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HomeMy WebLinkAbout1991-06-25; Municipal Water District; 115; Documents Consolidating Water Operations. CARLSBAD t-NICIPAL WATER DISTRICT - D 9 & e % Adoption of Documents Consolidating Water Operations Within the Carlsbad Municipal Water District Service Area RECOMMENDED ACTION: Adopt Resolution No. 741 approving the Operating Agreement with the City of Carlsbad, adopt Resolution No. 742 granting settlement authority to the Executive Manager and Legal Counsel, and adopt Resolution No. 743 revising the District’s Administrative Code to reflect the new organizational relationship ITEM EXPLANATION In January of 1990, the Carlsbad Municipal Water District (District) became a subsidiary district of the City of Carlsbad (City). This action was taken to provide a unified water service operation within the District’s service area. The District serves approximately 85% of the City of Carlsbad which translates into an area with 17,000 service connections and a population of approximately 55,000. The manner in which water service is provided within the District boundaries is somewhat fragmented. Due to an agreement entered into between the two agencies in 1984, the District has operational responsibility for the water system and capital project construction, while the City performs the meter reading and billing functions. Within the City’s structure, portions of the Finance and Utilities/Maintenance Departments have partial responsibility to provide water services. The potential exists to improve service to the water customers through the unification of the appropriate segments of the various City departments and the District. The full extent of the unification was the scope of a study performed by Hughes/Heiss and Associates. The study confirmed that, in fact, there are a number of areas where service can be improved through the transfer of the water functions from the City to the District. In addition, some of the administrative functions being performed by the District should be transitioned to the appropriate City departments. The chart at the bottom of the page lists the functions being transferred, the affected department, and the number of employees being transferred (in parentheses). Functional Transfers DISTRICT Accounting (2) Cash Management Legal Services Risk Management Human Resources Purchasing Inspection (2) CITY Finance Finance City Attorney Risk Mgmnt. Human Resources Purchasing Engineering C.M.W.D. C.M.W.D. - . PAGE 2 of AGENDA B!- NO. 115 One of the key components in the agreement reached between the District and City is that no employee will be adversely impacted by the subsidiary district creation. All District employees will become City employees. The salary and benefits of each District employee will be documented to ensure that salary and benefits are maintained at the current level. The effective date of the transfer of C.M.W.D. employees to City employment will be determined by the City Manager upon completion of the current meet and confer process with the Carlsbad City Employees Association. However, any functional transfers will occur on or about July 1, as determined by the specific operating groups. The documents being proposed will set the groundwork to allow for the transfer of both functions and employees. The first is Resolution No. 741 which approves the operating agreement between the City and District. This document appoints the City as the District’s agent and grants authority to provide the services outlined in the chart on page one of this agenda bill. The second is Resolution No. 742. This action will provide for the same procedures currently in place for the City as they pertain to the settlement of insurance claims. The resolution grants the authority to the Executive Manager (City Manager) and Legal Counsel (City Attorney) for any claims under $5,000. As with the existing policy of the City, any claim over $5,000 will be referred to the Board of Directors for determination. The last proposed action is to amend the District’s Administrative Code to reflect the organizational changes associated with the subsidiary district formation. The significant changes include those associated with the creation of the Water Commission, and the retention of their benefits for the initial term as Commissioners. FISCAL IMPACT The costs associated with the subsidiary district formation include the $20,000 expended for the Hughes/Heiss and Associates study. In addition, a mid-year audit and business review was performed on January 1990. This project totalled $30,000. The long-term monetary savings of the proposed organizational changes would be difficult to estimate at this time. However, immediate savings on legal services and potential improvements in the current system for after hour or “on-call” duties may be real&d. Exhibits 1. New Organizational Chart (Informational Only) 2. Resolution No. 74 I Adopting an Agreement for the Performance of