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Startup and ongoing costs for implementing Intro 606

1:44:35

·

115 sec

Council Member Brooks-Powers inquires about the specific startup and ongoing costs for implementing Intro 606. DOT officials provide details on the anticipated expenses:

  • Creation of a custom IT system for managing registrations and renewals
  • Outfitting of a call center for customer inquiries
  • Establishment of retail storefronts similar to DMV offices
  • Office space and equipment for several dozen new employees
  • New lease costs for additional office space
  • Contract for manufacturing license plates
  • DOT does not currently have resources for producing license plates
  • Specific lease and operational costs were not immediately available but will be followed up on
  • The implementation would require significant new infrastructure and personnel
Selvena N. Brooks-Powers
1:44:35
If you could send the full list, that'd be great.
1:44:37
Thank you.
1:44:45
Now I know you and I appreciate that you were able to share the dollar figures for intro 606, but just wanted to get a little bit more granular to understand what that looks like.
1:44:57
So what start up cost does DOT anticipate intro 606 would require versus what the ongoing expense and capital costs are?
Will Carry
1:45:10
Thank you for the question, council member.
1:45:11
The start up cost would include, creation of a custom IT system to manage all the registrations and renewals.
1:45:19
It would require outfitting of a call center, to take, customer inquiries, the creation of a retail storefront, or storefronts, places where people could come, as the DMV has offices.
1:45:34
This would require offices that people can come, or, apply or work through issues that they're having with their registration.
1:45:42
And outfitting of office space, for the the several dozen employees who would be required to operate this new unit.
Selvena N. Brooks-Powers
1:45:51
Would DOT require a new or separate location to conduct this work?
Will Carry
1:45:57
We're anticipating that we would need a new new office space to conduct this work.
Selvena N. Brooks-Powers
1:46:02
And what would be the anticipated lease cost and operational cost?
Will Carry
1:46:06
I can, I can follow-up with you on that specific number, chair?
Selvena N. Brooks-Powers
1:46:12
Does DOT have an existing resource for license plates?
Will Carry
1:46:17
We do not.
1:46:21
We'd have to we would expect to issue a contract for the manufacturer of the plates.
Selvena N. Brooks-Powers
1:46:25
Okay.
1:46:26
Thank you.
1:46:26
That was that was the next question.
1:46:27
Like, how would you be able to implement it?
Will Carry
1:46:29
We hire somebody to do it.
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