders, and general office duties such
as typing, filing, and preparing work
orders.
Responsibility For The Regulation And Control Of The Water
Distribution System Has Been Assigned To The Pump Section
The Water Pump Foreman and his crew are responsible for the
regulation and control of the water distribution system.
The Water Pump Foreman's crew consists of two Water Pump
Operators and one Water Mechanical Maintenanceman.* For
* It should be noted
responsibilities are
during the weekend.
to water operations
365 days per year .
that this crew works a 4-day, 1O-hour work week and their
assumed by water or sewer employees on a standby basis
If a water related emergency occurs, employees assigned
are always available on a standby basis 24 hours per day,
54
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• --.. -.. -
,. -----.. -------.. -------,.... -• -,.
practical purposes, the crew works as a team and performs
the following duties:
-Insures the proper functioning of water
pressure and relief valves throughout
the system.
Cleans and maintains reservoirs and
vaults.
-Oversees and maintains telemetering
equipment. Major maintenance and
repair wor~ is performed by outside
contractors.
-Collects water samples and performs
tests for Ph, chlorides, chlorine
residuals, odor, turbidity, and color.
The·complex bacteriological tests are
performed by an outside laboratory.
-Performs or supervises hydrostatic
tests on new water lines.
Performs duties associated with the
City's valve maintenance program
including valve turning, cleaning, and
identification of serious maintenance
problems.
Responsibility For The Construction, Maintenance, And
Repair Of The Water Distribution System Is Assigned To The
Maintenance Section
The Water Maintenance Foreman is responsible to the Utili-
ties Superintendent for the day-to-day activities involved
55
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• -'--•· ------.. ---.. ---,-----
in the construction, maintenance, and repair of the water
distribution system. More specifically, the principal
responsibilities of this section include:
-Installation of water services.
-Connection of new water lines installed
by contractors to existing City trans-
mission lines.
-Perform all repair work to water lines
and services with the exception of
specialized welding which is performed
by an outside contractor •
-Install water lines that do not exceed
$5,000 in value on a project by project
basis. All lines that exceed $5,000 in
value are installed by outside
contractors.
The above tasks are accomplished by two small crews; a
light crew and heavy crew. In general, the light crew
installs new services and performs minor repair work and
consists of one Senior Water Serviceman and one Water
Serviceman. The heavy crew is normally composed of the
Water Maintenance Foreman, one Heavy Equipment Operator,
one Senior Water Serviceman, and one Water Serviceman, and
is responsible for installing fire hydrants and repairing
leaks. When there is a major line break or a construction
project, all employees function as one crew under the
supervision of the Water Maintenance Foreman. The
section's total staff includes six positions as follows:
56
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,. -... --.. --
,. .. -
,. --
,.
--,--.. --
Position Title Number of Positions
Water Maintenance Foreman
Heavy Equipment Operator
Senior Water Serviceman
Water Servi cem an
1
1
2
2
The Meter Section Is Responsible For Meter Reading, Repair
And Replacement, Testing Backflow Prevention Devices, And
Responding To Customer Complaints
The Meter Section .ha? responsibility for meter reading,
re-reads, customer complaints, meter repairs, and replace-
ments and installations, connections and disconnections of
water service, and the testing of backflow prevention
devices. The activities of this section are closely
related to those of customer billing staff in the Finance
Department. The section is staffed by a Meter Shop Fore-
man, one Senior Water Serviceman, and two Water Service-
men. Specific duties assigned to this section include the
fo 11 owing:
-Read approximately 5,700 meters each
month and record readings in meter
books. This requires approximately 18,
10-hour man days per month. It should
be noted that the City intends to
change over to bi-monthly billing prior
to January, 1980, with the exception of
about 600 high consumption accounts
that w i 11 continue to be billed on a
monthly basis .
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,_ -----... -----
r ..
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-Maintain water consumption and meter
records .
-Conduct all tests of backflow preven-
tion devices. According to City staff,
there are approximately 110 backflow
prevention devices to be inspected on
an annual basis. Responsibility for
conducting the tests has been assigned
specifically to the Meter Shop Foreman
and Senfor. Water Serviceman, both of
whom are certified inspectors.
-In cooperation with the Finance Depart-
ment, respond to a variety of customer
inquiries including:
High water bill complaints.
.. Water pressure complaints .
.. Turn-on and turn-off of water
services.
Install all new water meters and
exchange existing meters.
-Test, repair, and maintain all water
meters up to 2". Meters that are 2"
and larger are tested and repaired by
an outside contractor.
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• ---,,,..... ----
THE ADMINISTRATIVE SUPPORT SERVICES REQUIRED BY THE WATER SYSTEM ARE PROVIDED
BY THE VARIOUS CITY DEPARTMENTS
The administrative support services required by the water system are provided
by the various City departments as appropriate.
PERSONNEL SERVICES ARE PROVIDED BY THE PERSONNEL OFFICE
All personnel management services are provided by the Personnel Office
including labor relations, selection, classification, compensation, training,
.safety, fair employment, and the administration of manpower programs and the
self-insurance program for workers' compensation. The City's Personnel Office
staff utilizes limited outside consulting assistance for major one-time pro-
jects, test development, special training programs, and the administration of
the self-insurance program for workers' compensation.
In broad terms, the above services are provided to all City departments and
the related impact of the 16.5 positions assigned to the water utility on the
work load of the Personnel Office is minimal.
ALL FINANCIAL SERVICES AS WELL AS CUSTOMER BILLING AND DATA PROCESSING SERVICES
ARE PROVIDED BY THE FINANCE DEPARTMENT
All financial services as well as customer billing and data processing are
provided by the Finance Department for all City departments. Specific
services provided to the water utility include:
. Provision of financial advice.
. Cash management and investments.
59
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• -------.. -.. -.. -----------
r ,.
._
,-
. Budget preparation .
General accounting services including accounts payable,
payroll and fixed asset accounting.
. Financial reporting.
. Revenue forecasting and administration.
. Customer service and.billing.
. Expenditure control.
It is estimated that the performance of the above services requires the equi-
valent of three full-time account clerks positions with occasional assistance
from the Finance Director and Assistance Finance Director.
