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Corporate Yard, Central Stores, and Fuel Rate Study City of Santa Ana Corporate Yard Rates The City's Corporate Yard's function is to provide space to various City departments. These spaces come in different forms for different purposes, including: • Office space • Warehouse storage • Workshop/mechanic space • Covered and uncovered parking (standard and large vehicles) • Covered and uncovered outdoor storage The intent of this study will be to develop equitable rental rates for each of these types of spaces. The study will require the following steps: 1. Quantify the total average annualized costs for running the Corporate Yard. This will include both operating costs as well as annualized, long-term capital costs for maintaining/replacing the facilities; 2. Determine the total area of each of the types of spaces (in square feet); 3. Determine the relative rental values between the types of spaces through market research'; and 4. Calculate the equitable rental rate per square foot for the different types of spaces based on the total cost of providing the service and by weighting the different spaces based on their relative market value. The above rental rates may be expressed as weekly, monthly, or annual rates. The rates may also be updated annually based on a published inflationary index (such as the CPI). Central Stores Mark -Up Rate The function of the City's Central Stores is to purchase, store and distribute (sell) supplies to City departments. In order to rover the cost of operating and maintaining the Central Stores facilities, the City marks -up the supplies as they are sold to City departments. The current mark-up is 20%. The intent of this study will be to update (if appropriate) the mark-up rate in order to recover the cost of providing the service. The study will require the following steps: 1. Quantify the total annualized annual costs for running Central Storage. This will include both operating costs as well as annualized, long-term capital costs for maintaining the facilities; 2. Quantify the average annual cost of supply purchases (acquisition costs) over the past 5 years; and 3. Calculate the mark-up (as a percentage) that would have been needed in order to generate sufficient revenues to offset the annualized costs of operating and maintaining Central Stores. i It is important to note that the actual rent for these spaces will not be based on market rates, but rather the *relative* rent between the different spaces will be established based on market data. The assumption will be that market data will reflect the relative difference in operating and maintenance costs for different types of facilities. Page z -'` HILDEBRAND CONSULTING