Amador County – In a move aimed at trimming $750,000 from its budget in three years, the Amador Water Agency Board of Directors on Friday approved a reorganization plan for the agency, which could have the affect of laying off three department managers.
AWA General Manager Gene Mancebo announced approval of the reorganization on a 3-0 vote, “with the stipulation that the staffing plan presented was tentative and that further changes would be considered by the Board.”
Director Robert Manassero was away on vacation and Director Gary Thomas was absent from the meeting. He had recused himself from previous discussion due to a “common law” conflict of interest, because his boss is the brother of Barry Birge, a manager at AWA.
The board voted 4-0 the previous week to approve the draft reorganization concept. For that vote, Manassero was present and Board President Don Cooper was participating via teleconference from Massachusetts, while Thomas was recused. On Friday, Cooper and Directors Art Toy and Paul Molinelli consented in approving the reorganization, which Cooper called “Phase One in a series of moves to get the Water Agency budget to balance in 2011–2012.”
The adopted reorganization plan would reduce total employees from 46 to 43 and cut the number of managers in half. Mancebo said since 2008, AWA has reduced staffing from 62 to 46 full-time positions. Staff cuts, a hiring freeze and furlough days have already reduced labor costs by $1.5 million.
“The Agency is facing an estimated $750,000 budget shortfall in spite of eliminating infrastructure projects and slashing operating expenses,” Mancebo said. In discussion, Directors “emphasized that the proposed staff reorganization alone would not close the budget gap.” They agreed that “further operational cuts and employee concessions are needed, along with water and wastewater rate increases.”
The reorganization is expected to help the agency save an estimated $232,000 the first year, depending on the number of retirements, severance pay packages and staff changes, Mancebo said. By the third year, savings could reach $450,000 a year.
Cooper said: “We wish we didn’t have to do this. Government everywhere is facing the same problems – the current economy, the rising cost of employment benefits, gasoline prices are going up. On top of that, there have been no rate increases in some of our systems over the past five years. We have no choice but to take drastic measures if we are to meet our responsibility to provide water and wastewater service to the community.”
Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