CITY WATER CUSTOMERS ARE BILLED MONTHLY
Customer billing services have been computerized and are performed by two
account clerks assigned to the Finance Department. The City bills 5,700 water
customers per month on a cycle system. (As indicated previously, the City
intends to change over to bi-monthly bi 11 i ng by January, 1980.) Broadly, the
steps involved in the billing and collection process include the following:
Field maintenance personnel assigned to the Meter Section
of the Utilities Division read the meters and enter the
readings into the meter books.
60
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The consumption data is then entered into the automated
billing system which automatically computes the consump-
tion, prepares the bills, and posts the accounts .
Payments received by mail are batched and processed by the
computer and are automatically posted to the customer
accounts .
Payments made in person are received by the cashier and are
posted by the computer to the appropriate customer account.
In addition to the billing responsibilities described above, the Finance
Department staff also performs routine customer service activities such as
processing turn-ons, turn-offs, delinquent accounts, and customer complaints.
PURCHASING IS CONTROLLED BY THE PURCHASING DEPARTMENT
The Purchasing Department is responsible for the procurement of all services,
supplies, and equipment for the City operations including water. This respon-
sibility is coordinated with appropriate staff at the departmental level .
LEGAL ASSISTANCE IS PROVIDED BY THE CITY ATTORNEY'S OFFICE
The City Attorney and his staff of one Assistant City Attorney and one Legal
Secretary provide all basic legal services required by the City including
those of the water utility. The City Attorney's staff is augmented by outside
legal counsel as required .
61
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• .. --------,_ ----.. -----... ---,... -.. --
ENGINEERING SERVICES ARE PROVIDED BY CITY STAFF
All engineering services, including those required by the water utility, are
the responsibility of the Engineering Division. This division is under the
direct supervision of the City Engineer who reports to the Public Works
Administrator. It should be noted, however, that as a result of a recently
approved reorganization, the City Engineer will report to a newly created
position of Development Services Director, who will be responsible for plann-
ing and building, as well as engineering. Services provided by the Engineer-
ing Division to the water utility include:
Review of water system engineering plans prepared by
developers.
Inspection of water system improvements installed by
developers.
. Contract administration for City financed projects.
. Directing the work of outside engineering consultants .
As indicated on Exhibit V, the City has 19 authorized positions allocated to
the Engineering Division. In addition to the general advice and assistance
provided to the water utility by the City Engineer, it is estimated that
approximately 1 full-time equivalent engineering position is allocated to
water related engineering work as follows:
Approximately½ of an Associate Civil Engineer's time is
dedicated to water related capital projects .
62
•
•
• Exhibit V .. r .. ~ -CITY OF CARLSBAD --ENGINEERING DIVISION -Organization Chart ---j Public Works Administrator
-Admin. Asst. (1) -Secretary (1) -I City Engineer (1) I ---Sr. Steno Clerk (1)1
-I • .J;;urrent Development Capital Program Transpoitati on
'rin. Civil Engineer (1) -Prin. Civil Engineer (1) Prin. Civil Engineer (1)
Sr. Eng. Aide (1) \ Asst. Civil Engineer (2)
•:onst. Inspector (3)
Sr. Eng. Aide (1)
---... ---
-----
1. Design
I
Assoc. Civil Eng. (1)
Assist. Civil Eng. (1)
Sr. Eng. Aide (2)
63
I Contract
Adminirration
Const. Sup. (1)
Sr. Const. Insp. (1)
Sr. Eng. Aide (1)
•
•
•
• r • '-· --------.. ------,__
• --..
---.. -------• -...
, ..
Approximately¼ of an Assistant Civil Engineer's time is
dedicated to review of water related aspects of private
development applications.
Approximately¼ of a Construction Inspector's time is
dedicated to the inspection of water related capital
projects.
The above services are augmented by 'the office and field engineering work per-
.formed by the Senior Engineering Aide assigned to the Utilities Division .
Special one-time engineering projects such as the preparation of water master
pl ans are performed by outside engineering consultants.
BUILDING AND EQUIPMENT MAINTENANCE ARE THE RESPONSIBILITY OF THE UTILITIES AND
MAINTENANCE DEPARTMENT.
The Utilities and Maintenance Department is responsible for the maintenance
and repair of City equipment and buildings, including those that belong to the
City water utility. These responsibilities are performed by the Mechanical
Maintenance Division and Building Maintenance Division as follows:
Mechanical Maintenance
This division is responsible for performing the vehicle
maintenance and limited repair tasks below. Major repair
work such as rebuilding engines and transmissions and body
work is done by outside garages.
-Preventive maintenance including oil
changes, lube jobs, tune-ups, and
replacement of parts.
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-..
--.. -----'-· ---..
-------------..
...
-Replacement of engines .
-Distribute and maintain City's gasoline
supply.
The tasks described above are performed by a staff of five
including a Mechanical Maintenance Foreman, three Equipment
Mechanics, and one Garage Attendant .
Each City service, including water, is charged a propor-
tionate share of the. total costs of operating the City
garage including salaries, maintenance and operations
costs, parts, and outside labor.
Building Maintenance
This division·is responsible for the maintenance of all
City buildings. The tasks performed include general main-
tenance and repair, remodeling, and routine janitorial
services. These services are performed by a staff of four
including a Building Maintenance Foreman, one Public Works
Leadman, and two Custodians.
COMMUNICATIONS SERVICES ARE PROVIDED BY CLERICAL STAFF ASSIGNED TO THE
UTILITIES AND MAINTENANCE DEPARTMENT
The clerical staff assigned to the Utilities and Maintenance Department
operate the radio equipment located at the City corporation yard. The equip-
ment is used to contact department employees, including those assigned to
water, who are in the field. Outside normal business hours, the City Police
Department receives all emergency calls and dispatches water personnel as
appropriate. The radio is maintained by an outside contractor .
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• -.. -
• -'--·
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THE CITY HAS A WATER RELATED DEBT OBLIGATION OF $2.2 MILLION
The City has a total water related debt obligation of $2,202,000 in revenue
bonds with authority to issue an additional $575,000. Debt service for 197B-
7g will amount to $178,884 for principal and interest. The final payment will
be due on the existing debt in 1990.
