Ord 0228 07/2024ORDINANCE NO. 228
ORDINANCE OF THE VALLECITOS WATER DISTRICT
ESTABLISHING A COST RECOVERY OVERHEAD RATE FOR
FISCAL YEAR 2024-25, AND REPEALING ORDINANCE NO. 224
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 2024/25 is hereby
established as 204% 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.
Ordinance No. 228 Page 2
All other Ordinances, Articles or Sections of Ordinances in conflict with this
Ordinance are hereby repealed.
This ordinance shall be effective upon adoption.
PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Vallecitos
Water District at a regular meeting held this 17th day of July, 2024, by the following roll
call vote:
AYES: ELITHARP, GROSET, HERNANDEZ, PENNOCK
NOES:
ABSENT: BOYD-HODGSON
ABSTAIN: �J
Ja Pennock, Vice -President
Brd of Directors
k%allecitos Water District
ATTEST:
umpel, Secreta
oard of Directors
Vallecitos Water District