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HomeMy WebLinkAboutAdmin Services 2005 Budget ADMINISTRATIVE SERVICES Overhead Methodology Review 2005 Budget Board Presentation 10-19-2005 Ag 4 m OVERHEADS • The District incurs costs relating to labor such as employee benefits , operation and maintenance of the vehicle fleet, purchasing of materials and operation of the warehouse and managing capital projects • These costs are spread to capital projects and operation and maintenance activities through overhead allocations • The goal is to allocate to these activities (both capital and operations) the full cost of performing the activity THE PROCESS •► Overhead calculations are done at budget time • Inputs are based on budget numbers provided by department heads • A flat percentage is calculated in each category to use all year round • Engineers, planners and work order accounting staff use this percentage for estimating costs and preparing bills to customers and developers • Actual overhead charges vary considerably each month • At year end there is a debit or credit balance that needs to be allocated • Allocating the balance at year end is an extremely complex process and causes inefficiencies in closing work orders and preparing for the annual audit APPENDIX Ill LABOR OVERHEAD VALUE OF BENEFITS Medical insurance tz97i,370 Dental insurance 94,080 Vision insurance 16,000 Frescaptlnrr nornbur,errrent 2,000 Hasplta,€deductible Z000 Wolf baby rare 2,500 Long term disability 33,943 Life, insurince 45,897 Longevity 15,050 FICA 277,713 Fed Med 66,740 State coropensat€on 297,202 Pension 959;d76 Value of non-productive labor 622,604 (vacation, sick leave, t(rtrday) TOTAL VALUE OF SFNEFIT4 $3,408,975 PRODUCTIVE LABOR Recommended labor(Appendix fl) S•4,602.787 Less value of non productive labor (622,604) TOTAL, PRODUCTIVE LABOR �3yB6II,i63 PAYROLL. OVERHEAD 85,6% (Value of benefitsr`productivea labor) BENEFITS AS A PERCENT OF TOTAL LABOR AND BENEFITS 46% sum APPENDIX IV TRANSPORTATION OVERHEAD This appendix assumes that the cost of operating, maintaining and replacing District vehicles and equipment will be recognized as an overhead charged against direct labor that uses the vehicles. TRANSPORTATION&EQUIPMENT EXPENSE Vehicle operation, repair, fuels& misc expenses $298,044 Interest expense (vehicle debt service) 25.452 Insurance 50,490 Replacement(depreciation expense) 192,500 TOTAL TRANSPORTATION EXPENSE $567,44;3 DIRECT LABOR EXPENSE General Manager $47 493 Administrative Services 81,361 Support Services 47,424 Electric Operations 1,125,663 Power Supply 17,443 Water Operations 951,476 TOTAL DIRECT LABOR EXPENSE 2,2/ TRANSPORTATION/EQUIPMENT OVERHEAD ($567,443 L"WIDED BY $2,270,860) 24,99% APPEND V INVENTORY OVERHEAD PURCHASINGMAREHOUSING Labor $73,701 Accounts Payable 1197 Overhead: Labor63, 125 Transportation5.065 Administrative 1.231 Warehouse Operations: Utilities & Building Maintenance 113,5 iJ Miscellaneous (insurance) 4,500 00 TOTAL COST $178,329 ESTIMATED INVENTORY ISSUES Inventory Support Services $15,000 Electric Operations 348,392 Water Operations7? 