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7. B. - Page 9 � City of Redwood City, California Fire Prevention Cost of Services Study 1. INT�C3DUCTIaN The Gity of Redwood Gity faces a fiscal challenge similar ta that of other California cities. In this project, t�e City sought to determine the cost of Fire Prewention services for whieh it charges fees. Cost of Services Fees in many 1ocal gavernment� khro�ghout the co�ntry haWe traditionaCly bee� se# based on struc#ural valuation or other methods that ar� difficuit tn correlate to services provided. Califarnia law requires a rational nex�s between fees and the cost of the services these fee� fund. Cities are free to charge iess than the cost af a service if th�y are ab{� ko afford such a subsidy, but the�y should not charge more. This requir�s a detailed analysis of the cost of providir�g indi�idual fee seruices, NEXUS, our firrr�'s proprietary deuelopment-fee application, determines the cost of fee servrces. We ha�e updated our model ta reflect the current fee structure of the City c�f Redwood City. 2. METHODOLOGY Hourly Rate Calculation: To determine th� total available haurs, we a�ked about compensated absences such as Wacatior�, hofiday and sick days, as well as authorized breaks, training and other commitments that r�duce staff's ava�€ability for �ssignments to serve customers. � Productive Hourly Rate Calculation Hourly Rate City of Redwood Ci€y -�ire $ 167.00 � Time to Perform Services: Labor effort is the single largest category of expense. NEXUS b�eaks the service dovun to its task corraponents, wh9ch we �eel leads ta more accurate time estimates. We reviewed the material with the Department, praviding ample time for comm�nts, edits and questions. �epartment stai� took the time to understand the methodology of th� study and to refin� the data to ensure good technical in�ormation. Validation of Estimates: The Department was r�ery thorough in their approach to arrivir�g at their time estimates. Staff had many weeks to review the numb�rs and refine fhem. We also validated these estimates by comparing them to available haurs to d� the wark_ 3. F1NDINGS FOR REDWOOD GITY Fire Department Financial Reconciliation: The City of Redwood City currer�tly recovers 17.6°te of its cost ta pra�ide the listed services. The table below shows �he costs receive� and incurred by Fee Category. For many of these services, the Gity of Redwood City is currently not charging a fee. MA�IMUS Page �