Agenda Packets - Board - 1998-08-13MDD99 -011
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COSTA MESA SANITARY DISTRICT
INTER OFFICE MEMORANDUM
August 12, 1998
SANITARY DISTRICT
TO: BOARD OF DIRECTORS FROM: MARCUS D. DAVIS
Acting District Trea urer
FOR BOARD MEETING OF AUGUST 13, 1998
SUBJECT: CITY INDIRECT COSTS
During the Budget Study Session of June 4, 1998, the Board requested additional information related to the
indirect costs charged by the City to the District. The following provides some insight into how the indirect costs
have been determined.
• On December 19, 1955, the District and the City entered into an agreement whereby the City would
provide all trash and sewer operation and maintenance services on behalf of the District. As
compensation for these services, the City would invoice the District for all costs incurred related to this
operation. This agreement was subsequently amended on three different occasions, with the current
amendment being dated December 9, 1993.
• On April 14, 1994, the District and the City entered into a lease agreement whereby the District leases
office space from the City. The lease payments under this agreement are $264 per month, which equates
to an annual rental of $3,168. These lease payments have been incorporated into the City indirect costs
charged to the District.
• For fiscal years 1992 -93 and prior, the City charged the District an amount representing indirect costs that
were determined by an outside consultant. This consultant prepared a City-wide indirect cost plan, of
which the indirect costs to the District were a component. These indirect costs were as high as $189,000
per year.
• Beginning in fiscal year 1993 -94, the indirect costs were established at a fixed amount of $150,000. This
fixed amount has been used consistently since 1993 -94. Exhibit 1 details the estimated components of this
$150,000 charge.
• Subsequent to fiscal year 1992 -93, the City began to internally calculate its indirect cost rate rather than
using the services of a consultant. This indirect cost rate is currently equal to 33% of salaries and .
benefits.
Had the City's established rate of 33% been used, this would equate to an indirect cost charge for 1998 -99 of
$182,820. The flat rate will result in savings to the District during 1998 -99 of approximately $33,000.
Attachments:
Exhibit 1 - Estimated Details of Indirect Cost Charge
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COSTA MESA SANITARY DISTRICT
1 ESTIMATED DETAILS OF INDIRECT COST CHARGE
t
FISCAL YEAR
1998 -99
DEPARTMENT /DIVISION SERVICE
EMPLOYEE TITLE
Finance Finance Administration
Director of Finance
Payroll Administration
Payroll Specialist
Accounting Supervisor
Audit Coordination
Assistant Director of Finance
Accountant
Accounts Payable
Accounting Specialist II
Accountant
Accounting Supervisor
Sanitation Accounting
Accountant
Accounting Supervisor
Assistant Director of Finance
Budget Preparation
Accountant
Assistant Director of Finance
Budget & Research Officer
Budget Analyst
Budget Administration
Accountant
Budget & Research Officer
Budget Analyst
Special Projects
Assistant Director of Finance
Accountant
Purchasing
Purchasing Supervisor
Buyer
Accounting Specialist I
Budget & Research Officer
Warehouse
Storekeeper
General Aide II
Cash Receipts
Accounting Specialist II
Accounting Specialist I
Tax Administration
Revenue Supervisor
Accounting Specialist I
Investments
Revenue Supervisor
Assistant Director of Finance
Total Finance
EXHIBIT 1
EST.
AMOUNT
ALLOCATED
$ 5,700
2,300
700
900
3,700
5,000
4,400
700
22,000
700
700
1,900
700
600
900
4,400
600
900
3,300
1,900
5,300
8,300
2,900
900
2,300
300
500
200
700
200
3,300
1,700
:: .11
0
EXHIBIT 1 CONTINUED
COSTA MESA SANITARY DISTRICT
ESTIMATED DETAILS OF INDIRECT COST CHARGE
FISCAL YEAR 1998 -99
3
EST.
AMOUNT
DEPARTMENT /DIVISION
SERVICE
EMPLOYEE TITLE
ALLOCATED
Personnel
Compensation Administration
Personnel Manager
$ 3,000
Employee Benefits
Benefits Coordinator
1,600
Recruitment
Personnel Analyst
2,100
Personnel Manager
900
Training
Personnel Analyst
2,100
Workers' Compensation
Risk Manager
4,400
Total Personnel
14,100
Management Information Services
Computer Operations
Computer Operations Supervisor
4,000
Computer Operator
5,400
Data Entry Operator
400
Computer Development
Programming Supervisor
1,100
Senior Programmer Analyst
5,100
Programmer Analyst II
9,900
Total Management Information Services
25,900
Communications
Operations
Senior Communication Supervisor
600
Senior Communications Officer
1,000
Communications Officer
2,300
Technical -- Maintenance
Communications Installer
700
Communications Technician
3,600
Total Communications
8,200
Facilities & Equipment
Building Maintenance
Lead Maintenance Worker
800
Maintenance Worker
1,300
Equipment Maintenance
Equipment Mechanic II
4,600
Equipment Replacement
Equipment Mechanic II
4,600
Utilities
Lead Maintenance Worker
800
Maintenance Worker
1,300
Office rent
3,200
Total Facilities & Equipment
16,600
Total Indirect Charge
$ 153,400
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