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department. For instance, the city-wide cost related to an accounting/payroll support function may be spread to other departments based on the number of employees in a department. Once the indirect costs have been identified and allocated, the direct costs associated with fee related services are quantified. Public Resource Management Group LLC (PRM) will interview all city staff involved in the direct cost associated with each user fee and assist them in allocating their time spent in various fee related activities. All identified direct and indirect costs allocated to a fee related service will be combined to derive the full cost of providing any particular service. The final product will be a report that includes 100% of the cost associated with providing fee related services. The analysis will include the full cost of providing services for all departments including Planning, Engineering, Building, Library, Parks & Community Services, City Clerk, Finance, Police and Fire. Staff and the consultant will present this information to the City Council (tentatively in June) and include a recommendation on the level of cost recovery and proposed revisions to the user fee schedule. The study may include recommendations to implement new fees that are currently not being charged, but perhaps should be, based on the analysis and a comparison of fee practices in similar cities. Consultant Selection Process The city received six responses to its request for proposal to conduct the study. After staff review of the six responses three firms were selected for an interview. The three firms included Wohlford Consulting, Public Resource Management Group LLC (PRM) and Maximus. Staff is recommending PRM for the cost allocation plan and user fee calculation study based on its innovative approach to the assignment, its experience in assisting cities similar to Pleasanton, and the experience of the assigned project team. PRM's rate to complete the assignment is $46,200 - $49,800, which should take approximately 4 to 5 months to complete. Wohlford Consulting's rate is $43,750 and Maximus' rate is $56,750 and $1,500 per year for support of the accompanying software. A comparison fee analysis of neighboring cities will be included in PRM's report. In addition, PRM's excel-based cost analysis program will be retained by the City to enable staff to update cost information for subsequent years. FISCAL IMPACT The cost allocation plan and user fee study contract fee is not to exceed $50,000. There is sufficient funding in contingency set aside for this study. The study will provide the full cost of providing fee related services to the public and staff will make recommendations to the fee schedule based on the study results. To the extent that the study indicates individual fees should be increased to provide full cost recovery, and new fees are adopted, the impact to the General