10 TOTAL ESTIMATED ISSUES $635,542 INVENTORY OVERHEAD28,06% # . f @ § � ; APPENDIX VI ADMINISTRATIVE OVERHEAD COMMON SUPPLY COSTS: Purchasing/Warehousing of Common Supplies Labor $8 189 Accounts Payable 1,911 Overhead: Labor 77013 Transportation 563 Administrative 137 Warehousing Operating Costs Utilities &Building Maintenance 1,501 Miscellaneous (insurance) 500 Subtotal $19,8.j 4 Common Supplies Outside staff supplies 1;5,000 Inside staff supplies 12,500 Joint department supplies 5,000 Subtotal TOTAL COMMON SUPPLY COSTS52,3(q TOTAL PRODUCTIVE LABOR $3,980,183 ADMINISTRATIVE OVERHEAD 1,a1% a4 a W , APPENDIX VII CONSTRUCTION OVERHEAD Step t General direction and general construction costs from budget: Electric Operations 6t1.888 Water Operations 66,164 GtS&Mapping 48.096 Total $281,768 Step 2 Determine capitalized labor as a percent of total labor: Capitalized Labor $786,967 =- 31,19% Total Electric& Water Labor $2 523,330 Step 3 Determine construction overhead to be capitalized: Total General direction&construction costs 5281,768 %of labor to be capitalized 31 19% General direction &construction costs to capitalize $37 ft77 Construction accounting costs to capitalize 186,966 $274,843 Step 4 Calculate construction overhead to be applied to capital improvements: Capital Overhead = $274,84.3 34.92% Capital Labor $786,967 CONSTRUCTION OVERHEAD= 34,92% 4 i ^1n rv•v ..Pii o M. Where do we go from here?. • Continue to use overhead calculations for billing purposes • Let the overheads float each month based on actual monthly amount • Accounting software is designed to allocate actual overheads each month • There will not be a balance to allocate at year end which will speed up our closing process 9 Evaluate method used at the end of 2006 Water epartment Pipeline Replac ment Needs TDPUD Regular Meeting October 19 , 2005 [ Maps of areas with leak history ■ Service Area ■ Tahoe Donner ■ Sierra Meadows ■ Glenshire ■ Prosser Lakeview ■ Gateway ■ Total Cost = z [ Length and Cost to Replace all 1 Pipelines Identified � ■ Length = 150 , 275 feet or 28 . 5 miles ■ Cost . $ 19 ,4613625 ■ Eng . & Admin . _ $ 1 , 946 , 163 ■ Contingency = $ 13946 , 163 ■ Total Cost = $23 , 3537950 3 rPipeline Replacement Priority # 11 L Area Map Cost a Length and Cost to Replace for Priority # 1 ■ Length = 47 , 700 feet or 9 miles ■ Cost = $65498 , 750 ■ Eng . & Admin . _ $649 , 875 ■ Contingency = $649 , 875 ■ Total Cost = $75798 , 500 5 Current Bond Debt ■ 1996Improvements $800 , 000/year ■ DWR Prop . % $306 ,437/year ■ Total $ 1 , 106 ,437/year ■ Both complete in 2021 6 [ OPTIONS ■ Continue replacing pipelines at current rate ($500 , 000 per year) ■ Bond $8 , 000 , 000 and increase rates over three years to restore annual replacement fund . ($570 , 000/yr. ) ■ Bond $24 , 000 , 000 and increase rates to cover bond debt. ($ 1 , 703 , 000/yr. ) Map ID Priority Subdivision Street From To Length Existing Si New Size Unit Price Cost 5 1 Glenshire Regency Grcle Courtenay Lane 10644 