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Reso 0413-02/1976 RESOLUTION NO. 413 A RESOLUTION OF THE BOARD OF DIRECTORS OF SAN MARCOS COUNTY WATER DISTRICT RECEIVING A REPORT ON INDEPENDENT MANAGEMENT OPERATION OF THE ENCINA JOINT SEWERAGE SYSTEM AND APPROVING THE RECOMMENDATIONS CONTAINED THEREIN WHEREAS, the Joint Advisory Committee of the Encina Joint Sewerage System has prepared a report dated January 27, 1976 entitled "JOINT ADVISORY COMMITTEE INDEPENDENT MANAGEMENT OPERATIONS," a copy Of which is attached hereto and marked Exhibit "A" and incorporated herein as if set forth in full; and WHEREAS, said report contains recommendations for taking certain actions to better evaluate the existing organizational structure, administration and operations of the Encina Joint Sewerage System; and WHEREAS, said recommended actions will require the San Marcos County Water District to obligate itself to furnish financial support therefore; and WHEREAS, the approval of said recommendations and the incurrence of said obligation for financial support is in the best interests of San Marcos County Water District and the Encina Joint Sewerage System. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of San Marcos County Water District, as follows: Section 1. Said report designated Exhibit "A" is hereby received and the recommendations contained therein are hereby approved. Section 2. This Board of Directors hereby agrees that it will contribute the financial support necessary to implement said recommen- dations in accordance with the provisions therefor contained in said recommendations. PASSED AND ADOPTED by the Board of Directors of the San Marcos County Water District at a regular meeting thereof held on the 17th day of February, 1976, by the following roll call vote: AYES: Directors: Michel, Vanderbeck, Dow, Mahr, Blanchard NOES: Directors: None ABSENT: Directors: None ~.J_d~ President of the Board of Directors of San Marcos County Water District ATTEST: Secretary of an Marcos County Water District and the Board of Directors thereof Resolution No. 413 January 27, 1976 JOINT ADVISORY COMMITTEE INDEPENDENT MANAGEMENT OPERATIONS During the past several years, there has been expressed increasing dis- satisfaction on the part of the J~int Advisory Committee with the awkward- ness of our present system in achieving effective and efficient response to questions of policy modification and operations and maintenance manage- ment of the joint facilities. These have been focused primarily in the areas of political organization, maintenance levels.of existing facilities, and costs for operation and maintenance of the joint facilities. The present political organization casts the Joint Advisory Committee in the role of an advisory body only and requires unanimous concurrence of a~l affected boards of councils before any action can take place. While this retains policy control in the hands of the affected taxing and governing agencies, it results in a sometimes-awkward time lag before necessary action can be approved by all governing boards. The maintenance level of the plant has come under question within the last two yearS. Increasing amount of operational staff time allocated to emergency repair procedures and the break-down of equipment wherein potential problems were not detectable in time caused serious questioning on the part of the JAC members with regard to adequate staffing at the plant. Concern was expressed by some members that the effectiveness of existing staff was further compromised by the need to undertake training programs for CETA and other subsidized personnel allocated to the plant to bring plant personnel rosters up to required numbers, if not in technical ability. Another problem faced was the complexity of the County staffing organization. Those parties most directly responsible and involved in plant operation quite often did not have adequate line authority to implement suggestions and recommendations forwarded by the Joint Advisory Committee. The third area of concern is in the cost of operation and maintenance of the joint facilities. As the Joint Advisory Committee endeavored to isolate and make recom=~endations concerning specific operational problems of the plant, because of the a~ckwardness of the County organization, it became necessary to involve several high-salaried staff members who were respon- sible for certain specifi~ sub-areas of our County contract for operationS. These costs, as welt as the routine operation and maintenance costs, were compounded by an ever-increasing overhead charge levied by the County on all personnel costs. This year, that figure is estimated at 62%, and is levied to pay such charges as County Supervisors' salaries, Chief Adminis- trator's salary, Sanitation and Flood Control Department salaries, salaries for personnel in Purchasing and Vehicle Maintenance, etc. As a result of the aforementioned problems, it was suggested and approved by the Joint Advisory Committee on April 17, 1974, that'a Subcommittee'be formed to study the dual problem of operational efficiency of the joint facilities and ways of increasing ~he effectiveness of the Joint AdviSory Committee in matters of policy. This Subcommittee, which was comprised of one representative from each agency, met several times in an effort to EXHIBIT "A" Resolution No. 413 'Page Two _ quantify the problems at hand and make recommendations with-regard to their resolution. After