Municipal Utilities Department Staffing Plan and Revised Fiscal Year Budget Council Water Committee Recommendation Stockton City Council December 11, 2007

Termination Status Lawsuit Settlement Agreement & OMI Partial Settlement Agreement July 17, 2007 Transition Action Plan implemented July 26, 2007 Twelve MUD transition teams activated Union negotiations underway Final Settlement Agreement in negotiation Ongoing meetings –Unions –Concerned Citizens Coalition of Stockton –Blue-collar (currently OMI) staff

Staffing Plan Highlights Participative approach to development Compared to industry standards Incorporates a phased hiring plan Incorporates succession planning Moderate budgetary impacts with no immediate need to increase utility rates

Staffing Plan Highlights (cont.) Adds staff for required Operations & Maintenance Reduces outsourced contracting over time Selectively adds administrative staff for Operations & Maintenance management Provides for technology enhancement and implementation Adds Engineering staff to speed development reviews & decrease Capital Improvement Projects (CIP) backlog

Service Connections Wastewater connections increased by 30% Water connections increased by 27%

Historic and Proposed Staffing Levels

MUD Staffing Plan (FY ) Total existing positions: –OMI Management 9 –OMI Operations 108 –City of Stockton – MUD Total new positions19 Total proposed positions164 Note: Total white collar staff will decrease by 4

Fiscal Year Operations Budget Comparison FY FY Description With OMI Without OMI* Water $20,273,079 $19,444,127 Wastewater** $31,428,086 $33,083,253 Stormwater $ 5,336,315 $ 5,267,145 Total $57,037,480 $57,794,525 Projected increase due to transition: $757,045 * Without OMI from March 1, 2008 through June 30, 2008 ** Does not include one-time settlement costs with OMI & Unions

Projected Fiscal Year Operations Budget Comparison Projected Projected FY FY Description With OMI Without OMI Water $21,133,276 $20,805,020 Wastewater $34,173,310 $35,407,184 Stormwater $ 5,596,507 $ 5,821,034 Total $60,903,093 $62,033,238 Projected increase due to transition: $1,130,145

Projected Fiscal Year Budget Due Only to Transition Does not include: Increased water purchase costs Increased regulatory compliance costs Increased Reclamation District costs Other changes not due to transition

Capital Improvement Projects: Water Well Rehabilitation $500,000 Rebuild Dissolved Air Floatation Units $2,500,000 New Equipment Purchases Included in Operating Budget $665,000 Capital Improvement Projects and Equipment Purchases

Budget Highlights Ultimate Staffing Plan – 186 Positions –Increased efficiency –Meet new permit requirements –Initial phase 19 new positions Purchase new equipment New CIP appropriations

Proposed Staffing and Budget Plan Advantages Meet Operations & Maintenance requirements Provides for needed capital improvements Based on input from the labor unions and line staff Moderate budgetary adjustments with no immediate rate increases

Transition Oversight Group –Water Committee Lead –Include Unions and Concerned Citizens 5-Year Business Plan –Developed by MUD Water Committee Additions

Water Committee Recommendation Adopt the revised MUD Fiscal Year Budget and Staffing Plan reflecting: –Phase I of Staffing Plan 19 new and 9 reclassified positions –Additional Equipment Purchases –Additional CIP Authorizations Transition Oversight Group (Task force) 5-Year Business Plan

Agenda Item 8.01 ORDINANCE Adopt an ordinance amending Chapter 2 of the Stockton Municipal Code by adding part XIV thereto, relating to the employment of OMI/Thames Water Stockton, Inc. employees.

Agenda Item 8.02 CLASSIFIED AND UNCLASSIFIED POSITIONS Adopt a resolution to establish the classified position and allocate the salary for Plant Maintenance Worker and place the position into the Operating Engineers Local Union No. 3 Bargaining Unit and establish the unclassified position and allocate the salary for Deputy Municipal Utilities Director/Water and Collection Systems - Professional Engineer (PE) and place the position into the Mid- Management/Supervisory Bargaining Unit.

Agenda Item 8.03 CONSULTING SERVICES This action will retain Wyatt Troxel through Whitley Burchett, a Grade V Operator, to assist in transition and optimizing plant operations. RECOMMENDATION: Adopt a resolution authorizing the City Manager to execute an amendment to the agreement with Whitley Burchett & Associates to provide Wastewater Management Services to the Municipal Utilities Department in an amount not to exceed $185,000.

Agenda Item 8.05 LEGAL SERVICES Adopt a resolution to approve an Agreement for Legal Services with Chang, Ruthenberg & Long P.C. to assist the City with the transitioning of OMI employees back into the Municipal Utilities Department.

Questions ?

Transition Teams

Staffing Plan Input