Regency Circle 1,550 6" 8" $ 125 $ 793,750 6 1 Glenshire Lancaster Place Regency Circle End S00 6" 8" $ 125 $ 62,500 7 1 Glenshire Somerset Drive 10448 Somerset Drive 10715 Somerset Drive 1,550 10" 12" $ 155 $ 240,250 8 1 Glenshire Windsor Way Somerset Drive St.James Place 250 6" 8" $ 125 $ 31,250 9 1 Glenshire St.James Place Windsor Way End 475 6" 8" $ 125 $ 59,375 25 1 Prosser Lakeview Whitetail Lane Rainbow Drive 10262 Whitetail Lane 1,125 8" 8" $ 125 $ 140,625 12 1 Sierra Meadows Shore Pine Road Columbine Road End 1,350 6" 8" $ 125 $ 140,625 13 1 Sierra Meadows Frond Road Shore Pine Road 11886 Frond Road 350 6" 8" $ 125 $ 43,750 750 14 i Sierra Meadows Laurel Court Shore Pine Road End 375 6" 8" u Court $ 125 $ ,75 1 Sierra Meadows Redbd Crt 875 Shore Pine Road End 200 6" 8" $ 125 $ 46 46,000 875 34 1 Tahoe Donner Mougle Lane 10511 Mougle Lane 11406 Mougle Lane 4,500 6" 8" $ 125 $ 562,500 36 1 Tahoe Donner Bennett Flat Road Hansel Avenue 12005 Bennett Flat Road 1,900 6" 8" $ 125 $ 237,500 37 i Tahoe Donner Lausanne Way 12436 Lausanne Way Hansel Avenue 1,150 6" 8" $ 125 $ 143,750 43 1 Tahoe Donner Cristallina Way Swiss Lane Swiss Lane 2,700 6" 8" $ 125 $ 143,750 44 7 Tahoe Donner Edelweiss Lane 45 Swiss Lane Cristallina Way 950 6" 8" $ 125 $ 118,750 1 Tahoe Donner Swiss Lane Northwoods Boulevard 13838 Swiss Lane 1,475 6" 12" $ 155 $ 228,625 46 1 Tahoe Donner Swiss Lane 13900 Swiss Lane 14356 Swiss Lane 2,450 6" 12" $ 155 $ 379,750 49 1 Tahoe Donner Copenhagen Drive 14049 Copenhagen Drive Skislope Way 4,050 6"/8" 12" $ 155 $ 627,750 54 1 Tahoe Donner Skislope Way 14276 Skislope Way 14550 Skislope Way 1,050 6" 8" $ 725 $ 131,250 55 1 Tahoe Donner Skislope Way 15071 Skislope Way 15189 Skislope Way 575 8" 8" $ 125 $ 31,250 66 1 Tahoe Donner Skislope Way 15236 Skislope Way 16075 Skislope Way 3,150 8" 8" $ 125 $ 393,750 875 62 1 Tahoe Donner Chalet Road 63 Chapelle Place GC 3rd Fairway Easement 1,800 6"/8" 8" $ 125 $ 225,000 1 Tahoe Donner Chateau Way 11766 Chateau Way Chalet Road 300 6" 8" $ 125 $ 37,500 64 1 Tahoe Donner Golf Course 5th Fairway Easem.Snowpeak Way Skiview Loop 700 6" 8" $ 725 $ 87 500 68 65 7 Tahoe Donner Skiview Loop 12651 Skiview Loop 14205 Skiview Loop 8,350 6"/8" 8"/12" $ 155 $ 1,294,250 1 Tahoe Donner Sierra Glen Road Skiview Loop Northwoods Boulevard 800 6" 8" $ 125 $ 100,000 73 1 Tahoe Donner Hillside Drive Northwoods Boulevard Staghom Road 4,075 6"/8" 8" $ 125 $ 509,375 47,700 Subtotal $ 6,498,750 Engineering&Administration(10%) $ 649,875 Contingency(10%) $ 649,875 Total $ 7,798,500 Malp ID Priori Subdivision Street From To 3 2 Glenshire Canterbury Lane GI hire Drive Len th Existin Si:New Size Unit Price Cost Notes Courtenay Lane 1,100 6"/8" 8" $ 125 $ 137,500 26 2 Prosser Lakeview Rainbow Drive Snowshoe Circle Pine Forest Road 27 2 Prosser Lakeview Snowshoe Circle Rainbow Drive 2.275 8"110" 12" $ 155 $ 430,125 17 2 Sierra Meadows Torrey Pine Road Snowber Evergreen verg no Circle 2, 75 6" 8" $ 125 $ 284,375 18 2 Sierra Meadows Ponderosa Drive Tamarack WayEvergreen Circe 2,325 6"/8" 