IMS-006/CW-2
DECENTRALIZED PRIVATE GARAGE I/M PROGRAM
COST CALCULATION WORKSHEET
August 1979
Inspection and Maintenance Staff
Emission Control Technology Division
Office of Mobile Source Air Pollution Control
U.S. Environmental Protection Agency
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Decentralized Private Garage I/M Program
Cost Calculation Worksheet
This worksheet is designed to enable I/M program administrators to
project total costs of a decentralized private garage program at early
stages of planning. The factors involved in initial and annually
recurring costs are systematically organized to compute an annual
inspection fee which will cover all program costs for the total length
of the program. There is a separate package for projecting costs of a
centralized, state- or contractor-operated program. Costs of separate
fleet inspections as part of the I/M program are not considered in
either of the worksheets. It is assumed that costs of administering
such a fleet inspection program would be covered by permit fees to fleet
owners.
The worksheet computations obviously depend heavily upon assumptions
made by the user. Since in many cases users will not have detailed
information, estimates have been provided which may be substituted to
allow rough calculations. An example is worked through in the text of
the instructions using those estimates. It is absolutely essential that
users recognize that the suggested estimates are not intended to apply
to every program. They merely provide a reasonable approximation where
no better data is available, and worksheet users are expected to use
their own best judgement in applying or adjusting them to their own
program. Users should adapt the worksheet to meet their own program's
unique structure.
To use the worksheet set, remove it as a unit from the back of this in-
struction package. Set the pages alongside the instructions, for easy
cross-referencing as progress is made through the calculations. Flip
through the pages while reading the following introductory summary.
This will allow a sense of the overall organization of the worksheet and
make the logic of the calculations more coherent. It is also a good
idea to make several copies of the worksheet itself, particularly if
users want to compare several program options or various basic assump-
tions for their effect on the inspection fee.
The organization of the worksheet set is as follows: First, assumptions
which are basic to the cost calculations are enumerated and coded for
easy reference as progress is made through the worksheet (section I.A.).
From some of these assumptions, basic program parameters are calculated
(I.E.). For example, the average annual auto population (AAp) is calcu-
lated on the basis of the current population (POP), the estimated annual
growth rate (CRT), and the program length (PRL). This result is used as
the basis for the program requirements, since provision must be made for
more than the current population.
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All costs which pertain to the private garages administering the inspec-
tions are then calculated (section II). These are divided into initial
investment costs (II.A.), such as equipment and mechanic training, and
recurring operating costs (II.B.), including equipment maintenance and
time and overhead for the inspections themselves. These, in turn, are
each converted from a per-garage or per-test basis to an overall pro-
gram-wide figure.
The program-wide costs for garages are then "annualized" to take into
account inflation and interest costs (II.C.). All initial investment
costs for the private garages are amortized on the assumption that they
depreciate completely over the length of the program. Recurring costs
are multiplied by a factor which provides for the average effect of a
constant rate of inflation. The annualized costs are summed to yield
total program-wide average annual costs to the private garages.
The remainder of the worksheet is devoted to costs incurred by the state
for monitoring and administration of the program. Calculation of
initial costs to the state (section III) begins with estimates of the
state's requirements for examiners to monitor the operation of the
private garages (III.A.). Costs of training and hiring these station
examiners are included with personnel costs of the central administra-
tive startup staff and other administrative startup costs (III.B.).
Several segments are then devoted to estimating investment requirements
and costs for land, construction, equipment and personnel for state-
operated referee inspection facilities (III.C.).
Annually recurring costs to the state are then computed (section IV).
These are also divided between general costs of administration and sur-
veillance of the private garage program (IV.A.) and costs pertaining to
the operation of the referee facilities in particular (IV.B.).
All costs to the state are then "annualized", as were the costs to
private garages, to handle inflation and interest costs for borrowed
capital (section V). The state, if it operates referee facilities, will
make initial investments which will retain salvage value at the end of
the program. Formulae for calculating annual payment of initial costs
to the state are therefore slightly more complicated than that used for
the private garages (V.A.). The formula used for calculating the effect
of inflation on recurring costs, however, is the same as that for the
private garages (V.B.). The annualized costs are summed to yield total
annualized program costs to the state (V.C.).
Finally, total annualized costs to the state and to the private garages
are combined (section VI). The sum, divided by the average annual auto
population, represents the cost-covering inspection fee for a decen-
tralized program.
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Before proceeding with the worksheet, users should pause to answer some
basic questions regarding the character of the decentralized program
they envision. These questions regard political, rather than economic
choices. But since they involve basic parameters that vary widely from
program to program, and since they have a strong impact on the cost
assumptions, the following issues should be considered:
1. How much of a station's overhead resources will the inspection
function occupy?
Will stations perform tests only incidentally, or as a more specialized,.
regular occupation? How many tests will each station be expected to
perform? (i.e., over how many inspections may the station's capital
costs be defrayed?) How much shop time will be dedicated to each
inspection? Will stations be set up to handle only one inspection at a
time, or multiple inspections? Will auto owners be able to drive in,
have their cars tested, and drive out, or will they be expected to leave
their cars at the station for, say, a day or several hours?
2. Will inspection personnel also perform vehicle repairs?
How highly trained - highly paid - must inspection personnel be? Should
they be mechanics, or could they be lower paid station attendants?
Should the station be expected to absorb some costs of the inspection
program with profits made on accompanying repairs, or should the repair
and inspection functions be separated? Who should bear costs of special-
ized mechanic or inspector training?
3.- How much use of state-provided challenge facilities is projected?
Use, of course, will be a function of availability, which will in turn
be a function of projected use. The decision as to how much challenge
facilities will be used will be in part a self-fulfilling prophecy, in
part a function of other elements of the program, such as separation of
inspection and maintenance functions, degree of training of inspection
personnel, and degree of specialization of I/M stations.
4. How will quality control be implemented?
How often will garage instruments be calibrated? Will test result
certification require additional instrumentation (e.g., to record test
results)? How often will station examiners visit inspection stations?
What procedures will station examiners follow? Will roadside checks be
performed to measure garage inspection effectiveness?
Obviously these questions are highly interrelated. Costs of a program
where a limited number of stations do a high volume of inspections with
low-cost personnel and repairs performed elsewhere will vary greatly
from those of a program where almost any garage does a very low volume of
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inspections, and the mechanic repairs vehicles on the spot. Likewise
the type of quality control implemented and availability of challenge
facilities provided will have a significant effect on the manner in
which the garages carry out the program, and influence the distribution
of costs between the state and the garages themselves.
The example worked through in the instruction text is that of an ima-
ginary city called "Smogville". Most assumptions made for the Smogville
decentralized program are parallel to those made in the worksheet de-
signed for a centralized program, so that cross-comparison of costs can
be made for the two major types of programs. In response to the questions
posed above, Smogville planners envision a program where each garage
performs an average of fifteen inspections per week, as incidental to
its other repair functions. The personnel performing inspections will
usually be well-trained mechanics, who also perform such vehicle repairs
as are necessary. State challenge facilities will be made available,
but only on a limited basis; i.e., sufficient for about three percent of
the vehicle population, or about ten percent of anticipated failures.
