Cal. Code Regs. tit. 17 § 58552

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 58552 - Cost Information

(a) The vendor shall submit the following information for the projected allowable costs for a 12 month period to the regional center on the Form DS2 (7/91), entitled Transportation Cost Statement, if the costs will be incurred by the vendor and are necessary for the provision of transportation service:

(1) Salary and wage expense which shall include:

(A) Total gross salaries and wages, including overtime; and

(B) Cash outlays for employees' accrued vacation.

(2) Fringe benefit costs which shall be limited to the following:

(A) Old Age Security Disability Insurance (OASDI) or Federal Insurance Compensation Act (FICA);

(B) Workers' Compensation;

(C) Unemployment insurance;

(D) Life insurance;

(E) Health insurance;

(F) Dental insurance;

(G) Retirement;

(H) Vision insurance;

(I) Employee Training Tax as specified in the California State Unemployment Insurance Code Section 976.6; and

(J) Long-term disability insurance.

(3) Operating expenses which shall not duplicate other projected allowable costs and shall be limited to the following cost categories:

(A) Accounting fees of the vendor for the establishment and maintenance of accounting records and other information systems required for the fiscal management of the vendored service;

(B) Bank service fees of the vendor;

(C) Communication costs for services including telephone, telegraph, teletype, centrex, telepak, postage, message services, facsimiles and Telecommunications Devices for the Deaf (TDD);

(D) Contractual/consultant fees for transportation service operations that do not have a specific cost category;

(E) Depreciation costs, except for vehicles which are covered under subsection (a)(6) below. The following items shall be depreciated using the straight-line depreciation method and the useful life of the item. The useful life of an item shall be the same as that which is used for federal tax purposes.

1. Facilities or buildings purchased by the vendor, which are directly related to providing transportation services to regional center consumers;

2. Furniture and equipment which has been purchased by the vendor, and is associated with the provision of transportation services to regional center consumers, has a unit acquisition cost of at least $500 and a normal useful life of at least four years; and

3. Capital improvements that add to the value or useful life of the building, facility or equipment. Capital improvements shall be treated as a permanent investment to be added to the cost basis of the building or equipment and charged to depreciation.

(F) General expense costs for the following items, only if projected to be incurred as a result of providing transportation services to regional center consumers:

1. Furniture and equipment which do not meet the criteria specified in subsection (E)2. above;

2. Interest on loans attributable to the vendored service;

3. Subscriptions for periodicals which are used in the operation of the transportation services or for the purpose of staff development;

4. Staff recruitment costs including:

a. Staff screening costs, such as fingerprinting prospective employees; and

b. Staff hiring costs which shall include the costs for physical examinations or other health and safety costs that may be required prior to employment.

5. Fees for licenses, certifications, registrations or permits, if necessary for vendorization or the continued operation of the transportation service subsequent to vendorization;

6. Association dues or fees;

7. Costs for providing or preparing information requested by the regional center which is related to the transportation service and is used as general information to the consumers or to the authorized consumer representatives;

8. Local business fees or taxes;

9. Costs related to inoculations or clinical tests of an employee, for the employee's or consumer's health and safety; and 10. Fuel and oil.

(G) Janitorial fees;

(H) Legal fees;

(I) Office supply costs;

(J) Rental and lease costs. On a lease-purchase, while the item is being leased, the cost shall be reported under this category. When the option-to-purchase has been exercised, the residual value of the item shall be depreciated and shall be reported, as applicable, under subsection (E). Rental and lease costs shall apply to the following items:

1. Furniture and equipment;

2. Buildings and terminals; and

3. Vehicles.

(K) Staff training costs for in-service training and employee development which are related to transportation service;

(L) Staff travel costs which are specifically related to the administration of the transportation service;

(M) Utility costs such as gas, electricity, water, garbage, and sewer fees.

(4) Insurance costs which shall include all projected costs for liability insurance associated with conducting the transportation service. Insurance costs shall not include any cost specified in subsections (2)(A) through (J) above;

(5) Maintenance costs which shall include costs for repair or upkeep of furniture, equipment, vehicles, buildings or grounds when the repair or upkeep does not add to the permanent value but maintains the item in an efficient operating condition;

(6) Vehicle depreciation costs for vehicles owned by the vendor which shall be calculated by using the straight-line depreciation method and the minimum normal service life specified below. Vehicles which have been purchased using a combination of funds obtained through Section 16(b) 2 of the Urban Mass Transportation Act of 1964, 49 United States Code, Section 1612(b), and funds from the vendor, shall only be depreciated for the portion of the costs incurred by the vendor. The minimum service life for:

(A) Standard size heavy duty (approximately 35' - 40') transit buses is at least 12 years of service or an accumulation of at least 500,000 total miles on the vehicle;

(B) Medium size heavy duty (approximately 30') transit buses is at least ten years of service or an accumulation of at least 350,000 total miles on the vehicle;

(C) Small size heavy duty (under 30') transit buses is at least seven years of service or an accumulation of at least 200,000 total miles on the vehicle. A 16-passenger bus shall be considered a small medium duty transit bus and not a van; and

(D) Other vehicles such as regular and specialized vans and cars is at least four years of service or an accumulation of at least 100,000 total miles on the vehicle.

(7) Management organization costs which:

(A) Shall include the vendor's prorated portion of the projected allowable costs specified in subsections (a)(1) through (6) above.

(B) Shall not include:

1. More than 100 percent of the allocated costs of the management organization costs;

2. Costs applicable to or claimed by other services operated by the vendor.

Cal. Code Regs. Tit. 17, § 58552

1. New section filed 9-26-91; operative 9-26-91 pursuant to Government Code section 11346.2(d) (Register 92, No. 10).
2. Change without regulatory effect amending subsections (a)(3)(E)1.-2., (a)(3)(F), (a)(3)(F)7. and (a)(3)(F)9. filed 1-17-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 3).
3. Amendment of subsections (a)(3)(F)2. and (a)(6)(A)-(C), redesignation of subsections (a)(7)(B)(1)-(2) to (a)(7)(B)1.-2. and amendment of newly designated subsection (a)(7)(B)2. filed 4-25-2000; operative 5-25-2000 (Register 2000, No. 17).

Note: Authority cited: Sections 4405, 4631 and 4690.1, Welfare and Institutions Code; and Section 11152, Government Code. Reference: Sections 4631 and 4690.1, Welfare and Institutions Code.