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HomeMy WebLinkAbout1991-01-29; Municipal Water District; 076; Update on Water Reclamation Master PlanAB# D76 MTG. l/29/91 DEPT. F-- cm 1 - AGEND’ BILL L- i;.,L& fi I TITLE: UPDATE ON WATER RECLAMATION MASTER PLAN RECOMMENDED ACTION: Hear presentation and direct staff as appropriate. ITEM EXPLANATION: Staff will provide overview and update the Board on the status of the Water Reclamation Master Plan. Update on the status of the State Low-Interest Loan Application. FISCAL IMPACT: No specific impact will result from this update and status report. . . EXHIBlTS: None. MANAGEMENT AND OPERATING PLAN CARLSBAD MUNICIPAL WATER DISTRICT November 6,lQQO EXECUTIVE SUMMARY EXECUTIVE SUMMARY The report which follows presents the results of the study to develop a management and operating plan for the Carlsbad Municipal Water District which is now a subsidiary district of the City of Carlsbad. The principal focus of the study was to identify and evaluate alternative approaches for organizing and providing water and related services consistent with the following primary objectives. . To maintain the high quality ofwater service and related programs over the short, medium, and longer range. . To plan, organ&e, and deliver high quality water services in as an efficient and effective manner as possible. To this end, the study evaluated a variety of alternatives for organizing and delivering water services. These ranged from maintaining the District organization as a distinct, subsidiary organization apart from the regular city administrative structure to dismantling the District organization as it now stands and assigning component programs, responsibilities, and staff to the various City departments. The study’s principal findings are as follows: . The full range of customer-oriented services (account maintenance and billing; meter reading and repair; response to complaints; conservation programming and services) could be improved if all customer-related services were under common management. . Under the current organizatlon of responsibilities between and among the District and the City Engineer, there is some overlap and duplica- tion of effort in operating and service areas related to development review and control. Additionally, responsibilities related to administra- tion of capital improvement projects impacting water and street facilities are not clearly detied between the District and the City Engineer. . While there appear to be few opportunities to achieve major efficiencies or service improvements through consolidation of water and sewer field maintenance services in the short-term, longer term cost avoidance opportunities could be achieved through common management and scheduling of sewer and water field maintenance personnel as the reclaimed water system comes on line. . As the reclaimed water system increases in scope and importance, i consolidated responsibilities for sewer and water planning and coordi.naUon could ensure consistent attention to capacity planning and securing of supply sources for both water and reclaimed water. . Over time, effective administrative practice suggests that the District be folded into the City’s major administrative and support systems to: (1) eliminate duplication of staff resources devoted to administrative activities; and (2) Ensure that the District’s practices in such areas as recruiting and selection, personnel management, financial management, and purchasing are consistent with City-wide policies and practices. Given these findings, the study’s primary recommendations are as follows: . Adopt the long-range objective of broadening the District’s current scope of staff, programs, and responsibilities to include water, wastewater, and reclaimed water services as a Utilities Department within the City’s operating and adminisirative structure. This would include consolidating responsibilities for and statf involved in: e Plarming, design, and plan check for water, reclaimed water, and sewer services. All customer-related services including water billing, meter reading, and conservation programming related to water and reclaimed water. - Water supply and distributfon operations. Water and sewer system maintenance. . Establish the Community Development Department, City Engineer as responsible for: (1) Inspection of all public improvements related to development and capital projects involving sewer and water facilities: and (2) Contract administration for all capital projects, including water capital projects. . Bring the existing District operation under etisting City administrative policies and cenlxJize management and support system responsibilities with the appropriate City department including: ( 1) Personnel Management; (2) Financial Management: (3) Purchasing; (4) Vehicle Maintenance: and (4) Risk Management. Full implementation of the Utilities Department concept, as well as the other major recommendations noted above, will require transfer of employees between and among the existing District organization and City departments including Finance, Utilities and Maintenance, and the City Engineer. The bulk of employee transfers would involve assigning City employees to the expanded District organizatlon to fully implement the recommended Utilities Department. Full implementation of the recommended UUliUes Department should be viewed as a longer range goal and implementation focused on achieving that goal should be approached cautiously to avoid service disruption, negative impact on programs, and unnecessary staff discomfort. The report provides a suggested implementation sequence which consists of the following major components. . The first key implementation step will involve tra.nsiUoning the District from an autonomous administrative entity to a department which is integrated into the City’s administrative structure. . Any additional organizational adjustments, including all anticipated inter-unit staff transfers, must be deferred until a strategy for integrating current District employees into the City’s compensation and fringe benefit structure has been developed. Current differentials in compensation and benefit values between the District and the City appear to be significant enough to provide a barrier to organizallonal adjustments involving staff transfers until a strategy for addressing these compensation differentials has been developed. . Once a compensation and benefit transition strategy has been developed and negotiated, the report recommends sequential implementation of the organizational adjustments which would culminate in a full scale Utilities Department. These steps will probably require several years and each should be fully implemented and digested before the next is addressed. Pages 31 through 35 in the main body of the report outline the recommended implementation sequence. iii TABLE OF CONTENTS section EXECUTIVE SUMMARY 1. 2. 3. 4. 5. 6. 7. 8. 9. OVERVIEW OF CURRENT OPERATIONS AND INTERORGANIZATIONAL RELATIONSHIPS . . . . . . . . . . . . SUMMARY OF INITIAL ISSUES RAISED DURING INTERVIEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . FINDINGS RELATED TO ORGANIZATIONAL AND MANAGEMENT ISSUES . . . . . . . . . . . . . . . . . . . . . . . . . . . EVALUATION OF ALTERNATIVE ORGANIZATIONAL AND MANAGEMENT APPROACHES TO ADDRESSING CURRENT AND POTENTIAL FUTURE ISSUES . . . . . . . . . . COMPENSATION AND BENEFIT ISSUES IMPACTING ORGANIZATIONAL CHANGE . . . . . . . . . . . . . . . . . . . . . . . . DESCRIPTION OF LEGAL BARRIERS IMPACTING ORGANIZATIONAL CHANGE . . . . . . . . . . . . . . . . . . . . . . . . RECOMMENDATIONS RELATED TO INTEGRATING THE DISTRICT INTO CITY OF CARLSBAD OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . RECOMMENDATIONS RELATED TO ESTABLISHING A UTILITIES DEPARTMENT . . . . . . . . . . . . . . . . . . . . . . . . w?e Number 2 4 7 11 23 24 25 26 PHASING PLAN FOR IMPLEMENTING RECOMMENDATIONS 28 APPENDICES A PROFILE OF STAFF ASSIGNMENTS AND RESPONSIBILITIES FOR THE CARLSBAD MUNICIPAL WATER DISTRICT . . . . . . . . . . . . . . . . . . . . . . Al B INITIAL ISSUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bl PROPOSED MANAGEMENT AND OPERATING PLAN FOR THE CARLSBAD MUNICIPAL WATER DISTRICT The report which follows summa&es conclusions and recommendations related to how the Carlsbad Municipal Water District should fit into the structure and service organization of the City of Carlsbad, now that the District has become a subsidiary district. The primary focus of the project was to review the services, functions, and operations of the District, and identify how they currently or potentially relate to the functions and services of the City. Based on this analysis, the focus of the project was to identify and evaluate how to best organ&e these services from the perspective of the following criteria. . To ensure maintenance of a quality water services program both now and in coming years. . To determine if duplication of effort and fragmentation of control related to the planning, engineering, operations, maintenance, and customer services associated with the water services program does exist, and if so, to explore approaches for eliminating that duplication. . To consider the impact of future developments such as expansion of the reclaimed water program on organization and operating alternatives. . To determine how the District, which is currently an autonomous organization from the perspective of compensation and administrative systems, can and should function within the administrative and support structure of the City of Carlsbad, now that it is a subsidiary district. A key issue involved in structuring and evaluating alternatives, involves the agreement between the City and the District which was negotfated and signed at the Ume of reorganizaUon. A significant provision of that agreement includes the following statement: “All benefits and rights to existing employees shall be continued at levels not less than currently enjoyed. These benefits and rights include vacation, sick -l- leave, insurance, retirement programs, employment contracts, and seniority.” Given the above, the analysis also included comparison of District and City compensaUon and benefit structures to identify major differences which could provide barriers to any realignment in organization and service delivery responsibili- ties. The report opens with an overview of how the District currently functions and identifies key relationships between the District and other departments and operating functions of the City of Carlsbad. 