Private garages will be required to calibrate their instruments about
four times a week, and will be subject to a brief, unscheduled inspec-
tion by a state examiner about once per month. The state examiner will
also check the calibration of the garages' test equipment during his
inspection. No extra costs are included to account for any additional
enforcement of the program, aside from what normal administrative per-
sonnel time may be taken up by requiring evidence of passing the in-
spection for vehicle registration. Other pertinent assumptions made by
the Smogville program administrators will be pointed out in the instruc-
tions.
I. PROGRAM PARAMETERS
A. Assumptions
1. Present Auto Population (POP); This will be a function of
the geographic areas to be covered by the program and their
population densities, commuting patterns relative to neigh-
boring jurisdictions, and concentrations of vehicles subject
to the inspection program. Subject vehicle classes may be
defined by weight and model year ranges, or other character-
istics, or by exclusion from exempt vehicle categories. The
information needed to derive this figure can usually be pro-
vided by the area planning commission, highway patrol or motor
vehicle authority. In Smogville, the current auto population
is 750,000.
2. Annual Auto Population Growth Rate (CRT); This can be
determined over the projected life of the program by use of
motor vehicle department records, census data, transportation
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(I.A.2, cont.)
planning data, survey information, etc. The Smogville auto
population is growing at the rate of 2.6% per year.
3. Annual Inflation Rate (INF); Economists' estimates range
anywhere .from 5% to 10% or more. Smogville administrators
anticipate a rate of 7%.
4. Annual Interest Rate (INT); Lending institutions typi-
cally set interest rates about 3.5% higher than the inflation
rate, subject to the1 constraints of the market. Ten to twelve
percent is a reasonable estimate at present, if area-specific
information is not available. Occasionally, public projects
can obtain slightly lower than commercial rates, e.g., through
bond issues. In the Smogville program, the state will pay the
same rate as private garages, at 12% per annum.
5. Program Length (PRL); Estimates will vary for each pro-
gram. The program may be set up in segments of five years, if
it is not clear how long the program will be required. In
that case, use the length of the planning segment. Smogville
is using a five-year planning segment.
6. Stringency Factor (STR); The stringency factor to be
applied is derived from EPA's MOBILE1 program for calculating
program benefits. It corresponds to the percent of autos that
would be expected to fail the emissions criteria if there were
no I/M program. In Smogville the stringency factor is set for
30%.
7. Stations per 1,000 Autos (STA/1,000); This assumption
will reflect the design of the program to the extent of
determining how "inspection-intensive" each private garage
station must be (i.e., how many inspections each designated
station will be responsible for performing). The per-1,000
auto requirement can be easily determined by getting an idea
of how many inspections each station should do on an average
weekly basis, and dividing 1000/50 = 20 cars/week by this
number (this assumes fifty operating weeks per year). For the
Smogville program, for example, planners estimate that each
station will inspect an average of fifteen cars per week.
20/15 = 1.33; that is 1.33 stations are needed for every 1,000
cars in the population.
8. Garage Costs per Hour (MPH); This assumption also re-
flects the basic design of the program, particularly with
respect to the kind of personnel to be employed as inspectors,
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(I.A.8, cont.)
and the extent of each stations' resources to be dedicated to
the inspection function. In the Smogville program, since
well-trained mechanics will serve as the inspectors, it is
estimated that inspectors' time and overhead for garages will
typically come to $24 per hour.
9. Garage Time per Inspection (GTI); Again, this assumption
hinges on the basic program design. If stations are to be
specialized for the emissions inspection, garage time can be
kept close to inspection time required for centralized pro-
grams (say 5 or 6 minutes). However, if stations are numerous
and the I/M functions sporadic in each station, mechanics will
have to spend extra time readjusting equipment, moving the
autos into place, handling paperwork, etc. Garage time per
inspection could then go as high as ten or fifteen minutes.
In the Smogville program, ten minutes per auto is assumed
(i.e., 0.17 hours).
10. Mechanic and Inspector Training Costs per Garage (MITG);
Program designers have several options with respect to mechanic
and inspector training requirements, again reflecting their
basic conception of the program. The state may subsidize such
training, or may require the trainees or the garages sponsor-
ing the trainees to pay the cost, since they will derive
economic benefits from the program. If vehicle inspectors
will be primarily experienced mechanics responsible for
repairs as well, training for the two areas of responsibility
may be combined into one course. If the two functions are
separated, or requirements for certification as a vehicle
inspector not as stringent, separate courses may be offered.
Again, policy makers may exact a fee from the individuals or
garages being certified, or may simply apply part of the
states' portion of the inspection fee to costs for such
courses.
Current estimates range about $15-$30 for supplies, teaching
equipment and instructor salaries for an 8-10 hour course for
either function separately. This would also include examina-
tion and certification of the trainee by the state. In Smog-
ville, it is assumed that the two functions will be performed
by the same individual. A combined training course is offered
for $30 tuition, paid for by the garage or the mechanic taking
the course.
In programs where the state will cover part of training costs,
that part of the cost paid by the state should be noted separ-
ately. If the garages will pay all costs for more than one
kind of course, the total cost of all courses paid by the
garage should be listed.
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(I.A., cont.)
11. Percent of Failures Challenging (FCH); For purposes of
the cost analysis worksheets, the state's provision of chal-
lenge facilities is based on the projected percent of garage
inspection failures who will want to challenge the results of
the garage test. For planning and assumption purposes, however,
this relationship might be reversed, and the demand on challenge
facilities could be a function of their supply and popularity.
There is no reliable existing data to predict demand on chal-
lenge facilities; therefore the worksheet users must use their
own discretion in evaluating this program element. The Smog-
ville program predicts that about 5% of all failures will
demand use of the challenge facilities.
12. Challenge Facility Hourly Lane Throughput (CTP); Factors
to be taken into account in projecting the number of autos
each referee lane can inspect per hour include test mode
employed (loaded vs. idle, use of tachometer, parameter or
safety inspection, etc.), data handling techniques (automated
vs. manual, etc.), inefficiencies of scheduling, personnel,
weather, mechanical difficulties, and so forth. Table 1
suggests hourly lane throughputs for three general test
formats, including ranges of efficiency. However, more
attention probably will be required for those motorists
challenging; therefore, Smogville planners expect a throughput
of around 10 cars per hour.
Table 1
Vehicle Throughput (Cnrs per hour) by Program Format
Program Optimal Projected
Fo rrnfi t. Throughput Efficiency Throughput
Stotc/City -
operated idle- . 20-25 50-C32 10-16
mode test using
tachometer
State/City -
operated idle 30-36 50-64% 15-23
mode test with
safety inspection
no tachometer
Contractor - 20-22 61-652 12-1/1
operated
loaded mode
test
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(I.A., cont.)
13. Challenge Facility Annual Operating Hours (CHR); This is
the number of operating hours per year for the state-operated
referee inspection facility lanes. Eight hours daily for 250
days per year would yield 2,000 operating hours. Ten hours
daily would yield 2,500 hours. The Smogville program will
keep each lane open eight hours per day, five days per week,
for fifty weeks per year, totaling 2000 hours per lane per
year.
