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/ 4 '" _ HI pLEASANTONc City Council Staff Report January 16,2007 Finance Department SUBJECT APPROVE A CONTRACT WITH PUBLIC RESOURCE MANAGEMENT GROUP LLC TO PROVIDE A COST ALLOCATION PLAN AND USER FEE STUDY STAFF RECOMMENDATION: Staff recommends that the City Council approve, and authorize the City Manager to sign on behalf of the City, a contract with Public Resource Management Group LLC to provide a cost allocation plan and user fee study at a cost not to exceed $50,000. SUMMARY The City of Pleasant on provides many services to the public that are user fee driven, rather than funded through general taxes or recovered through developer impact fees. For user fee related services, the City has a published user fee schedule that attempts to recover the cost of providing the service. A cost allocation plan is being proposed to determine the "full cost" of services provided by City departments that currently have a fee attached, or could have a fee attached. The cost allocation plan calculates all indirect costs (city-wide, department-wide, and program-wide) and adds them to the direct cost of providing the service to determine the full cost. Although certain user fees have been increased periodically to maintain cost recovery, it has been over ten years since the City has performed a cost allocation plan and documented the full cost of providing all services for which a user fee is (or could be) charged. Staff recommends Public Resource Management Group LLC be retained to provide the cost allocation plan and user fee study services.