Ord 0224 07/2023ORDINANCE NO. 224
ORDINANCE OF THE VALLECITOS WATER DISTRICT
ESTABLISHING A COST RECOVERY OVERHEAD RATE FOR FISCAL YEAR 2023-24,
AND REPEALING ORDINANCE NO. 220
WHEREAS, the Board of Directors of the Vallecitos Water District (District) wishes to
recover all direct costs and expenses associated with services provided by the District,
development expenses and repair costs of damaged facilities; and
WHEREAS, on August 21, 2013, the Board of Directors accepted the District's Cost
of Service Study, "Water Validation, Cost of Service & Rate Design Analysis; Wastewater
Validation & Rate Analysis; Miscellaneous Fees & Overhead Rate Analysis (Report)", which
established the methodology for calculating the overhead rate identified below; and
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE
VALLECITOS WATER DISTRICT AS FOLLOWS:
SECTION 1, DIRECT COST RECOVERY: Direct costs and expenses incurred by the
District such as legal services, permits, reproduction services, consulting engineers and
other professional services shall be recovered at direct costs only and the administrative
overhead charge shall not apply.
SECTION 2, ADMINISTRATIVE OVERHEAD CHARGE: All direct labor costs and
services provided on a time and material basis, by the District, are subject to the
Administrative Overhead Charge. The charge for Fiscal Year 2023/24 is hereby established
as 207% of the total direct labor costs. This charge will not apply to services provided on a
fixed fee basis.
SECTION 3, ADMINSTRATIVE OVERHEAD CALCULATION: The overhead rate
shall be calculated concurrent with adoption of the annual budget by the Board of Directors
and utilize the following methodology:
Budgeted indirect costs and employee benefits
Direct labor costs
SECTION 3, EQUIPMENT USAGE CHARGE: All services provided by the District
which District owned equipment is used and are charged on a time and material basis will
be subject to an Equipment Usage Charge. The charge is hereby established as a per hour
rate in accordance with the current State of California, Department of Transportation,
Division of Construction Equipment Rental Rates and shall be included in the final actual
cost determination. Direct rental costs for other equipment shall be recovered based upon
actual expenses. This charge will not apply to services provided on a fixed fee basis.
All other Ordinances, Articles or Sections of Ordinances in conflict with this Ordinance
are hereby repealed.
Ordinance No. 224
This ordinance shall be effective upon adoption.
Paae 2
PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Vallecitos
Water District at a regular meeting held this 19th day of July, 2023, by the following roll call
vote:
AYES: BOYD-HODGSON, GROSET, HERNANDEZ
NOES:
ABSENT: ELITHARP, PENNOCK
ABSTAIN:
ames Herna ez, President
Board of Directors
Vallecitos Water District
ATTEST:
mes Gumpel
Assistant General Manager
Vallecitos Water District