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Home My WebLink About08/18/1992, C-2 - PHOTOCOPYING CHARGES TO THE GENERAL PUBLIC MEETING DATE: 41�►►�1I��i�S city of San lU1S OBISpo - z - No COUNCIL AGENDA REPORT MW NUMBER: FROM: Carolyn Dominguez, Accounting Manager SUBJECT: PHOTOCOPYING CHARGES TO THE GENERAL PUBLIC CAO RECOMMENDATION Affirm the City Council's earlier action in establishing the City's current photocopy charges to the general public, or examine and select an alternative to the City's present charge. DISCUSSION Background The Council adopted Resolution No. 7030 in September 1991 which established certain fees for City services based on a cost study performed by Vertex Cost Systems. The study recommended cost recovery for various services based on actual labor, material, equipment, and indirect costs. Included in this study was a recommended fee for photocopying data for the general public. At the July 7, 1992 Council meeting, staff was directed to provide a report concerning the rationale and basis for the current per page charge for photocopies provided at the request of the public. Key Elements of Review The rationale for the City's fee structure was reviewed using two techniques: an analysis of labor and materials costs incurred in making copies for the general public, and a survey of what other agencies charge for similar services. Cost Recovery Attachment 1 details the results of the analysis of labor and material costs in photocopying documents for the general public.The City Clerk's office makes approximately 60 copies per day at the request of the public.These photocopies include past agendas,deeds,and Council minutes. An average of 1.5 minutes per request is spent performing this service. Based on the mid-range salary for an Office Assistant I position, the average labor cost per unit is $0.38. The cost of materials and equipment was also evaluated to determine a per page cost. The purchase price of copy machines was amortized over an estimated useful life of 4 years and allocated to a per page cost. Maintenance and copy machine supplies, such as toner, are currently contracted for with two vendors depending on the type of copy machine. These contracts are on a "per copy" basis and currently averages $.01625 per page. In addition, a 15% indirect cost ratio has been applied. Therefore, with labor, materials, and indirect costs, the total cost for photocopying service is $0.50 per page. ,y city of San lues OBISPO COUNCIL AGENDA REPORT Results of Survey Attachment 2 details the results of a telephone survey conducted to see what other governmental agencies were charging for photocopy services. As indicated, some cities charge one fee for the first page and a different rate for subsequent pages. San Luis Obispo is the only entity that charges a different rate for legal size copies. The survey shows that San Luis Obispo at $.25 per copy is charging significantly lower than the average for the first page copied. However, because of the rate differential for subsequent copies offered by other entities, we average incrementally higher as the number of pages increases. For example, if a document was only one page in length the charge imposed by the City of San Luis Obispo is 44% lower than the average. If three pages are photocopied, the average cost would be $.87 compared to $.75 at the City of San Luis Obispo, (13.8% lower than the average). Similarly, if a document were 10 pages in length, the average cost would be $2.34 compared to a $2.50 City charge, 6.8% higher. Cost Recovery Policy The current photocopying charge is consistent with our current cost recovery policy(1991-93 Financial Plan, page B-17). The following is a summary of key factors identified in the cost recovery policy supporting this conclusion: Policy B.1 (User Fee Cost Recovery Levels) The level of user fee cost recovery should consider the community-wide versus special service nature of the program or activity. The use of general purpose (tax) revenues is appropriate for community-wide services, while user fees are a1212rol2riate for services which are of special benefit to easily identified individuals or grouts. Policy D.3 (Factor Which Favor High Cost Recovery Levels) For equity or demand management purposes, it is intended that there be a direct relationship between the amount paid and the level and cost of the service received. FISCAL IMPACT Based on the Council goals of cost recovery, the City is charging less than the.