12" $ 155 $ 360,375 19 2 Sierra Meadows Tamarack Way Pine Cone Road Ponderosa D10532 rossa Drive 500 8" 12" $ 155 $ 77,500 16 3 Sierra Meadows Martis Valley Road Stone Pine Road Red Fir Road 500 8" 8" $ 125 $ 62,500 29 2 Tahoe Donner Sitzmark Way Schussing Way Mou le lane 500 6" 8" $ 125 $ 53,125 33 2 Tahoe Donner Kitzbuhel Lane Mou le Lane g 5,250 6" 8" $ 125 $ 406,250 38 2 Tahoe Donner Hansel Wayg Lausanne a Way 3,100 6.0 8" $ 125 $ 406,250 39 2 Tahoe Donner Northwoods Boulevard 111537 Northwoods and 12241 Northwoods 3,525 10" 12" $ 155 $ 546,375 40 2 Tahoe Donner Chamonix Road Northwoods Boulevard Falcon Point Place 3.050 8"610" 12 $ 125 $ 381,250 42 2 Tahoe Donner Northwoods Boulevard 2nd Davos Drive Intersection 3rd Davos Drive Intersection 6,10 8"/10" 12"8/16" $ 155 $ 953,250 47 2 Tahoe Donner Davos Drive 14013 Davos Drive Heidi Way 500 6"/8" 8" 53 2 Tahoe Donner Skislope Way Davos Drive $ 125 $ 81,250 66 2 Tahoe Donner Tyrol Road Skiview L Ski Skislope Way 6,250 6" 8" $ 125 $ 781,250 67 2 Tahoe Donner Easement Loop Skiview Loop 4,800 6" 8" $ 125 $ 600,000 Skiview Loop Tyrol Road 450 6" 8" $ 125 $ 56,20 69 2 Tahoe Donner Alder Creek Road 15666 Alder Creek Road 15780 Alder Creek Road 00 6" 70 2 Tahoe Donner Pinnacle Loop Parsenn Road 6" $ 125 $ 62,500 76 2 Tahoe Donner Oslo Drive Andermatt Lane 2,125 6"/8" 8" $ 125 $ 265.625 12212 Oslo Drive Julian Avenue 1,900 8" 8" $ 125 $ 237,500 48,650 Subtotal $ 6,572,500 Engineering&Administration(10%) $ 657,250 Contingency(10%) $ 657,250 Total $ 7,887,000 Ma ID Priori Subdivision Street From To Le h Existi $ize New S¢e Unit Pace Cost Notes 80 3 Armstrong/Biltr Siena Dnve Martis Drive Boca Street 825 4' 8' $ 125 $ 103,125 81 3 Annsiron9/Biltz Boca Street Sierra Drive Prosser Street 475 2' 8" 5 25 $ 59,37 82 3 AnnstronglBiltz Dulmm Street Martis Drive Prosser$meet 1,025 Z" 8" $$ 1 1 25 $ 159,37 5 83 3 Annstrong/Biltz Palisade Street Martis Drive Prosser Street 1,425 2' g^84 3 Amistrong/Biltz Sierra Drive Parker Road Thomas Drive 1,425 8" 8" $ 125 $ 178.125 65 3 Armstmng/Siliz Easement Slems Drive Richards Drive eivard .55 8• $ 125 $ 193,750 90 3 Gateway Park Donner Way8" $ 125 $ 65,625 91 3 GatewayPark Spring lane Vista Avenue 900 4" 8" $ 125 $ 112,500 SPnng Lane Donner Way Lake Avenue 1,250 4' 8' $ 125 $ 156,250 92 3 Gateway Park Easement Donner Way Spring Lane 825 2"/4' 8' 93 3 Gateway Park Easement Easement $ 125 $ 103,125 94 3 Gateway Park Easement Spring Lane 675 4" 8' $ 125 $ 84,375 Easement Spring Lane 675 4" 8" $ 125 $$ 125 $ 5 5 ,37 95 3 Gateway Park Easement Vista Avenue Pine Avenue 925 4" B' 1 8484,37 96 3 Gateway Park Easement Spring Lane End 550 4• 8• 1 3 Glenshire Glenshire Drive Rolands Way Whdehonse Road $ 125 $ 66,750 2 3 Glenshire Worc tester Circle Rolands Way Rolands se 3,100 8" NA $ 50 $ 155,000 AC Pipe-Lateral Leaks 4 3 Glenshire Oxford Circle Wallington y 1,525 6" NA $ 50 $ 76,250 AC Pipe-Lateral Leaks 10 3 Glenshire ngton Way Courtemy Lane 900 6" 8" $ 125 $ 1/2500 Berkshire Cirde Glenshire Drive Glenshire Drive 2,000 6" NA $ 50 $ 