2
14. Land Acquisition Costs per Square Foot ($LAND/ft ); (For
referee facilities) Land acquisition costs vary widely from
locale to locale. Local estimates should be obtained in-
cluding possibilities of leasing site acreage. Table 2 gives
an idea of the idea variation in land costs among several
existing programs and proposals. Obviously, where the state
can utilize land it already owns or can convert existing
facilities, these costs will be much lower. In Smogville, the
state will be able to purchase commercial land at $2.50 per
square foot.
Table 2
Price Variation in Land Acquisition Co.sts
location
Chicago
Denver
Tort land
New Jersey
• Cincinnati
St. Louis
Kansas
Iowa
Nebraska
Year
1974
1974-75
1975
1975
1976
1976
1973
1978
1978
Cost per Square Foot
$4.00
$2.00-3.00
$2.75
$1.00-9.00
$0.92
$1.00-30.00
$3.15
$0.93
$0.81
9
15. Construction Costs per Square Foot (CONS/ft ); Construc-
tion of referee facilites should include office, storage and
lab areas, and should account for possible expansion of facil-
ities or changes in test mode. Specifications considered
should include:
Steel Frame Overhead Doors Forced Air MVAC
Concrete Floor Painted Walls Underfloor and Roof
Finished Office Small Restrooms Exhaust System
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(I-iA. 15, cont.)
Estimates of construction costs range around $26 - $35 per
square foot. Again, use of existing facilites will lower
these costs. In Smogville, such construction can be performed
for $26 per square foot.
2
16. Paving Costs per Square Foot ($PAVG/ft ); (For referee
facilities) Present estimates range around $1.00 per square
foot. Smogville will use this estimate.
17. Initial Public Information Costs ($IPI); These may in-
clude expenditures for testing clinics or demonstrations,
media spots, mailings, advertisements, literature, workshops,
contact with public interest groups and officials, and so on.
Some consultants have suggested that this may amount to up to
$.29 per vehicle, although most existing programs allocate
quite a bit less to public information. Still, public infor-
mation continues to assume greater importance for its role in
enabling programs to succeed. Many planners would prefer to
budget this item as a lump sum rather than as a per-auto cost.
Either format is usable for the worksheet. Smogville planners
prefer to budget a lump sum of $125,000.
18. Recurring Public Information Costs ($RPI); Public Infor-
mation efforts should be maintained throughout the program,
including several of the items listed above, such as mailings
and advertisements. To some extent it may be possible to
minimize these costs by, for example, including I/M program
information in other motor vehicle department mailings. Some
consultants have suggested $.10 per vehicle annually; and
again this is more than considered necessary by most currently
operating programs. Once more, this assumption can be listed
either as a per-vehicle cost or as a recurring lump sum cost,
which may be calculated as, say, a fraction of initial public
information costs. Smogville planners conceive this cost in
the range of $.10 per auto.
19. Inital Program Design, Engineering and Evaluation ($IDE);
This item accounts for functions beyond those of the normal
administrative staff, which are handled elsewhere in the
worksheet. Such functions as research and development, pro-
gram planning, system design and analysis, etc., are often
contracted or subcontracted out to a separate firm, or can be
performed by a small auxiliary or temporary staff. This item
may also include software development. On a per vehicle
basis, $.15 to $.25 is suggested for this item. Smogville
planners prefer to consider this as a lump sum, and are
budgeting $150,000 for this purpose.
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10
(I.A., cont.)
20. Recurring Program Design, Engineering and Evaluation ($RDE):
This Is the extension and updating of initial program design
functions and evaluation performed beyond the scope of the
regular administrative staff. Some programs will prefer to
simply incorporate this item with normal staff functions.
Smogville is taking this approach and budgeting no funds
separately for this function. Other programs will want to
maintain a small extra engineering and evaluation project, and
an estimated cost for this is about $.05 to $.08 per auto.
(Can also be projected as a lump sum).
21. Computer Processing Cost per Test (CPT); This cost
category is provided for situations where costs of software
development and revision, data storage and retrieval, and
computer time are not accounted for separately. For example,
if a program does not purchase its own complete data pro-
cessing system, (costs of which are handled elsewhere), this
item could account for fees to a commercial timesharing system.
In other cases costs of computer processing of test results
may be distributed among normal duties for the administrative
data analysis, statistical, and clerical staffs, and software
development may be considered part of initial program design.
The worksheet is designed so that any of these planning con-
cepts may be applied. Smogville planners believe that computer
processing costs are accounted for in other planning cate-
gories and are budgeting no separate funds for this. $.05 to
$.15 per test is estimated for other situations, with costs
varying as a function of the sophistication of the data pro-
cessing program.
B. Parameter Calculations
1. Average Annual Auto Population (AAP); The average annual
population, rather than the maximum, is used as the basis for
requirements calculations for a given planning segment. This
will minimize both underutilization and overutilization of
facilities. The function shown on the worksheet yields the
average annual population by computing the populations for
each year of the program, and dividing the sum by the length
of the program planning segment.
2. Inspection Stations Required (STRQ); The function shown
in the worksheet multiplies the per-thousand auto requirement
for I/M stations by the number of thousands in the annual
average population, to yield the number of stations to be
required for the course of the program.
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Cost Calculation Worksheet: I/M Program
Decentralized Private Garage Program
'SMOGrN/ICCe. V
I. PROGRAM PARAMETERS
A. Assumptions
1. POP = Present Auto Population
2. CRT = Annual Auto Population Growth Rate .(%)
3. INF = Annual Inflation Rate (%)
4. INT = Annual Interest Rate (%)
5. PRL = Program Length (years)
6. STR = Stringency Factor (%)
7. STA/1,000 ° Stations per 1,000 Autos
8. .MPH = Garage Costs per Hour (Wages + Overhead)
9. GTI • Garage Time per Inspection (hours)
10. MITG = Mechanic/Inspector Training Cost per Garage
11. FCH » Percent of Failures Challenging
12. CTP • Challenge Facility Hourly Lane
Throughput (cars/hr)
13. CHR'- Challenge Facility Annual Operating Hours
14. $LAND/ft2 " Land Acquisition Costs
9
15. $CONS/ft = Construction Costs
16. $PAVG/ft2 *> Paving Costs
17. IPI = Initial Public Information Cost
18. RPI • Annual Public Information Cost
19. IDE • Initial Program Design, Eng. & Eval.
20. RDE » Annual Program Design, Eng. & Eval.
21. CPT • Computer Processing Cost per Test Result
B. Parameter Calculations
1 SO/ 00
(7
t l.
j /IS,
* &.
&. to
1. Average Annual Auto Population ° AAP
PRL-1
(POP) £ (1-fCRT)
PRL
AAP
2. Inspection Stations Required" STRQ
AAP
1,000
STA/1,000
3. Projected Challenge Tests - CHT
FCH x STR x AAP = ft t
4. Annual Challenge Lane Capacity " CAP
CTP x CHR
STRQ
. CHT
CAP
5. Total Challenge Lanea Required" LAN
CHT _ Q .
CAP "
- LAN
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12
(I.E., cont.)
3. Projected Challenge Tests (CHT); The function shown in
the worksheet takes the projected average annual number of
failures by multiplying the average annual population by the
stringency factor. Multiplying the product by the percentage
of failures challenging the private inspection yields the
total number of projected users of the state-provided chal-
lenge facilities.
4. Annual Challenge Lane Capacity (CAP); This is determined
by multiplying projected hourly lane throughput by annual
operating hours.
