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ADOPT RESPONSE TO THE FOLLOW UP REPORT TO THE 2014-2015 CIVIL GRAND JURY REPORT FOR STOCKTON MUNICIPAL UTILITIES DEPARTMENT: STRUGGLING IN THE MUD, CASE NO. 1412
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Adopt the City Council’s Response to the Follow Up Report to the 2014-2015 Civil Grand Jury Report for Investigating Case No. 1412 relating to the operations of Municipal Utilities Department (MUD);
2. Authorize the City Manager to sign the response on behalf of the City Council and to transmit the response to the Presiding Judge of the San Joaquin County Superior Court.
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Summary
The 2014-2015 Civil Grand Jury Report Investigation Case No. 1412 issued April 30, 2015 included findings and recommendations related to the MUD operations (Attachment A). The findings centered on three main issues, including: 1) ground settlement at the Delta Water Supply Project Intake Pump Station, an issue reported to the City Council in October 2012, 2) the negative impacts of hydrogen sulfide corrosion and its effects on the City’s sewer collection system, and 3) how the City’s bankruptcy has affected the Department and its personnel.
On July 21, 2015, the City Council by Motion 2015-07-21-1503, directed the City Manager to sign a response on behalf of the City Council and to transmit the response to the Presiding Judge of the San Joaquin County Superior Court as required by California Pen. Code sections 933 and 933.05 (Attachment B).
A follow up report was received on June 27, 2016 (Attachment C) and contained three findings and four recommendations to be addressed by the City in a response to the Presiding Judge of San Joaquin County Superior Court by October 1, 2016.
The attached letter (Attachment D) is a response prepared for the follow up report for Investigation Case No. 1412 relating to the MUD operations and is recommended for transmittal to the Presiding Judge. The letter responds to each finding and recommendation contained in the follow up report and transmits the requested information relative to Intake Pump Station settlement, hydrogen sulfide pilot study work and progress of MUD’s safety program.
DISCUSSION
Background
Civil grand juries were established by the Constitution of the State of California. They conduct investigations and publish reports. Agencies cited in the reports are required to respond to the findings and recommendations of the report.
On September 10, 2014, the 2014-2015 Grand Jury received a complaint alleging mismanagement of the MUD assets and failure to comply with safety regulations or address infrastructure deficiencies. The Grand Jury conducted an investigation, which included tours of MUD facilities, staff interviews, and review of materials provided by the MUD and the City of Stockton Administrative Services department.
On April 23, 2015, the MUD received preliminary notice of the 2014-2015 Grand Jury report and the final report was published on April 29, 2015. The MUD was given 90-days to address the findings and recommendations assigned by the Grand Jury for response.
On July 21, 2015, the City Council approved the response to the 2014-2015 Grand Jury Report and the response was transmitted to Presiding Judge Holland on July 21, 2015. In this response the City either agreed or disagreed, fully or partially, to the Grand Jury’s findings and recommendations and provided the next steps to address each of the identified areas.
In a letter to the Mayor dated March 9, 2016 (Attachment E), the Grand Jury requested specific information related to the City’s July 21, 2015 response regarding issues related to Delta Water Supply Project Intake Pump Station (IPS) settlement; sewer system hydrogen sulfide pilot testing; succession planning and safety program benchmarks.
On April 7, 2016, the City Manager provided an updated response (Attachment F) addressing the March 9, 2016 request describing the steps taken by MUD to identify and mitigate settlement conditions including the retention of an engineering firm; results presented to the City Council on July 21, 2015 regarding the use of sodium hydroxide for hydrogen sulfide control; steps taken to fill vacant MUD positions; and progress on MUD’s safety program areas.
On June 27, 2016 the Grand Jury submitted a Follow-Up Report to the 2014-2015 Grand Jury Report.