THE CITY'S PRINCIPAL SOURCE OF WATER REVENUE IS FROM WATER SALES
Almost all of the City's water revenue can be attributed to water sales. The
.only other significant revenue source has been investment earnings. Exhibit VI
on the following page summarizes City water revenues as reported in the annual
audits from 1973-74 through 1977-78. A review of this revenue history indi-
cates that water sales consistently represent 90% or more of total revenues and
that water sales revenues have increased approximately 32% since fisal year
1973-74 .
CITY OPERATING EXPENDITURES HAVE INCREASED SIGNIFICANTLY
Since fiscal year 1973-74, City water related operating costs have increased
significantly. Exhibit VII on page 68 summarizes City water related operating
expenditures as reported in the annual audits from 1973-74 through 1977-78.
An analysis of the City's expenditure history reveals that the cost of water
consistently represents over 55% of the City's maintenance and operation
costs, and that the cost of water to the City has increased approximately 55%
since fiscal year 1973-74.
66
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• .. -----------------------------
• ---
C
-
Water Sales
Other Revenue
Interest
TOTAL
1973-74
Exhibit VI
CITY OF CARLSBAD
Water Revenue
1974-75 1975-76 1976-77 1977-78
$ 994,650 $1,026,883 $1,160,260 $1,169,248 $1,238,171
14,087
42,722
18,925
67,161
37,669
59,405
33,607
68,498
43,527
106,497
$1,051,459 $1,112,969 $1,257,334 $1,271,353 $1,388,195
67
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• C --.. .. .. .. .. .. .. ---.. --'--"' --.. -------
, .. -
, . .. -----
Operating Expenses
Production and
Purification(l)
Transmission and
Distribution
General and
Administrative
TOTAL OPERATING EXPENSES
Exhibit VI I
CITY OF CARLSBAD
Water Expenses
1973-74 1974-75 1975-76 1976-77 1977-78
$373,231 $401,070 $443,433 $511,574 $ 589,258
. 127,342 186,540 188, 762 206,931 234,366
140,118 159,652 194,735 178,735 206,093
$642,691 $747,262 $826,794 $897,240 $1,073,717
1. Approximately 90% of these costs are attributable to the purchase of water
from CMWD.
68
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-... ---.. -----.. .. ---.. --.. -.. ,.. ---..
Chapter V
ORGANIZATION PLAN FOR A COMBINED
WATER OPERATION
It is the purpose of this portion of the report to develop an orgnaization
plan for the creation of a combined water operation through the establishment
of the Carlsbad Municipal Water District as a subsidiary district of the City •
.THE DISTRICT MAY BE ESTABLISH!:D AS A SUBSIDIARY OF THE CITY
The District Reorganization Act provides that a district may be established as
a subsidiary district of a city if 70% or more of the taxable or assessable
land area is within the boundaries of the city; and if 70% or more of the
registered voters of the district reside within the city. A careful review of
the records of the County Assessor and and County Registrar of Voters indicate
that the Carlsbad Municipal Water District meets both of these requirements.
More specifically:
99.54% of the registered voters of the District reside
within the City of Carlsbad.
Approximately 71% of the District's taxable or assessable
land area is within the boundaries of the City.
The steps involved in making the above determinations inlcuded a review of the
methodology with the appropriate staff of LAFCO, the County Assessor's Office,
and the County Registrar of Voters. More specifically, the steps required to
make the necessary determinations included the following:
69
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•
•
•
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• -.. .. ---.. -.. ----------------, . ..
,. ----
r ,,
,...
. The determination as to whether or not 70% or more of the
registered voters of the District reside within the City
merely involved a certification by the County Registrar of
Voters to that fact based on a review of the official voter
registration records.
The determination as to whether or not 70% or more of the
taxable or assessable land area of the District is within
the City required a detailed analysis of the County
Assessor's records. and included the following steps:•
-Determined the total number of parcels
within the District.
-Of the total, determined which parcels
were within and which were outside the
boundaries of the City.
-For each parcel inside and outside the
City, determined the area in acres and
whether it was taxable or non-taxable.
THE DEVELOPMENT OF AN ORGANIZATION PLAN FOR A COMBINED WATER OPERATION REQUIRES
THAT CERTAIN ASSUMPTIONS BE MADE
In developing an organization plan for the creation of a combined water opera-
tion through the establishment of the District as a subsidiary district of the
City, it is necessary to set forth certain basic assumptions. These assump-
tions include the following:
70
• -
•
•
• -.. --..
-----..
----.. ---.. ---... ---------
r ... ,
..... "'
,-
The District's service area will remain the same. Thus, it
is assumed that LAFCO would require the City to serve those
portions of the District service area presently outside the
City .
Service levels will remain at a level equal to or superior
to current service levels. In other words, the City would
provide the same or better quality of service to both City
and District customers if it were to assume responsibility
for a combined water, operation.
. Obligations of the District to its creditors will not be
impaired in any way if the City were to assume responsibi-
lity for District operations.
The City has all of the legal powers necessary to provide a
combined water operation.
District employees who become City employees will receive
salaries comparable to or higher than those received from
the District at the time they are integrated with the City,
and they will receive the same fringe benefits received by
City employees .
71
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------------
• -
• ---.. -----.. -
, ..
• .. ---
C
'-·~
,.. .
FOR PURPOSES OF ANALYSIS, IT IS NECESSARY m IDENTIFY TI-OSE WITHIN THE CITY OF
CARLSBAD Wl-0 WOULD BE AFFECTED ORGANIZATIONALLY UNDER A COMBINED WATER OPERA-
TION
If the City assumes responsibility for providing a combined water operation,
the following areas of City service would be directly affected:
City Council
The City Council would serve as the governing body for the
District, rather than a separate Board of Directors. In
this capacity, the City Council would have the responsibi-
lity for making various policy decsions regarding the water
service responsibilities of the District. The relationship
and/or responsibility would be no different than that pre-
sently experienced by the City Council when it sits as the
governing body of the Redevelopment Agency or Housing
Authority .
