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Home My WebLink AboutSupplemental - Robert GoldbergRobin Roberts From: Robert Goldberg <rgoldberg@live.com> Sent: Sunday, January 21, 2018 4:02 PM To: Sandra Massa-Lavitt; Thomas Moore; Mike Varipapa; Ellery A. Deaton; Schelly Sustarsic Cc: Jill Ingram; Robin Roberts; Steve Myrter; Vikki Beatley; Patrick Gallegos Subject: Questions and Comments on Monday's Agenda Packet Attachments: 1.22.18.Questions.doc; PT Wage Increase.1.22.18.pdf Dear Council Members, For your consideration, I have attached a set of questions and comments on various staff reports for Monday night. I would very much appreciate if staff could address these. I have also attached a power point that I hope to present on the part-time employee minimum wage increase. Thank you for your service, Robert Questions & Comments for 1/22/18 Item G: CAFR Attachment B, Report on Internal Controls, indicates that there was an error in pension accounting in the prior years CAFR which resulted in an $981,368 overstatement of net position. Further detail is provided by Note 14 in the CAFR (page 83). This shows that the $981,368 breaks down Into $383,283 for "Governmental Activities," $308,561 for Water Utility, and $289,524 for Sewer Utility. These previous errors are corrected in the current CAFR by decreasing the respective "Beginning of the Year" (July 1, 2016) net positions. Comments: I believe this overstatement of net position results in changes to three fund balances in the FY I7-18 Budget. Since the error was in pension accounting, it would follow that the three fund balances affected would be the related operational funds that pay employee salaries, i.e., the General Fund, the Water Operations Fund, and the Sewer Operations Fund. If this is correct, the effect on the projected year-end balances (June 30, 2018) would be as follows: Adopted Budget After Correction General Fund Water Operations Sewer Operations "Unassigned Fund 'Ending Fund "Ending Fund Balance" (Do 34) Balance" (oa 233) Balance" (oa 241) $1,767,985 $670,167 -$157,609 $2,384,702 $361,606 -$447,133 Item I: Hourly Wages for Part -Time Employees (Minimum Wage) Staff proposes to comply with the January 1� $11.00 minimum wage by raising the pay scale by approximately 8.7% for all five steps in salary Grades 1 and 2. As a less expensive alternative, I would recommend just simply deleting Steps 1 & 2 for Grade 1 (currently no incumbents), and Step 1 for Grade 2. This would also avoid the unintended consequence of creating upward pressure on higher Grades. Staff's recommendation results in only a 1.5% difference between Grade 2 and Grade 4 while the salary structure would call for a 1096 difference. See attached PowerPoint presentation. Item K: Amendment to Transtech Contract The Financial Impact section states that Budget Amendment 18-07-02 will transfer $15,000 from Gas Tax Funds into the Capital Improvement Project account. Comment: The bottom of page 169 in the Budget shows only $16,687 remaining in the Gas Tax Fund (2017-18 Ending Fund Balance) after approved FY 17-18 expenditures. $5000 of this has already been appropriated to supplement the Annual Concrete Repair Project (9/11/17, BA -18-03-01). This leaves only $11,687 remaining. Thus, the current proposed $15,000 transfer creates an amended budget deficit of -$3,313 in the Gas Tax Fund. The budget amendment table at the end of Financial Impact section shows the current Revised/Adopted Budget for the Capital Project Fund Contract Professional Account at $13,103,100. However, this figure is much higher than that previously approved by Council. In the adopted budget and Resolution 6745, the figure is $12,737,500 (page 249). This was increased by $5000 (for concrete repair) to $12,742,500 on 9/11/17 via budget amendment BA - 18 -03-01. Did the amount for the Capital Project Fund Contract Professional Account increase by $360,600 since September I I M without Council approved budget amendments? if so, please explain how this can occur, and please provide an accounting of how the $360,600 will be spent. Item L: Water Management Plan Page 1-5 states "Leisure World is served by the City through three master meters. The City maintains the water distribution facilities and the fire hydrants within Leisure World." I was under the impression from the 2010 Water Rate Study that there was only one 12" meter to LW. Unrelated general discussions gave me the Impression that the City was not responsible for repairs of any pipes downstream from this one meter. Which is correct my impressions or the Plan? Section 4.2 Metering (on page 4.2) states that "The City is fully metered for all customer sectors, including separate meters for single-family and multifamily residential." Are there now residential meters in Leisure World? Item M: Organic Waste Recycling Program When this program was first presented on 2/27/17, Republic presented the following cost analysis: Truck 8: Container Costs $24,289 Labor $50,328 Processing Costs $176,540 Bad Debt, Interest, Tax, Profit $61,802 City Franchise Fees $23,556 $336,515 Page 3 of the current staff report indicates that the estimated annual cost of the program is $366,515. There is no discussion what appears to be an increase of exactly $30,000. Is the increased figure an error? If not please ask Republic to provide a breakdown of costs as they did last February. Problem: Minimum Wage Now $11/hour Job Titles Grade Step 1 Step 2 Step 3 Step Step 5 Office Aid 1 $10.12 $10.63 $11.16 $11.72 $12.30 Crossing Guard 2 $10.63 $11.16 $11.72 $12.31 $12.92 Pool Lifeguard Beach Lifeguard rainee Proposed Solution: 8.7% Pay Raise for All Steps Job Titles Grade Ste 1 Step2 Step3 Step4 Steps Office Aid 1 $11.00 $11.55 $12.13 $12.73 $13.37 Crossing Guard 2 $11.55 $12.13 $12.73 $13.37 $14.04 Pool Lifeguard Beach Lifeguard Trainee 1/21/2018 Cost of Staff RrlaaosaI: Job Titles Grade Current Annual Cost@ Current Annual Cost@ Job Titles (Grade 2) F.T.E. Step 1($10.63) Step 5 ($12.92) 2 rossing Guard 2.73 $60,361 $73,365 Beach Lifeguard Trainee Pool Lifeguard 2.51 $55,497 $67,453 4 $11.72 Normal Difference Between Beach Lifeguard 0.50 $11,055 $13,437 rainee $126,914 $154,254 Cost of 8.7% Increase: $10,984 $13,350 Grade Pay Differential: Job Titles Grade Step Office Aid 1 $11.00 Crossing Guard 2 $11.55 Pool Lifeguard Beach Lifeguard Trainee Police Aide 4 $11.72 Normal Difference Between Swim Instructor2 Grades is 10%= $12.71, 8.4% higher than Proposed Alternative Solution: Job Titles Grade Ste p 1 Step 2 Step 3 Ste 4 Step S Office Aid 1_149-44 519:6; $11.16$11.72 $12.30 Crossing Guard 2 $19:6; $11.16 $11.72 $12.31 $12.92 Pool Lifeguard Beach Lifeguard Trainee Comparison of Annual Projected Costs Minimum Annual Increased Cost after Maximum Annual $957 $551 "Across the Board" Increased Cost of Job Titles (Grade 2) F.T.E. 8.7% Increase Eliminating Ste 1 rossing Guard 2.73 $5,224 $3,010 Pool Lifeguard pBeach 2.51 $4,803 $2,767 Lifeguard $10,984 $6,328 $4,656 Minimum Savings of Alternate Proposal Trainee 0.5 $957 $551