DATE: June 22, 2021
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director, Internal Services/Chief Information Officer
SUBJECT: Amendment to the Master Schedule of Fees, Changes, and Recovered Costs Section 3800 - General Services
RECOMMENDED ACTION(S):
TITLE
Conduct second hearing on and adopt the Master Schedule of Fees, Charges, and Recovered Costs Ordinance by amending Section 3800 - General Services, subsections 3804 - Badge Identification, Hirsch Security System, 3809 - Fleet Labor Rate, 3810 - Motor Pool Car Rental, 3811 - Fuel Tank Inspection Rate, 3812 - Building Maintenance Labor, and 3813 - Janitorial Labor; waive the reading of the Ordinance in its entirety.
REPORT
Approval of the recommended action will revise Section 3800 - General Services of the Master Schedule of Fees, Charges, and Recovered Costs (MSF) Ordinance, based on the anticipated Internal Services Department (ISD) - Security, Fleet, and Facility Services costs for FY 2020-21. The proposed rate increases will be used for recovery of costs of certain services provided by ISD - Security, Fleet, and Facility Services to user departments and other public agencies. This item is countywide.
ALTERNATIVE ACTION(S):
Your Board may direct ISD to leave the current fees, or a portion of the current fees unchanged, or propose alternative fees, however, these alternatives may not recover full costs of services.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. Charging the proposed rates for services rendered to user departments and other public agencies will result in the collection of a portion of the revenues needed to operate these three separate Internal Services Funds (ISF) for FY 2021-22. Those funds are:
Fund 1000, Fleet Services, Org 8910 - 8911
Fund 1035, Security Services, Org 8970
Fund 1045, Facility Services, Org 8935
The rate increases, which range from 1.34% to 8.72%, are due to a variety of factors, including salary and benefit increases, and necessary replacement of outdated equipment. The sole exception to this is subsection 3804 - Badge Identification, Hirsch Security System, which is a rate decrease of 0.42%.
DISCUSSION:
On July 8, 2021, your Board conducted the first hearing to amend Section 3800 - General Services of the MSF Ordinance. As an ISF department, ISD, which manages these three funds, must recover all operating expenses by charging user departments and public agencies for services ordered and rendered.
The proposed amendments to the Ordinance, if adopted by your Board, would update rates for Section 3800 - General Services, subsections 3804 - Badge Identification, Hirsch Security System, 3809 - Fleet Labor Rate, 3810 - Motor Pool Car Rental, 3811 - Fuel Tank Inspection Rate, 3812 - Building Maintenance Labor Rate, and 3813 - Janitorial Labor. Attachment A, Summary of Proposed Revisions of Fees, illustrates a comparison between the proposed rates and the current and former rates for the two preceding budget years (FYs 2019-20 and 2020-21) for those subsections recommended for amendment.
Subsections 3801 and 3802 of Section 3800 will remain unchanged.
Increases in labor rates for Fleet Repair, Building Maintenance, Security, and Janitorial Services lead to changes from the current rates to the recommended increased rates.
The recommended rates, including the calculation and methodology applied for cost recovery, are currently under review by the Auditor-Controller/Treasurer-Tax Collector (ACTTC). Should the ACTTC find material errors in the rate development, ISD will return to your Board for an adjustment at that time.
If adopted by your Board, the recommended rates will take effect July 22, 2021.
REFERENCE MATERIAL:
BAI #6, June 8, 2021
ATTACHMENTS INCLUDED AND/OR ON FILE:
Attachment A
Ordinance
CAO ANALYST:
Sonia M. De La Rosa