City Manager
As with other City services including the City's existing
water utility, the City Manager would have the responsibi-
lity for coordinating the delivery of the water service
currently provided by the District on a daily basis through
various department heads. In addition, he would have the
responsibility for developing policy recommendations,
through the operating and capital outlay budgeting process
and otherwise, that would result in efficient and economic
delivery of this and related services in the future.
72
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---...
-... .. .. .. .. --.... .,_ .. -----.. -------,-----
City Clerk
As is presently done for the City Council, the City Clerk
would serve as secretary to the governing body when it con-
sidered District related water service matters. In addi-
tion, the City Clerk would assist with agenda preparation,
the publication and filing of various legal documents, and
the handling of public inquiries.
City Attorney
The City Attorney ·would sit with the City Council when it
considers matters pertaining to District water service. In
addition, his staff would provide routine legal service on
a continuing basis, including the review and preparation of
contracts, resolutions and other legal documents.
Department of Finance
The Department of Finance would assume overall responsibi-
lity for the administration of all financial matters per-
taining to District water service. This responsibility
includes accounting for payroll, accounts payable, and
accounts receivable, utility billing, and other finance
related services.
Department of Purchasing
The Department of Purchasing would assume overall responsi-
bility for the procurement of all services, supplies, and
equipment for District water operations.
73
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----.. -.. ---.. -,,
-----
·-----... -..
·-,,,....
·• -.. -
Personnel Office
In assuming responsibility for a District water service,
the City would add some or all of the 10 District employees
to its staff. The initial responsibility for merging
employees would fall, to a great extent, on the Personnel
Office. This office would be responsible for establishing
personnel records, assigning positions to classifications,
•
assuring that appropriate salary and fringe benefit
arrangements are made, and undertaking similar tasks neces-
sary to integrate .District employees during this one~time
transition period .
/
On a continuing basis, this office would be responsible for
recruitment and selection, benefit administration, and
other personnel related items such as safety, training, and
workers compensation.
Engineering Division
This Division would assume responsibility for providing all
engineering services pertaining to District water opera-
tions. The City Engineer would serve as the District En-
gineer when the City considers matters related to District
water service.
In addition, his staff would provide routine engineering
services on a continuing basis, including the review of
private developments, design and construction of capital
projects, and supervision of outside engineering consul-
tants.
74
• -
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--.. --.. --'-· -..
--.. --------.. --.. --
Department of Utilities and Maintenance
This Department would assume the responsibility for ongoing
operation and maintenance of District related water facili-
ties. In broad terms, this responsibility will be integra-
ted into the City's current water operations to assure
maximum efficiency .
A SPECIFIC PLAN FOR INTEGRATING THE DISTRICT'S WATER SERVICES INTO THE OVERALL
CITY SERVICE PROGRAM MUST BE DEVELOPED AS A BASIS FOR DETERMINING WHETHER COST
.SAVINGS WILL RESULT
Chapter III describes the present organization and staffing of the District,
and indicates that District personnel and outside consultants are involved in
administrative/clerical, engineering, or field related operations and mainten-
ance activities. When considering how District activities might be integrated
into the overall City organization, it is necessary to review each principal
area of activity and, where appropriate, to consider District workload. On
this basis, practical judgments can be made regarding additional organization
and staffing required for the District service program. Similarly, cost
implications associated with transferring District responsibilities to the
City can be identified.
The City Council Would Assume Policy Making Responsibility
For All District Activities
As indicated previously, a separate Board of Directors is
presently responsible for governing the activities of the
Carlsbad Municipal Water District. If responsibility for
District operations was transferred to the City, policy
75
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r
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making responsibility would be assumed by the City Council,
rather than the separate Board of Directors. This would
result in a cost savings inasmuch as the salary of District
Board members would be eliminated along with travel ex-
penses related to meetings and conventions and the payment
of dues to water related organizations. The elimination of
these expenses would total $14,500 as follows:
Directors Expense
Meeting, -Conventions
Dues
$8,000
4,000
2,500
$14,500
Routine Legal Responsibilities Would Be Assigned To The
City Attorney·
There may be a need for specialized legal assistance from
time to time in conjunction with bond issues or unusual
litigation. It is assumed that the present practice of the
District to retain special counsel for these matters would
be followed by the City .
However, routine matters would be assigned to the City
Attorney and his staff, including review and preparation of
legal documents, provision of advice to City staff, atten-
dance at City Council meetings when District related mat-
ters are discussed. This routine workload is presently
handled for the District by a private law firm at a cost of
$1,000 per month, plus an hourly fee for legal assistance
76
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--.. -.. .. .. ---.. -----
r
-
other than the performance of routine legal services. This
routine workload can be absorbed by the City Attorney with
his present staff. Even if the assumption of District
water service by the City resulted in an additional day or
two per month, this increase in workload would in not
justify the addition of another employee in the City Attor-
ney's Office. Rather, the added workload would be incor-
porated with other assignments and would be subject to the
overall priority setting process. · Thus, a cost savings
would result inasmucD as there would no longer be a need to
retain a private law firm for this purpose. This cost sav-
ings will approximate $12,000 annually .
Routine Personnel Responsibilities Would Be Assumed By The
Personnel Office
The City's Personnel Office would assume responsibility for
all personnel related tasks, including record-keeping,
recruitment and selection, benefits administration, safety,
and training. The District has not had a high turnover
rate, and the overall increase in workload should not be
substantial. For example, even if 50% of the total Dis-
trict work force turned over annually, this would only
amount to five positions. Some of these positions would be
recruited from existing City lists which would minimize any
additional workload to a further extent.
The Personnel Office also assists in the administration of
workers compensation insurance. In this regard, the Dis-
trict spent $2,546 in fiscal year 1978-79 for this insurance.
77
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"' .. -.. -----------.., __ --..
,.
-.. .. ... .. -.. ... .. ..
,r ----
Because of its size, the City is able to self-insure for
workers compensation insurance, and the added cost to the
City under this system would be $1,383 if District em-
ployees were added. This figure is related to the actual
loss experience of the District, and the average cost per
clerical and field maintenance employees in the City .
Thus, an annual savings of $1,163 would result.