5. Total Challenge Lanes Required (LAN); Divide projected
challenge tests by per-lane capacity of challenge facilities
to determine the necessary number of challenge lanes.
II. COSTS TO PRIVATE GARAGES
A. Initial Investment Costs
Private garages would normally need only an emissions analyzer and
tachometer setup. Costs for these range from $2,500 to $3,500.
For mechanic and/or inspector training, insert the portion of the
assumed cost from section I.A. that applies to the private garages
or mechanics. The sum of these values will represent the average
set-up cost to each garage. Multiplying by the number of inspec-
tion stations required ("STRQ", from section I.E.) yields the
program-wide set-up costs to private garages.
B. Annually Recurring Costs
Equipment repair and replacement costs should be estimated as a
percentage of original equipment setup costs as determined in
section II.A. Ten percent is typical, and this figure is used for
the Smogville program. Calibration gasses can be purchased in 220
ft cylinders, enough to provide calibration for about a year of
operation (1 ft per calibration, 200 calibrations per year) for
$120-$200. Smaller cylinders of e.g., 35 ft , can be purchased for
convenience in handling; but the cost is approximately the same as
that of the larger cylinders, making the net expense very high in
comparison.
The per test cost to the garage of inspector's time and other
overhead resources are obtained by multiplying the garage per-hour
costs (MPH) and time per inspection (GTI), both assumed in section
I.A.
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II. COSTS TO PRIVATE GARAGES
A. Initial Investment Costs
Decentralized-2
C. Annualized Total Costs to Private Garages
1. Per Garage ^
Analyzer and Equipment
Mechanic Training (MITG)
Total per Garage
2. Program-Wide ,
PGI x STRQ
B. Annually Recurring Costs
t "
3 O
PWI
1. Araortizat ion of Initial Costs
,PRL
PWI x
INT (1 + INT)
(1 + INT)PRL -1
2. Annual Costs with Inflation
PWA x
INF)
1=0
PRL
3. Total Annualized Program
Cost to Private Garages
. 37?
TPPG
1. Per Garage ,
Equipment Repair and Replacement ' **A **
Calibration Gasses
Total per Garage ? 37 & ° PGA
2. Per Test
Garaee -Inspector's Time and Overhead
CTI x MPH = ' T» 0 0 = PTA
3. Program-Wide {
(PGA x STRQ)+(PTA x AAP) (1+STR) ° ''^_AZ_/" PWA
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(II.B., cont.)
Program-wide annual operating costs are obtained by multiplying the
per-garage costs by the number of stations required, the per test
costs by the annual average number of tests (including the strin-
gency factor to account for retests,) and adding the two products
together.
C. Annualized Total Costs to Private Garages
Initial investment costs to private garages are expected to depre-
ciate over the length of the program. Thus the program-wide initial
costs constitute a principle which can be paid off in annual payments
(including interest) determined by the function shown in the worksheet.
Recurring costs are assumed to rise at a constant annual rate of
inflation. The function shown averages the cumulative effect of
that annual rate over the length of the program to provide an
average annual inflation factor which is multiplied by program-wide
recurring costs to account for the average recurring costs including
inflation.
The sum of annual payment of initial costs and annual operating
costs with inflation yields total program-wide annualized costs to
the private garages. (This total, divided by the average annual
auto population, would yield the part of the inspection fee
incurred by costs to the private garages).
III. INITIAL COSTS TO THE STATE
A. Station Examiner Requirements
The table presented in the worksheet outlines requirements for both
initial and recurring costs, for state examiners monitoring the day
to day operation of the private garage stations. Such monitoring
of inspection procedures, calibration of instruments, and records
of the private station will be necessary to guarantee proper qual-
ity control and execution of the public trust.
In the Smogville program, each station will be inspected once per
month. Each examiner will be responsible for covering about four
stations each day, or ninety each month. Based upon 1047 stations
to be inspected, this requires 11.6 or 12 examiners. Direct costs
of instruction will include course materials, overhead, and instruc-
tors' fees. Costs of the students' time at their hourly wage rate
is added to these costs, to arrive at total training costs.
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Decentralized-3
III. INITIAL COSTS TO STATE
A. Station Examiner Requirements
Individual basis
Progi'am Total
Number .
Required
1 per ^7 O stations
x(STRQ) - />= EXS
Annual Salary
11.0**
f&fOO*= SES
Duration of
Instruction
So krt
Direct Cost of
Instruction
Wo*
Total
Training Costs
* 9oo
Hiring Costs
?>r
Total Training
plus Hiring Costs
*92~T
/f, tQD - SETH
B. Administrative Startup Costs
1. Central Administrative Personnel
Position Area
Program Administrators
Technical Officers
Data Analysis/Statistical Staff
Clerical and Secretarial Staff
Prs-Yrs
(
$
3
/
SUBTOTAL '
Overhead, Fringe and Contingency Y^^'%)
Cost
j?lyy/V
*ft> 31 f
41. ti» o
33 ^6 ^
7o?^y/
2ctf/?£/
TOTAL SCAPIN - W£ TW "^
2. Total Administrative Startup Costs
a. Central Administrative Personnel •= $CAPIN
b. Training and Hiring of Station
Examiners = $SETH
c. Initial Public Information = IPI
or IPI x POP
d. Initial Program Design, Engineering
and Evaluation = IDE
or IDE x POP
e. Mechanic Training (when sponsored by the State)
MITG(s) x STRQ
f. Total Administrative Startup Costs
/I >f 60
. OOP
. 006
137.V7*
' " ADMIN
-------
16
(III., cont.)
B. . Administrative Startup Costs
' 1. Central Administrative Personnel; This is the staff that
will initially plan and set up the program. Since planning
and setup may last more or less than one full year, personnel
requirements are stated in terms of person-years.
2. Total Administrative Startup Costs;
a. Take the total figure for central administrative
startup personnel from the previous section, III.B.1-.
b. Insert the program-wide total cost for training and
hiring of station examiners, as derived in section III.A.
c. Enter the total cost for initial public information.
If this was listed as a lump-sum assumption in I.A.,
enter that. If it was listed as a per-vehicle assump-
tion, multiply that by the present auto population (POP),
and enter the product.
d. Repeat step c. for initial program design, engineer-
ing and evaluation.
e. This items is to be applied only in programs where
the state sponsors part of mechanic or auto inspector
training. In such cases, the total amount the state
expends for training for each garage should be disting-
uished in section I.A., line 10. Multiply this amount by
the number of stations required, and enter the product.
In the Smogville program, all training costs for me-
chanic/inspectors are covered by the"garages.
f. Add a. through e. for total administrative startup
costs to the state.
C. Initial Investment Costs for State Challenge Lanes
1. Facility Square Footage Requirements; The table presented
provides spaces for listing estimates of square footage require-
ments for land, office and storage space, the inspection lanes
themselves, and external paving. The table is set up for easy
computation using an "a(x) + b" formula, where "x" is the
number of lanes in a facility, "a" is the amount of square
footage in a certain category needed for each lane in the
facility, and "b" is a basic square footage requirement needed
for each facility, independent of the number of lanes. For
construction of the inspection lanes themselves, obviously,
there is only a per-lane requirement, and no basic facility
requirement.
