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HomeMy WebLinkAbout09.Att.2 - Revision Log Page 328 of 332 FY 2021-22 BUDGET REVISION LOG ATTACHMENT 2 This log includes substantive edits made to the FY 2021-22 Budget since distribution of the "5/6/21 Draft" Budget, which was reviewed by the Board on 5/20. The page number (#) noted in the first column corresponds to both the 5/6/21 Draft Budget and the Budget included in the 6/3/21 Board packet unless asterisked. Pg. # Description of Change 12 1St bullet—Changed "8" to seven and adjusted spacing. 14 —4t" bullet under "Environmental Stewardship"—Changed to "Estimated to collect approximately 2.6 million pounds of household hazardous waste in FY 2020-21." —7t" bullet under "Environmental Stewardship"— Revised to also disclose amount of recycled water produced and used on-site. 15 Added "wastewater" to "treatment plant" and removed "Treatment Plant Piping Renovations;". 17 5` bullet under "Central San by the numbers" —Changed "Collects 2.6 million pounds of..." to "Collects over 2 million pounds of..." and added explanation that the FY 2020-21 recycling rate is expected to be lower than normal due to the precautions implemented during the pandemic (closure of the Reuse Room). — Updated "reuses or recycles about 90%" statistic (regarding household hazardous waste) to state that Central San strives for this figure, as it was historically achieved before the pandemic and is still considered the "norm" long-term. 19 Added single asterisk (*) to applicable cities in the table covered by the related footnote below the table. 20 Added a third footnote under the table (***) to disclose that portions of Martinez are in Central San's service territory. 21 Added footnote regarding SunValley Shopping Center. 25 —Changed word "interative" to "iterative". — Updated dates and simplified the discussion regarding budget process. 27 Noted potential need for budget amendment regarding debt transaction. 37 — 1St bullet beneath "Other Significant Financial Accounts" — Deleted extra "from" in 211 sentence. 38 1St paragraph of "Basis of Budgeting" section — Updated to more clearly state the difference between the "full-accrual" accounting method used in financial reporting versus the "modified-accrual" method used in budgetary reporting. 41 Revised wording about chart of account changes and deleted some wording in table describing change. 42 — "Investment Policy" 1St sentence—Changed "2019" to "2020". —Added dates for last new money debt issuances and clarified debt management policy's goal for use of pay as you go versus debt financing of capital program. 45 —Added dollar changes in addition to percentages. —Added footnote to describe reconciling items between budget total and total uses of funds. 47 Replaced "an" with "a" preceding "SSC". 59 Change "0" to "-" in Table D. 1 June 3, 2021 Regular Board Meeting Agenda Packet- Page 421 of 646 Page 329 of 332 FY 2021-22 BUDGET REVISION LOG ATTACHMENT 2 Pg. # Description of Change 61 — In "Salaries & Wages" section, 2nd sentence— Replaced April 2022 growth assumption section with "... effective April 2021, an estimated placeholder of 3%for April 2022, and step...". 62 Last paragraph, 5t" sentence— Estimated amount eligible to be drawn from OPEB trust changed to approximately "$1.0", not $1.3 million. Now consistent with $1.0 million stated on page 58 and budget presentation. 65 Changed "-"to "()" in table. 70 —Added a bullet to staffing changes stating, "The Control Systems Technician position was retitled to a Utility Systems Engineer (Plant Operations). This was previously in the budget, however was removed as it was not yet approved by the Board at that time and staff did not wish to be speculative." — Expanded discussion of 90% funding of CIB. 72 —To 90% spend factor line item —Added "adjustment for". — Removed/added "$" from cells and fixed alignment. 75/76 Replaced "minus" with the word "less" for consistency. 75 Corrected amounts in Sewer Construction Fund row. 79 Deleted "actual" from Figure 11 title. 96 Corrected color of two signal light icons (for the Participation in annual Wellness Expo and Formal Grievances Filed metrics) to green to reflect targets met for FY 2019-20. 99 — Expanded narrative to disclose deletion of two positions: Operations Safety Specialist and Temporary Senior Administrative Technician. —Added to the second paragraph, "Budgeted Salaries & Wages reflects the elimination of a limited duration Temporary Senior Administrative Technician as well as the deletion of a vacant Operations Safety Specialist position, which was accompanied by the creation of a new Staff Engineer position in the Plant Maintenance Division." 