100,000 AC Pipe-Lateral Leaks 11 3 Glenshire Lighthiii Place Berkshire Circle End 425 6" NA 2"q 86 3 Meadow Park Rocky Lane Meadow Way End 425 2"Meadow 50 $ 21,250 AC Pipe-Lateral leaks 87 3 Meadow Park Meadow Way Valley Road Donner Pass Road 925 • 8' $ 125 $ 53,125 88 3 Meadow Park Brook lane Meadow Way Prates Lane 925 8" $ 125 $ 115,625 89 3 Meadow Park Glen Road End W $ 125 $ 131,250 8" $ 125 $ 100,000 21 3 Ponderosa Fairway Estates Martis Road Reynold Way 10704 Ma Prates LMeritse 1,050 2'is Road 1,475 8" 8" $ 125 $ 184,375 22 3 Prosser Heights Airier Drive Prosser Heights Well 11126 Alder Drive 1,000 8" 12" 23 3 Prosser Heights Cheyenne Way Alder Drive End $ 155 $ 155,000 24 3 Prosser Lakeview Pine Forest Road Rainbow Ddve 1 t983 Pine Forest Road 825 10" $ 125 $ 50,000 16 3 Sierra Meadows Martis Valley Road Stone Pine Road Red Fir Road $ 155 $ 96,875 20 3 Sierra Meadows Silver Fir Drive Ponderosa Drive Thelin Ddve 500 8" 8' $ 125 $ 62,500 28 3 Tahoe Danner Brookstone Or'rve Schussing Way End 2,400 6'/8" 12' $ 155 S 372,000 30 3 Tahoe Donner Mou le Lane 2,050 6' 8' $ 125 $ 256,250 9 S4zmark Way 11747 Mougie Lane 2,550 6" 8" $ 125 $ 318,750 31 3 Tahoe Donner Munich Drive Mougie lane Sitzmark Way 1,000 6• 8" 32 3 Tahoe Donner $ 125 $ 125,000 35 3 Tahoe Donner Nordo Court Mangle Lane Sitrmadc Way 1,050 8" 8" $ 125 $ 131,250 KT Court Mougte lane End 525 6" 8" $ 125 $ 65,625 41 3 Tahoe Donner Falcon Point Place 12134 Falcon Point Pi. 12755 Falcon Point Place 2.000 8" 8" $ 125 $ 250,000 48 3 Tahoe Donner Copenhagen Drive Skislope Way 13964 Copenhagen Drive 1,750 6'50 3 Tahoe Danner Skislo Way8" $ 125 $ 218,750 51 3 Tahoe Donner Copenhagen Drive Christie Lane 375 8" 12" $ 155 $ 58.125 Northwood,Boulevard Davos Drive Norse Avenue 500 8" 12' $ 155 $ 77 500 52 3 Tahoe Donner Rhineland Avenue Northwoods Boulevard i i647 Rhineland Avenue 1,05D 8'57 3 Tahoe Donner Skisiope Way Ski Lodge Tank 11647 R iinela Way 700 g" t. $ 125 $ 131,250 58 3 Tahoe Donner TO Ski Bawl Condos Skiview Loop TDA Ski Lodge 875 8• $ 155 $ 108,500 59 3 Tahoe Donner Snowpeak Way nro Slalom Way 675 W $ 125 $ 84,375 60 3 Tahoe Domrer Nodhwoods Boulevard Norse Avenue Slalom Way 33 00 8" 1Y $ 155 $ 54.250 61 3 Tahoe Danner Snowpeak Way Northwood$Boulevard GC 5th Fairway Easement 1.575 8" 8" $ 125 $ 375,000 71 3 Tahoe Donner Easement Alder Creek Road Wolfgang Road yp0 8" $ 125 $ 196,876 72 3 Tahoe Donner Hillside Drive 13185 Hillside Drive W lfg Hillside Drive 1500 6" 8" $ 125 $ 62,500 74 3 Tahoe Donner Soivang Way 12967 Solvang Way Staghom Road 850 8" 8° $ 125 $ 209,375 75 3 Tahoe Donner $olvang Way Hillside Drive 12856 Solvang Way 700 8" 8" $ 125 $ 43,750 77 3 Tahoe Donner Oslo Ddve 11780 Oslo Ddve Winter Avenue 750 6. $ 125 $ 87,500 78 3 Tahoe Donner Julian Avenue Oslo Drive Boulevard rd 4 8' 8"8• $ 125 $ 93.750 79 3 Tahoe Donner TO Golf Course Condos Northwood,Boulevard Northwood,Boulevard 1650 g• $ 125 $ 59,375 8" $ 125 $ 208,250 54,425 Subtotal $6,452,875 Engineering&Administration(10%) $ 645,288 Contlngency(10%) $ 645,288 Total $ 7,743,450