-------
III. Initial Costs to State (Continued)
C. Initial Investment Costs for State Challenge Lanes
1. Facility Square Footage Requirement Estimates
Decentrallzed-4
Test
Mode
. IDLE
LOADED
LAND
Basic per
Facility
fO.006 ft2
ft2
Additional
per Lane
foot) ft2
LANES
(per Lane)
/OOO ft2
OFFICE, ETC.
Basic per
Facility
Boo ft2
Additional
per Lane
/oo ft2
PAVING
Basic per
Facility
SlOO ft2
Additional
per Lane
,?/e>o ft2
2. Allocation of Lanes and Square Footage Requirements
LANE ALLOCATION
Lanes pev
Facility
/
I
J.
Mode
T
It Facilities
This Size/Mode
7
ITOTAL FAC - /
Total
Lanes
/
LAN = /
LAND
Each
Facility
/Sooe>
Total
ifoe a
LND = /,S"OO •
BUILDING
LANES
Each Facility
fOC Z>
Total
I oo o
LNS = f C O 3
OFFICE, ETC.
EacFTFacTIIty
/v«o
Total
/V««
OFC = ( l^OO
PAV
liach Facility
//Joo
INfi
Total
ttlob
PVG - // SO d
3." Challenge Facility Personnel Hiring and Training Requirements
Position
Asst. Station
Manager
Inspection
Technicians
Clerks
Facility
Requirement
*
i per facility or
per lane
3 per Idle Mode lane
per Loaded Mode lane
»7*Per la"e
Annual
Sala
, ooe>
It,
Duration
of Instruction
Direct Costs
of Instruction
er Trainee
Total
Training
Cost
Ft*
Hiring Costs
er Employee
Total Training
lus Hiring
-------
.18
(III.C.I, cont.)
Thus, given the estimates shown for the Smogville program, a
typical one-lane (0.6 lanes rounded off) facility would require
(5,000) x (1) + (10,000) = 15,000 square feet of total land.
Of this space, (1,000) x (1) = 1,000 square feet for the test
lane, plus (400) x (1) + (800) = 1200 square feet for office
space, etc., would be allocated to construction. Another
(3,100) x (1) + (8,200) = 11,300 square feet would be allo-
cated to external paving for queing area, employee parking,
etc. The remaining 1500 square feet (10% of total land area)
is allocated to landscaping.
In programs where loaded and idle facilities are both used,
planners may want to use different requirement estimates for
each mode. Space is provided in the table for such use.
2. Allocation of Lanes and Square Footage Estimates; the
table presented in the worksheet is designed to allocate and
compute the total square footage requirements in each category
among the various size facilities to be built in the program.
First, at the bottom of the column marked "Total Lanes", write
the number derived in section I.E. (LAN) for the total lanes
required. In the first column, list various facility sizes
which might be used for the program. Allocate the total
number of lanes among the various size facilities. Then sum
to find the total number of facilities (FAC). In the Smog-
ville program, only 1.05 lanes will be required. This will be
accommodated by only one one-lane facility, kept open for 15
extra days each year.
For each size of stationary facilities, the square footage
requirements can be found by applying the "a(x) + b" formula
from the previous section. Multiply the results for each
facility size by the number which will be that size, and enter
the totals for all sizes for each category on the bottom line.
3. Challenge Facility Personnel Hiring and Training Requirements;
In this table estimates are made of the number, types and
costs of personnel needed to operate the inspection facilities.
Four basic personnel categories are suggested, for simplicity
of calculation. Since the Smogville facility will ordinarily
be open 40 hours per week and facility requirements for inspec-
tion technicians are slightly padded. Personnel requirements
that will vary with the size of the facility are estimated on
a per-lane basis, and fractional estimates can be used to
indicate overlapping or part-time scheduling.
-------
19
(III.C.3, cont.)
In the Smogville program, direct costs of personnel instruc-
tion Include course materials, overhead and instructors' fees.
Costs of the students' time at their hourly wage rate is added
to these costs to arrive at total training costs.
4. Challenge Facility Construction and Land Acquisition Costs:
a. Multiply the total square footage requirement for
(from III.C.2.) by the assumed cost per square foot (from
I.A.), to yield total land acquisition cost.
b. Repeat step a. for paving costs.
c. The total construction square footage requirement
will be the sum of lane construction and office space
construction (from III.C.2.). Multiply this sum by the
assumed cost per square foot (from I.A.) to yield total
construction costs.
d. Building costs consist of the sum of paving and
construction costs. This item is distinguished because
its depreciation period will differ from both that of
land and that of other initial investments.
5. Challenge Facility Personnel Hiring and Training Costs;
a. Multiply the total training and hiring cost per
employee for station managers, taken from section III.C.3.,
by the number of facilities (assuming one station manager
per facility).
b. Repeat step a. for assistant station managers.
c. Some programs may mix test modes, and hiring and
training costs or requirements may be different for the
two modes. Spaces are provided for calculating inspection
technician costs separately for the two modes. Otherwise
simply multiply the costs per employee, by the number of
employees per lane, by the total number of lanes for that
mode.
d. Repeat for clerks. The per lane requirement and per .
clerk costs will probably be the same regardless of mode.
For the Smogville program one clerk must be trained.
e. Sum a. through d. to yield total initial hiring and
training costs for challenge facility personnel.
-------
20
(III.C. , cont.)
6. Challenge Facility Preparation and Equipment Costs; The
table shown in the worksheet allows for both the listing of
assumptions and the computation of total costs for all in-
spection facility investment costs beyond land acquisition,
construction, and personnel. The table is set up on a prin-
ciple similar to that of section III.C.2. (for square footage
allocation). For each category there is a basic cost assigned
per facility independent of the number of lanes, and an addi-
tional cost per lane to account for the size of the facility.
Other costs not covered elsewhere in the worksheet may be
considered in this table as Central Office costs.
In the Smogville program, for example, site preparation costs
will include landscaping, hookup of utilities, etc. Test
equipment will include analyzers, calibration gases, probes,
etc., and backup equipment. Office equipment for the central
administrative staff will be listed under personnel costs as
overhead, although it could be listed here instead. Data
processing equipment will include terminals for the lane,
storage and retrieval equipment for the facility, and a main
central processing setup, listed under central office pro-
visions.
The total of these costs can be summed by cost category to
simplify an analysis of costs by category. Or all costs per
facility can be summed, that number multiplied by the number
of facilities, and the product added to all per-lane and per
central office costs, to simplify calculation.
7. Total Challenge Facility Initial Costs;
a. Land acquisition costs from III.C.4.a. These can be
said to retain full salvage value at the end of the
program.
b. Insert building costs from III.C.4.d. These can
reasonably be said to depreciate over a period of 20
years.
c. Insert challenge facility personnel hiring and
training costs from III.C.5.
d. Insert challenge facility preparation and equipment
costs from III.C.6.
