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For the purpose of all work performed for any person or other agency or city department by the water division or sewer division, the “cost” or “actual cost” of the work performed shall include the direct cost of all labor plus direct employee benefits, the direct cost of all materials, all other direct costs incurred in connection with the work plus an annual overhead percentage which shall be calculated by the city finance department. The annual overhead percentage shall include indirect employee benefits and administrative overhead and will be calculated in conformance with Circulars A-102 and A-87 as designated in Section 14.16.160, and with the current edition of a guide for state and local government agencies by the U.S. Department of Health, Education and Welfare, “Cost Principles and Procedures for Establishing Cost Allocation Plans and Indirect Cost Rates for Grants and Contracts with the Federal Government.” (Ord. 1090-85 § 4, 1985.)