1. CURRENT DISTRICT OPERATIONS INTERFACE WITH CITY ACTMTlES INANUMBEROFAREAS During the early stages of the study, the project team interviewed most District staff and key managers and supervisors in City operations either currently or potentially related to water service programs. The purpose of these initial interviews was to develop an understanding of District operations and to identify how the District inter-relates with various City services and unit. Appendix A to this report provides a detailed description of the basic responsibilities of District staff and indicates how they interface with City staff and operations. Major conclusions which can be drawn from the information presented in the Appendix are summarized in the paragraphs which follow. Although the District is now organized as a subsidiary district to the City of Carlsbad, it essentially functions as an autonomous organization entity with independent administrative systems and procedures including: -2- . Compensation structure and administration . Personnel policies, procedures, and systems . Purchasing controls and requirements . Financial structure including supporting systems involving accounting, investment management, and the like. . Direct operations support activities such as vehicle and equipment maintenance. At each level of and across each District subordinate operating unit, District and City staff interface in a number of areas related to administration, management, and operations. Key areas which can be highlighted based on the information presented in Appendix A include the following: . Administration: With the transition to subsidiary district status, there is increased involvement between the District Engineer/District Manager and the City Manager. Top level District management staff are being incorporated into the City management team. The focus of this involvement is to establish a chain of accountability from the City Manager to the District General Manager and his staff and align the District with high priority management programs and the management team being developed by the City Manager. . Finance: While they currently operate Iwo distinct financial systems, the District and the City interface in regard to establishing and setting water rates which are currently arranged in two component parts related to the cost structure of water service programs experienced by the District and the City. . EncEineering and Inspection: The District and the City interface from several perspectives: Development review and control -- both are involved in reviewing, inspecting, and approving development improvements. Under the current practice, the City Engineer and the District adminis- ter independent processes from the point of application through final inspection. Capital project design and construction -- The District/City relationship focuses on those District capital projects which 3- impact City facilities. These primarily include distribution system projects which impact the street network. Key areas of interface include the following: . . Sequencing projects to avoid installing or upgrading waterlines which require digging up and resurfacing newly resurfaced or reconstructed streets. . . Traffic control planning and implementation during the construction period. l . Bidding projects and subsequent contract administration and inspection. . ODerations and Maintenance Water operations (control and provision of water to the distribution system) is an essentially distinct function with no real interface with operations of other City operating units. From the maintenance perspective, current interfaces are limited to responding to customer complaints related to water leaks and other supply problems. The meter reading unit in the Utilities and Mainte- nance DeparUnent handles leaks from the meter to the structure, while District field maintenance staff handle distribution system leaks beyond the meter. 2. A VARIETY OF POTENTIAL SERVICE EFFECTIVENESS AND EFFIClENCY ISSUES WERE ANALYZED TO PROVIDE THJ3 E3ASIS FOR EVALUATING ALTERNATIVE MANAGEMENT AND OPERATING APPROACHES Early in the project, District and City staff were interviewed to identify potential areas of overlap, duplication of effort, or fragmentation of responsibility related to water service delivery resulting from involvement of an essentially autonomous District organizatlon and City operating units in the various aspects of system planning and operations. Appendix B to this report highlights potential issues raised by staff during initial interviews or identified by the project team as a result of these interviews. Major potential issue areas explored over the course of the project can be summarized as follows: 4 . Customer Services and Customer Complaint Response -- Reflecting the fact that responsibility for responding to customer service requests is divided between the City’s UUlity and Maintenance department and the Carlsbad Municipal Water District. This has the potential to lead to confusion on the part of the customer regarding which unit should be contacted to resolve problems regarding water leaks, supply, and quality. . Coordinated Control of Planning and Implementation of Water Conservation Programs -- Given the Finance Department’s responsib- ility for administration of the water billing system (data source for analysis of consumption patterns); meter readers who are assigned to the Utility and Maintenance Department (who operate in the field and represent resources which can be employed to identify consumption abuses); and assignment of responsibility for conservation program planning and public information dissemination to the District. . Development Review and Control -- Potential overlap and duplication of effort related to sewer and water improvement inspections and the requirement for applicants to saUsfy two sets of bonding, application, and plan check requirements as imposed by the City Engineer and the District. . Capital Proiect Planning and ImplementaUon -- Involving potential fragmentation and confusion of responsibilities, especially in the area of water distribution system replacement or construction projects which impact the street network. Issues raised during initial interviews revolved around the absence of definition of clear responsibility for contract administration, traffic control, inspection, and other compara- ble activities related to capital projects in which both the District and the City Engineer’s departments were involved. . Operations and Maintenance -- Characterized by potential issues related to opportunities to increase staff uti&aUon and/or moderate future staffing growth across all funcUons including such areas as: If meter reading and water field maintenance staff were organized under the same umbrella, would there be any potential to shift or balance field maintenance workload to free up meter reader staff time to handle increased meter reading workload without commensurate staff increases? The potential to cross utilize water maintenance and sewer maintenance staff to increase staff utilizatlon in both functions. -5- Potential overlap or duplicatfon in the vehicle and equipment inventories employed to support water and sewer iield mainte- nance operations given assignment of these responsibilities and staff to different organizatlonal units. In addition to these areas which surround current operations, potential future considerations were also surfaced in the initial analysis. For example, would the current allocation of planning and maintenance responsibilities to the District and other City functions support or detract from the cost-effective implementation of the reclaimed water program in future years? This includes: . Allocation of responsibility for coordination of sewage treatment and collection issues to the City Engineer and the UUliUes and Maintenance Director and his staff -- responsibilities which will involve issues related to supply of reclaimed water as the program develops and expands. . Concurrently, assignment of responsibility for reclaimed water distribuUon and system planning to the Carlsbad Municipal Water District. . Future potential to moderate growth in field maintenance staff required to maintain the reclaimed water system through consolidated manage- ment and control of water and sewer field maintenance personnel and equipment. Finally, a variety of “people” issues and perceptions were identified which impact structuring and evaluating organizational alternatives for delivering water and water related services both now and in future years. They include: . Historical atUtudes about how well related units function, especially in the areas of engineering and inspection. Interviews clearly indicate the District staff believe that the District approach to reviewing and inspecting developer improvements and managmg capital projects from plannin g through design, contract administration, and fmal inspection are best controlled through dedicated, in-house staff. There is a clear attitude that any loss of direct control in these areas would adversely impact service quality. . There is a clear concern among District staff about the potential loss of compensation and benefit advantages which could occur as a result of compensation and benefit advantages which could occur as a result of any adjustment in existing organization, configuration, and responsibili- ties. The paragraphs which follow indicate which of these issue areas were validated by analysis completed during the course of the project. 3. OUR ANALYSIS INDICATES THAT EXTERNALLY FOCUSED SERVICES AND SOME ASPECTS OF CURRENT AND FUTURE INTERNAL OPERA- TIONS COULD BENEFIT FROM ORGANIZATIONAL REALIGNMENT OF RESPONSIBILITIES Based on follow-up analysis conducted by the project team, a set of findings related to the potential issues described in Section 2 were developed. These fmdings which are described in the following paragraphs are subsequently employed to structure and evaluate organizational and service delivery alternaUves. (1) The Full Rawe Of Customer Services Could Be Improved If All Customer Related Services And Responsibilities Were Under Common Management Principal findings related to the customer services area are as follows: . Based on the existing set of multi-organizational unit responsibilities for customer accounts and billing, meter reading, and response to customer complaints, the system is not simple or convenient for the customer in regard to the person, unit, or place to contact to resolve a problem or obtain information. . More importantly, the organizational fragmentation of customer accounts and billing, field meter readers, and conservation program responsibilities, complicates the development, implementation, and maintenance of a coordinated and controlled water conservaUon program. 