909 FINANCING AND SERVICE CHARGES

909.1 The SASP shall be financed through the use and collection of service charges.

909.2 The service charge shall be based on the prorated expenses incurred annually by the SASP, and shall be assessed at a rate designed to provide adequate coverage for all cost factors involved in the acquisition and distribution of surplus property. Moreover, the service charges shall be fair and equitable in relation to the services performed.

909.3 The SASP may accept gifts of a redeeming value from concerned District of Columbia entities to augment its financial posture, if approved prior to acceptance by the Director of Administrative Services or his or her authorized designee.

909.4 The factors considered in determining service charges shall be as follows:

(a) Original acquisition cost and present value of property;

(b) Screening;

(c) Quantity of property available;

(d) Condition of property;

(e) Desirability of property;

(f) Transportation to include fuels, lubricants, and maintenance;

(g) Warehousing and storage;

(h) Loading and unloading;

(i) Packing and crating;

(j) Repair and rehabilitation of property;

(k) Utilization and compliance;

(l) Depreciation and reserve;

(m) Administration and accounting;

(n) Utilities and telephone;

(o) Trash removal;

(p) Printing;

(q) Goods;

(r) Travel; and

(s) Personnel.

909.5 Generally, items shall be priced as follows:

(a) At thirty-five percent (35%) or less for items with a unit acquisition cost between one cent ($.01) and five hundred dollars ($500);

(b) At twenty-five percent (25%) or less for items between five hundred and one dollars ($501) and one thousand dollars ($1,000);

(c) At fifteen percent (15%) or less for items between one thousand and one dollars ($1,001) and fifteen hundred dollars ($1,500); and

(d) At ten percent (10%) or less for items over fifteen hundred dollars ($1,500). No item shall cost more than two thousand dollars ($2,000), excluding special freight and handling.

909.6 Direct costs shall be added to the service charges for the following:

(a) Special rehabilitation of property;

(b) Overseas property returned to the United States at the request of the donee;

(c) Long-distance hauling;

(d) Special handling such as packing and crating; and

(e) Special purchases to replace parts.

909.7 Minimum service charges shall be assessed in cases where the SASP provides only minimum services. Those cases may include direct transfer of property whereby the donee furnishes labor and equipment to locate, screen, and pickup property.

909.8 When transactions cited in §909.7 occur, SASP shall discount the service charge that would have been normally assessed by twenty-five percent (25%) for locating and screening, and twenty-five percent (25%) for pickup. This direct method shall be authorized only in the case where technical or scientific properties are involved, and the expertise of selection exceeds the capabilities of the SASP employees. Under this arrangement, no transaction shall cost less than sixty dollars ($60), and no more than one thousand dollars ($1,000), excluding special freight and handling and the exceptions itemized in §909.6.

909.9 Minimum charges, when appropriate, may also reflect the sum total of SASP expenses prorated by the number of documents processed for the month.

909.10 The SASP shall not refund service charges to donees in excess of the working capital reserve. However, when a determination has been made by Administrative Services Accounting that the working capital reserve reflects an excessive amount, the service charges shall be reduced by the percentage recommended by Administrative Services Accounting necessary to counteract only that amount determined to be in excess. The period of the reduced service charges shall be as defined by Administrative Services Accounting, or as otherwise directed.

909.11 Service charge funds remitted by donees, including those accumulated prior to October 17, 1977, shall be used for the benefit of the participating donees, and the sole operation of the SASP Distribution Center. Included in the use shall be coverage of the direct and indirect cost of the SASP operations, as subject to D.C. law and budgetary requirements, and improvements to or acquisition of additional office and warehousing facilities. The service charge funds may also be used to purchase necessary equipment and goods, and to repair and rehabilitate existing equipment.

909.12 Any funds realized from either the sale or dissolution of the SASP facilities shall be deposited to

the District of Columbia General Fund.

SOURCE: Final Rulemaking incorporating 24 DCR 1705, 1714 (August 19, 1977).