Page 63 - Yucaipa Valley Water District

Director Memorandum No. 17-067 Page 3 of 6

RESOLUTION NO. 2017-20

A RESOLUTION OF THE YUCAIPA VALLEY WATER DISTRICT UPDATING THE
METHODOLOGY USED TO CALCULATE EMPLOYEE BENEFIT, ADMINISTRATIVE
OVERHEAD, AND SURCHARGE FACTORS FOR COST RECOVERY OF CERTAIN
SERVICES PROVIDED BY THE DISTRICT

WHEREAS, the Yucaipa Valley Water District regularly invoices property owners and
developers on a time and material basis to recover costs associated with specific work
associated with various projects; and,

WHEREAS, a portion of the time and material cost charged to a project requires a
specific methodology to determine employee benefits, administrative overhead, and bill
processing surcharges.

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors, that the Yucaipa
Valley Water District does hereby establish the following factors to be used in the calculation of
charges for time and material based services:

1. Employee Benefit Factor: The Employee Benefit Factor shall be 49.1%. Attachment
“A” illustrates the manner in which the Employee Benefit Factor was calculated.

2. Administrative Overhead Factor: The Administrative Overhead Factor shall be 13.6%.
Attachment “A” illustrates the manner in which the Administrative Overhead Factor was
calculated.

3. Administrative Surcharge: An Administrative Surcharge equal to 1.5% shall be applied
to all outside service charges generated by consultants and contractors for all District
related projects.

4. Benefit & Overhead Calculation Methodology: Attachment “B” illustrates how the factors
established above will be used to calculate total project cost.

5. Hourly Labor Rates: The calculated hourly labor rate shall be updated on a regular
basis to reflect the sum of the range maximum in effect for each job position plus the
benefit factor plus the overhead factor as provided in Attachment “B.”

This resolution should take effect immediately and shall apply to all active and future projects.

Yucaipa Valley Water District - August 1, 2017 - Page 63 of 76