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<br />8 <br />Study Methodology and Data Sources <br />This study calculated the estimated reasonable cost of providing various planning, building, and fire <br />prevention fee-related services. Generally, the estimated reasonable cost of providing the fee-related <br />services and activities examined in this study can be calculated as the product of the composite fully- <br />burdened hourly labor rate of the division responsible for providing services and the estimated labor <br />time required to process a typical request for service (see illustration below). <br /> <br /> <br /> <br /> <br />The composite fully-burdened hourly rates calculated in this study are based on the estimated annual <br />hours spent providing fee related services, and estimated labor, services and supplies, and citywide <br />overhead expenditures: <br /> Estimated annual hours spent providing fee related services were developed based on <br />responses received from multiple interviews and targeted questionnaires. <br /> Labor expenditures for in-house personnel were based on forecasts of Fiscal Year 2016/17 salary <br />and benefits expenditures. <br /> Contract service personnel related costs were based on the rates currently used by the City’s <br />contract fire prevention service provider, Alameda County Fire Department. <br /> All other services and supplies expenditures were based on Fiscal Year 2016/17 budgeted <br />expenditures. <br /> <br />Estimated labor times were developed based on responses received from multiple interviews and <br />targeted questionnaires of the staff primarily responsible for the provision of services examined in the <br />study, along with a review of actual permits issued during previous years. Commonly used industry data <br />also aided in the development of time estimates and proposed fee structures. <br /> <br />Once cost of service levels are identified, the City may use this information to inform targeted cost <br />recovery from fees. Fees set at the cost of service target full cost recovery. Fees set at any amount less <br />than the cost of service target less than full cost recovery. <br /> <br /> <br /> <br /> <br /> <br /> <br />Hourly rate * Labor hours = Cost of service <br />Proposed fee ÷ Cost of service = Targeted Cost Recovery <br />20