Supersedes Executive Memorandum P86-4
The California State University Board of Trustees responded in 1983 to specific action of the legislature of the state of California by directing that each campus develop a full chargeback system for all new construction, remodeling, alterations or other work not classified as maintenance work performed by Plant Operations. The following supersedes chargeback policy contained in Executive Memorandum P86-4.
CSU directive BA 84-25, Implementation of Trustees' Resolution RA 9-83-057, dated July, 25,1984, states that each campus will develop a chargeback system, and campus policy and procedures must ensure the return of all costs to the Plant Operations budget. In addition to direct costs, the directive authorizes reimbursement for overhead or indirect costs, including those related to administrative processing, estimating, supervision, and use of equipment and vehicles.
Plant Operations is responsible for the maintenance and operations of the campus grounds and facilities funded by General Fund budget allocation. In addition to maintenance and operation, Plant Operations is responsible for the oversight of all changes to campus grounds and facilities, including new construction, renovation, change of utilization, alteration, and installation of equipment. Plant Operations performs the work in house or via contracted services as a chargeback to the requesting party.
Baseline Maintenance and Operation is provided at no cost for State funded academic facilities utilized by the University. Baseline services include maintenance and operation of electrical, water, gas, heating, ventilation, air-conditioning, plumbing and sewage systems, and elevators; basic building components including foundations, walls, roofs, stairs, ceilings, floor coverings, wall coverings, paint, doors, locks, and windows; hardscape such as sidewalks, steps, curbs, and benches; and grounds and landscape.
Baseline maintenance and operation is not provided to facilities owned and operated by Enterprise Funds (Housing, Parking, Continuing Education) and Auxiliary Organizations (University Center, Associated Students, Humboldt State University Foundation). A complete list of Excluded Campus Facilities is contained in attachment C.
Chargeback Service is rendered by Plant Operations to requesting campus departments for work not covered by baseline maintenance and operation or general fund budget allocation. This work includes new construction, alterations, remodeling, fabrication and installation of equipment or furnishings, maintenance of department equipment, supervision and inspection of department work. The charge to the requesting department will include all labor, benefits and materials as well as administrative overhead costs.
Examples of chargeback services include:
Work Orders for certain minor support work valued at less than $200 will be charged to the University Account instead of the requesting department. (See attachment B for the University Account policy.)
All work done by Plant Operations is initiated and subsequently tracked via a Work Request. Requests for chargeback work are submitted to Plant Operations on a Work Request form via Fax (5888) or campus mail (a web based work request will soon be available).
To request a service without an estimate, check the appropriate boxes, give a detailed description of the service required (use additional pages as needed) and provide both an account number and an authorizing signature. Work will not be started without an account number and the signature of someone authorized to encumber department funds.
To request an estimate, check the appropriate box on the work request and do not provide an account number. Plant Operations provides two types of Estimates: Budget Estimates and Firm Quote estimates. Budget Estimates are provided for departmental planning and budgeting purposes only. Plant Operations does not produce drawings and specifications or specific planning for budget estimates. Budget Estimates are not binding on Plant Operations.
Firm Quote estimates are provided to departments and usually entail detailed planning, drawings and specifications. Plant Operations will endeavor to perform the work via the lowest cost method. In-house work is generally the lowest cost method, however Plant Operations staff may not always have the requisite skills or be able to complete the work in the time frame required by the department. In these cases the work will be contracted out. Plant Operations uses a contingency in its estimate but in no event will the requesting party be charged more than the actual cost of the work. Any revisions to scope by the department or undiscovered conditions should be formalized by a Change Order Request with authorizing signature.
Plant Operations will not schedule any work or seek bids until a signed work request is received. Estimates are provided in the order work requests are received. Plant Operations annually issues a memo with cut-off dates for submission of work requests to be completed prior to the close of the fiscal year.
Before a department submits a request for work that changes the internal or external configuration of buildings or grounds, the classification of space, or environmental health and safety, it needs to consult with Physical Services at 4111.
The authorizing department will be billed for both direct and indirect cost associated with performing the work. Direct costs consist of the materials and labor. The materials charge includes tax, shipping and handling charges. The labor rate is calculated for each job class at the beginning of the fiscal year based on CSU systemwide directive BP 86-69, Staff benefits-billing rates for Services of General Fund Employees, dated September 29, 1986 as required by SAM section 8740.
All indirect costs are combined into a single overhead charge. Elements of this combined charge are: labor and benefits cost of the employees supporting and supervising chargeback work (attachment A), costs for vehicles used in support of the work and the miscellaneous materials used in performing chargeback work (not billed directly to a work order). The overhead charge is calculated as a percentage of the total direct costs and is added to the work order. The overhead charge is computed yearly based on the past fiscal year experience.
Attachment A: Administrative Staff and Managers supporting Chargeback Work.
Attachment B: University Account policy.
Attachment C: Excluded Campus Facilities and Departments
Administrative Staff and Managers supporting Chargeback Work
The University maintains an account at Plant Operations for the performance of work with an estimated cost less than $200. The following work will be charged to this account instead of to the requesting department.
The above pertains to general fund programs only. All others pay actual charges.
The spirit of this policy is not to substitute for or augment minor capital, renovation or new construction projects, but rather fulfill smaller incidental work site related needs for individual faculty and staff members.
* Excludes charges for lost keys or rekeying of buildings because of lost keys. These are handled through the campus key policy.
Maintenance work performed in the following excluded Campus Facilities and Departments is subject to chargeback for services.