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2002 Computer Technology RatesCITY MANAGER'S OFFICE Jason A. Gage Assistant City Manager 300 West Ash · P.O. Box 736 Salina, Kansas 67402-0736 Salina TELEPHONE · (785) 309-5700 FAX · (785) 309-5711 TDD · (785) 309-5747 E-MAIL-iason.c]aqe~salina.or,q WEBSITE . www.ci.salina.ks.us TO: FROM: DATE: RE: Rod Franz Rita Deister Lieu Ann Nicola Jack Rolfs Jason Ga~'/ December 11,2002 COMPUTER TECHNOLOGY TRUE-UP FOR 2001 The MAXIMUS Rate Study for 2003 includes a true-up amount of $98,793 for under billings during 2001. That amount needs to be billed to Saline County and is due by January 15, 2003. The Rate Study for 2003 lists the total billing as $400,993 for 2001. That should be billed as $33,416.08 monthly during the calendar year 2003. Staff is still negotiating with Saline County for a billing structure and service rates for 2003. This will be finalized through an Interlocal Agreement with Saline County as approved by the City Commission. Please contact me if you have any questions. Attachment: MAXIMUS Rate Study Letter Dated May 2, 2002 May 2, 2002 MAXIMUS HELPING GOVERNMENT SERVE THE PEOPLE* Mr. Joe Paugh Director of Computer Technology CITY OF SALINA 300 West Ash Salina, Kansas 67402 Dear Joe: Enclosed please find two copies of the draft rate study for the City of Computer Technology Department. The study is based upon actual fiscal year 2001 information. The results are presented in three sections based upon the services provided by the Information Services Department. These sections are: 1) Saline County System Usage Costs 2) Programmers' Compensation and 3) PC Technicians' Compensation. The total County-share of costs for att services during 2001, excluding any roLL-forward amounts, has been calculated as $400,993 vs. $380,941 in 2000. Although the total County-share is up 5.2% over last years calculation, this amount seems reasonable considering the slightly increased share of 'System' usage coupled with the fact that the County utilized 325.25 more Programmer and PC Technician hours during 2001: 2001 2000 Service Hours Percenta~le Hours Percentage System Usage n/a 44.31% n/a 43.79% Programmer Usage 1,545.75 28.58% 1,955.25 39.75% IPC Tech Usage 2,439.50 33.35% 1704.75 27.53% The following paragraphs provide an executive overview of the results for each section. We have attached tables and graphs that provide an in-depth look at costs in each section. In addition, we have enclosed the detailed rate study. It should be noted that the methodology we utilized to distribute costs is consistent with that which we use to determine the Saline County jail rate. Section I - Saline County System Usage Costs Our study identified $264,548 ($22,045.67 per month x 12 months) of costs associated with SaLine County's share of system usage. This share is based on the fact that Saline County uses 44.31% of file storage and devices on the system. Costs of system usage include salaries, benefits, employee related expenses, hardware maintenance contracts and indirect overhead costs from City departments. Direct costs amounted to $257,740 (97.43%), with indirect costs totaling $6,808 (2.57%). 940 N. TYLER ROAD. SUITE 204 ° WICHITA, KS 67212 ° 316. 729.0732 ° FAX 316. 729.0733 Section II - Pro~Jrammers' Compensation Programmers provide support to Saline County on an individual project basis, as well as through genera[ systems support. Our study identified an hourly rate of $39.59 for the Pro]rammers. Costs in the hourly rate include salaries, benefits, employee related expenses, hardware maintenance contracts, and indirect overhead costs from City Departments. Our study relied upon departmental time sheet documentation, which identified 1,545.75 billable hours associated with support provided direcUy to Saline County by the Programmers. Based on the above hourly rate and biLLable hours, the total costs associated with providing Programmer support to Saline County amounts to $61,213 annually (or $5,101.08 per month). Direct costs associated with this County programming amounts to $43,049 (70.33%), with indirect costs totaling $18,164 (29.67%). The portion of the Programmers' annual costs associated with shared systems or not directly identifiable to a specific user have been included in the system costs, and spread based upon total systems usage. Section III- PC Technicians' Compensation The results of our study calculate an hourly rate of $30.832 for the PC Technicians. Costs in the hourly rate include sa[aries, benefits, employee related expenses, hardware maintenance contracts, and indirect overhead costs from City Departments. Our study relied upon departmental time sheet documentation, which identified 2439.5 billable hours associated with support provided to Saline County by the PC Technicians. Based on the above hourly rate and billable hours, the total costs associated with providing PC Technician support directly to Saline County amounts to $75,232 annually (or $6,269.33 per month). Direct costs associated with County PC Technician support amounts to S53,582 (71.22%), with indirect costs totaling $21,650 (28.78%). The portion of the PC Technicians' annual costs associated with shared systems or not direcUy identifiable to a specific user have been included in the system costs, and spread based upon total systems usage. The true-up amount for under bi[lings during 2001 has been calculated at $98,793 (400,993 actual costs per this years plan less allowable biL[in]s of $302,200 during 2001). This represents the dollar amount that the County was under-biLLed by the City for services provided durin] 2001. MAXIMUS appreciates being of service to the City of Sa[ina, Kansas. Please do not hesitate to contact us if you have any questions or comments. Sincere[y, MAXIMUS, INC. Manager attachments MAXlMUS