12) There Is Some Overlap And Duplication Of Effort In ODeratinp And Senrice Areas Related To Develooment Review And Control Principal issues include: . Need for applicants to make application, submit plans, and post bonds with both the District and the City. Service and responsiveness could -7- clearly be improved by coordinating or consolidating application and bonding requirements. . While limited in terms of the number of personnel involved, there is duplication of effort between the City Engineer and the District in regard to current separation of responsibility for inspection of sewer and water improvements related to new construction. This involves two inspector positions in the District and varying levels of inspection effort, primarily through contract service personnel, but currently transitioning to in-house staff, in the City Engineer’s operation. (3) Responsibilities Related To Administration Of Capital Improvement Proiects Impacting Water And Street Facilities Are Not Clearlv Defined Follow-up analysis indicated that there appeared to be no signiiicant issues related to the current planning and design of water capital projects including special facilities [e.g., reservoirs, major pump stations, etc.) or distribution system improvements. Principal fmdings include the following: . There is sufficient workload to fully utilize existing engineering positions in the District solely on water projects, no matter where staff are assigned. . More complex water facility projects are accomplished by consulting engineers operating under the District Engineer’s direction and control. Again, there appear to be no issues associated with quality, capacity planning, and the like. Conversely, currently, and in the past, some issues have arisen related to construction and contract administration of water projects which impact the City’s street network and require participation by both District and City Engineer staff. Issues have included responsibility for design and implementation of traffic control plans; timely bidding and completion of some projects given differing priorities between District and City Engineer programs; and belief on the City Engineer’s part that the City should deal with contractors with “one voice.” a (4) While There Appear To Be Few Opportunities To Achieve Maior Efficiencies Or Service Improvements Through Consolidation Of Water and Sewer Field Maintenance Services In The Short-Term, Longer Term Cost Avoidance Opportunities Could Be Achieved As The Reclaimed Water Svstem Comes On Line Analysis indicates that the staffing of both water and sewer maintenance operations is relatively modest. Similarly there is no significant duplication of major vehicles and equipment available to support the two functions. As a result, consolidation would probably achieve no significant economies of scale over the short-term. Potential improvements would probably be limited to: . Elimination of the need for one supervisory position at the Construc- tion and Maintenance Superintendent level. . If cross-training was accomplished, a potential to better schedule work, given the fact that both sewer and water crews are on a 4/10 work schedule. . Similarly, with cross-training, duplicate emergency standby on nights and weekends could be eliminated. Over the longer term, as the reclaimed water system comes on line, consolidated management of water and sewer field maintenance forces could moderate staffing increases in both functions required to provide maintenance services to the expanding sewer collection and water distribution networks as well as the reclaimed water system as reclaimed water distribution systems are accepted for maintenance. Similarly, if meter readers were included within the same organizational framework as field maintenance staff, there is the potential to better schedule work related to meter replacement and repair, potentially freeing up meter -9- reader time to handle increasing meter reading requirements without commensurate staffing increases. (5) As The Reclaimed Water Svstem Increases In Scope And Importance, Consolidated Responsibilitv For Sewer And Water Planning And Coordination Should be Considered Analysis indicates there are no significant issues related to current approaches to water capacity planning or coordination of sewage treatment services with the Encina Authority. These responsibilities are currently divided between the District (water issues), and the City Engineer and Utilities and Maintenance Director (various aspects of the sewer and sewage treatment program). However, as time passes and the reclaimed water program increases in importance and scope, there could be some advantages to consolidating control of sewer and water issues since the sewage treatment relationship and agreements are key to access to treated water for distribution through the reclaimed water system. Consolidation of responsibilities could ensure consistent attention to capacity Plannmg and securing of supply sources for both water and reclaimed water. (6) Over Time Effective Administrative Practice Would Swest That The District Be Folded Into The CiiVs Maior Administrative And Support Systems Given the existing autonomous structure and operation of the District as described earlier in this report, there is a duplicatton of administrative staff and existence of distinct and different administrative systems between the District and the City. Key issues are as follows: . Now that it is a subsidiary District and part of the City’s management and program structure, major administrative systems should be -lO- brought into line with overall City practice, especially in the areas of: Personnel policies, procedures, and programs. Purchasing policies and controls Risk management and loss control programs . Concurrently as a stand-alone operation, the District currently devotes staff resources to activities and functions which could be absorbed by existing City Units and staff. These include: Accounting and Financial management Payroll Vehicle and equipment maintenance Risk management and loss control Purchasing . Similarly, some programs in the City are receiving increasing manage- ment attention and emphasis, including affirmaUve action recruiting and selection: staff development and training; and compensation management. As a subsidiary district which is part of the City of Carlsbad, it appears the District ought to be subject to and benefit from these new programs and emphasis in the human resource management area. 4. THREE ALTERNATIVE APPROACHES TO ADDRESSING THESE CURRENT AND POTENTIAL FUTURE ISSUES WERE DEVELOPED AND EVALUATED Given the issues noted above, the project team structured three potential alternatives which could provide the basis for a long-range management and operating plan for the Carlsbad Municipal Water District. While there are variattons on each alternative which could be developed and implemented, the alternatives displayed in this sectfon represent three distinctly different long-range targets which could be established as a goal for integrating the Carlsbad Municipal Water District -ll- into City operations. The sections which follow present each alternative. ( 1) Alternative One: Estabhsh A Full Services Utilities Department Combining All Kev Sewer, Water, and Reclaimed Water Operations The first of the three alternatives involves transitioning the District from a water services agency to a Utility Department functioning within the administrative structure of the City of Carlsbad. Exhibit I, which follows this page, shows how a Utilities Department could be organized and staffed. Principal features of the organizational alternative displayed in the exhibit are as follows: . All customer services related functions, including utility billing, meter reading, and conservation programming and planning are consolidated within the Utilities Department. With this consolidation, the Utilities Department would serve as the single point of contact for all customer service requests and questions. . The organization groups all sewer and water field maintenance functions under a single Operations Manager as shown in the Exhibit. Consolidated management would provide the basis for combined work scheduling for all field work resources: maintenance staff cross training; and joint utilization of staff to meet the full scope of field maintenance requirements including activities currently handled by meter reading personnel. . Consolidated responsibility for all aspects of planning, engineering, design, and i.nspecUon of sewer, water, and reclaimed water projects, This would involve: Providing for an Engineering Manager, comparable in training and responsibility to a Chief Engineer to oversee all engineering- related activities within the Utilities Department. Assigning the UUliUes Director responsibility for over-ah planning and coordination of water, sewer, and reclaimed water programs. -1% L 0‘ c t 3 .p D 3g- au $ 0-l 2 3 .g t iis .- P Lu 5 “, 0 ,&i cz I c .- fi? $LI . 