-------
Decentrallzed-5
4. Challange Facility Construction and Land Acquisition Costs
a. Land Acquisition = $LANDACQ = LND x $LAND/ft2
b. Paving = $PAVING = PVG x $PAVG/ft2 = //
*31,S
,?o'
5. Challenpfi raciiiiy rersonnei niring
0*
c. Construction = $CONSTR » (OFC+LNS) x $CONS/f t2 - Sf, VO O
d. Total Building = $BUILDING - $PAVING + $ CONSTR
*>SX$<
9ft
and TraininR Costs
a. Station Managers: J
S / SJ& x FAC " ^«5T7S
b. Assistant Station Mnn.igurs: ^
$ //"»>T x FAC • ff? \
c. Insoe^Lan TechnicLans: .,
$ pSfc x ^5 x LAN [IDLE) - *<»C
$ x x LAN I LOADED ]-
d. Clerks :4
^»
> c
^° x / xLAN . •>-/ 0
e. TOTAL FIELD PERSONNEL ^->
HIRING & TRAINING - $FIELDPER • O * ^"
6. Challange Facility Preparation and Equipment Costs
Per
(Category)
Facility
Loaded Lane
Idle Lane
Central
Office
TOTAL
Number
f
f
Site Pr<
Each
Soot>
£00
>
iparation
Total
^"00 €>
i"O t)
^ro^>
Test Equipment
Each
JToeO
/oed
4
r
Total
.fo • o
«/60«
A
Office & Other Equipmt.
Each
*>So«
•Veo
f
Total
>Jofe
J^« ft
•>7»a
Data Processing Equipmt.
Each
iSooe
J"oo o
/ S-0«rO
^"oo o
/r*,«*»
/^e.ooa
TOTAL
?7rXO »
?y 7^O
/ ^"tt / o o ^
$EQUIP = tf"7t XO O
^
^
7. Total Challenge Facility Initial Costs
/
a. $LANDACQ
b. $BUILDING
c. $FIELDPER -
d. $iiQUIP
e. Total c, d
f. Total a, b, e
CHLST=
=V°'>'»
Total Challenge Lanes
Initial Cost
(no depreciation)
(20 years)
(depre - PRL)
-------
22
(III.C., 7 cont.)
e. Add c and d. This sum represents costs that can
reasonably be depreciated over five years or, alterna-
tively, the length of the program planning segment.
f. Total initial investment costs for challenge facil-
ities can be obtained by adding a,b, and e.
IV. RECURRING COSTS TO THE STATE
A. Administrative and Surveillance Costs
1. Personnel;
a. Central Administrative Personnel: This staff will
continue to coordinate and oversee the program. In the
Smogville program, its duties will include the handling
of complaints, investigation of malfeasance by private
garages, program design and evaluation, and coordination
with other state agencies, among other administrative
duties.
b. Station Examiners: (i) Insert the program-wide total
salary cost for station examiners, as derived in section
III.A. (ii) Add a percentage for overhead and fringe
benefits. (iii) Total station examiners' salary and
fringe benefit costs.
c. Add personnel and overhead costs for the central
administrative staff and station examiners, for total
recurring personnel/overhead costs to the state.
2. Surveillance Costs; These can be estimated on either a
per-examiner or a per-station basis, whichever the user prefers.
In the Smogville program, planners prefer to conceive of the
station examiner traveling about 600 miles per month, at $.20
per mile, for about $1440 each per year. They are also each
expected to use up about one small calibration gas cylinder
per month, for an annual total of $1800.
The total cost per examiner is multiplied by the required
number of examiners (rounded off to 12 for Smogville), as
found in section III.A. Alternately, the mileage and cali-
bration cost can be worked up on a per-garage basis, and the
sum multiplied by the required number of stations, as derived
in I.E.
-------
Decentralized-6
IV. RECURRING COSTS TO STATE
A. Administrative and Surveillance Costs
1. Personnel
a. Central Administrative Personnel
Position Area
Program Administrators
Technical Officers
Data Analysis/Statistical Staff
Clerical and Secretarial Staff
Number
1
t
3
>
SUBTOTAL
Overhead, Fringe and Contingency /OQi)
TOTAL ' $CAPAN
Cost
^*y«/VV
/fS, 5*93"
«/7.?feo
/fey 71 V
xia, £V2~
*-/*,:fri-
^f. OH
b. Station Examiners
annual salaries
SES
Overhead and
Benefits (
WSJ
Total Station Examiner Costs
c. Total Recurring Personnel Costs
$CAPAN + $SEAC
$SEAC
= REPC
3.
4.
2. Surveillance Costs
a. per station
or per examiner
(i) Travel Costs
(ii)Calibration
Equipment
(iii) Total per Station
or per Examiner
b. Program-wide Total
SCPS x STRQ
or SCPX x EXS
Annual Public Information
PWSC
RDI
or RPI x AAP
Annual Program Design, Engineering
and Evaluation
- 7%. 1& .
PWRPI
RDE
or RDE x AAP - *
5. Computer Processing of Test Results
CPT x AAP x (1 + STR (1 + FCH)) -
6. Total Administrative and Surveillance Costs
REPC + PWSC
+ PWRPI + PWRDE + PWCPT
- PWRDE
PWCPT
REASC
-------
24
(IV.A., cont.)
3. Public Information; List a lump sum as estimated in the
assumptions, or multiply a per-vehicle assumption by the
annual average auto population (AAP) for recurring public
information costs.
4. Program Design, Engineering and Evaluation; Repeat step 3
for recurring costs of program design, engineering and evalua-
tion. In the Smogville program, however, these costs are
covered under regular administrative personnel functions.
5. Computer Processing of Test Results; Multiply the assumed
cost per test by the average annual number of tests, as deter-
mined by the function in the worksheet, including one retest
for each failure expected, and one re-retest for each failure
challenging the private inspection. The Smogville program
assumes these costs under the purchase of data processing
equipment and functions of the statistical staff.
6. Total Recurring Administrative and Surveillance Costs;
Add the totals for items 1 through 5 above.
B. Challenge Facility Operating Costs
1. Challenge Facility Personnel; Multiply the appropriate
per-lane or per-facility requirements by the salary costs
determined in section III.C.3. Add a factor for overhead and
fringe benefits, to yield the total recurring personnel costs
for the challenge facilities.
2. Support Services to Facilities; These costs may include
janitorial service, heating, electricity, linen and so forth,
if they are not otherwise covered under overhead costs or
equipment maintenance. They may be calculated using the
familiar format of a basic figure per facility, independent of
the number of lanes, plus an additional amount for each lane
in the facility. In the Smogville program, planners consi-
dered these costs to be handled under the categories of over-
head and equipment maintenance, and therefore no cost is
listed here.
3. Travel; Smogville planners consider that to maintain
communication and efficient management, and to transport
supplies between the central office and the referee facility,
it will be necessary to travel approximately 1500 miles per
year for the one facility. At $.20 per mile, this is pro-
jected to cost $300 per facility.
-------
Decentralised-?
B.
Challenge Facility Operating Costs
1. Field Facility Personnel
a. Station Managers:
x FAC
b. Assistant Station Managers 5fy9+3 x FAC
c. Inspection Technicians _
$ /*>dgO x ( \J x LAN [IDLE]
/ ?
d. Clerks: $
e. SUBTOTAL
x LAN [LOADED]
x . 7JT x LAN
f. Overhead & Fringe Benefits
g. Total Field Facility Personnel
2. Support Services to Facilities
x FAC + $
3
x LAN
3. Travel: $
x FAC
4. Equipment Maintenance
5. Insurance Costs
,% x $EQUIP
x LAN
6. Total Annual Challenge Lanes
Operating Costs
. Bfe. oo/
V. ANNUALIZED COSTS TO STATE
A. Amortized Initial Costa
1. Land Acquisition
$LANDACQ x INT
2. Building
$BUILDING x INT
x /I +
*
PRL
DEPR x [(1+INT)
PRL
3. Other Startup
(ADMIN + CHLST) x
"«T(l+HIT)
m
(1+INT)
PRL
Total Annual Payment with Interest
RECHL
• STAPI
NJ
Ul
-------
26
(IV.B, cont.)
