UCR Fees – 2010Another Approach

Dave Lazarides

UCR Board Minutes 7-9-09

Exhibit 1

Come Up With A Fee Schedule That Addresses The Following Criteria:

• Embraces Entire 400K+ MCMIS “Universe”• Calculates Fees Based On:

– MCMIS “Power Units Only”– “Registered-Carriers-Only” Bracket Shift– Robust Registration Participation

• Maintain Bracket Equilibrium• Put “Incentive” On States To Enforce • Easily “Tweaked” By FMCSA Analysts

There are six (6) steps used to determine the 2010 UCR Fees

using this methodology.

Step #1Determine the Combined UCR

Revenue Cap

Combined Revenue Cap – 2010$113,340,945

(Page 6 – Original Fee Recommendation)

State Entitlement* $107,777,060Administrative Expenses $5,000,000Sub-Total $112,777,060Reserve (.005) $563,885Target Revenue $113,340,945

(* Incl. $500,000 each for Alaska and Delaware)

Step #2Calculate the new “maximum MCMIS

Power-Unit-Only Revenue” figure.

Carrier Universe As Of: 12/9/2008Power Units Only

Current Fee Brackets

Bracket Fee Carriers Revenue

0-2 $39 267,144 $10,418,6163-5 $116 76,499 $8,873,8846-20 $231 56,321 $13,010,151

21-100 $806 17,260 $13,911,560101-1000 $3,840 3,513 $13,489,920

1001+ $37,500 276 $10,350,000

421,013 $70,054,131

If Every Carrier In the Current Universe Registers MCMIS Power-Units-Only Using the Current Fee

Brackets, We Generate

Maximum MCMIS Revenue Includes The Entire MCMIS UCR Universe Registering The Power Unit Numbers

Shown In MCMIS.

Maximum MCMIS Revenue Implies:No Bracket Shift

100% Registration / Every Carrier100% MCMIS Data Reliability

Even so, ………

… In Order To Collect The Total Revenue Cap Entitlement of $113MM, Maximum MCMIS Revenue

Would Require A “Gross-Up Factor” of:

1.614286 ($113MM / $70MM)

(For example, $39 becomes $63.)

Step #3a.Determine the Bracket Shift For

Carriers Who Registered

2008 UCR Bracket Shift Matrix(Excluding 0-Column Carriers)

1 107277 7109 1617 94 6 0 116,103 2 18732 33518 4002 108 5 0 56,365 3 6132 10390 40086 1191 18 2 57,819 4 1092 1026 5968 15264 174 0 23,524 5 253 112 429 1714 4265 21 6,794 6 45 4 19 50 182 388 688

133,531 52,159 52,121 18,421 4,650 411 261,293 261,293

5,207,709$ 6,050,444$ 12,039,951$ 14,847,326$ 17,856,000$ 15,412,500$ 71,413,930$

PAIDMCMIS 1 2 3 4 5 6 Totals

1 -$ (547,393)$ (310,464)$ (72,098)$ (22,806)$ -$ (952,761)$ 2 1,442,364$ -$ (460,230)$ (74,520)$ (18,620)$ -$ 888,994$ 3 1,177,344$ 1,194,850$ -$ (684,825)$ (64,962)$ (74,538)$ 1,547,869$ 4 837,564$ 707,940$ 3,431,600$ -$ (527,916)$ -$ 4,449,188$ 5 961,653$ 417,088$ 1,548,261$ 5,200,276$ -$ (706,860)$ 7,420,418$ 6 1,685,745$ 149,536$ 708,111$ 1,834,700$ 6,126,120$ -$ 10,504,212$

23,857,920$ 6,104,670$ 1,922,021$ 4,917,278$ 6,203,533$ 5,491,816$ (781,398)$

23,857,920$ Bracket Shift -----------> 25.04%

Bracket Shift History

• 2007 – 26.12%• 2008 – 25.04%• 2009 – 26.07%

Step #3b.Calculate the “Registration Participation

Reasonableness” Factor.

“Registration Participation Reasonableness” (RPF) Factor

No. of Carriers - UCR Universe 433,000

No. of Carriers - Part Jurisdictions 383,000 <- Unconfirmed Registration Reasonable Percentage 90%Reasonable Registration Total 344,700

No. of Carriers - Non-Part Jurisdictions 50,000 <- Unconfirmed Registration Reasonable Percentage 80%Reasonable Registration Total 40,000

Reasonable Registration Total - Combined 384,700

Reasonable Non-Registration Total 48,300

Reasonable Non-Registration Percentage 11.15%

Step #4aDetermine the “Post-Bracket Shift” and “Post-RPR Factor”

Maximum Revenue

Carrier Universe As Of: 12/9/2008Power Units Only

Current Fee Brackets

Bracket Carriers Revenue

$39 267,144 $10,418,616$116 76,499 $8,873,884$231 56,321 $13,010,151$806 17,260 $13,911,560

$3,840 3,513 $13,489,920$37,500 276 $10,350,000

Apply ORIGINAL Gross $70,054,131Bracket Shift % 25.04% ($17,541,554)

Adjusted $52,512,577Apply RPR Factor 11.15% ($7,811,036)

$44,701,541Adjusted Maximum Revenue

Carrier Universe As Of: 12/9/2008Power Units Only

Current Fee Brackets

Bracket Carriers Revenue

$39 267,144 $10,418,616$116 76,499 $8,873,884$231 56,321 $13,010,151$806 17,260 $13,911,560

$3,840 3,513 $13,489,920$37,500 276 $10,350,000

Apply MODIFIED Gross $70,054,131Bracket Shift % 12.52% ($8,770,777)

Adjusted $61,283,354Apply RPR Factor 11.15% ($7,811,036)

$53,472,318Adjusted Maximum Revenue

Step #5Determine the “2010 Fee

Adjustment Factor”

Combined Revenue Cap $113,340,945

Maximum Adjusted Revenue $44,701,541

2010 UCR Fee Factor 2.54ORIGINAL

Combined Revenue Cap $113,340,945

Maximum Adjusted Revenue $53,472,318

2010 UCR Fee Factor 2.12MODIFIED

Step #6Apply the 2010 UCR Fee Factor

Equally Across All UCR Fees

ORIGINALOld 2010 New 2010 $ Per Fee Fee Factor Fee Vehicle

$39 Times 2.54 $99 99$ $116 Times 2.54 $295 98$ $231 Times 2.54 $587 98$ $806 Times 2.54 $2,047 97$

$3,840 Times 2.54 $9,754 97$ $37,500 Times 2.54 $95,250 95$

MODIFIEDOld 2010 New 2010 $ Per Fee Fee Factor Fee Vehicle

$39 Times 2.12 $83 83$ $116 Times 2.12 $246 82$ $231 Times 2.12 $490 82$ $806 Times 2.12 $1,709 81$

$3,840 Times 2.12 $8,141 81$ $37,500 Times 2.12 $79,500 79$

The End