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EXHIBIT I III) Scope of Work and Project Schedule - RFP 6.3 As PRM approaches a full service user fee study. we are guided by three overriding goals, I) produce the most technically sound project possible, 2) manage the project in a professional manner to ensure as much "buy-in" as possible by city departments and, 3) produce management reports that are professionally presented, informative and useful. Our project approach supports these objectives. A. Project Approach: The city has requested information related to the full cost of providing city services. Specifically the: )0 Development of the full cost of general fund user fee related services )0 Development cost allocation plans )0 Calculate the fully burdened hourly rates for user fee departmental staff ~ Compare selected fees to fees charged in neighboring cities )0 Install PRM user fee software (Excel Worksheets) The steps required to calculate the full cost of services involve the calculation of I) indirect cost and 2) direct cost. The chart below provides an overview of the calculation process. Each example of indirect and direct cost Is illustrated. Indirect costs are broken Into three levels. J The first level illustrates costs to support the entire city government structure or "citywide" Indirect costs. In the example below. a citywide cost such as payroll service to a recreation department staff member is labeled a citywide Indirect service (top level of squares). Thl. IayeI' of cort I. Identified ond calculated In the city'. full cort allocatJon plan. Department-wide support services. or the second level of indirect costs. are those that support staff In only one department (second level of squares). Rnally. the third level of indirect costs are those accounted for within the program itself (third level of squares). This level includes costs such as: clerical support, certain supply and services. etc. Finally. the direct cost is solely the cost of the service provided by the sports leader (in the example below) who directly interacts with the customers/citizens (finol square). The chart below illustrates the various levels 01 indirect versus direct cost Public Resource Management Group, LLC PRM Gily of Pleasanton Proposal 16