THE CITY OF SAN DIEGO

MEMORANDUM

DATE: August 29, 2018
TO: Honorable cil President Cole and Members of the City Council
FROM: Kris Miche ief Operating Officer

SUBJECT: Operational Changes to Public Utilities Department

 

As you know, the Mayor has directed an internal review of the Public Utilities Department
(PUD) with a focus on making reforms in the areas of management, internal controls,
processes and protocols, employee oversight and public accountability. This will serve as an
update on our progress, which I committed to you in a memorandum on July 26, 2018. The
City Auditor is also conducting a performance audit of the department?s water meter lid and
box replacement program which I expect will show a continued need for serious operational
and management reforms.

Progress on our internal assessment and accompanying reforms continues with an initial
focus on water operations. To aid in this effort we are tapping an expert in water
operations and municipal agency management. Frank Belock will be joining the City as a
provisional employee to assess deficiencies and develop operational improvements to ensure
public accountability. Frank served as the Deputy General Manager of the San Diego County
Water Authority and Area Manager for Parsons Corporation. He also is familiar with the City
of San Diego having served as the Water Department Director and Acting Deputy City
Manager. Frank is a registered professional Civil Engineer, knows water operations, brings
institutional knowledge and has experience with other agencies which will be impactful in
developing meaningful solutions that will be implemented.

Additionally, Vic Bianes has informed the City he is retiring from his position as Director of
PUD. A nationwide search will be conducted to find a permanent director.

Strong management experience, detailed fiscal knowledge and a proven track record are
important to ensuring our efforts continue during a leadership transition. For these reasons,
Matt Vespi will be appointed as Interim PUD Director while the search is being conducted.
Matt currently serves as the Department of Finance?s Assistant Director and has served as
Interim Director of the Risk Management and Financial Management Departments. His
experience will equip him to ensure PUD manages its budget appropriately and improves in
the areas that the Department has been deficient.

To lead this team, Assistant Chief Operating Officer Stacey LoMedico will be redeployed to
PUD to conduct a full analysis of water operations, identify further systemic issues, and help
implement solutions developed by the leadership team. Her experience, successful track

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Honorable Council President Cole and Members of the City Council

August 29, 2018

 

record, and pragmatic approach will ensure critical changes are made for the lasting benefit
of our customers. While Stacey takes on this temporary assignment, Ron Villa will serve as
the Acting Assistant Chief Operating Officer.

Deputy Chief Operating Officer Johnnie Perkins, who manages the Infrastructure and Public
Works branch, will continue to Oversee the branch and implementation of audit
recommendations. He will work closely with the team on these ongoing assessments and
accompanying reforms. The water meter lid and box replacement program performance 
audit will be released soon and we have already begun to address issues identified during the

audit process.

The Mayor is committed to transparency and effectively serving our communities. We value
our City employees and recognize our responsibility to ensure they have the proper guidance,
direction, information, and tools to serve the public effectively. We look forward to
continuing to work with you and update you when new information becomes available.

cc: Honorable Mayor Kevin L. Faulconer
Honorable City Attorney Mara Elliott
Aimee Faucett, Chief of Staff, Office of the Mayor
Andrea Tevlin, Independent Budget Analyst
Stacey LoMedico, Assistant Chief Operating Officer
Rolando Charvel, Chief Financial Officer
Ronald H. Villa, Deputy Chief Operating Officer, Internal Operations
Johnnie Perkins, Deputy Chief Operating Officer, Infrastructure and Public Works
David Graham, Deputy Chief Operating Officer, Smart and Sustainable Communities
Robert Vacchi, Deputy Chief Operating Officer, Neighborhood Services
Department Directors, Mayoral
Jessica Lawrence, Director of Finance Policy 8: Council Affairs, Office of the Mayor