$0.50 in labor, materials, and indirect costs incurred in making copies for the general public.At an average of 62,000 copies per year, the total cost to serve public requests is $31,000 for which we are currently recovering only $15,500. In effect, the City is subsidizing specific individual requests with $15,500 of General Fund monies. Although we talk about requests for photocopies from the "general public", it is typically the same, relatively small group of individuals who request copies of City documents. It is recommended that the City continue to employ some level of cost recovery strategy and retain the current rate structure for photocopies. ►►��ii�►Illlll�pn ��dlll city of san suis osispo i COUNCIL AGENDA REPORT ALTERNATIVES ■ Increase the photocopy fee to $.50. To achieve full cost recovery, the City should increase the charge for copies, based on the results of the study summarized on Attachment 1. ■ Decrease the fee to $.10 per page. While this is an arbitrary, and subsidized amount, it provides public documents to members of the public at the lowest cost. Cost reductions in other areas should be made to provide for this additional city cost. ■ - Increase the fee for the first page to $.50, and decrease the fee for subsequent pages to $.20. This would provide some first-page compensation for the cost of processing, and would be more in line with prevailing local agency practice. ■ Provide a coin operated copy machine in the lobby for public use. While the City would recover the material and equipment costs associated with a coin operated machine, the staff time to monitor the process would not be included. ■ Establish a fee schedule dependent on the type of document requested. A lower fee could be established for selected documents such as Agenda reports. ■ Eliminate all charges for photocopies. In the interest of demand management, this alternative is not recommended. If no reasonable charge exists, the requests for copies is anticipated to escalate significantly, resulting in an unmanageable demand on City resources.Additionally, considering the current fiscal climate,this alternative is even less attractive. SUMMARY In the interest of providing information to the general public, City documents are always available for public viewing at no fee. Once a specific request for a copy of a document is received, additional City resources in the form of labor and materials are utilized to meet that individual request. In light of the Council's adopted cost recovery policy, some level of fee for service should be maintained. An independent advisor, Vertex Cost Systems, determined in their study a reasonable fee for photocopies that Council approved in September 1991. Based on staff's analysis, the current fee structure is lower than the total cost per page incurred when providing photocopy services and is indeed more than reasonable. ATTACHMENTS 1. Copy Charge Analysis - Time and Materials 2. Survey of Copy Charges - Other Institutions The Vertex cost allocation study is on file in the Council Office. (Maps and Publications Section). e - �j SAN LUIS OBISPO COPY CHARGES `:`:» Letter;Size :a:;:<>Lega1 Size:'. Personnel Costs Umt Cost Unit Cost Clerk Office Asst. I 15.38 per hour Average time per request .025 hours Cost per request $0.38 $0.3800 $0.3800 Material&Equipment Costs Copier-Depreciation 0.0366 0.0366 Maintenance& Materials 0.0163 0.0163 Paper 0.0054 0.0070 Total Materials Cost 0.0582 0.0598 Total Direct Costs $0.44 $0.44 Indirect Cost Allocation ® 15% 0.0657 0.0660 TOTAL COSTS $0:50 $0.51 WORKSHEETS Per Copy Monthly Avg#Copies Maintenance&Materials #Copies Charge Cost Per Year June Copies - 8 Cannons 21,845 0.0216 471.85 - 11 Minoltas 76,282 0.0109 831.47 Total 98,127 $1,303.33 Average per Machine 5,165 0.01625 61,975 Purchase/Depreciation Charge Unit Cost 6/91 - 4 Minoltas $35,900 $8,975 2/91 -6 Minoltas $54,965 $9,161 Total/Avg. Cost $90,865 $9,068 Estimated Useful Life -4 Years e-C1 SURVEY OF COPY CHARGES Letter:Sue Lzgal Size Fust Page. Additional Pages Fnst Pege Additional Pages:; County of SLO 0.50 0.50 0.50 0.50 Santa Maria 0.76 0.24 0.76 0.24 Pismo Beach 0.75 0.20 0.75 0.20 Grover City 0.50 0.10 0.50 0.10 Morro Bay 0.15 0.15 0.15 0.15 Atascadero 0.50 0.10 0.50 0.10 Paso Robles 0.10 0.10 0.10 0.10 Arroyo Grande 0.30 0.30 0.30 0.30 Average Cost 0.45 0.21 0.45 0.21 Cityof Skn Ws Obispo 0:2$ 0.25 0.50 O.Sq a:lcopycbg