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Annual Service Contract - page 20 / 43

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whether or not the terms of the contract were met, as much of this information is privileged under Human Resource confidentiality rules.

Section 5.7 of the Service Contract states summarily that OMI will provide a qualified trained staff, sufficient to meet the needs of the Service Contract. On the Commencement Date the number of employees, as reported on page 22 of the August 2003, Monthly Operations and Maintenance Report, was 112; 102 for field operations and 10 for administration.

As reported on page 49  of the July 2005, Monthly Operations and Maintenance Report there were 121 employees; 101 for field operations and 20 for administration.

OMI is continually recruiting for open positions. Throughout their tenure as operators, employee retention has been a problem. At Commencement Date there was a 4.5% turnover for the month of August, their first month, leaving seven vacant positions. Two years later, five vacancies.

At one point, February 2005, there were 13 vacancies in the staffing plan. This included 5 operators and 2 maintenance employees The problem created by turnover is a plant specific unqualified, unknowledgeable staff. As long-term knowledgeable employees leave or retire institutional memory provided by staffing consistencies is deteriorating at the Stockton Municipal Utility. OMI has had qualified operator vacancies nearly every month in the water and wastewater divisions.

Consistency of staff was a concern for the City Council and addressed by OMI.  Article 5 Section 5.5 spells out specific time commitments to be maintained by OMI senior representatives. Even though there are provisions within the Service Contract illustrating some exceptions for the time commitment, during the procurement process, OMI representatives promised they would be mindful and honor the time commitments within Section 5.5. The two most prominent senior positions are the General Manager and the Operations Director.

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