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Annual Service Contract - page 7 / 43





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and its citizens has developed a standard report format. However, more current reports seem to be reaching standardization, but discovery of compliance with the contract via these reports is difficult at best. As large companies, OMI and Thames Water, who are involved in this type of operation in other parts of the United States and the world, there was an assumption and expectation that reporting would be simple, consistent and complete. Accountability for the lack of consistency with the required monthly reports must also rest with the City of Stockton and those responsible for monitoring this contract.

Contract Monitoring

Prior to Contract signing, then Mayor Gary Podesto, the City Council and City Management assured the citizens of Stockton that there would be qualified personnel to monitor the implementation of this 900+ page Contract document. Citizens were also guaranteed the Contract was structured to protect their investment in their Municipal Utility. As of the writing of this report there has been a change of Mayor, three new City Council Members and the City Manager. For the nearly three years that this contract has been in force, no qualified individual or manager has been designated to monitor the contract. Consequently there remains no consistent oversight and OMI is not held accountable to the mandates of the contract. It is imperative that this City management assign an individual or manager with the primary responsibility to understand all the intricacies of this contract and who will hold OMI accountable for their responsibilities.

City management continues to fail to provide a structure by which the Contract can be monitored. From a citizen’s perspective, since the inception of this contract in February 2003, not one progress report has been made to the Council or the public regarding the expenditure of City revenue for the service provided via this Contract. Other than a few statements given during the annual budget study sessions, no “for the record” public report has ever been presented by Stockton City staff.

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