111 1St paragraph, 3rd sentence—Added "to" in the following sentence: "...debt financing is available to achieve Central...". 114 Last sentence of last paragraph —Clarified to state, "The reduction in the Repairs & Maintenance budget line under the 'Purchased Property Services' category is largely offset by an increase in the Supplies & Materials budget line. Costs attributable to software licenses, previously budgeted under Repairs & Maintenance, were transferred to the Supplies & Materials budget line for improved tracking purposes as software licenses are not services as defined in the new chart of accounts." 126 Updated to eliminate quantities of HHW collected as the specific quantities are referenced in the Regulatory & Environmental Compliance Division section. Previously, the timeframes of the HHW amounts reported were slightly different, resulting in different quantities. Also, this section of the prior year's budget did not reference specific HHW quantities. 130 To the "Customer and Community" section —Added, "Completed urgent sewer replacements, including EI Toyonal in Orinda to lessen impacts to the public and nearby residents." 2 June 3, 2021 Regular Board Meeting Agenda Packet- Page 422 of 646 Page 330 of 332 FY 2021-22 BUDGET REVISION LOG ATTACHMENT 2 Pg. # Description of Change 131 —To the "Infrastructure Reliability" section —Added, "Continued to design infrastructure repair, replacements and improvements the collection system, treatment plant, and other District facilities." — Updated progress for Q3 and removed extra —Added "(during COVID pandemic)" to the Goal 7 metric to clarify this is the same metric and performance as the row above for Goal 5,just with a different target. 133 Placed negative numbers in (). 161 Change "0" to "-" in Table. 162 — Expanded budget narrative to explain increase in labor costs also attributable to transfer of a vacant position in the HR division to the Plant Maintenance division, as well as a reduction in the administrative overhead credit for capitalized labor. — Expanded budget narrative to explain decrease in limited duration employees. —Added, "While the FY 2020-21 budget planned for 10 summer students, no summer students were actually hired in FY 2020-21 as a safety precaution during the COVID-19 pandemic. In FY 2021-22 the Plant Maintenance division intends to phase summer students back into operations starting with 5 limited duration positions. In FY 2022-23 summer student needs of the division will once again be re-assessed." 169* Removed internal borders from table to match other tables in document. 173 Added another sentence about how beginning reserve balance and contribution result in ending reserve balance. 184 —Added South Orinda Sewer Renovation Project to the list. —Changed Aeration Basins Diffusers Replacement project number from TBD to 100019. 191 Replaced the first number with "$73.0 M", the second number with "$59.8 M", and changed the table. 196 Changed Aeration Basins Diffusers Replacement project number from TBD to 100019. 201 Added footage, replaced the last sentence of the description with, "This project funds the design work. The construction of sewers have been included in other renovation projects." 216 Changed the project photo and removed "unincorporated Orinda and Moraga" from description. 217 Changed photo and footage to "10,000". 218 Added, "4,500 feet of small diameter sewers primarily along Alhambra Ave., and 1,500 feet of trunk sewers on Alhambra Ave." 220 Updated footage to "10,000". 225 Changed date on CWMP from "2019" to "2017". 228 Added explanation under Capacity. 230 Changed Aeration Basins Diffusers Replacement project number from TBD to 100019. 240 Updated text for drivers, description, and location. 258 Changed Aeration Basins Diffusers Replacement project number from TBD to 100019. *This page number shifted to pg. 170 in the final 6/3/21 draft of the FY 21-22 budget book. Subsequent page numbers listed are correct following the elimination of a blank page in the 5/6/21 budget book draft. 3 June 3, 2021 Regular Board Meeting Agenda Packet- Page 423 of 646 Page 331 of 332 FY 2021-22 BUDGET REVISION LOG ATTACHMENT 2 Pg. # Description of Change 295- Corrected project numbers in the 100001— 100019 range (some were missing a 11011). 298 296 Changed Aeration Basins Diffusers Replacement project number from TBD to 100019. 