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').10 U nit Cost Method - "Bottom Up Approach" - This costing method identifies the cost at the unit activity level where the effort of individuals by activity is identified. The time spent for a fee activity is determined for each individual or position with the hourly rate based on using the individuals productive hours. Productive hours are total hours (usually 2,080) less vacation, holidays, sick leave, administrative time, etc. With the overhead cost added to the individual's salary and other direct costs and .-- this. full cost divided by productive hours, a fully loaded hourly : ! rate is determined. This rate is then multiplied by the time necessary to perform the activity. The resulting cost can then be compared to the actual fee schedule. Task 5. Process Cost of Services Studv . . Utilizing the knowledge and data obtained through the prior four tasks, the various department fee analyses are now prepared. A computer run is completed which produces a draft report. A User Fee Summary schedule is produced by the software, which presents the cost/revenue analysis on a clear single schedule such that the review process by City staff can begin. ~ Phase II - Presentation of Results to the City The presentation phase is critical to the success of the overall engagement. It involves three distinct stages. The initial stage is the review of findings and recommendations with each of the departments. Once the departments are aware of the methodology and have reviewed our findings for their individual department, we proceed to the second stage. This stage is the presentation of the overall study to City management for their review and concurrence. When this second stage is completed, then the final stage is the presentation of the results to the City officials for their consideration. DMG will assist the City with this presentation. DMG staff are fully cognizant of the importance of making a thorough and understandable presentation to City officials. Our presentation has always met with praise by City officials. Task 6. Department Review of Initial Study This segment of the engagement involves conducting secondary interviews with department representatives to review the initial results of the Cost of Services/Revenue Analysis and discuss the revenues and associated costs of each service area. Comments received at this time are incorporated in the review process.