~~ ~, 25407
Approval to appo~t COnmtssioner
Tetz to the C~t~ on the Recision
oĢ the Kerr County Ern-site Sewage
Rules and Regulations with UGRA
June 3p, 1998
Vol V Page 692
ORDER N0. 25407
APPROVAL TO APPOINT COMMISSIONER LETZ TO
THE COMMITTEE ON THE REVISION OF THE KERR
COUNTY ON-SITE SEWRGE RULES AND REGULATIONS WITH UGRA
On this day the 30th day of June, 1998 upon motion made by
Judge Denson, seconded by Commissioner Baldwin, the Court
unanimously approved by a vote of 4-0-0„ to appoint
Commissioner Letz to the committee on the revision of the Kerr
County On-Site Sewage Rules and Regulations with UGRR.
RE: UGRA/Kerr County Joint Meeting
The attached document is a five cohurm spreadsheet indicating the current budget year operations
with the County and four (4) proposed alternatives for discussion.
The overhead factor of $57,387 is based on .814 of direct salaries and overhead related to the
support of the direct cost to deliver the program The overhead factor of $57,387 is determined
by dividing the indirect salaries by the direct salaries, or $228,288 _ 280,612 = .814 direct cost
factor. The methodology used is by the U. S. Department of Health, Education and Welfare for
outsourcing contracts with other governmental providers.
Duect cost for the overhead factor on page 3 of 7 is determined by multiplying the .814 factor by
the salaries of one fiili time inspector, one fiill time clerk and 50% of a supervisor's salary at a
gross pay of $70,500, or $57,387.
Indirect expenses related to the OSSF/FP Program, which include salaries of the General
Manager, Administrator Services Manager, Accounting Clerk, Data Processing Clerk,
Receptionist and other incidental support staff office space, office furniture, office equipment,
lighting, air conditioning, restrooms includmg supplies, janitorial service, computer hardware and
software services and purchases, office supplies, communications ranging from telephone to
Internet and web page, etc.
Of the induect salaries, the General Manager's is the largest contribution, in that all grievances are
filed with the General Manager first, as well as requests for variances and other disputes between
the homeowner, the installer and/or designer.
The spreadsheet in column one (preliminary proposed budget for 1999) examines the program
budget for 1998 FY (without changes to the program) and indicates a revenue estimate of
$94,405. This estimate includes a $30,000 subsidy, as per the existing contract. In actuality, the
County increased the $35,000 by $5,000 only for FY 1998. There is a direct cash shortfall of
$23,498, which UGRA will have to fund from its revenue stream With the indirect cost of
$57,387 added m, UGRA's potential loss for FY 99 is $80,885.
29 June, 1998 Page 1 Of 4 drs
c:ldebbiebnemos~nemoshe-jtb.doc
To: UGRA Board of Directors
Cohunn 2 suggests an arrangement which allows the permit fees to remain the same as in Fl' 98,
but with the restoration of the County subsidy back to $40,000. UGRA realizes a smaller
$13,498 shortfall and, with induect costs added, a $70,885 shortfall.
Cohmm 3 suggests an increase in subsidy to $50,000, with all fees remaining static and a smaller
revenue shortage of $3,498 and a $60,885 shortfall, with overhead applied.
Column 4 suggest the doubling of all fees and a reduction in the subsidy paid by the County to
$30,000. This produces significant revenue to produce a $40,909 income over direct expenses,
but with the inclusion of the $57,387 indirect cost produces a $16,478 overall shortfall.
Colunm 5 suggests a combination of 100% fee increase and a subsidy of $46,478, which
generates a revenue stream sufficient to cover the indirect cost as well as the duect cost for the
program UG)3A would not be required to subsidize any part of this scenario.
In reality, columns 1 and 5 are probably not politically acceptable for either entity (the General
Manager's opinion). Column 1 would require UG1tA to increase taxes (significantly to meet the
direct cost), while column 5 would require a doubling ofthe fees by the Commissioner's Court.
The General Manager's concern regarding the doubling of the fee would encourage more bootleg
systems, which in turn would require additional manpower just to police the activity. UG1tA,
with the new licensing requirements for installers effective 8/1/98, anticipates an increase in illegal
installations throughout the county.
Charts of the proposed fee increase and revenue generations will be a part of the staff's
presentation Tuesday. Also available will be the preliminary proposed budget for FY 99.
NOTE: Salary adjustments are not included in this preliminary proposed budget since the UGRA
Board usually does not indicate salary ranges until its August budget meeting.
Enclosures - 1 each 5 column spreadsheet
cc: Kerr County Commissioners Court with enclosure
19 June, 1998 Page 2 of 4 ~
c: ~debbiebnemos'memoshel~b.doc
UPPER GUADALUPE RIVER AUTHORITY
CONSOLD)ATED REVENUES AND EXPENDITURES
FISCAL YEAR 1999
FY 1999
DEPARTMENT:	07	07	07	07	07
Source:	OSSF/FP	OSSF/FP	OSSF/FP	OSSF/FP	OSSF/FP
43205
43410	Few, Permits/Licensee
Kerr Cowty Subsidy	564,405
530,000	564,405
540,000	564,405
550,000	E128,812
530,000	E128,8l2
346,478
TOTAL REVENUE	594,405	5104,405	5114,405	5158,612	5175,290
DEPARTMENT:	07	07	M	07	07
Expenditure:	OSSF/FP	OSSF/FP	OSSF/FP	OSSF/FP	OSSF/FP
63100	Persowel Services	89,400	89,400	89,400	89,400	89,400
63200	Openlional Supplies	5,313	5,313	5,313	5,313	5,313
63300	Repairs & Maintenance	1,905	1,905	1,905	1,905	1,905
63400	Outside Services	11,935	11,935	11,935	11,935	11,935
63500	Other Services & Charges	6,285	6,285	6,285	6,285	6,285
63600	Bwde, Insurance & Relsted	1,065	1,065	1,065	1,065	1,065
73900	Capital Expenditures	2,000	2,000	2,000	2,000	2,000
	SUETOTAL DII2ECT EXPENDITURE	117,903	117,903	117,903	117,903	117,903
	REVENDES OVER / (UNDER) DIRECT EXPENDITURES	(23,498)	(13,498)	(3,498)	40,909	57,387
	ADD OVERHEAD APPLIED at .814 of DIRECT SALARIES''	57,387	57,367	57,387	57,387	57,387
	TOTAL PROGRAM COST - INCLUDING OVERHEAD	5175 290	5175 290	5175 290	5175 290	5175 290
REVENUES OVER / (UNDER) TOTAL PROGRAM COST -INCLUDING OVERHEAD ($80,885) (570,985) (560,885) (516,478) $0
OPTION 2: Increase subsidy from Kerr Cowty by 510,000
OPTION 3: Increau subsidy from Ketr Cowty by 520,000
OPTION 4: Raise All OSSF / FP few 100
OPTION 5: Optiw 4 sad additional 516,478 subsidy from Kert Cowty to cover operating shortfall
•• see indirect coe[rate proposal (sheet attached)
FOOTNOTES
10% of SralfEme eaNruted W be spent on Floodplem relered umea.
overhead of SS],38] u compared be mulfiplying the OH factor of D eld by Duecr Seleriea of 5]0,500 (Snpe~wory+Tectudcal+Qencap.
Kerr Co,mty Subsidy rated an FY 1999 Revenues n per contract.
m:9roa
Py99 Ptracp, CowfyDrogav J e(] CCa