Present Situation
On June 27, 2016 the City received the Follow-Up Report to the 2014-2015 San Joaquin County Grand Jury Case N. 1412. The new report concluded that all but three of the findings or recommendations were deemed “no further action is required”. However, four new recommendations were provided for prior findings and three new findings were made. Pursuant to California Pen. Code sections 933 and 933.05, a written response to the Presiding Judge of the Superior Court is due within 90-days of receipt of the report, no later than October 1, 2016. City staff prepared responses to the additional findings and new recommendations, and the draft response is included with this report.
The most recent Grand Jury report cited three new findings in the follow-up report that include:
1. The City said the Intake Pump Station (IPS) ground settling draft plan to help predict future conditions is in need of further development with anticipated completion in the summer of 2016. At that time, MUD will prepare a summary report of ground settling at the IPS and recommended associated repairs and costs for the City Council.
2. Regarding the H2S pilot study, MUD will prepare a pilot test report and an H2S reduction summary for the City Council in the summer of 2016;
3. Of the original 29 safety program areas; 12 have been completed, three are in progress, six have yet to be started and eight are on hold pending additional funding or alternative training options. MUD will not complete the program until early 2017.
The responses to each of these findings are summarized as follows:
1. MUD completed the engineering study that documents past settlement experienced at the IPS, predicts future settlement, prioritizes repairs and estimated the cost to correct as Attachment G. In summary, the report recommends repairs based on the following criticality measures: 1) pump station functionality; 2) safety; 3) security; 4) future functionality potential; 5) non-functionality items; and 6) aesthetics. Repair cost estimates are included that can be programmed in the annual Capital Improvement Program. The improvements completed to-date at the IPS are: installation of flexible transitions to electrical conduits to mitigate for stress on electrical systems caused by settlement; replacement of expansion and offset joints on the 54-inch pipeline, to ensure continuous and reliable raw water delivery to the treatment plant; and repair of a well utilized to supply water for pump station operations.
2. MUD has completed the H2S control pilot study as Attachment H. In summary, the pilot study helped to determine the appropriate chemical treatment to effectively control corrosive gases in the collections system. Specifically, the pilot study concluded the following for Collection System 7 & 8 hydrogen sulfide control:
• A one-time 2,000 gallons dose of sodium hydroxide recommended by US Peroxide significantly increased the pH level of incoming sewage and impacted the treatment process;
• Chemical addition to Collection System 7 has been temporarily suspended and MUD staff is continuing to monitor hydrogen sulfide levels and chemical addition will be re-introduced if needed;
• Continue to apply sodium hydroxide to Collection System 8 but at a modified dosage and frequency. The new dosage of 700 gallons of sodium hydroxide per day, three times per week.
3. MUD has advanced safety program implementation by filling vacant Safety Program Manager and Occupational Health/Safety Specialist positions with the focus to complete all safety program elements developed by NES, Inc. To date, 15 of 29 programs are complete and implemented, three are complete pending final review, six are in progress with completion scheduled by the end of 2016 and five programs have to be started and will be completed in 2017. MUD has made significant progress in completing the safety program elements and since the April 7, 2016 correspondence to the Grand Jury six more of the 29 programs have been completed.
The attached letter has been prepared as a response from the Stockton City Council as a governing body.
FINANCIAL SUMMARY
It is anticipated that the City’s Implementation of the Grand Jury recommendations can be accommodated within existing resources and will not have a financial impact to rates.
IPS repairs are budgeted in the current Fiscal Year 2016-2017 Capital Improvement Program under account 427-7622 for water treatment plant and IPS repairs in the amount of $500,000.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking this recommended action.
Attachment A - Grand Jury Case No. 1214
Attachment B - City Council Response to Grand Jury Case No. 1412
Attachment C - Follow-Up Report to the 2014-2015 Grand Jury Case No. 1214
Attachment D - City Council Response to Follow Up Report
Attachment E - March 9, 2016 letter from the Grand Jury
Attachment F - April 7, 2016 City Manager response to March 9, 2016 letter
Attachment G - IPS Settlement Engineering Study
Attachment H - H2S Pilot Study