Operation And Maintenance Of The District's Water Facili-
ties Would Be Assi.gned To The Department Of Utilities And
Maintenance
Those within the Carlsbad Municipal Water District who are
responsible for the operation and maintenance of the Dis-
trict water facilities include the following:
Title Number
General Manager 1
Systems Superintendent 1
Leadman 1
Meter Reader 1
Water Operator I, II 2
While the City currently operates and maintains its own
water distribution system, they must have additional per-
sonnel if they are to assume responsibility for operating
and maintaining the District's water facilities. Of the
six District positions referenced above, it is assumed that
all but the General Manager's position are required regard-
less of whether the District or the City operates and main-
tains the District's water facilities.
78
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r
v.._ •.
'-
,-
:
With respect to the five positions referenced above, their
placement and area of responsibility within the Department
of Utilities and Maintenance depends upon how the Depart-
ment is organized, or reorganized, for purposes of operat-
ing and maintaining the District's water facilities. In
this regard, there are at least two principal alternatives.
The first alternative would integrate and consolidate the
District's operations into the appropriate water related
sections of the Utilities Division, The second alterna-
tive, as outlined -in. Exhibit VIII, would establish the Dis-
trict's water operations as a separate section in the Uti-
lities Division and would be directed by the Systems Super-
intendent. This second alternative is believed to be pre-
ferable, at least initially, until City officials obtain
experience in ·administering this new program area. Once
this experience has been gained, the City can carefully
integrate the various aspects of the District's water
operations into the appropriate sections that currently
operate the City's water system. More specifically, it is
assumed that over the long-term, that District operations
would be consolidated into City water operations as follows:
-The Water Pumping Section would assume
responsibility for the operation and
maintenance of the Districts wholesale
and retail water distribution facili-
ties, inc ludi11g storage facilities,
pumps, valves, and related appurtances .
79
CP 0
I I I I I I I I l I I t I t I I I I I I I I I I I I I I l I I I I • • • ■ •
) ( ("'
Exhibit VI II
Organization For District Operations And Maintenance Personnel
Di rector of
Utilities and
Maintenance
I
Utilities
Superintendent
I
I
Water Pumping I Water Maintenance
I
Meter
I
District Operations l
Water Pump Foreman (1) Water Maintenance Meter Shop Foreman ( 1) Systems
Water Pump Operator (2) Foreman ( 1) Sr. Water Serviceman (1) Superintendent (1)
Water Mechanic Heavy Equipment Water Serviceman (1) Leadman (1)
Maintenance ( 1) Operator ( 1) Meter Reader (1)
Sr. Water Serviceman (2) Water
Water Serviceman (2) Operator I, II (1)
•
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•
• .. ------
• -------
• -.. ----.. -.. ---.. ----
r-
~ ..
-
,-
This section would also assume respon-
sibility for water testing •
-The Water Maintenance Section would
assume responsibility for the installa-
tion of services and the repair and
maintenance of the distribution lines.
-The Meter Section would assume respon-
sibility for meter reading, testing and
repair of water meters, conducting
backflow prevention tests, and respond-
ing to customer complaints.
The suggested organization and staffing plan, as outlined
above and on Exhibit VIII, would result in a direct cost
savings in as much as the General Manager position would no
longer be needed and would be eliminated. As discussed
previously, this position is currently filled on an interim
basis by an outside consulting engineer, who also serves as
the District Engineer. The elimination of this contract
would result in an approximate annual cost savings of
$16,000. Future savings would approximate $26,000 per year
plus the cost of fringe benefits if the District employs a
General Manager on a full-time basis.
Finance Related Responsibilities Would B.e Assumed By The
Department Of Finance
Those assigned above to the Department of Utilities and
Maintenance are presently located within the Field Opera-
tions Division of the District with the exception of the
81
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• -
• -
• ---..
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----.. --... ----
r "
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-
General Manger. The remaining District positions are con-
cerned principally with finance and administrative tasks,
and are located within the District's Administration Divi-
sion as follows:
Title Number
Office Manager/Assistant General Manager 1
Executive Secretary 1
Billing Cl erk 1
Receptionist 1
The duties and responsibilities of the above positions, as
well as the amount of time spent on broad tasks, was sum-
marized in Chapter III. Based on a careful review of this
and related data, an organization framework has been pre-
pared, and it indicates the following with respect to the
above five positions:
Although it is an important and essen-
tial position within the District
organization, the Office Manager/
Assistant General Manager position
would be deleted if the City assumed
responsibility for District water
service. As indicated in Chapter III,
the Office Managert,\ssistant General
Manager performs a wide variety of
administrative and supervisory tasks,
but these tasks would be dispersed
throughout the City organization and
assumed by others if the two agencies
were consolidated. For example:
82
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... .. --... -
----
-
-
-
--
-
..
... --
... -
r-
. . The Finance Department would as-
sume' responsibility for financial
accounting, auditing, and cus-
tomer service and utility billing
.. General recordkeeping, and general
office functions would be jointly
assumed by the City Manager, City
Clerk, City Attorney, Department
of Finance, Personnel Office,
Engineering Division, and the
Department of Utilities and Main-
tenance
-The Executive Secretary position would be
deleted. This position is devoted nearly
full-time to general clerical support the
the General Manager and Board of Direc-
tors. These tasks, like those of Office
Manager/ Assist ant General Manager, would
be dispersed throughout the City organi-
zation and assumed by others if the two
agencies were consolidated. For example:
.. The City Clerk's Office would as-
sume res pons ·i bi l ity for the pre-
paration of agendas, minutes, and
resolutions .
.. Records management and retention,
as well as general filing and typ-
ing would be assumed by the City
83
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,.
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• ---..
,.
, .. ------------
r ,,_ ..
.......
,-
Manager, City Clerk, City Attor-
ney, Engineering Division, and the
Department of Utilities and Main-
tenance
-The Receptionist position would be
deleted. Approximately 50% of the time
associated with this position is de-
voted to customer service and billing
activities, including responding to
customer inquiries on the telephone and
over the counter, stuffing and mailing
utility bills, and opening and sorting
utility bill payments. The balance of
the position's time is dedicated to
miscellaneous general accounting and
office duties, including typing and
filing. If the two agencies consoli-
dated, the customer service billing and
accounting responsibilities would be
assumed by Finance Department staff who
are performing similar duties. The
general office duties will be dispersed
throughout the organization principally
to the Department of Utilities and
Maintenance, City Attorney, City Clerk,
and City Manager.
