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g •8i - 53 <br /> • The costs for SBSA administration and management of the Recycled Water Program <br /> activities will be recovered by applying an SBSA overhead mark-up to the direct <br /> costs incurred by SBSA in implementing and operating the Recycled Water Program. <br /> The SBSA will not charge, as direct costs, for activities of the Commission, Attorney, <br /> Controller/Treasurer, Manager, Support Services Department Manager, and all other costs <br /> related to activities of the Support Services Department. These costs will be recovered by the <br /> overhead mark-up percentage that will be applied to all direct costs charged to the Recycled <br /> Water Program. <br /> The SBSA overhead markup percentage to be applied will be determined as follows: <br /> A. The O&M overhead percentage shall be determined by dividing the amount of the <br /> SBSA Support Services Department budget for the fiscal year allocated to O&M services by the <br /> overall SBSA O&M budget for that fiscal year. <br /> B. The Capital overhead percentage shall be determined by dividing the amount of <br /> the SBSA Support Services Department budget for the fiscal year allocated to Capital services by <br /> the overall SBSA Capital budget for that fiscal year. <br /> C. The amount of the Support Services Department budget allocated to Capital shall <br /> be determined by: <br /> Step 1. Identifying the amount budgeted to SBSA Capital Improvement <br /> Program support by the Manager, Attorney, and Support Services Staff <br /> (CIP Specific Costs). <br /> Step 2. Subtracting the CIP Specific Costs from the Support Services <br /> Department total budget. <br /> Step 3. Multiplying the remainder of Step 2 by 5%. (5% represents the <br /> percentage of the Support Services Department budget, less the CIP <br /> specific costs determined above, that is allocable to Capital) <br /> Step 4. Adding the product of Step 3 to the CIP Specific Cost sum in Step 1. <br /> Example based on FY 2004-OS budget: <br /> Assume overall Support Services Department budget is $1,906,074 <br /> Assume that the identified CIP Specific Costs (Step C.1 above) is $60,448 <br /> Step 1: $1,906,074 - 60,448 = $1,845,626 <br /> Step 2: $1,845,626 x 5% _ $92,281 <br /> Step 3: $60,448 + $92,281 = $152,729 <br /> August 1, 2004 3 of 4 <br />