309 Table 4—Salaries, Benefits (Detailed), Retiree and Unfunded Liabilities (Continued)— Updated numbers. Board Member Comments Not Resulting in a Revision Page# Comment Staff Response 14 Add ", a 35%increase The budget typically does not include prior year comparisons to over last year"after statistics in the strategic accomplishments. In addition, comparing "Collected FY 2019-20 and 2020-21 collection amounts may not be accurate, approximately as the Household Hazardous Waste Collection Facility was closed 2,600,000 pounds of for a portion of 2020, and the FY 2020-21 estimated figure of household hazardous 2,600,000 pounds is still an estimate. waste" 20 "Check Walnut Creek's Staff verified the $105,948 figure presented was accurate per average household 2019 census data, so no change was deemed necessary. income figure" 58 Verify that$1 million Staff verified that the$1 million figure was correct, which was the reimbursement from estimate referenced in the budget presentation. Staff updated trust should not be$1.3 page 62 to reference $1 million and not$1.3 million eligible for million per page 62. reimbursement from the trust. 64 "Why was Board budget Given materiality considerations, staff did not make a change to for technical training, the FY 21-22 budget as it would have pervasive impacts on several conferences& meetings other linked tables and dollar and percentage references reduced by$15k?" throughout budget narratives. Should the June 2021 pension UAAL payoff and bond issuance (which is currently under consideration)go through,this can be addressed by means of a budget amendment to be considered by the Board at a later date. Nevertheless, staff performed additional research to identify why there was a reduction and verified that the reduction from $40k (FY 20-21 budget)to $25k (FY 21-22 proposed budget) was attributable to prior year actuals being relatively low for this line item in the Board of Directors org unit budget. Total actual costs were $19,614 and $28,418 in FY 19-20 and FY 18-19 respectively. While FY 19-20 costs were impacted somewhat by the pandemic, given the current status of the pandemic response in the region, staff continued to use a conservative estimate for FY 21-22 that was reasonably consistent with the past two fiscal years. 4 June 3, 2021 Regular Board Meeting Agenda Packet- Page 424 of 646 Page 332 of 332 FY 2021-22 BUDGET REVISION LOG ATTACHMENT 2 Page# Comment Staff Response 93 "The reduction in No additional narrative was added as this was a relatively training not discussed" immaterial change and the more significant changes constituting the bulk of the variance in this organizational budget unit was discussed. A budget amendment to this line item will be considered at a later date based in consideration of the commentary provided above (staff response to Board Member comment on pg. 64). 96 "With development Central San will have a more robust development plan with the plans?" new performance appraisal process which will be launched in the re: Performance beginning of next FY. Evaluations Completed on Time Key Metric 131 "Needs to be added as Objectives are projects or initiatives that the division will be an objective for 21/22" tackling in the upcoming FY.They fulfill Strategic Plan re: Capital Expenditures goals/strategies but do not generally have a direct relation to the as a Percentage of metrics. Because Capital Projects consistently spends close to the Capital Budgeted Cash 90-100% range, it is not necessary to add this as a strategic Flow Including Carry objective as a project/initiative to be addressed in FY 2021-22. Forward Key Metric Because this metric appears twice in the table, under Goal Five and Goal Seven (with different targets but the same performance figure for FY 2020-21),the table can cause some confusion. Clarifying wording has been added to explain the Goal Seven metric, with the lower target, is being measured during the current pandemic. 134 Questioning accuracy of This is a true statement as staff is not asserting that Salaries& statement "...largely Wages decreased due to charges to increases in capital charges, offset by additional time but rather that budgeted Salaries&Wages is largely offset by the being charged to work portion attributable to capitalized projects,which is allocated off for capital projects." of the O&M fund and to the Sewer Construction fund. S June 3, 2021 Regular Board Meeting Agenda Packet- Page 425 of 646