-The Billing Clerk position would be
assigned to the Finance Department. As
indicated in Chapter III, this position
is dedicated on a full-time basis to
84
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r ._,_
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customer service and billing activities
including the manual preparation of
utility bills. The manual preparation
of bills presently associated with this
position would be absorbed by the
City's automated utility billing sys-
tem. The automation of the utility
billing will permit this position to
adequately handle the other customer
service .re$ponsibilities associated
with this position, plus the provision
of general accounting assistance in
payroll and accounts payable and
accounts receivable.
The organizational framework described above has several
direct cost implications, as follows:
-Deletion of the Office Manager/ Assis-
tant General Manager, Executive Secre-
tary, and Receptionist would result in
an annual savings of $51,800, including
retirement and other benefits .
-At the present time, the District con-
tracts with a private accounting firm
for a year-end audit as required by the
State Controller. The City has a simi-
lar audit of all its operations, and
the addition of the District water ser-
vice would not normally increase pre-
85
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• --------
sent costs by more than $1,000. The
District presently pays $3,900 for
these services and, thus, an annua 1
cost savings of approximately $2,900
would result.
Engineering Related Responsibilities Would Be Assumed By
The Engineering Division
The City's Engineering Division would assume responsibility
for all the Distri-ct~s engineering related services.· As
indicated in Chapter III, these services are currently pro-
vided by an outside engineering consultant and include the
following:
Routine engineering services such as
attendance at City Council meetings and
responding to general engineering ques-
tions.
Engineering tasks associated with pri-
vate developments such as plan checks,
plan approvals, and construction
inspection.
-Engineering tasks associated with Dis-
trict sponsored construction and main-
tenance projects such as design, cons-
truction inspection, and construction
management.
86
·-••.~.-· ----,-
• -•
,. -
,. -
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,. --,. '-----... --• --.. --------
As indicated in Chapter IV, the City's Engineering Division
currently provides the City's water utility with all of its
engineering services. These services are supplemented by
the office and field engineering work performed by the
Senior Engineering Aide assigned to the Utilities Division
of the Department of Utilities and Maintenance. Special
one-time engineering projects such as the preparation of
water master plans and the design of major capital pro-
jects, are performed by outside engineering consultants.
When the City and District water operations are consoli-
dated, the City's existing engineering staff will perform
the District related engineering services described above
with the exception of special one-time engineering pro-
jects. Both the City and the District currently contract
with outside engineering consultants to perform this work
and it is assumed that this practice will continue. More
specifically, the District's engineering related work load
would be dispersed among the City's engineering staff as
follows:
-The City Engineer would assume overall
responsibility for District related
engineering services and would assume
the responsibilities of District
-ngineer including attendance at City
Council meetings.
87
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-'-,... -----------.. ---,. ---
-The Current Development Section would
assume responsibility for the engineer-
ing tasks associated with private
developments such as plan checks, plan
approvals, and construction inspec-
tion. This section is currently res-
ponsible for reviewing all new develop-
ments within the City's boundaries,
including those within the District's
retail water service area, thus the
assumption of the additional develop-
ment related engineering services for
the District should have a minimal work
load impact and will not require the
addition of engineering staff. In
addition, it will have the added advan-
tage of improving the overall effi-
ciency of the development review pro-
cess for developments which are within
the City limits and the District's
retail service area.
-The Capital Programs Section would
assume responsibi1 Hy for the engineer-
ing tasks associated with District
sponsored construction and maintenance
projects. As indicated above, major
one-time engineering projects would
continue to be performed by outside
88
--.. ------,. -----• -,. --.. ---... -----.. ------•
,-
.....
--
engineering consultants. The remaining
work consists of minor design, cons-
truction management, and construction
inspection work and can be absorbed by
existing City staff.
The organizational framework above has several direct cost
implications; as follows:
-The District's contract with an outside
engineering consultant for routine
engineering services can be eliminated
for a cost savings of approximately
$14,000.
The engineering tasks associated with
District sponsored construction and
maintenance projects are performed by
an outside engineering consultant. The
cost of these services in fiscal year
1977-78 was approximately $10,000.
While precise numbers are not avail-
able, a portion of the $10,000 was for
engineering design services and the
balance was for construction management
and inspection. If it were assumed
that the City would continue to con-
tract for the design work and that this
work accounted for $5,000 in consultant
fees, there would be a savings of
approximately $5,000.
89
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• ----· --------------,,. •
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•
Potential Cost Savings Approximating $117,000 Would Result If The City Were To
Assume Responsibility For District Water Service
As indicated above, there is a realistic potential for achieving cost savings
on an annual basis of $117,363 if the City were to assume responsibility for
providing District water service. This potential cost savings is summarized;
as follows:
>.q~'?f
$14,500 -Elimination of separate Board of Director ~,v~ (
12,000 -Elimination of contract with private law firm ~o-.-. --'9 '-t;}-%
1,163 -Savings in workers compensation insurance '%-f
16,000 -Deletion of contract with outside consultant for
General Manager's services
51,800 -Deletion of positions of Office Manager/Account-~ ~...-z.
"« ing Officer, Executive Secretary, and Receptionist I:¼_
2,900 -Savings in audit preparation costs
19,000 -Savings in consulting engineering
$117,363
The potential cost savings surrrnarized above reflects only direct costs that
can be identified with certainty. However, it is probable that other cost
savings will be achieved if the City were to assume responsibility for provid-
ing District water service. For example:
90
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The District spent $7,869 in fiscal year 1978-79 for over-
time. Because of the broader City work force which can be
trained to operate and maintain the District water sys-
tem, there will be greater flexibility insofar as handling
problems that occur on an emergency or unscheduled basis.
The added flexibility should permit current District over-
time to be minimized.
As indicated previously, the District's Billing Clerk will
be absorbed in the City's Finance Department, while the
other three clerical positions would be eliminated. This
one remaining position would be relocated to City Hall.
The District's Administrative Offices would be vacant and
would be functional insofar as another public or private
use.