4c Assigning responsibility for all aspects of engineering design, inspection, and contract administration to the Utilities’ Engi- neering Unit as depicted in Exhibit I. This would involve separate water and sewer engineering design units, but would consolidate inspection services as shown in the exhibit. . The proposed UUliUes Department would be fully integrated into the basic administrative structure of the City of Carlsbad including: - Transferring responsibility for financial management, including accounting, payroll, and investment management to the Finance Department. Bringing Utility Department staff, including existing District personnel, under the City personnel system with all personnel related services provided by the Human Resources Department. Incorporating the Utilities Department into City purchasing, risk management, and vehicle maintenance systems. Implementation of AlteraUve One would require substantial organiza- Uonal adjustment and transfer of personnel and responsibilities as follows: . District accounting staff (Accountant and Accounting Office Assistant) would be transferred to the Finance Department. . Utility billing staff would be transferred from the Finance Department to the Utility Department with work stations at the existing Carlsbad Water District office. . The meter reading unit would be transferred from the UUliUes and Maintenance Department to the new UUIities Department. . Field sewer system maintenance responsibilities and staff would be transferred from the Utilities and Maintenance Department to the new Utilities Department. . Responsibilities related to sewer facilities design and inspection would be transferred from the City Engineer to the new Utilities Department. Because there are no dedicated staff involved in these functions and consulting engineers and inspectors are primarily utilized for design and inspection, transfer of responsibility would not significantly impact staff assigned to the City Engineer’s Office. -14- . Consolidation of responsibility for all phases of sewer capacity planning and relationships with sewage treatment agencies and authorities would be placed with the Utilities Department. The “fit” between the Utilities Department option and the resolution of issues raised earlier in the report is summarized at the end of this section. (2) Alternative Two: Ink&ate District Functions, Services And Personnel Into Other Departments of the Citv of Carlsbad Exhibit II which follows this page, outlines an alternative which would essentially involve allocaUngresponsibility for and transferringvarious District staff to those City departments with lead responsibility in each of the operating and support service areas which characterize the existing District organization and operation. Principal characteristics of this alternative would be as follows: . All engineering related functions (system planning, development review, project design, and implementation) related to water and reclaimed water systems would be assigned to the City Engineer and be allocated to the various engineering sub-units based on the current organizatlon of responsibility within the City Engineer Department. - . Financial management of water services would be centralized in the Finance Department and treated to comparable financial management approaches as other City enterprise fund operattons. . Field operations would be incorporated into the Utilities and Mainte- nance Department as shown in Exhibit II. This could include responsi- bility for coordination and implementation of conservation program- ming responsibilities. Implementation of Alternative Two would essentially involve eliminating the District as a distinct organfzatlonal enttty and reallocating staff, responsi- bilities, and functions as described above. -15- c 0% .- f= -- G aa I- xi%. 3gg OIL 0 / ,5 .= .E OF w + acnijj .Q’ii u .y.al m cj ‘5 5 r&:r i Y 7ii g 0. ‘G w 5 50 c fi 2 c H I F .g go . w U-J $F 0-c mw . a-5 8 .E . .= ij 2.z F3 $G”+ (3) Alternative Three: Moderatelv Adjust The Existing District To Provide One Point of Contact For Water Customers Exhibit III, which follows this page, shows the third distinct alternative developed and evaluated by the project team. This approach would involve: . Centralizing financial management and related accounting and payroll services in the City Finance Department, comparable to Alternatives One and Two. . Centraking customer service responsibilities with the District or successor water service organization. This would include both billing and meter reading staff. . Maintaining organizational distinction for water system engineering and maintenance activities. Staff and responsibilities transfers required to implement Alternative Three would be limited to: . Transfer of meter reading staff from the Utilities and Maintenance Department to the DisUict/Water Department. . Transfer of utility billing staff from the Finance Department to the District/Water Department. . Transfer the District Accountant and Accounting Office Assistant to the City Finance Department. Alternative III would also impact several positions in the existing District organization: . The administrative manager would transfer focus from basic adminis- trative functions to oversight, design, and control of all customer service operations and related programs. . An Engineering Manager position (degreed engineer) would be estab- lished to support the Water Services Manager by assuming hands-on engineering activities including design, master plan maintenance, developer contacts, and direcUon of day to day engineering activities. This engineer would probably have to be registered if the Water Services Manager was not a registered engineer. -18- i- F ‘iI E5 $F .c m’ F’r W . The Water Services Manager would increase responsibility for overall unit administration and management. Alternative Three could be implemented by retaining the District as an essentially distinct 0rganizaUonal element within the City structure (i.e., with the exception of finance and accounting), or integrating it into the City administrative and operating structure, ultimately transiUoning to Water Department status. (4) Alternative One Is Most Consistent With Resolvixuf The Orpanizational And Opera- Issues Identified Earlier In this Report Exhibit IV, which follows this page, evaluates each of the three alternatives in light of the issues and organizational and service delivery objectives raised in Section 3 earlier in the report. Principal conclusions which can be drawn from the comparative data shown in Exhibit V are as follows : . Alternative One provides the best “fit” in terms of addressing the organizational, operating, and admInistrative issues IdenMed earlier in the report. If fully implemented, it would coordinate related services (especially in the planning area, given the relationship between wastewater treatment, reclaimed water, and water supply), provide one point of contact for customer services, and provide the opportunity for staff cross-utilization, especially in the area of improvements inspection and field maintenance staff services. Based on current operations, full implementation, including transfer of responsibilities and personnel, would be complicated because of the absence of full-time equivalent, dedicated staff positions devoted to sewer facilities design and inspection in the City Engineer’s Department. . Alternative Two which involves integrating all District operations and staff into existing City functions, is the least attractive alternative. As structured, it would contribute to rather than resolve fragmentation in water service planning and delivery. Additionally, this approach would probably work against development and maintenance of a quality water -2o- : ‘i t I. t 2 t; ;i 5 ii C .r .,; 5 i ;C -T 2: : E 2 E c 4 I I 1 I i i ;1 ., : c . . . . Eul I . . 4 z= 3 cn services program and would not result in significant service improve- ments or operating efficiencies. . Alternative Three is the least disruptive to implement and would address issues related to customer service and conservation program- ming. If interunit agreements could be developed to address issues related to duplication and development review requirements and processes and capital program implementation, Alternative Three would serve to address most short-term issues idenMed over the course of the analysis. Based on the above, it appears the ideal solution is a combinatton of the three alternatives. This combination, which is a variation on the Utilities Department approach is explained in more detail in a subsequent section. 5. COMPENSATION AND BENEFIT STRUCTURE DIFFERENCES POSE A SIGNIFICANT BARRIER TO ANY ORGANIZATIONAL ADJUSTMENT WHICH INTEGRATES DISTRICT AND CITY STAFF As an independent organization, the Carlsbad Municipal Water District has developed its own compensation structure. This structure is based on periodic comparisons with other water districts in Southern California, and adjusted in the interim with cost of living based increases. Analysis conducted during the study compared the District and City compensation structures to determine the extent to which signiiicant differences exist. Comparative analysis also addressed fringe benefit programs maintained by the District and the City. Principal conclusions are as follows: . The District compensation structure is significantly above the City’s basic compensation plan based on a preliminary position by position comparison. The existing “spread” is significant enough to propose barriers to implementing any organizational adjustment which involved integrating City and District employees in day to day working situations. The major issue involves the potential for people to be assigned the same work, but to receive significantly different compensatton. -23- . While many fringe benefits are the same, two significant differences exist, which exacerbate issues related to compensation structure differentials. They include the following: - District employees have access to a deferred compensation plan under which the District pays 50% of the amount employees select to set aside. Thirty of thirty-one District employees currently participate in the deferred compensation program. Vacation and sick leave accrual and payout provisions for District employees are significantly different than policies employed to govern vacation and sick leave accrual and payout for City employees. This translates into real dollar differences which complement salary and compensation for District employees, especially upon retirement or termination. The project team has concluded that the differences are significant enough to pose barriers to any organizational alternative or adjustment which involves transferring staff or functions between or among the City and District organizational units, It is clear that no personnel or functions should be transferred until a strategy is developed for resolving compensation differences which is: . In the spirit of Exhibit A to the City/District agreement cited at the beginning of the report, which held no District employee would be financially harmed by any organizational change implemented after establishment of the District as a subsidiary district. . Clearly understood by all employees likely to impact by any organiza- Uonal change. 6. THERE ARE NO OTHER SIGNIFICANT BARRIERS TO ORGANIZATIONAL ADJUSTMENT WHICH WOULD FOCUS ON INTEGRATING ALL OR PORTIONS OF DISTRICT AND CITY OPERATIONS With the exception of the compensation issues noted above, analysis indicates that there are no legal or comparable barriers to organizational adjustments of any scope. More speciilcally, the legal status of the District provides no barriers to implementing alternative organizational approaches to delivering water services or -24- combining water service delivery operations with other functions as explored earlier in the report. Available information clearly suggests that the preferable alternative is to retain the District as a legal entity as currently established as a subsidiary district to the City of Carlsbad. . Dissolution of the District would require a lengthy LAFCO process and could require an election. . Dissolution would also result in loss of direct representation on the San Diego Water Authority. . Virtually any organizational adjustment within the City’s administrative sUucture can be implemented without dissolution of the District, and can be supported by a contract or contracts between the City and the District as a legal entity. 