4. Equipment Maintenance; Recurring equipment maintenance
costs can be estimated as a percentage of initial equipment
costs. Costs of upkeep on landscaping, data processing
equipment and so forth are all considered in a single percen-
tage in the Smogville program. 20% is taken of the total
initial expenditure derived in section III.C.6.
5. Insurance Costs; This cost will apply only to those
state-operated programs where states are not self-insuring.
Insurance costs themselves vary in a manner too complex to be
thoroughly represented in a simple worksheet. Elements to be
taken into account would include construction materials,
location, equipment utilized, and operating hours of the
facilities. In the worksheet, this is all reduced to a simple
function including a basic factor per facility, independent of
the number of lanes, and an additional amount for each lane in
the facilities. In the Smogville program, this is estimated
at $1,000 per facility and $1500 per lane, or $2500 for the
single one-lane facility.
6. Total Recurring Challenge Facility Operating Costs; Add
items 1 through 5.
V. ANNUALIZED COSTS TO THE STATE
A. Amortized Initial Costs
1. Land Acquisition; Land is usually assumed not to depre-
ciate in real value, and thus the salvage value of the pro-
perty at the end of the program is assumed to be equal to the
original cost, plus inflation. The annualized cost for the
land is thus simply the interest on the original expenditure,
$LANDACQ (from section III.C.7., line a).
2. Building; The equation shown in the worksheet calculates
the annual payment with interest for items which may have
varying periods of depreciation. Twenty years is tradition-
ally assumed as the (straight line) depreciation period for
buildings ($BUILDING, from section III.C.7., line b), and is
assumed for the Smogville program, although any depreciation
period may be substituted for "DEPR" in the equation. For the
Smogville program, with a five-year planning segment, this
implies that the challenge facility buildings will have 75%
salvage value at the end of the program.
-------
27
(V.A., cont.)
3. Other Startup Costs; These include administrative startup
costs (ADMIN, from section III.B.2., line f) and any invest-
ments in the challenge facility that are anticipated to
depreciate fully over the length of the program planning
segment (CHLST, from section III.C.7., line e). Such in-
vestments will have no salvage value at the end of the pro-
gram.
A. Total Annual Payment With Interest; Add the results of
calculations for the three items, above, to yield the total
annualized payment of initial costs, including interest.
B. Average Recurring Costs Accounting For Inflation
1. Total Recurring Costs; Add recurring costs for adminis-
tration and surveillance (REASC, from section IV.A., line 6)
to operating costs for state challenge facilities (RECHL, from
section IV.B., line 6), for total recurring costs to the
state.
2. Recurring Costs with Inflation; As for the private
garages, recurring costs are assumed to rise at a constant
annual rate of inflation. The function presented in the
worksheet (identical to that used in section II.C.2) averages
the cumulative effect of that annual rate over the length of
the program to provide an average annual inflation factor,
which is multiplied by total recurring costs to the state to
yield actual anticipated "average" recurring costs.
C. Total Annualized Program Costs to the State;
Add the annualized payment of initial costs (STAPI, from section
V.A., line 4), to recurring costs with inflation (STANNi) from
section V.B., line 2), to yield total annualized program costs to
the state.
At this point, the states' portion of the inspection fee can be
calculated by dividing the total annualized program costs to the
state (TP.ST) by the average annual auto population (AAP).
VI. TOTAL OVERALL PROGRAM COSTS
A. Total Annualized Overall Program Costs
Add total annualized costs to the state (TPST, from section V.C.)
to total annualized costs to the private garages (TPPG, from
section II.C., line 3), to yield total overall annualized program
costs.
-------
B. Average Recurring Costs with Inflation
1. Total Recurring Costs
REASC + RECHL ='
2. Recurring Costs with Inflation
STANN x
i=0
(1 + INF)
PRL
C. Total Annualized Program Costs to State
STAPI
STANN
STANN
TPST
Decentrallzed-8
VI. TOTAL OVERALL PROGRAM COSTS
A. Total Annualized Overall Program Costs
TPPG + TPST
'/ ^ ' *' * 'f"
TOTAL
<<>, ill,
B. Average Annual Program Cost per Motorist
TOTAL
T .... IT
Inspection Fee
„
oo
-------
29
(VI., cont.)
B. Average Annual Inspection Fee to Motorists
Divide total annualized overall program costs by the average annual
auto population, to yield the cost-covering inspection fee per
auto.
-------
Cost Calculation Worksheet: I/M Program
Decentralized Private Garage Program
I. PROGRAM PARAMETERS
A. Assumptions
Parameter Calculations
1. POP = Present.Auto Population
2. CRT = Annual Auto Population Growth Rate (%)
3. INF = Annual Inflation Rate (%)
4. INT = Annual Interest Rate (%)
5. PRL = Program Length (years)
6. STR = Stringency Factor (%)
7. STA/1,000 = Stations per 1,000 Autos
8. MPH = Garage Costs per Hour (Wages' + Overhead)
9. GTI = Garage Time per Inspection (hours)
10. MITG = Mechanic/Inspector Training Cost per Garage
11. FCH = Percent of Failures Challenging
12. CTP = Challenge Facility Hourly Lane
Throughput (cars/hr)
13. CHR = Challenge Facility Annual Operating Hours
14. $LAND/ft = Land Acquisition Costs
15. $CONS/ft = Construction Costs
16. $PAVG/ft2 = Paving Costs
17. IPI = Initial Public Information Cost
18. RPI = Annual Public Information Cost
19. IDE = Initial Program Design, Eng. & Eval.
20. RDE = Annual Program Design, Eng. & Eval.
21. CPT = Computer Processing Cost per Test Result
1. Average Annual Auto Population = AAP
PRL-1
(POP) E (1+GRT)
i=0
2.