several meetings of the Subcommittee, it became apparent that none of the Subcor~mittee members had sufficient time to devote to the research that would be necessary, particularly in the area of operations and management, to verif~ 'that expressed concerns had any basis in fact. On August 21, 1974, the Subcommittee recommended to the full Joint Advisory Committee and that body approved by minute motion a recommendation that a consultant be retained to study and make recommenda- tions on the reorganization of the operations and management structure and political structure of the joint Advisory Committee. Following due process, a consultant, H.B. Maynard Co., was retained. The consultant conducted studies of County records and interviewed representatives of each member agency. On May 28, 1975, the consultant made an oral presentation on the results of his findings and recommendations. This was followed by distri- bution of the written report. The Maynard report, assuming the inevitability of regionalism, recommended the formation of a joint powers authority for the purpose of raising revenues for operation and establishing policies for administration of the joint facilities. The report also recommended that a general manager be retained and that operation and maintenance of the plant be assumed by the joint owners. On July 23, 1975, the Joint Advisory Committee recoF~nended that each individual agency's representatives return to their respective boards and discuss the findings and recommendations of the consultant's report. Based on the preliminary recommendations from several of the owner agencies, the Joint Advisory Committee Subcommittee on Reorganization met with County · Supervisor Lee Taylor and Chief Administrative Officer Dave Spear in an effort to try to resolve some of the operational problems the joint owners had with the County in its administration of the operations contract. A summary of the results of that meeting revealed that, while the County was willing to continue working with the joint owners to resolve the problems, because of Board policy and charter limitations they were unable to respond by making changes in areas wherein the chief concerns of the joint owners were expressed, specifically, significant modification of staff organiza- tion, and overhead charges. The CAO suggested that perhaps the course the joint owners might choose to follow would be to set up an independent structure for operation and maintenance of the plant. He stated that the County would be willing to coordinate and cooperate with the joint owners in the establishment of such an organization, and that they would be willing to continue certain specialized services that they might be able to furnish more effectively than would an independent operation. He further indicated that overhead costs on salary would probably go up, rather than down. As a result of the meeting with the County, the JAC Subcommittee on Reor- ganization met and discussed the following items: A. Change of operator by: 1. hiring a manager who would be instructed to set up an organization to operate the joint facilities directly under the Joint Advisory Co~nittee. 2. hiring a manager who would oversee the operation of the joint facilities by a private contractor under JAC supervision. Resolution No. 4~3 Page Three 3. hiring a manager who would oversee the. operation of the joint facilities by means of the existing c~ntract with the'County of San Diego. B. Changing the joint owners' agreements to: 1. accomplish the change of operator by supplementary agreement, allowing the Joint Advisory Committee to become an employer. 2. accomplish the change of operator by setting up a joint powers agreement for the entire Encina service basin. 3. accomplish the reorganization via existing agreements, instructing the Administrator (the City of Carlshad) to employ a manager and operational personnel. C. Special functions required from the County, such as: chemical analysis, industrial waste management, engineering consultant services and any other special services required in the operation and maintenance of the joint £acilities. The Subconm~ittee instructed the professional staff of each of the member agencies to meet to discuss and make recommendations concerning the following items: 1. recommended staffing level for the plant; 2. recommended method of management for the joint facilities;. 3. recommended County services to be retained; 4. recommended changes in the joint owners' agreements to accom~:odate the above-referenced changes; 5. anticipated changes in costs of operation. The findings of the staff conunittee on the five items mentioned above are 'as follows: 1. Maintain current staff level (9 operators and 1 l~borer/gardener) in addition to retaining a general manager and secretary. 2'. Retain a general manager to administer existing contract, advise the Joint Advisory Com~.ittee concerning ~nethods and timing for the assump- tion of local agency control. 3. Services retained are to be dependent on recommendations of manager. Areas to be considered would include engineering, chemical analysis and industrial waste. 4. No changes in joint o~cners' agreements are required at this time. The first stage of ~ssuming local control could be accomplished utilizing existing agreements and the personnel procedures of the City of Carlsbad in its capacity as administrator of the operations contract. 