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CITY OF REDWOOD CITY, CALIFORNIA <br />Cost of Services (User Fee) Study <br />Matrix Consulting Group Page 1 <br /> <br />1. EXECUTIVE SUMMARY <br /> <br />The report, which follows, presents the results of the Cost of Services (User Fee) <br />Study conducted by the Matrix Consulting Group for the City of Redwood City. <br />1. PROJECT BACKGROUND AND SCOPE OF WORK <br /> The Matrix Consulting Group analyzed the cost of service relationships that exist <br />between fees for service activities related to city clerk and finance fees, library, parks <br />and recreation rental rates, and public works. The results of this Study provide a tool for <br />understanding current service levels, the cost and demand for those services, and what <br />fees for service can and should be charged. <br />2. GENERAL PROJECT APPROACH AND METHODOLOGY <br /> The methodology employed by the Matrix Consulting Group is a widely accepted <br />“bottom up” approach to cost analysis, where time spent per unit of fee activity is <br />determined for each position within a Division. Once time spent for a fee activity is <br />determined, all applicable City costs are then considered in the calculation of the “full” <br />cost of providing each service. The table on the following page provides an overview of <br />types of costs applied in establishing the “full” cost of services provided by each <br />Department included in this Study: <br />Cost Component Description <br /> <br />Direct <br /> <br />Fiscal Year 2016/17 Adopted Budgeted salaries, benefits and allowable <br />expenditures. <br /> <br />Overhead <br /> <br />Division and departmental administration / management and clerical support, <br />along with Citywide overhead. <br /> <br />Supporting (Cross) <br />Unit Review <br /> <br />Where applicable, direct and indirect costs associated with external <br />divisions’ assistance. <br /> <br />7.A. - Page 13