7. MAINTENANCE OF THE DISTRICT ORGANIZATlON AS AN AUTONOMOUS ADMINISTRATIVE ENTITY WITHIN THE CITY STRUCTURE DOES NOT APPEAR TO BE AN EFFECTIVE MANAGEMENT PRACTICE OVER THE SHORT, MEDIUM. OR LONGER RANGE Factors contributing to this conclusion include the following: . Cost-Effectiveness -- Maintenance of separate administrative and support functions within the District’s sU-ucture results in duplication of administrative staff and support resources. All data indicate that e&ding City administrative and support services (i.e., purchasing, financial management and processing, risk management, personnel management, and vehicle maintenance) could absorb the responsibility for serving the District staff and operations without any increase in staff resources. Additionally, with addnistrattve centralization, some District staff could be employed to upgrade capacities in other City 0peraUng units. . Compensation Structure and Policv -- Continuing existence of an organization within the City government structure with significantly dffferent compensation for comparable classifications can be expected to be a continuing irritant and can complicate labor negotiations in the compensation area. . Differing Policies -- In such areas as personnel systems (e.g., affirmaUve action, other aspects of redirected human resource management -25- programs being implemented by the City); purchasing policies and control; and the like, could be viewed as gaps in the overall City management structure. 8. THE CITY SHOULD ADOPT THE LONG-RANGE OBJECTIVE OF ESTAB- LISHING A UTILITIES DEPARTMENT, BUT IMPLEMENT CHANGES INCREMJ3NTALLY TO AVOID ORGANIZATIONAL “SHOCK” AND TO ALLOW TA&E FOR INVOLVED STAFF TO MANAGE CHANGE The project team has concluded that the most effective long-term organization- al goal involves a modified version of the Utilities Department alternative shown as Exhibit I earlier in this report. The basic components of the recommended Utilities Department approach, once fully implemented, would be as follows: . Consolidated responsibility for water, waste water, and reclaimed water services. This would include the following components once fully implemented: Planning, design, and plan check for water, reclaimed water, and sewer services. Consolidated customer service-related operations includingwater billing, meter reading, and conservation programming related to water and reclaimed water. Water operations Water and sewer system field maintenance. . Adjustments to the development review and capital projects manage- ment processes and systems which incorporate the following: Establishing the Community Development Department, City Engineer as the single point of application for a.U development projects, including: (1) Providing a single bonding requirement for construction of required improvements; -26- (2) Circulating plans to the Utilities Department for plan check of water and sewer improvements consistent with how plans are circulated for other City departments for review and plan check. Consolidating responsibility for and staff assigned to inspection of all public improvements including water and sewer systems, under the City Engineer. Consolidating responsibility for contract administration for all capital projects, including water projects, under the City Engineer. . Retaining the District as a legal entity but absorbing the water planning, engineering, operations, and maintenance functions as a City depart- ment within the City of Carlsbad administrative and management framework. This would include bringing the existing District operation under existing City policies and centralize management and administra- Uve support systems in the following areas: Personnel Management -- including compensation management, recruiting and selection, staff development, and related personnel services provided by the human resources department. Financial Management -- including accounting, payroll, and investment management to be provided by the City Finance Department with water operations and services continuing as a City enterprise fund. This should include elimination of bifurcated rate setting and consideration of consolidation of all financial operations and resources into a single water fund. Purchasing Management -- all purchasing through and under the policies of the City purchasing system. Risk Management -- Safety training and related services to be provided by the City Risk Management unit. This would include management of exWing District insurance coverage and evalua- tion of the adequacy and cost effectiveness of that coverage on a continuing basis. Vehicle Maintenance including transferring District vehicles to the City Equipment Replacement Fund and system and having all District equipment maintained by the City Vehicle Maintenance Shop. This would require initial inspection of all District vehicles by Fleet Maintenance (accomplishment of necessary corrective maintenance to bring vehicles up to maintenance -27- standards as required), and acceptance of the fleet for mainte- nance on a continuing basis. Full implementation of the recommended utilities organization should be viewed as the longer range goal, and implementation focused on achieving that goal should be approached cautiously to avoid service disruption, negative impact on programs, and unnecessary staff discomfort. The paragraphs which follow address key steps related to moving to the proposed utility department organization. 9. CAREFUL, SEQUENTIAL IMPLEMENTATION OF THE PROPOSED UTILI- TIES DEPARTMENT WILL NEED TO BEGIN WITH DEVELOPMENT OF A STRATEGYTORESOLVECOMPENSATIONANDBENEFITDIFFERENTWLS WHICH POSE THJX MAJOR BARRIER TO IMPLEMENTATION Full implementation of the proposed Utilities Department will probably require several years once compensation issues have been resolved. The timing of each successive implementation step should be determined by City Management and impacted staff based on two key factors: . Success in achieving implementation of adjustments at each implemen- tation step from the perspective of integrating staff and operations. Each distinct organizational adjustment should be operatingsuccessful- ly before the next implementation step is addressed. . Capacity and development of key staff in regard to absorbing new and different responsibilities resulting from organizational change and reallocaUon of responsibility. Based on these principals, the paragraphs which follow outline recommended implementation phases to integrate the Carlsbad Municipal Water District into City operations and move toward a consolidated Utilities Department operation. -28- ( 1) The First Kev Implementation Step Will Involve T’ran.siUonix@ The District kom an Autonomous Administrative Entitv To A Department InteQrated Into The Citv’s Administrative Structure This initial step can be implemented without transfer of personnel or any significant change in organization structure or assignment of responsibili- ty. With the Administrative Manager of the District taking the lead and coordinating with appropriate departmental staff in the City structure, basic administrative and support programs in the following area should be transitioned from the District to the responsible City department. City policies and procedures should be adopted as the basis for day to day administrative operations within the District. These include: . Transitioning responsibility for personnel management from District staff to the Human Resources Department. This should include: Compensation administration involving maintenance of the District’s separate compensation structure and plan as well as development of the implementation of the &rate@ to transition District staff to a compensation structure compatible with and part of the overall City structure. Recruiting and selection support Af&maUve action program administration Staff development including coordination of the performance appraisal process. . Incorporating the District into City purchasing systems and practices. . Assigning the City Risk Manager responsibility for insurance adminis- tration and safety program management as it impacts the District. . Transitioning District vehicles and major equipment items to the City Fleet Maintenance operation as previously described. This initial step will involve significant change in the responsibilities of -29- the District Administrative Manager who currently has lead responsibility for most programs outlined above. As the organization changes and integration is effected, it is anticipated that the Administrative Manager position will transition in responsibility and job content as follows: . Have lead responsibility for coordinating the transition of administrative and support responsibilities to appropriate City departments, including orientation of District staff in new procedures, policies, and systems. . As subsequent implementation steps unfold, have lead responsibility for developing a consolidated customer service organization plus subse- quent implementation work steps. . Potentially ultimately transitioning to an Assistant Director or compara- ble position with increased involvement in programming, planning, and implementation in support of the Utilities Director. The e,xtent to which this adjustment occurs is dependent on whether or not the Utilities Department is implemented as proposed in this report and responsibil- iUes of the Utilities Director broadened and expanded, generating a potential need for an Assistant Department head. (2) Anv Additional OrganhaUonal Adluslment Leadine To The Recommended Utilities Department Must Be Deferred Until Compensation And Benefit Issues Are Resolved As noted in previous paragraphs, some significant differences exist between the District and the City compensation siructure. These differences are significant enough to pose short-term barriers to any organizational change inherent in the long-term move to a Utilities Department concept. As a result, no additional implementation steps should be taken or personnel or structures transferred until an acceptable strategy has been developed to “fit” the District and City compensation structures. Steps required to address this issue include the following: -3O- . The City and the District will need to conduct a detailed classification and job content analysis