Methodology for Calculating Costs to Store State Government Records in the Records Center and Archives South

In the past, WSA estimated a cost avoidance savings based upon the amount of office space released to state government by storing records in its repositories (Records Center and Archives South).  It stopped doing this in the 1995-1996 biennium budget request because program officials believed that it was too complex and difficult to arrive at an accurate cost avoidance figure.  WSA officials noted that the national cost avoidance estimates, which were based upon the costs of the filing supplies and personnel necessary to manage a typical, four-drawer file cabinet holding six cubic feet of records in an office setting, seemed inflated.

However, for this project, we believe some estimate is necessary to portray to policymakers the value and cost of operating the WSA storage repositories.  Therefore, we have developed estimates of the costs of storing a cubic foot of records in both of the Records Center and Archives South, as well as a combined cost for the two.  Our estimates follow:

Combined facilities, cost per cubic foot:  $4.23

Records Center, cost per cubic foot:  $3.58

Archives South, cost per cubic foot:  $4.85

To obtain these estimates, we have included the costs of the facilities used, the WSA staff employed to manage the records, and the shelving.

Facility Costs/Records Center and Archives South:  Both of these facilities are located in the state-owned property known as Supply System Warehouse, Building 38.  According to the state archivist, combined, the two storage repositories occupy 26,585 square feet.  To calculate the state’s cost for maintaining this space, we used Department of Administration and Information, Budget Division figures cited in the Statewide Cost Allocation Plan for the Fiscal Year Ending June 30, 1999.  The costs in this plan are based upon lagging, FY 1997 costs.  Using these figures, we calculated a $4.35 per square foot cost for depreciation and maintenance of the space in Building 38.  Thus, we used a total cost of $115,644.75 for the square feet WSA occupies in Building 38.

Total Cubic Feet/Records Center and Archives South:  We based our cost estimate on 61,000 total cubic feet being stored in the combined repositories.  This figures derives from 31,000 total cubic feet stored in Archives South, and 30,000 cubic feet in the Records Center.

Staff Costs/Records Center and Archives South:  We calculated staff costs based upon two positions dedicated to the Records Center and two and half positions at Archives South.  This was the staffing complement that WSA officials told us existed.  We obtained total annual current staff costs of $129,618 from the LSO Fiscal Division.  Using information provided by LSO, we were also able to calculate the total staff costs for each facility individually.

Shelving Costs/Records Center and Archives South:  WSA officials provided a current estimate of the cost of shelving as .21 per cubic foot, based upon a 33 year depreciation. 

State Office Building Costs:  We did not attempt to calculate the costs of maintaining records in office settings in terms of supplies and staff.  Instead, we based our estimate of the cost solely on the cost of the space the records would occupy.  To do this, we used the standard used in the records management field for the amount of space necessary to store and maintain a typical four-drawer file cabinet that holds six cubic feet of records.  This standard is that such a file cabinet requires six square feet of office space, including space to open the files drawers and aisle space.  Granted, state agencies likely maintain file cabinets in less space, but this is the industry standard.  Using this, a cubic foot of records occupies a square foot of office space. 

The cost estimate for a square foot of office space also came from the A&I Budget Division Statewide Cost Allocation Plan for the fiscal year ending June 30, 1999.  We used figures from the Herschler and Hathaway Buildings to generate a square foot cost, including depreciation, utilities, and maintenance, of between $6.60-$6.70 a square foot.  If agencies lease office space, they do so at rates of between $7.50 and $14 per square foot, according to A&I Facilities Management officials.

Cost Avoidance Realized by Using WSA Storage Facilities:  Based upon the calculations described above, we conclude that it is less expensive to store records in either the Records Center or Archives South than in state office buildings.  The estimated savings range from $1.75 to $10.42 per cubic foot.  Again, this savings compares what it costs to store and manage records in the WSA facilities to what it costs to simply store records in the office buildings.  Office building costs are higher than we have estimated when staff and supplies costs are included.  Thus, the savings would be higher than we have estimated.