With respect to maintenance crews and equipment, it is
assumed that this will be integrated with other City faci-
lities from a standpoint of location. The City is working
toward the development of new corporation yard facilities,
and this expansion will occur whether or not District
activities are assigned to the City. It may be that
District field personnel and equipment would remain at
their present facilities for an interim period, but the
eventual goal would be to merge them with City water crews
for purposes of coordination, greater flexibility, and
economy.
91
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• ---•
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•
As indicated previously, the District is currently investi-
gating the acquisition of its own computer equipment and
has budgeted an initial $10,000 for this purpose. If the
District operations are merged with the City, the District's
data processing needs can be met by the City's data pro-
cessing equipment, thus eliminating the District's need for
purchasing new computer equipment.
The District currently augments District staff by contract-
ing for the necessary heavy equipment and operators., The
City, on the other hand, owns the necessary heavy equipment
and employs two full-time Heavy Equipment Operators in its
Utilities Division and is capable of providing the neces-
sary heavy equipment support required by the District water
system. If it is assumed that the City would provide the
necessary heavy equipment and operators required by the
District water system, a cost savings would result.
A complete analysis of economic implications must contrast the potential for
cost savings with any potential cost increase. There will obviously be some
one-time costs associated with the assumption of the District water service
responsibility by the City, but these should be relatively minor and pertain
principally to transition of personnel and accounting records .
On a continuing basis, however, there will be a cost increase of approximately
$13,500 due to differences in salaries between the District and the City. As
indicated on Exhibit IX, on page 95, these salary differences exist between
the District and City field maintenance classifications .
92
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When the cost differences are applied to the six District positions that would
be integrated with the City, an annual cost increase of approximately $13,500
results. When applied against the potential cost savings, a net annual sav-
ings of $103,863 results as follows:
$117,363
13,500
$103,863
Potential Cost Savings
Additional Salary Costs
Net Potential Cost Savings
.If The Responsibility Is Transferred To The City, A Variety Of Personnel
Considerations Must Be Addressed
If the responsibility for providing District water service is transferred to
the City, a variety of personnel-related considerations must be addressed in
order to assure a smooth transition of District employees to the City.
Several of the principal considerations are discussed below.
Staff Members Of The District Would Become City Employees
As indicated in the report, it would be necessary to trans-
fer 6 of the 10 District positions to the City in the event
that the District was made subsidiary to the City. The
City could make the policy decision to hire all District
employees and subsequently achieve the economies of conso-
lidation through attrition.
93
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• -•
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•
Transferring District Employees To The City Will Require
Resolution Of Certain Salary And Benefit Issues
While it is beyond the scope of this study to develop
detailed recommendations regarding classifications or
salaries and benefits, it is appropriate to highlight prac-
tical problems that will arise in merging employees of two
separate agencies.
A Review Of Position Classifications By The City Will Be
Necessary Prior To Transferring District Employees
To assure internal equity and to provide a basis for sett-
ing salaries, the classifications of both the City and Dis-
trict employees should be reviewed and, where appropriate,
modified.
Salaries Of Existing District Employees Will Have To Be
Determined
As indicated by Exhibit IX on page 95, the salaries of
existing District employees are generally lower than those
of the City with the exception of the Billing Clerk. In
that regard, it is reconrnended that the Billing Clerk's
salary be frozen until the City salary for the comparable
classification catches up. 111 addition, two other issues
should be resolved in terms of salary administration:
-Placing District employees at the pro-
per step in the City's pay plan .
-Confirmation of a policy by the City
that no District employee will be paid
a lower base salary than was earned
with the District.
94
11 II II II II II II II II II It II Ii ll II ll lt ll II
) ' f (~
Exhibit IX
District and City Salary Comparison
CARLSBAD MUNITIPAL WATER DISTRICT CITY OF CARLSBAD
Top Number of Top Recommended
Existing Title Step Rate Positions Step Rate l.i.!i_ Tit l e
Billing Clerk $1,168 1 $1,122 Int. Account Clerk
Systems
Superintendent 1,407 1 1,600 Water Supervisor
Leadman 1,058 1 1,226 Utility Maintenance
Worker II
'° (JI Water Meter Reader 1,058 1 1,173 Meter Reader/
Repairer
Water System
Operator 804 2 1,124 Maintenance
Worker I
I
co a,
• I I I I
'
RETIREMENT
OASDI
MEDICAL
DENTAL
LONG-TERM DI SABIL!TY
LIFE INSURANCE
OTHER INSURANCES
UNIFORM
Field
Office
SICK LEAVE
Payoff
ANNUAL LEAVE
HOLIDAYS
OVERTIME
STANDBY
I I I • I
CMWD
PERS
Yes
I
Blue Cross
None
None
$6,000
None
Supplied, safety
shoes -2 pairs
Allowance
12 days, unlimited
accumu1 ati on
I
On retirement, may ex-
tend separation date
up to 180 days
10 days after I year
II days after 6 years
12 days after 7 years
13 days after 8 years
14 days after 9 years
15 days after 10 years
11
T½ -regular working
days and Saturday
2-T -Sundays or
legal holidays
$5.00 per day
I I • I I I • • •
Exhibit(_
Djst,-i ct and City Benefit Comparison
Agency/Employee
14.179%/7.00%
i • I •
Ci_tJ!. of Carlsbad
PERS
57 Survivor
I I l I l I I I I I I
I 1
Agency/Employee
9.406%/7.00%
6cl3%/6.!3%offirst $22,900 salary Yes
Crawn
6.13%/6.13% of first $22,900 salary
Emp. Emp. + I
40.42 40.42/48.82
Family
40.42/63.66
$2.52 -5.82/mo.-varies by age
and sex
$265/yr. _
$70/yr.
$250/yr.
Yes
Yes
$5,000
Yes -Optical
Supplied
Safety shoes -2 pairs
"None
12 days, unlimited
1 day vacation for 3 days
unused sick leave -ann.
at employee option
Credit sick bal. for ret.
Emp.
