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four junior accountants, one eighth of his or her salary (50 %/,* personnel) <br />and fringes should be allocated as "Direct Supervision" costs. <br /> <br />In addition to the above, the general management of the department should <br />be added to the rate. This consists of the department head, his/her <br />secretary, and the general expenses of the department. These costs are <br />then divided by the direct salary costs of the rest of the department to <br />determine the percentage which departmental overhead is of the direct <br />departmental costs. <br /> <br />Citywide overhead (determined by this study to be approximately 33.89 %) <br />would be added to the result from the above step. <br /> <br />Reviewing all of the above, the formula for determining the hourly rate <br />would be a follows: <br /> <br />rate = (hourly direct labor salary + direct fringe rate) x (1 + ~.:pervision <br />overhead %) x (1.4- departmental overhead %) x 1.3389 (Citywide <br />overhead factor) <br /> <br />If a rate for supervision or departmental overhead is not readily available, 15 % <br />and 5 % will be used respectively. The actual rate, when calculated, will likely <br />be higher than these, however. <br /> <br />Eduioment used. <br /> <br />In addition to labor and materials used to repair/replace the damaged item, some <br />operations require the use of City equipment. This includes passenger vehicles, <br />police cruisers, and heavy equipment. The Support Services Division will <br />provide an estimate of the appropriate hourly rate for passenger vehicles or Police <br />cruisers. A heavy equipment rate can be developed by mklng the original cost <br />of the unit and dividing it by the anticipated number of hours of use it will get in <br />its life. For example, if a 'cbetry-picker' gets used 3 days each week for 8 <br />hours a day and is expected to last 8 years, the procurement cost would be <br />divided by 9,984 (23 hours pet week x 52 weeks per year x 8 years). For <br />example, if the units cost $$0,000 to procure, paint, decal, etc., the rate would <br />be about SS/hour. In addition to this, the appropriate hourly share of the annual <br />maintenance, gM, oil, etc., must be added. An easier and equally acceptable <br />approach for many types of equipment is to '~se 8:5 ~ of the cost of renting the <br />unit on a commercial ba~. The 8:5 % factor is used to eliminate the profit aspect <br />of such a rate. (This approach should only be used if the City does not have <br />similaz equipment in another department.) <br /> <br />City of Ple~aamn <br />Fee Policy <br /> <br />Pa~ 7 May 1992 <br /> <br /> <br />