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<br />To analyze the cost issue, it must be understood that the cost saving issue is driven primarily <br />by the desired level of service for engineering. Typically, for level 1 services, a city would <br />spend $4.00 to $6.00 per capita. For level 2 services, the city would spend a similar <br />amount, $4.00 to $6.00 per capita. For level 3 services, the cost of one field crew consisting <br />of two full-time field personnel and one temporary aid would be approximately $100,000 per <br />year. One crew could handle approximately $1.5 million worth of construction work on an <br />annual basis. On an average, for a community the size of Elk River to provide level 1 and <br />level 2 services, including a full-time city engineer and a competent engineering technician, <br />the cost would be approximately $90,000 to $134,000 per year using the per capita figures. <br /> <br />For comparison purposes, using information generated by the City of Roseville for typical <br />operating costs, the Finance Department has suggested that to arrive at an actual cost for <br />department services, a salary factor should be used equal to the hourly rate paid to each <br />classification, plus a 22 % additive included for benefits. For overhead, a 59.5 % factor is <br />used, including the engineering department's share of equipment.... building expenses and <br />depreciation, and other operating expenditures. This would result in a total multiplier for <br />services of 1.95 times salary costs. For hiring purposes, I would suggest you consider the <br />cost ofa city engineer for Elk River in today's market would be approximately $50,000 per <br />year. For a reasonably experienced engineering technician, the cost would be $30,000 per <br />year. <br /> <br />In summary, the total costs to provide these two positions would be as follows: <br /> <br /> rity Fneineer Te~hnici~n <br />Salary $50,000 $30,000 <br />Benefits 11,000 6,600 <br />Overhead ?9 J 7:')0 17, R'iO <br />Total $90,750 $54,450 <br /> <br />Comparing this cost to the per capita cost would indicate that for a full-time city engineer <br />and engineering technician, the total cost would be approximately $140,000 to $150,000. <br />This would compare closely with the estimated cost to the City for a city engineer and <br />engineering technician using the per capita analysis. <br /> <br />230/000-300I.mar <br />