Operational Responsibilities 3. Resolution No. 3 Y& Authorizing the Adjustment and Settlement of Liability Claims for the District 4. Resolution No. 3 4 3 A mending the District’s Administrative Code to Reflect Status as a Subsidiary District of the City of Carlsbad . I I I I I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 '17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 741 RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT APPROVING AN OPERATING AGREEMENT WITH THE CITY OF CARLSBAD WHEREAS, the Carlsbad Municipal Water District became a subsidiary district of the City of Carlsbad on January 1, 1990, and WHEREAS, the subsidiary district formation will create the most efficient and effective method of providing water services within the District’s service area; and WHEREAS, the Board of Directors of the Carlsbad Municipal Water District desires to make the necessary alterations in the District’s structure to receive the full benefit of the subsidiary district’s formation. NOW, THEREFORE BE IT RESOLVED that the Board of Directors of the Carlsbad Municipal Water District does hereby approve the Operating Agreement attached as Exhibit A. PASSED, APPROVED AND ADOPTED at the meeting of the Carlsbad Municipal Water District held on June 25, 1991, by the following vote, to wit: AYES: Board Members Lewis, Kulchin, Larson, and Stanton NOES: None ABSENT Board Member Nygaard CLAUDE A. LEWIS, President ALETHA L. RAUTENKRANZ, Secretary AGREEMENT FOR PERFORMANCE OF OPERATIONAL RESPONSIBILITIES BETWEEN THE CARLSBAD MUNICIPAL WATER DISTRICT AND THE CITY OF CARLSBAD This agreement for the performance of operational responsibilities (hereafter “operating agreement”) was entered into this 25th day of June, 1991, between the Carlsbad Municipal Water District (District) and the City of Carlsbad (City) with respect to the following facts: WHEREAS, the District has become a subsidiary of the City effective January 1, 1990; and WHEREAS, this action consolidated the water resource planning efforts for the District service area, and provided for a number of operational efficiencies; and WHEREAS, the District and the City wish to create an integrated water service operation; and WHEREAS, the District and City desire to enter into an agreement calling for the City to provide the administrative services necessary to carry out the functions of the District and all City water related activities be reassigned to the District; and WHEREAS, it is the intent of the parties to cooperate fully in completing any act or executing any documents in order to carry out their desires and to fulfil1 the purposes of this agreement. NOW, THEREFORE, it is agreed between the parties: 1. The District appoints the City as its agent to assume responsibility for the performance of existing District functions including but not limited to the following items: a. Accounting - Full responsibility for all of the accounting activities of the District shall be transferred to the City’s Finance Department. The accounting functions shall be performed in conformance with current City procedures for enterprise funds and generally accepted accounting principles. This transfer of function will also include the reassignment of two District staff members currently performing these functions to the Finance Department. b. Cash Management - Investment of District funds are to be performed by the City Treasurer in accordance with State law and the City’s investment policy. As with other enterprise funds, District funds shall be accounted for separately. Individuals with authority to invest District funds will be bonded at a level consistent with current City policies. c. Personnel/Human Resources - Responsibilities of the City’s Human Resources Department shall include compensation and benefit administration, recruitment and employee training for the District. d. Risk Management - This transfer of responsibilities to the City’s Risk Management Department will include but not be limited to safety training, loss prevention, and administration of the liability and worker’s compensation programs. e. Purchasing - The City’s Purchasing Department will administer the purchasing functions on behalf of the District in accordance with City purchasing rules. f. Inspection - All construction inspection shall be performed by the City’s Engineering Department. This change will also require the transfer of two District employees to the City. g. Contract Management - The Engineering Department for the City will also assume contract management responsibilities for various District capital project construction as determined by the District and City Engineer. h. All employees of the District will become City employees and retain salaries and benefits at their current level. The effective date of the transfer of employment shall be determined by the City Manager upon conclusion of the current meet and confer process with the Carlsbad City Employees Association, 2. All City water related