Proposed Limit on BCHD allcove Spending - 9% of Total Costs

BCHD agreed to be the provider for allcove, a program that services LA County SPA8 from Avalon to Long Beach to LAX. Of that 1.4M population area, the District cities are 9%.

BCHD MUST BE LIMITED TO PAYING ONLY 9% OF allcove COSTS

allcove OPERATING COSTS MAXIMUM 9%

PAYMENT OF ONLY 9% OF allcove OPERATING COSTS BY BCHD

The current allcove operating budget from BCHD:

FY Expense 9% District LIMIT

2024-25 $1.9M $171K

2025-26 $2.0M $180K

2026-27 $2.1M $189K

2027-28 $2.2M $198K

allcove EXECUTIVE & STAFF OVERHEAD REIMBURSEMENT OF 91%

allcove REIMBURSMENT OF 91% OF BCHD EXECUTIVE AND STAFF COSTS

Staff and executives must keep timesheet hours of their planning, management and participation in allcove. allcove must reimburse 91% of the FULLY LOADED COST of BCHD staff.

allcove BUILDING COSTS MAXIMUM 9%

PAYMENT OF ONLY 9% OF allcove BUILDING COSTS BY BCHD

The current allcove building construction budget from BCHD ranges from $7.4M to $10.9M. That would cap BCHD's expenditures on the allcove building at $666K to $981K with all other funding coming from other sources.

allcove BUILDING LAND RENT REIMBURSEMENT OF 91%

BCHD determined that the appropriate rent for 3 acres to PMB was $1.5M per year. That is $250,000 per 1/2-acre. In addition, BCHD provided a rent adjustment escalator. allcove must reimburse District taxpayers 91% of the $250,000 in fair market value land rent each year. That is $228K in the first year.