BayRICS JOINT POWERS AUTHORITY BOARD OF DIRECTORS MEETING STAFF REPORT. Item 11, Establishment of BayRICS Member Annual Fee Schedule For FY
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1 BayRICS JOINT POWERS AUTHORITY BOARD OF DIRECTORS MEETING STAFF REPORT MEETING DATE: Thursday April 11, 2013 AGENDA ITEM: Item 11, Establishment of BayRICS Member Annual Fee Schedule For FY RECOMMENDATIONS: 1) Adopt, as the benchmark for setting annual member fees, the Consumer Price Index - All Urban Consumers for the San Francisco- Oakland-San Jose, California area, as reported by the U.S. Department of Labor as of December of the preceding fiscal year. 2) Direct Staff to present an amendment to the Authority s Bylaws establishing this benchmark for approval at the Board s May 9, 2013 meeting. 3) Approve a fee increase reflecting the above-defined benchmark of 1.1% for FY 2103 member fees. DISCUSSION: Section 5.01(c) of the BayRICS JPA Agreement provides that the Board shall annually set member fees in an amount not to exceed the Initial Membership Fee. However, the Board may adjust the Annual Fee each year to reflect changes in the Consumer Price Index (CPI). The CPI is not further defined in the JPA Agreement. As directed by the Board at its March meeting, Staff has provided, as an Attachment to this report, several index options for CPI calculation and timing. Staff recommends that the Board adopt, as the benchmark for setting annual member fees, the Consumer Price Index - All Urban Consumers for the San Francisco-Oakland-San Jose, California area, as reported by the U.S. Department of Labor as of December of the preceding fiscal year. This index includes the broadest range of expenditures by urban wage earners, clerical workers, professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, retirees and others not in the labor force. At the same time, this index targets only expenditures by wage earners within the Bay Area. Staff recommends that the BayRICS Bylaws be amended to establish this definition of CPI. Staff will bring this amendment to the Board for adoption at the May 9, 2013 meeting. Staff further recommends that the Board approve a fee increase reflecting the above-defined benchmark of 1.1% for FY 2103 member fees. Under this proposed CPI increase, annual member fees set for Members with seats on the Board would increase to $25, and annual fees for other Members would increase to $5, South Bay Hub Cities would each pay $6, Item 12, BayWEB Proposed Budget for Fiscal Year Page 1
2 ATTACHMENT ONE United States Department of Labor Consumer Price Indices Item 12, BayWEB Proposed Budget for Fiscal Year Page 2
3 Consumer Price Index - All Urban Consumers CUUR0000SA0,CUUS0000SA0 U.S. city average Feb Feb % March Feb % March 12 - Dec % Source:
4 Consumer Price Index - Urban Wage Earners and Clerical CWUR0000SA0,CWUS0000SA0 U.S. city average Feb Feb % March Feb % March 12 - Dec % Source:
5 Consumer Price Index - All Urban Consumers CUURA422SA0,CUUSA422SA0 San Francisco-Oakland-San Jose, CA Feb 12 - Feb % Feb. 12 -Dec % Apr Feb % Source:
6 Consumer Price Index - Urban Wage Earners and Clerical CWURA422SA0,CWUSA422SA0 San Francisco-Oakland-San Jose, CA Feb 12 - Feb % Feb. 12 -Dec % Apr Feb % Source:
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