5. No cost savings could be guaranteed during the transition period. It could be assumed, ho~,xever, savings would accrue as a result of the difference in overhead costs added to personnel expenses charged by the Count~' as opposed to those charged by the City of Carlsbad acting as Administrator. On Tuesday, January 13, the Reorganization Subcon~ittee met to discuss the findings of the Maynard report, the recon~nendations of the joint owners' staff and a set of recommendations presented by one of the Subconm~ittee members. After considerable discussion, the Subcommittee directed the Administrator to prepare a report ~hich could be presented to the Joint Advisory Committee and to each owner agency for their approval. The Resolution No. 413 Page Four report was to contain the following: ~ - A, A history of the actions of the Reorganization Subcommittee to date. B. Immediate actions to be taken to reinforce local control of the opera- tions and maintenance contract leading to the eventual a~s~nption by local agencies of operations and maintenance of the joint facilities. C. Discussion of a course of action which might be taken in the immediate future. D. Recommendations to be appro~ed by each agency for immediate action to be taken. E. A proposed scope of duties for the general manager. The report.was also to address the issue of preparing a job description and salary range for the general manager. A~ its workshop session of January 13, the Carlsbad City Council was briefed on the actions of the Reorganization Subcommittee, including that afternoon's meeting. By consensus, they approved the general concept. of the local management of the operations and maintenance of the joint facilities and the use of the personnel pr6cedures of the City of Carlsbad to retain a general manager and, if needed in the future, operational staff. It was assumed by the Council that the costs of these personnel and the overhead costs to provide these services would be shared by all joint owners on a proportionate basis. COURSE OF ACTION The recommended course of action at this time would be to retain a general manager to administer the existing operations contract with the County Department of Sanitation and Flood Control. In addition to these duties, the manager would analyze and make recommendations to the Joint Advisory Committee concerning: 1. operational personnel requirements; 2..equipment needs and methods of securing appropriate equipment upon assumption of local control; 3. County special services to be retained upon assumption of local control; 4. timing for assumption of local control. The Joint Advisory Com.mittee should continue to study the question of political changes with the near future g0al of assuming responsibility for operations and maintenance of the joint facilities. RECOMMENDATIONS In order to conform to the above course of action, the Joint Advisory Committee and the joint owners should approve the following: I. Autho[ize the City of Carlsbad to retain a general manager to adminis- ter the existing cbntract. The salary range proposed for the manager would be from $25,000 to $28,000 per year. II. Authorize Carlshad to furnish secretarial services, including a fUll- time person when required, to the general manager. III. Costs of the above, including salary, benefits, operational costs and overhead, are to be distributed and paid on the same basis as existing costs of operation of the Encina Wate~ Pollution Control FaCility (agency's total annual flow divided by total annual flow Resolution No. 413 Page Five through facility). ' IV. The general manager shall work under t6e administratiCe direction of the Carlsbad Public Works Administrator in his capacity as the Joint Advisory Conhmittee administrator. The Public Works Administra- tor, or the general manager as his authorized representative, shall seek the advice of the Joint Advisory Committee. V. Scope of duties proposed for the general manager are as follows: Present duties: 1. Monitor the operations and maintenance activities and consult with the operator thereon. 2. Prepare annual budget. 3. Audit accounts of operator. 4. Pay operator. 5. Authorize emergency repairs and construction. 6. Maintain flow measurement records. 7. Maintain insurance, including liability, property damage and, as appropriate, workmen's compensation. 8. Record costs of administration. 9. Furnish secretarial services and supplies eo the Joint Advisory Committee. 10. Represent the Joint Advisory Committee as directed in all matters concerning operation, maintenance and modification of the joint facilities as they now exist, or as they may exist in the future. 11. Recommend future organizational and administrative modifications to the Joint Advisory Committee. Future duties: 1. Be responsible for full maintenance and operation of the joint facilities. 2. Be responsible for right of way and land acquisition. 3. Be responsible for design and construction. 4. Serve as Secretary to the Joint Advisory Committee. 5. Maintain current level of knowledge and pursue as necessary revenue sources for the operations, maintenance and modification of the joint facilities. 6. Assume responsibility of such personnel and other administrative duties as may be assigned. 7. Be responsible for planning to meet future needs of the owners. 8. Serve as staff representative of the Joint Advisory Committee to all boards of the owner agencies and other public agencies aFd private orc~n~ ~at~o~s. /dh