functions and assets will be reassigned to the District including but not limited to: a. Water Billing - All water billing activities will be reassigned to the District. This transfer of function will also require the reassignment of two Finance Department employees to the District. b. Meter Reading - All meter reading activities currently being performed by the City’s Utilities/Maintenance Department will be reassigned to the District. This action will require the reassignment of 8 full time City employees to the District. c. Assets - All of the City’s physical assets that are associated with these functional transfers will become assets of the District. d. The employment status of any City employee reassigned to the perform services for the District will remain unchanged. The Board of Directors and City Council may revise the list of items as future events dictate. Determination of the specific units reassigned to the District shall be the responsibility of the City Manager in a manner consistent with Carlsbad Municipal Code Section 2.12.035(d). The timing of the functional transfers outlined in this agreement shall be performed on or about July 1, 1991, as determined by the specific operating groups. 3. The District will reimburse the City for all expenses necessary to perform its obligations under this agreement. This shall be completed through an accounting system that is structured in a manner consistent with other City enterprise funds and the City’s cost accounting policies and procedures. 4. Term. The term of this agreement shall commence upon its approval by the respective legislative bodies of the City and District and shall continue unless terminated as provided in this paragraph. In order for this agreement to be terminated, one legislative body shall give notice to the other legislative body at least ninety (90) days before any anniversary date. It is the intent of the parties that the minimum time for termination of this agreement shall be one (1) year and ninety (90) days. 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 742 RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT AUTHORIZING THE ADJUSTMENT AND SETTLEMENT OF LIABILITY CLAIMS FOR THE DISTRICT WHEREAS, the Carlsbad Municipal Water District (District) became a subsidiary district sf the City of Carlsbad (City) on January 1, 1990, and WHEREAS, as part of the liability insurance program the District has full authority to settle all claims within the scope of the Association of California / Joint Powers Insurance Authority agreement; and WHEREAS, the Board of Directors desires to adjust the manner in which the District’s iability claims are administered. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District as follows: 1. The Executive Manager (City Manager) and Legal Counsel (City Attorney), has the authority to reject all claims against the District. 2. The Executive Manager and Legal Counsel have settlement authority on any and all Iclaims and lawsuits up to $5,000. PASSED, APPROVED AND ADOPTED at a meeting of the Carlsbad Municipal Water istrict held on June 25, 1991, by the following vote, to wit: Board Members Lewis, Kulchin, Larson, and Stanton ABSENT: Board Member N , IN WITNESS HEREOF, the parties have executed this agreement by their officers therein duly authorized as of the date and year first written above. APPROVED AS TO FORM: ATI’EST: VINCENT F. BIONDO, JR. City Attorney +qR - City Clerk . L . : RESOLUTION NO. 743 1 * RESOLUTION OF THE BOARD OF DIRECTORS OF THE 2 CARLSBAD MUNICIPAL WATER DISTRICT AMENDING THE ADMINISTRATIVE CODE TO REFLECT 3 STATUS AS A SUBSIDIARY DISTRICT OF THE CITY OF CARLSBAD 4 WHEREAS, the Carlsbad Municipal Water District became a subsidiary district of the 5 City of Carlsbad on January 1, 1990; and 6 WHEREAS, this organizational change has varying impacts on the District’s 7 Administrative Code; and a 9 WHEREAS, the Board of Directors of the Carlsbad Municipal Water District desires to lo make the necessary alterations in the Administrative Code to reflect the change. 11 NOW, THEREFORE BE IT RESOLVED by the Board of Directors of the Carlsbad l2 Municipal Water District that the Administrative Code is hereby amended as specified in Exhibit l3 A . 14 15 PASSED, APPROVED AND ADOPTED at the meeting of the Carlsbad Municipal Water 16 /I District held on June 25, 1991, by the following vote, to wit: 17 AYES: Board Members Lewis, Kulchin, Larson, and Stanton ia NOES: None 19 ABSENT Board Member N 20 21 CLAUDE A. LEWIS, President 22 23 24 ALETHA L. RAUTENKRANZ, Secretary 25 /I 26 27 28 II Exhibit A ,- Article 1. Sec. 1.1 Sec. 1.2 Article 2. Sec. 2.1 Sec. 2.2 Sec. 2.3 Sec. 2.4 Sec. 2.5 Sec. 2.6 CARLSBAD MUNICIPAL WATER DISTRICT ADMINISTRATIVE CODE INDEX General Provisions Purpose Changes Oraanization of the Board of Directors Officers of the Board Compensation Time and Place of Board Meeting Health Insurance (Water Commission) Dental Insurance (Water Commission) Eye Care Plan (Water Commission) ARTICLE 