RES 96138 - Laserfiche WebLink

TWIN VALLEY FIRE DEPARTMENT LIVERMORE & pLEASANTON FIRE DEPARTMENT ADMINISTRATIVE COST ALLOCATION PLAN O VE R VI E W The cost allocation plan for the City of Livermore and Pleuanton Fire Departments was developed to identify the total personnel costs of providing adminiswative and support services. As with most organizations, whether public or private, the costs of providing services can be classified into two categories: direct or indirect. Direct costs are those specifically identified with a particular service. If only a single department/program is involved the costs would be direct to that department/program. Indirect costs are not as readily identifiable with a particular openring program, but rather are incurred for a joint purpose which benefit more than one department/program. The administrative and support costs for the t:ire Departments can be identified by program, but when costs are combined a method must be developed to allocate the costs to each department in a fair and equitable manner. DETERMINATION OF COSTS BY PROGRAM The 1:ire Departments of the cities of Livermore and Pleasanton are seeking to consolidate all t:ire Services. This report seeks to consolidate all salaries and benefits of the administrative and support efforts of the two fire agencies and then develop an equitable methodoloi~ry to allocate costs. The first step in the preparation of the consolidated administrative and support costs to the two Fire Departments is the determination of the costs by programs being provided. Each deparunent's administrative/support salary and benefit cost were combined by the following programs. The programs are divided into cost centers: · Management Services · Fire Prevention · Line Administration · Hazardous Materials Once each cost center is determined an allocation method is developed based upon a staffstic that drives the cost of the program. Those allocation methods are as follows: Management Services - This cost center includes the sahries and benefits of the 1:ire Chiefs, Deputy Chief~ two Division Chids, 80$,4 of the CAD P, ecords Supervisor, 50% of an Office Assistant and the Department Secretary. This program allocates the costs 50°/~ to each department.