PRL
Inspection Stations Required= STRQ
AAP
1,000
x STA/1,000
3. Projected Challenge Tests = CHT
FCH x STR x AAP
4. Annual Challenge Lane Capacity ° CAP
CTP x CHR
5. Total Challenge Lanes Required° LAN
CHT
CAP
AAP
STRQ
CHT
CAP
LAN
-------
Decentralized-2
II. COSTS TO PRIVATE GARAGES
A. Initial Investment Costs
C. Annualized Total Costs to Private Garages
1. Per Garage
Analyzer and Equipment
Mechanic Training (MITG)
Total per Garage
2. Program-Wide
PGI x STRQ
B. Annually Recurring Costs
= PGI
= PWI
1. Amortization of Initial Costs
PWI x
INT (1 + INT)
(1 + INT)PRL -1
PRL
2. Annual Costs with Inflation
PWA x
PRL-1
i=0
(1 + INF)
PRL
3. Total Annualized Program
Cost to Private Garages
= TPPG
1. Per Garage
Equipment Repair and Replacement
Calibration Gasses
Total per Garage
2. Per Test
Garage Inspector's Time and Overhead
GTI x MPH =
3. Program-Wide
(PGA x STRQ)+(PTA x AAP) (1+STR) = —
PGA
PTA
PWA
-------
Decentralized-3
III. INITIAL COSTS TO STATE
A. Station Examiner Requirements
Individual basis
Program Total
Number
Required
1 per stations
x(STRQ) = = EXS
Annual Salary
= SES
Duration of
Instruction
Direct Cost of
Instruction
Total
Training Costs
Hiring Costs
Total Training
plus Hiring Costs
= SETH
B. Administrative Startup Costs
1. Central Administrative Personnel
Position Area
Program Administrators
Technical Officers
Data Analysis/Statistical Staff
Clerical and Secretarial Staff
SUBTOTAL
Prs-Yrs
Overhead, Fringe and Contingency ( %) •
Cost
TOTAL SCAPIN = •
2. Total Administrative Startup Costs
a. Central Administrative Personnel = $CAPIN
b. Training and Hiring of Station
Examiners = $SETH
c. Initial Public Information = IPI
or IPI x POP
d. Initial Program Design, Engineering
and Evaluation = IDE
or IDE x POP
e. Mechanic Training (when sponsored by the State)
MITG, . x STRQ =
f. Total Administrative Startup Costs =
ADMIN
-------
Decentralized-4
C. Initial Investment Costs for State Challenge Lanes
1. Facility Square Footage Requirement Estimates
Test
Mode
IDLE
LOADED
LAND
Basic per
Facility
ft2
ft2
Additional
per Lane
ft2
LANES II OFFICE, ETC.
(per Lane) 1
. ft2
1 Basic per
Facility
ft2
Additional
per Lane
ft2
PAVING
Basic per
Facility
ft2
Additional
per Lane
ft2
2. Allocation of Lanes and Square Footage Requirements
LANK ALLOCATION
Lanes pex~
Facility
Mode
// Facilities
This Size/Mode
TOTAL FAC =
Total
Lanes
LAN = '
LAND
Each
Facility
LND =
Total
BUILDING
LANES
Each Facility
LNS =
Total
OFFICE, ETC.
Each FaciTity
Total
OFC =
1 PA
Each Facility
ING
Total
PVG =
3. Challenge Facility Personnel Hiring and Training Requirements
Position
i
Station
Manager
Asst. Station
Manager
Inspection
Technicians
Clerks
Facility
Requi r emen t
1 per. facility
1 per facility or
per lane
per Idle Mode lane
per Loaded Mode lane
per lane
Annual
Salary
Duration
of Instruction
^
i
Direct Costs
of Instruction
per Trainee
p •
Total
Training
Cost
Hiring Costs
per Employee
Total Training
plus Hiring
====£==—
- — : — —
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Decentralized-5
4. Challange Facility Construction and Land Acquisition Cost£
a. Land Acquisition = $LANDACQ = LND x $LAND/ft2
b. Paving = $PAVING = PVG x $PAVG/ft2 =
c. Construction = $CONSTR = (OFC+LNS) x $CONS/ft2=
d. Total Building = $BUILDING = $PAVING + $ CONSTR
6. Challenge Facility Preparation and Equipment Costs
5. Challenge Facility Personnel Hiring
and Training Costs
a. Station Managers:
$ x FAC
b. Assistant Station Managers:
$ x FAC
c. Inspection Technicians:
$ x x LAN [IDLE]
d. Clerks :£,
x LAN ILOADEDJ=
x LAN
e. TOTAL FIELD PERSONNEL
HIRING & TRAINING = $FIELDPER
Per
(Category)
Facility
Loaded Lane
Idle Lane
Central
Office
TOTAL
Number .
Site Preparation
Each
Total
Test Equipment
Each
Total
Office & Other Equipmt.
Each
Total
Data Processing Equlpmt.
Each
Total
TOTAL
$EQUIP =
7. Total Challenge Facility Initial Costs
a.
b.
c.
d.
e.
$LANDACQ
$BUILDING
$FIELDPER =
$t:QUIP
Total c, d
_
= CHLST =
f. Total a, b, e
Total Challenge Lanes
Initial Cost
(no depreciation)
(20 years)
(depre = PRL)
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Decentralized-6
IV. RECURRING COSTS TO STATE
A. Administrative and Surveillance Costs
1. Personnel
a. Central Administrative Personnel
Position Area
Program Administrators
Technical Officers
Data Analysis/Statistical Staff
Clerical and Secretarial Staff
Number
SUBTOTAL
Overhead, Fringe and Contingency ( ,%)
TOTAL $CAPAN
Cost
b. Station Examiners
annual salaries = SES =
Overhead and Fringe
Benefits (____»)-
Total Station Examiner Costs =
Total Recurring Personnel Costs
$CAPAN + $SEAC
= $SEAC
REPC
2. Surveillance Costs
a. per station
or per examiner
(i) Travel Costs
(ii)Calibration
Equipment
3.
(iii) Total per Station
or per Examiner
b. Program-wide Total
SCPS x STRQ
or SCPX x EXS
Annual Public Information
RDI
or RPI x AAP
Annual Program Design, Engineering
and Evaluation
RDE
or RDE x AAP
5. Computer Processing of Test Results
CPT x AAP x (1 + STR (1 + FCH)) =
6. Total Administrative and Surveillance Costs
REPC + PWSC
+ PWRPI + PWRDE + PWCPT
PWSC
PWRPI
= PWRDE
PWCPT
REASC
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Decentralized-7
V.
B.
Challenge Facility Operating Costs
1. Field Facility Personnel
a. Station Managers: $
x FAC
b. Assistant Station Managers _$ x FAC
c. Inspection Technicians
$ x ( x LAN [IDLE]
d. Clerks: S_
e. SUBTOTAL
x LAN [LOADED]
x x LAN
f- Overhead & Fringe Benefits
g. Total Field Facility Personnel
2. Support Services to Facilities
$
x FAC + $
x LAN
3. Travel: $
x FAC
4. Equipment Maintenance ° __
5. Insurance Costs
$ x FAC + $
_% x $EQUIP
x LAN
6. Total Annual Challenge Lanes
Operating Costs
ANNUALIZED COSTS TO STATE
A. Amortized Initial Costs
1. Land Acquisition
$LANDACQ x INT
2. Building
$BUILDING x INT
PRT
DEPR x [(1+INT) -1]
INT(1+INT)
PUT
3. Other Startup
(ADMIN -I- CHLST) x
4. Total Annual Payment with Interest
- RECHL
STAPI
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»
ic
m
B. Average Recurring Costs with Inflation
1. Total Recurring Costs
REASC + RECHL
STANN
Decentralized-8
oo
?
V
2. Recurring Costs with Inflation
(1 + INF)
STANN x
PRL
C. Total Annual!zed Program Costs to State
STANN + STAPI
STANN,
TPST
VI.. TOTAL OVERALL PROGRAM COSTS
A. Total Annualized Overall Program Costs
TPPG + TPST
TOTAL
B. Average Annual Program Cost per Motorist
TOTAL
Inspection Fee
AAP
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