1. GENERAL PROVISIONS Sec. 1.1 Puroose. Generally, except as prohibited by law, operations of the District would be governed by adopted policies and procedures of the City of Carlsbad. Sec. 1.2 Chancres. It is anticipated that from time to time changes or additions will be required in this Code to cover changes in procedure or new activities of the District. Such changes or additions shall be accomplished only by the Board of Directors at a duly constituted meeting, through the adoption of a resolution by a majority vote in which one or more sections are superceded by revised sections or new sections are added. When so adopted, the revised or new sections shall be inserted in this Code and those for which they are substituted will be removed. ARTICLE 2. ORGANIZATION OF THE BOARD OF DIRECTORS Sec. 2.1 Officers of the Board The officers shall consist of the President and Vice President. These two functions will be performed by the mayor and mayor pro-tern of the City of Carlsbad in an ex-officio capacity. A. President. It shall be the duty of the President to preside over the meetings of the Board of Directors, appoint committee members, (appoint organizational representatives) and perform such other duties and responsibilities as required or imposed by law or a majority of the Board of Directors. B. Vice President. The Vice-President shall exercise the powers and duties of the President, if the President is absent or unable to act. Sec. 2.2 Comnensation. It is the policy of the District that a Director is considered to be rendering service by request of the Board and shall only be compensated for attending one Board meeting each month at $100 for that meeting. Sec. 2.3 Time and Place of Board Meetinq. Regular meetings of the Board of Directors will be held in conjunction with scheduled meetings of the City Council of the City of Carlsbad or as needed to conduct District business. I .’ . Sec. 2.4 Sec. 2.4.1 Sec. 2.4.2 Sec.2.4.3 Health Insurance Pursuant to the subsidiary District agreement bet,ween the City of Carlsbad and the Carlsbad Municipal Water District, a list of special benefits were granted to the water commission. These benefits will remain in effect through the initial term of the commissioners. Future appointees to the Water Commission will not be eligable for these benefits. The members to which this applies, and the expiration of their initial term are as follows: t Bonas l-l-92 Henley l-l-92 Woodward l-l-92 Greer l-l-94 Maerkle. l-l-94 The District will provide each Commissioner with a choice of ACWA-Blue Cross Prudent Buyer, ACWA- California Care or Kaiser health insurance. The District will provide the ACWA policies at no cost to the Commissioner, and will contribute an amount not to exceed the cost of the ACWA policy toward the Kaiser program at the option of the Commissioner. Health Insurance for Retirees. The District will continue to pay I after retirement. of Commissioner, premiums for existing health insurance provided for District Commissioners under the following guidelines: 1. Any Commissioner who has voluntarily retired after the age of 50 with no less than five years of service with the District, (Retired shall refer to leaving office for any reason) and whose age combined with years of service with the District equals 70 or more; 2. Health insurance coverage for the retiree will be coordinated with Medicare and other benefits provided by federal and state law, and will thereby be reduced when retiree qualifies for those benefits; 3. The District will pay, after retirement of a Commissioner under the above conditions, health insurance premiums for the spouse and dependents of the Commissioner at the time of retirement; 4. Health insurance coverage for the spouse and dependents of a retiree will be coordinated with Medicare and other benefits provided by federal and state law, and will thereby be reduced when the spouse and dependents qualify for those benefits. 5. Upon death of the retiree, health insurance coverage for the spouse and dependents will be continued, provided spouse keeps District informed of his/her name, address and marital status. In the event such spouse remarries, his or her eligibility for such coverage ceases immediately and shall be terminated. As used herein, tlspouseV1 shall mean the spouse of the Commissioner at the time of the ,Commissioner's retirement. 6. If the retiree divorces, neither his new spouse nor his former spouse will be eligible for coverage and it shall cease immediately and be terminated. The former spouse would only be eligible for coverage under the COBRA Law. Sec. 2.5 Dental Insurance. The District will include each Commissioner and his/her dependents in the dental program of the District. Each Commissioner shall pay the premium for the program. Sec. 2.6 Eve Care Plan. The District will provide each Commissioner and his/her dependents with an eye care plan. The plan will provide a reasonable amount of coverage at no cost to the Commissioner.