of all District positions to determine where each “fits” in relation to the City classification structure. This is a critical step to ensure that each District employee is equitably dealt with in any compensation plan transition. It should also incorporate analysis of how some existing District positions could change in content and responsibility given the transition from Water District to the Utilities Department over the long range. Issues to be addressed in the analysis include: ( 1) potential transition of the Administrative Manager from current classiiicatlon to assistant department head status; (2) impact of assignment of all customer service responsibilities and staff on the Administrative Analyst position; and (3) longer range impact of expanded responsibilities for the sewer maintenance and meter reader units on a job content and classification of the Superintendent, Water Operations, and Maintenance. A potential result of the job content and classification study could be reclassification of City and/or District positions which might reduce or eliminate the compensation differential identified in previous analysis. . As the results of the job content and classification analysis become clear, resulting information should provide the basis to develop a strategy for resolving the existing salary and benefit differentials and uphold the spirit of the initial agreement which maintains that no employee would be harmed as a result of making the District a subsidiary district. There are a variety of approaches which could be taken to fashion a compensation transition strategy. These strategies could range from: “Grandfathering’ all existing District employees’ salaries and fringe benefits at current levels until such time as they leave the City’s employment. For those District employees whose current compensation is above counterpart City positions, “freeze” salaries until the City structure catches up. For those District employees whose salaries fell below counterpart City positions, increase compensa- tion to eliminate any compensation differential at the Ume of merger. Adopting a system under which District employees (whose compensation exceeded counterpart City positions) would receive annual cash payments equivalent to all or part of the annual cost of living rate increase, but would have base salaries frozen until such time as the City salary structure catches up. As with the second option above, District employees whose salaries fall below counterpart City positions would have their compensation 31- increased to eliminate differentials at the time of merger. The approach ultimately adopted will need to reflect both the spirit and provisions of Exhibit A to the reorganization agreement. (3) Once A Compensation And Benefit ‘lbnsition Stratw Has Been Developed, the Next Implementation Step Should Focus on E&ablish.i.ng an I&mated Customer Service Orgmization The third major implementation step should involve establishing consolidated responsibility for all customer services activities as outlined in Exhibits I and III earlier in the report. This would involve: . Transferring utility billing and meter reading staff to the Districtievolv- ing Utilities Department. . Organizing and implementing a unifled customer service program which addresses the following: Consolidated responsibility for handling and responding to all customer service requests and complaints. Analyzing meter reader and field maintenance crew workload and determining the feasibility of realigning workload responsibilities related to meter repair and replacement as well as water leaks currently handled by meter reading staff. Linking resources in a comprehensive conservation program. . Transfer District accounting staff to the Finance Department to expand responsibilities involving handling both water related and other City financial management and processing activities. This step should be completed and fully digested before additional organizational adjustments are attempted. (4) Several Sequential Steps Should Be Taken To Improve Coordination Of Development Review And Capital Improvement Related AcUvities As the study concludes, there is a legitimate difference of opinion about 32- how to resolve issues related to development related inspections and capital project implementation and management. These differing opinions include: . Concern among District staff and management about the impact of separating responsibility for project design and planning from the ultimate construction management and inspection of capital projects. . Concern among the staff of the City Engineer’s Department regarding project coordination and duplication of effort in inspections and comparable activities. There is validity to both sets of concerns. The project team feels the following approach should be taken to address these issues in the context of recommended organizational adjustments and the long-term goals related to the establishment of a Utilities Department. . . Immediately take steps to eliminate the need for developers to post duplicates of bonds for completingrequired public improvements. This can be accomplished without any organizational adjustment through agreement and coordination between District staff and the City Engineer. The District General Manager/District Engineer, assisted by the Engineering Manager and the City Engineer should have responsi- bility for working out an agreement and establishing a coordinated process within 60 days of acceptance of this report. Concurrently, explore ways to cross-utilize personnel and eliminate duplication of effort in field inspections. Again, the District General Manager/District Engineer and the City Engineer should explore ways to use District inspectors to accomplish concurrent inspections of sewer and water improvements, and to consider total inspection workloads in utilizing the Capital Projects inspector assigned to the District to handle other complex inspections as time is available. This issue should also be addressed within 60 days of the report’s accep- tance. . Over the next 90 days, determine if interorganizational agreements can be employed to resolve issues raised by all parties related to the capital project management process. This should be the responsibility of the District General Manager/District Engineer and the City Engineer and should address the following: e If concerns related to timely bidding and construction of priority -33 water projects can be resolved without organizational adjust- ments. If issues related to coordination regarding capital projects involving both agencies can be resolved by designating one agency as having lead responsibility for the project, including both water and street facility components. The results of these steps dictate how engineering organizational alternatives should be addressed as the Utilities Department implementation is pursued. The project team supports the following approach: . Over the short-term employ coordination and interorganizational agreements as noted above to address issues. . Over the longer term (once compensation issues have been resolved; the District has been aligned with the City’s basic administrative structure; and the customer service organization has been fully implemented), move the centraiized responsibility for sewer, water, and reclaimed water planning and progr annning to the Utilities Department. This will involve: Transitloning sewage treatment and sewer collection system plannin g from the City Englneer and the Utilities and Mainte- nance Director to the Utilities Department. Before these responsibilities can be transitioned, the Utilities Department will need to have an organization in place to accept these responsibil- ities including: l . An established Chief Engineer position to direct “hands on” engineering and planning activities to free the Utilities Manager to accept expanded planning and coordination responsibilities. . . In-house engineering capabilities to address capital improvement projects design and planning needs related to both sewer and reclaimed water projects. If interagency agreements and coordination have not been successful in addressing issues noted above, transfer responsibil- ity and staff related to all phases of inspection to the City Engineer, and assign the City Engfneer responsibility for bidding and managing the construction of all capital projects once planned and developed. (5) The Last Step Iu The Utilities Department Evolutionaw Process Would Involve Transferring! Responsibilitv For Sewer Maintenance Operations Staff and Services The recommended customers services organization needs to be in place and engineering organization and operating issues resolved before sewer maintenance staff and related responsibilities are transferred from the Utilities and Maintenance Department to the Utilities Department. From the Implementation perspective, this will be the last step in the evolutionary process. * * * * * The timing with which these recommended implementation steps proceed are dependent on two major factors: . The pace with which compensation differentials are resolved and a reasonable strategy developed for integrating employees from both organizations. . As importantly, City management’s judgment regarding progress made in establishing and accepting change at each step in the process. The Appendices which follow provide supporting information related to findings and recommendations contained in the main body of this report. -3!5- APPENDIXA PROFILE OF STAFF ASSIGNMENTS AND RESPONSIBILITIES FOR THE CARLSBAD MUNICIPAL WATER DISTRICT APPENDIX A (1) PROFILE OF STAFF ASSIGNMENTS AND RESPONSIBILITIES FOR THE CARLSBAD MUNICIPAL WATER DISTRICT The pages which follow describe the current staffing and responsibilities of all positions in the Carlsbad Municipal Water District. Data were developed based on interviewed staff both within the District organization and in the City of Carlsbad departments and operations with which the District relate. Separate sections are provided for each of the major organizational functions within the District and the profile also describes how each unit and staff member currently interfaces with various aspects of the City of Carlsbad operations. 