$37 .19
Part of medical
Emp. + Family
$65. 00/$48. 11
.89¢ per $100 of salary
$2.495/month
Part of medical
$187.00
$130.00
May carry a maximum 1 yr accumulation 10 days after 1 year Up to 29 days
15 days after 6 years
20 days after 15 years
12
T½
Tl:;
$10.00 per day
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. Fringe Benefit Questions Will Have To Be Resolved
A comparison of fringe benefits received by City and Dis-
trict employees is summarized on Exhibit X on page 96. As
indicated thereon, the nature of most benefit items is
similar. It is assumed that transferred District employees
will receive the same fringe benefits received by City
employees, subject to the following:
-Arrangements Will Be Necessary To
Assure No Interruption In Health Plan
Coverage For District Employees
The City w i 11 have to assure that a 11
District employees receive health
coverage immediately upon transfer to
the City without a waiting period.
-An Agreement Concerning Liability For
Accrued Vacation And Sick Leave Of
District Employees Will Have To Be
Negotiated Between The District And The
City
The following issues must be resolved
in terms of vacaton and sick leave
policies:
.. Will District employees being
transferred to the City be
treated as terminated employees
by the District?
•. Upon termination, will accrued
vacation and sick leave balances
be paid if transferred to the
City?
97
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One approach to these questions is for
the City to accept the liability for
the current sick leave and vacation
accruals for each employee at the time
of transfer and, using the vacation and
sick leave accruals as a base, apply
City personnel policies for future
accruals. The principal advantages of
this approach are simplicity of admin-
istration and equitable treatment of
employees.
-Guidelines For Determining Prior Credit
For District Employees Will Have To Be
Determined
When District employees are transferred
to the City, a decision will have to be
made with respect to the prior service
of employees with the District. This
is particularly important in determin-
ing vacation accrual rates. There are
essentially two alternatives:
The first alternative would pro-
vide that, for purposes other
than retirement, transferred Dis-
trict employees would be treated
as new City employees and would
not receive credit for their Dis-
trict service.
98
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•
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-'
The second alternative would pro-
vide that transferred District
employees would receive credit
for their District service.
Retirement Plans Will Have To Be Integrated
As City employees, the District contract with PERS would be
merged with the City's contract and District staff would be
covered pursuant thereto. The District employees would
receive credit for their prior service, and there would be
no cost to the City for prior service inasmuch as this has
already been paid for by the District. District employees
would also continue to be covered under OASDI which is
presently available to City employees.
A REVISED WATER RATE STRUCTURE WILL NEED TO BE DEVELOPED
As indicated in Chapters III and IV, the City and District both finance water
operations primarily from revenues generated by water charges. While the
actual charges vary, the current water rate structures for both organizations
include a ready-to-serve charge and a unit water charge. The primary distinc-
tion between the City and the District has been their respective approaches to
the financing of capital improvements. The District has financed capital im-
provements with property tax supported general obligation bonds while the City
has relied on revenue bonds supported by revenues from water charges. As
indicated before, however, the passage of Proposition 13 has eliminated the
use of general obligation bonds so it is likely that the District will have to
rely on revenue bonds for future long-term financing.
99
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If the responsibility for providing District water service is transferred to
the City, a unifonn rate structure would need to be developed for City and
District water customers. The principal considerations in developing such a
rate structure are discussed below.
A Uniform Rate Structure Would Be Developed To Offset
Operation And Maintenance Costs
If the District and City water operations are combined, a
uniform rate structure would be established to offset the
cost of operating-and maintaining the combined systems. It
is assumed that water charges would continue to consist of
a ready-to-serve charge and a unit water charge.
There Would Be No Chanoe In The Financing Of Either The
City's Or The District's Existing Long--Term Debt Obligations
There would be no change in the financing of either the
City's or the District's existing long-term debt
obligations. As indicated above, the District's current
debt is financed by general obligation bonds. These bonds
are supported by improvement District property tax rates
and it is assumed that these tax payments will continue to
be paid by the District property owners as required by the
bond covenants. Similarily, the City long-term debt is
financed by water revenue bonds and would continue to be
supported by water charges paid by City water customers.
It is assumed that the water charges required to meet the
City's debt service obligations would be added to City
customer's total water bill .
100
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, . .. -
-----.. -
•
--
,-
APPENDIX
-
-
1D1
----,-
,. -·--.. --------------~ .. ---.. ---------,... -·. -... -
AVERAGE MONTHLY COST OF WATER
TO AN AVERAGE RESIDENTIAL CUSTOMER
SERVED BY CMWD
Assumptions
1. Market Value: $100,000
2. Assessed Value: 25,000
3. Meter Size: 5/8"
4. Consumption: 15
Improvement
District 2
Maintenance and Operation
Ready-to-serve fee -$4.00 = $ 4.40
Unit water charge -$0.40 X 15 = 6.00
Sub tot a 1 10.40
Capital Improvements
Improvement District 1 -$250.00 X $0.04 ¼ 12 = .83
Improvement District 2 $250.00 X $0.10 f 12 = 2.08
Improvement District 3 $250.00 X $0.26 f 12 =
Improvement District 4 $250.00 X $0.02 f 12 = .42
General Levy -$250.00 X $0.14 f 12 X 45¾ = 1.31
Sub total 4.14
TOTAL $14.54
102
Improvement
District 3
$ 4.40
6.00
10.40
.83
5.42
.42
1.31
7.98
$18.38
---r ----.. -.. -.. ----.. .. ----....,_ -----...
---------... ---
AVERAGE MONTHLY COST OF WATER
TO AN AVERAGE RESIDENTIAL CUSTOMER
SERVED BY THE CITY OF CARLSBAD
Assumptions
1. Market Value: $100,000
2. Assessed Value: 25,000
3. Meter Size: 5/8''
4. Consumption: 15 units
5. Unit Water Charge: 35¢ M.O. + 8¢ debt service= 43¢
Maintenance and Operation
Ready-to-serve fee -$3.85
Un it water charge -35¢ X 15
Sub tot a 1
Capital Improvements
Improvement District 1 -$250.00 X $0.04 t 12
Improvement District 4 -$250.00 X $0.02 t 12
General Levy
Unit Water Charge
Sub tot a 1
TOTAL
$250.00 X $0.14 t 12 X 45%
-8¢ X 15
103
=
=
=
=
=
=
=
=
$ 3. 85
5.25
9.10
.83
.42
1.31
1. 20
3.76
$12.86