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111) Statement of Work <br />he City's RFP requested proposals for a comprehensive full cost analysis of the development user fee <br />related services in the city. To assist the city in understanding the methodology PRM uses when <br />conducting full cost analysis user fee studies, the following information is provided. <br />As PRM approaches a full service user fee study, we are guided by three overriding goals, I}produce the <br />most technically sound project possible, 2) manage the project in a professional manner to ensure as much <br />"buy-in" as possible by city departments and, 3) produce management reports that are professionally <br />presented, informative and useful. Our project approach supports these objectives. <br />A. Project Approach: <br />The city has requested information related to the full cost of providing city services, specifically: <br />- Development of the full cost of genera! fund user fee related services <br />~ Compare selected fees to fees charged in neighboring c'rcies <br />Install PRM user fee software (Excel Worksheets) <br />The steps required to calculate the full cost of services involve the calculation of I) indirect cost and 2) direct <br />cost The chart below provides an overview of the calculation process. Each example of indirect and direct <br />cost is illustrated. Indirect costs are broken into three levels. <br />The first level illustrates costs to support the entire city government structure or "citywide" indirect costs. In <br />the example below, a citywide cost such as payroll service to a development department staff member is <br />labeled a citywide indirect service (top level of squares). This layer of cost is identl fled and calculated in the <br />city's full cost allocation plan. <br />Department-wide support services, or the second level of indirect costs, are those that support staff in only <br />one department (second level of squares). Finally, the third level of indirect costs are those accounted for within <br />the program itself (third Level of squares}. This level includes costs such as: clerical support, certain supply and <br />services, etc. Finally, the direct cost is solely the cost of the service provided by the sports leader (in the <br />example below) who directly interacts with the customerslcit~zens final square}. <br />The chart below illustrates the various levels of indirect versus direct cost <br />~+ <br />