1. ADMINISTRATION APPENDIX A (2) 1. ADMINISTRATION Number Interface With Position Actual Auth. Responsibility Other City Operations General Manager/ 1 1 Overall management/lead City Manager/Deputy District Engineer administrative responsibility City Manager on for District operations. With District District moving to subsidiary plans/programs - status, increasing other City staff involvement/time related to Council commitment to interaction agendas when with City manager/top Council acting as management staff plus more District Board of executive level decision Directors. making within District structure (purchases, expenditures, etc.) with Commission moving to advisory from administrative role. Executive Secretary 1 1 Clerical and administrative support to General Manager/ District Engineer and Administrative Manager. Takes/prepares commission minutes. Assists in preparation of agendas/ commission packetsjetc. Administrative 1 1 Responsible for supervision/ Interfaces with Manager implementation of numerous administrative procedures in departments as District that include: Budget Division Head to preparation and monitoring, provide/receive investment management, information on water rate calculation, service delivery development of capital issues. improvement program plans, personnel and risk management, City relations/ communications, preparation of statistical progress reports, supervision of some clerical and professional staff, acts in General Manager capacity during his absence. APPENDIX A (3) Number Interface With Position Actual Auth. Responsibility Other City Operations Administrative 1 1 Acts predominantly as Public N/A Analyst Information Officer which includes: Dissemination of informational products to community, customer service in response to water conservation questions, brochure development, special event planning, computer database maintenance. In addition, acts in analytical capacity which has included cost/benefit analysis of various District sponsored conservation programs to include - rebates for use of low flow devices, turf audits and instructional programs to high volume users. Accountant 1 1 Oversees one accounting office Finance Department, assistant and unit Accounting Division responsibilities to include - for payment of water, accounts receivable, journal major facilities fees, entry, financial statements, etc. computerized data entry, maintenance of audit trails, quarterly and annual report preparation, etc. Accounting Office 1 1 Accounts payable, payroll, petty Finance Department, Assistant cash and limited clerical Accounting Division duties as assigned. to pay for services (i.e., gasoline, etc.) rendered. Receptionist 1 1 Directs incoming calls and personnel to proper divisions or units. Clerical duties as assigned. 2. ENGINEERING APPENDIX A (4) 2. ENGINEERING Position Zngineering Manager Number Interface With Actual Auth. Responsibility Other City Operations 1 1 Job responsibilities and time Engineering allocation in transition. Department Previously heavy commitment Development Review to development generated unit related to plan facilities including: (1) checks and developer Meeting with requirements.Utility developers/engineers on coordination district requirements related to meetings; water facilities; (2) Plan responding to City checking development related Planning Dept. facilities’ plans; and (3) project inquiries; Miscellaneous administrative work very closely activities related to completion/ with City Fire acceptance for maintenance of Marshal on new facilities built by developers development and including processing and upgrading of existing closeout of subdivision, and systems. relocation and reimbursement agreements. Currently, less time on board actually plan checking and more time devoted to: (1) Prime District contact with developers/ developers’ engineers; (2) Working with appropriate developers involving plans/facilities associated with the reclaimed water system; (3) Increasing involvement in Master Plan maintenance in support of General Manager/District Engineer; (4) Staff development/training to support transition of plan check workload; (5) More involvement with District C.I.P. management , and (6) Revision of CMWD Standard Specifications, potable/reclaimed procedures and design criteria. APPENDIX A (5) Position Senior Engineering Technician Engineering Technician III Engineering Technician II Number Interface With Actual Auth. Responsibility Other City Operations 1 1 100% on in-house design of CIP Engineering projects-primarily on Department: replacement projects for water l Traffic distribution piping systems. engineering for Work has recently included traffic control design/ preparation of requirements on specifications for city street CIP projects. improvements related l Coordinate to/impacted by water system inclusion of projects. Handles projects District C.I.P. through bid (includes projects with City preparation of bid package) C.I.P. projects and responsible for design of when applicable. project revisions once Utilities and construction begins. Maintenance Department: l Meter shop input related to water service connection replacements triggered by CIP projects. 1 1 In process of accomplishing l Major use of City computerized mapping of all Mapping Section District facilities. Will also be re: Old Downtown responsible for computerized area, “Old City mapping of all new reclaimed Service Area”. water facilities. Maintains, l Familiar with City posts to maps all district mapping easements. Special projects as facilities. assigned. 1 1 50% on plan check of new facilities installed as a result of subdivision construction and individual buildings. 50% on inspections of newly constructed facilities. Serves to “back-up”/handle overflow workload from the two primary inspectors. APPENDIX A (6) 3. OPERATIONS AND MAINTENANCE - Number Interface With Position Actual Auth. Responsibility Other City Operations Superintendent - 1 1 Supervision/day-to-day Contact with utility Water Operations oversight of operations and maintenance and Maintenance maintenance staff and regarding vehicle activities. Schedules staff and service, customer directs/prioritized all service and water maintenance projects/ service activities. Increasing maintenance/ involvement in &I/laster Plan replacement. maintenance and facilities plan check perspective of maintenance requirements and issues. System Operations 1 1 Oversees and participates in Contact with Utilities Supervisor distribution/transmission and Maintenance system of District’s potable Department and with water. Duties include Quality Police Department Control (testing), equipment dispatch during maintenance, and emergency malfunction/ response. Position directly breakage of supervises five operator unknown type positions and all other duties pipeline. associated with unit operation. Senior System 1 1 See responsibilities listed Contact with Utilities 3perator below. In addition, position and Maintenance possesses additional Department and with certifications as compared to Police Department system operator. dispatch during malfunction/ breakage of unknown type pipeline. System Operator II 4 4 Maintains all valving, Contact with Utilities regulating, chlorinating, and Maintenance pumping station, etc. facilities Department and with and equipment; conducts Police Department laboratory testing; maintains dispatch during telemetry system; modifies malfunction/ water flow and transmission breakage of bases on demand; responds to unknown type emergencies and repairs pipeline. equipment on 24-hour (on-call) basis. 3. OPERATIONS AND MAINTENANCE APPENDIX A (7) 3. OPERATIONS AND MAINTENANCE Number Interface With Position Actual Auth. Responsibility Other City Operations Superintendent - 1 1 Supervision/day-to-day Contact with utility Water Operations oversight of operations and maintenance and Maintenance maintenance staff and regarding vehicle activities. Schedules staff and service, customer directslprioritized all service and water maintenance projects/ service activities. Increasing maintenance/ involvement in Master Plan replacement. maintenance and facilities plan check perspective of maintenance requirements and issues. System Operations 1 1 Oversees and participates in Contact with Utilities Supervisor distribution/transmission and Maintenance system of District’s potable Department and with water. Duties include Quality Police Department Control (testing), equipment dispatch during maintenance, and emergency malfunction/ response. Position directly breakage of supervises five operator unknown type positions and all other duties pipeline. associated with unit operation. Senior System 1 1 See responsibilities listed Contact with Utilities Operator below. In addition, position and Maintenance possesses additional Department and with certifications as compared to Police Department system operator. dispatch during malfunction/ breakage of unknown type pipeline. System Operator II 4 4 Maintains all valving, Contact with Utilities regulating, chlorinating, and Maintenance pumping station, etc. facilities Department and with and equipment; conducts Police Department laboratory testing; maintains dispatch during telemetry system; modifies malfunction/ water flow and transmission breakage of bases on demand; responds to unknown type emergencies and repairs pipeline. equipment on 24-hour (on-call) basis. APPENDIX A (8) Position Construction Maintenance Supervisor Senior Construction Maintenance Worker Construction Maintenance Worker Equipment Operator Facilities Maintenance Leadworker Number Interface With Actual Auth. Responsibility Other City Operations 1 1 Office and in-field supervisory Contact, but little position overseeing operations interface of duties of construction/maintenance with sewer crew or crew as described below. meter shop during Responsible for all duties installation or repair associated with unit operation. projects involving pipeline in same area. 1 1 Acts in leadman capacity Contact, but little overseeing in-field duties of interface of duties construction/maintenance with sewer crew or workers and equipment meter shop during operator. Conducts other duties installation or repair as described below. projects involving pipeline in same area. 2 2 Installs and repairs all main Contact, but little pipeline and laterals that interface of duties includes digging of trenches, with sewer crew or laying of line, valves, fittings, meter shop during fire hydrant installation, installation or repair temporary blacktop patching projects involving and all traffic control. pipeline in same Completes new line area. installations not to exceed 200- 300 yards. Also paints and assists in maintaining fire hydrants and fire sprinkler check valves, raises valve boxes in newly paved streets, paints valve boxes, etc. 1 1 Operates heavy equipment Contact, but little (back-hoe, etc.) for interface of duties construction maintenance with sewer crew crew in addition to above meter shop during duties. installation or repair projects involving pipeline in same area. 2 2 Responsible for grounds N/A maintenance of eleven reservoirs and main building area to include: weeding, sprinkler system maintenance, trimming of shrubbery, planting, fertilization, etc. APPENDIX A (9) Position Service Coordinator Storekeeper Number Interface With Actual Auth. Responsibility Other City Operations 1 1 Locates underground water Contact with other utility pipes for all excavation utility divisions projects; maintains fire during pipe location; hydrants through barrel contact with Fire inspection, joint lubrication Department on and brush clearance; conducts inspection program. all periodic maintenance on District’s fleet vehicles. 