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Proposal for Livermore-Pleasanton Fire Department NBS | 7 • Indirect Costs: Applicable support costs for supervision, management, and administrative support as defined by the LPFD’s organizational structure and/or the LPFD’s annual Cost Allocation Plan.1 Calculate fully burdened hourly rates for each department involved in the Study. Rates will consider the applicability of productive hours or direct-billed hours as the basis for calculation, depending on the department or service analyzed. Multiply the fully burdened hourly rates by the time estimates gathered in Task 3 to compute the full cost of each individual fee for service activity. The full cost of service defined by NBS serves as the analytically justified maximum amount that may be recovered through a user/regulatory fee adopted by the LPFD. Cross check all data metrics in the fee model to ensure the fee program is structured to recover 100% of costs considered. TASK 5. DRAFT REVIEW AND REVISION Review the outcomes of the analysis with staff. Drafts will detail all the assumptions and data utilized to calculate results as well as a comparison of each fee’s cost recovery performance. Determine any necessary refinements to core assumptions, revise the fee model, and finalize the cost-of-service analysis. This task represents one planned iteration of the analytical work products. Obtain staff’s final sign off on fee models. TASK 6. FEE COMPARISON Policy makers often desire a comparison of fee amounts to neighboring jurisdictions. Presence of a comparison will ensure a smoother implementation process and provide a sense of the “market” rate for various services. We will utilize our expertise to compare similar user fees and charges in up to five (5) neighboring and comparable communities. A list of communities will be selected and approved by LPFD staff. We will download the respective fee schedules from the Internet or make a reasonable attempt to contact each agency if needed for a copy of their current fee schedules. Complete a comparison of the fee categories and amounts, for the most readily comparable fee items that match the LPFD’s fee structure. TASK 7. RECOMMENDED PRICING REVIEW Discuss pricing objectives from the LPFD’s perspective, i.e., comfort with full cost recovery or some alternative level of cost recovery. Facilitate this conversation by discussing public/private benefits or causation of each activity, potential market sensitivity, interaction with established LPFD goals or policies, behavior modification influence, and other considerations. Collect data from the LPFD regarding recommended fees, either at or below the 100% full cost recovery fee amount calculated by NBS. Model the recommended cost recovery performance per fee item, and annually for the LPFD as a whole. 1 Department is responsible for providing a current overhead cost calculation such as a Cost Allocation Plan. If needed, NBS can perform an overhead cost analysis under a separate scope of services. EXHIBIT A Docusign Envelope ID: 09559A62-06A5-8485-82E8-5B45F6615FAE