1 1 Maintains control over all N/A inventory (parts) that District uses to include: Supply re- ordering; part distribution and use; inventory control through database maintenance; vendor contacts; competitive bid processing; etc. Also acts in capacity of safety officer providing safety classes/tips and maintaining hazardous material data sheets. finally does occasional building maintenance and small equipment repair. APPENDMB POTENTIAL SERVICE DELIVERY AND OPERATING ISSUES RESULTING FROM EXISTING ORGANIZATIONAL CONFIGURATION AND ASSIGNMENT OF RESPONSlBILlTIES TO THE DISTRICT AND CITY OF CARLSBAD DEPARTMENTS APPENDIX B (1) t3norafil-ral.SorviPa Area I Tcc13 PC v yv’““*“b’ UIL . AYV *II vu 1. Customer Contactq l Opening and Closing Service Accounts- working relationship between billing staff and meter readers. l Potential convenience for walk-in trade - downtown versus District (or additional satellite) of&e location. l Cash control/handling procedures if billing staff separated from basic Finance Department operation. l Potential fragmentation/inefficiencies resulting from current physical separation of billing staff and meter readers. l Service complaints/ l Confusing division of responsibilities - not questions by/from public. clear to public who to contact considering: - Regular working hours. - District-leaks beyond meter connection. - After hours. - Meter Staff-leaks - meter to structure. - District-Water taste/smell issues. - Billing Staff-bill/charge problems. - District-emerging responsibilities for water conservation/ consumption monitoring control. l Confusion also impacts Police Department who question proper contact for emergency calls on breakage after hours. l Consumption control/ conservation/enforcement l Who is responsible? Organizational fragmentation in regard to resources/staff with potential involvement in conservation program-e.g., coordinated use of meter readers for field identification of violators; use of billing information to monitor/ analyze consumption patterns. APPENDIX B (2) nnaratinv’l.Comri~n Area I TCCI, PC v yw* U”.L”bJ VYL . IUV A*A. “U *““u”” 2. Develonment Review and Control l Processing bonds/ agreements/fees/etc. l Requirement for developers/applicants to make application/process payments - papers at multiple points (e.g., District/ Engineering) - convenience/coordination impact. Duplicative requirements for submitting plans, scheduling field inspections, etc. l Plan checks/field inspections of installed facilities. l Potential duplication/overlap in field inspections? l Plan check quality/control and service levels. l Different approaches to staffing for plan check (e.g., District - in-house; City heavier use of consultants) - District staff concern that quality/control would be lost it integrated with City Engineering. l Any real economies of scale/potential to improve staff utilization if integrated? l Current service levels differ in regard to turn around time. APPENDIX B (3) Operating/Service Area Issues 3. (&&al Proiect Desielq w&ion and Contract Administration l Design/engineering l Would/could coordination be improved if design functions merged (e.g., water projects in/near streets). Any demonstrable evidence that coordination currently a problem given staff level working relationships? l Are water projects sequenced/coordinated with street improvement/replacement priorities based on current operations/planning approaches? l Any real impact on staff utilizationl completing planned projects given current staffing/staffing approaches at District and in Engineering? l How would merger/integration of engineering functions/responsibilities impact coordination/control of master plan maintenance; capital project sequencing; APPENDIX B (4) fhwrat.invIScwvirrP Area I Tccu PC v yY’u”“Aw UVL .A”” *A&vu 3. Cat&xl Proiect De&n+ on and Contract Adam ‘stration (con&~) . Contract administration/ performance monitoring and control. AVVU”” l How to achieve coordinated approach to bidding/selection/inspection/contract management of water/streets projects? l To what extent do current approaches to bidding, selection, progress payment approval, field inspection differ? To what extent does divided responsibility negatively impact contract administration? l Any real duplication of effort in regard to field inspection of capital projects given current/expected future capital project mix? l To what extent do staffing approaches (e.g., District - in-house; City - heavier use of consultant/contract services> differ and actually impact control/quality of contractor performance and facilities constructed? l District staff perception that use of contract staff by Engineering results in staff turnover - makes application of consistent quality control in field inspection difficult. APPENDIX B (5) Operating/Service Area 4. Field Maintenance and i;omtruction Issues l Water operations. l No discernable relationship with other City functions. Most probably, will continue to function as discrete, stand-alone unit no matter how water services ultimately organized. l Does current differentiation of water services address actual responsibility vs. “legal” responsibility (i.e.,Utilities Maintenance Department conducting back- flow testing vs. District ultimately responsible for hazards associated with improper inspection). l Water/sewer maintenance. l Any real potential for improved utilization of field maintenance staff if managed/ directed by common manager? Any practical evidence that cross utilization occurs in cities/jurisdictions in which utilities operations consolidated under common management? l Would increased coordination/ consolidation have positive impact on vehicle/equipment utilization? Any real practical potential to cross utilize major equipment given current inventories for water and sewer units, potential “health hazard” issues raised by cross utilization of field equipment used by sewer and water, as well as patterns of field maintenance tasks and service activities? l Inventory/stores control. l Potential to increase staff utilization if water and sewer stores/inventory control activities combined? Any common materials currently maintained in inventory to support water and sewer field maintenance? APPENDIX B (6) Operating/Service Area 4. Field Maintenance and Construction (continued) Issues l Underground services alert/identification. l Any duplication of effort/scheduling - coordination problems given current division of responsibilities? How does Utilities and Maintenance Department currently handle? Who has responsibility? l Emergency Standby l Any opportunity to improve cost- effectiveness if utilities operations under one management-in regard to after hours standby/emergency call out crews, or are skills/experience sufficiently diverse to dictate continued diversification of function? 5. Administration and Financial Serviceq. l Accounting/related financial processing/ control functions. l With current distinct District operation, most internal systems/workload related to those systems parallel systems maintained and staffed by the City. Any unique characteristics of District requirements/ systems which dictate separate operations vis-a-vis incorporating requirements to support District like other City Departments through central administrative and financial services? l What workload impact if basic financial services centralized in Finance Department ? Would reassignment of District accounting/related financial staff to Finance Department positively impact utilization/provide Finance Department capability of absorbing workload increases (beyond those resulting from assumption of District responsibilities) without commensurate increases in Finance Department staffing? APPENDIX B (7) Chm-nt.invl.Skvvir~ AT-OS I TCCUPC v yv* U’^“b, WV* . &WV *A* uu 1 *““u”Y 5. Administration and Fhancial Services. (contiuued) l Billing functions/staff. l Personnel systems/ services. . Rate setting. l Compensation system/ structure. l Risk management/ insurance. l Legal formation. l If customer services activities consolidated with District/Utilities Department/some other organizational form, what impact of physically removing billing staff from the Finance Department (cross training/back- up other staff? Counter coverage? etc.). l How do current District programs/ priorities (e.g., Affirmative Action, recruiting selection approaches) differ from the City’s programs? Should they now that District in subordinate district status? l Does bifurcated rate setting responsibility (at the staff level) make sense? Is it organizational or simply a communication issue? l How do City and District compensation systems really differ on position by position basis considering full dollar value of compensation and fringe benefits? Are differences significant enough to provide barriers to organizational adjustment(s)? l How do differences in City and District access to insurance coverage impact phasing/implementation of any organizational adjustment? l What special powers available to District (e.g., financing flexibility, other?) unavailable to the City? How do these considerations impact organizational options? APPENDIX B (8) OperatinglService Area 6. PlanninPIProwamming Issues l Sewer, water, and reclaimed water services. l Is there a “logical” operating and planning fit between the District’s current water service operation and sewer maintenance services provided by the Utilities and Maintenance Department? How, if at all, does implementation of the reclaimed water program impact that “fit”? l If all utilities’ services merged, what impact on/how handle sewer facilities related engineering and plan check services? l Master planning. l Are City and District plans consistent from perspective of “matching” required resources (e.g., water capacity) with City growth management plan in place? Does current organizational arrangement inhibit/promote/have no impact on coordinated planning and resource development?