Chapter 3.25
FEE AND SERVICE CHARGE REVENUE/COST COMPARISON SYSTEM
Sections:
3.25.020 Costs reasonably borne—Defined.
3.25.030 Schedule of fees and service charges.
3.25.040 Amendment of charges.
3.25.010 Findings and intent.
A. Pursuant to Article XIIIB of the California Constitution, it is the intent of the city council to require the ascertainment and recovery of costs reasonably borne from fees, charges and regulatory license fees levied therefor in providing the regulation, products or services hereinafter enumerated in this chapter.
B. The fee and service charge revenue/cost comparison system set forth in this chapter provides a mechanism for ensuring that fees adopted by the city for services rendered do not exceed the reasonable estimated cost for providing the services for which the fees are charged.
C. The intent of this chapter is to enumerate a cost recovery system for any services, products or regulatory services provided by the city, but which are not specifically or generally listed in other sections of this code.
D. The adoption of this chapter is exempt from the California Environmental Quality Act (Public Resources Code Sections 21080 et seq.), because it approves and sets forth a procedure for determining fees for the purpose of meeting the operating expenses of city departments, as set forth in Public Resources Code Section 21080(b)(8)(1). (Ord. 92-10 § 1 (part), 1992)
3.25.020 Costs reasonably borne—Defined.
“Costs reasonably borne,” as used and ordered to be applied in this chapter means and consists of the following elements:
A. All applicable direct costs including, but not limited to, salaries, wages, overtime, employee fringe benefits, services and supplies, maintenance and operation expenses, contracted services, special supplies and any other direct expense incurred;
B. All applicable indirect costs including, but not restricted to, building maintenance and operations, equipment maintenance and operations, communications expenses, computer costs, printing and reproduction, vehicle expenses, insurance, debt service and like expenses, when distributed on an accounted and documented rational proration system;
C. Fixed asset recovery expenses, consisting of depreciation of fixed assets, and additional fixed asset expense recovery charges calculated on the current estimated cost of replacement, divided by the approximate life expectancy of the fixed asset. A further additional charge, to make up the difference between book value depreciation not previously recovered and reserved in cash and the full cost of replacement, also shall be calculated and considered a cost so as to recover such unrecovered costs between book value and cost of replacement over the remaining life of the asset;
D. General overhead, expressed as a percentage, distributing and charging the expenses of the city council, city attorney, city manager, the administrative services department, and all other staff and support service provided to the entire city organization. Overhead shall be prorated between tax-financed services and fee-financed services on the basis of said percentage so that each of the taxes and fees and charges shall proportionately defray such overhead costs;
E. Departmental overhead, expressed as a percentage, distributing and charging the cost of each department head and his or her supporting expenses as enumerated in subsections (A), (B), (C) and (F) of this section;
F. Debt service costs, consisting of repayment of principal, payment of interest, and trustee fees and administrative expenses for all applicable bond, certificate or securities issues or loans of whatever nature or kind. Any required coverage factors or required or established reserves beyond basic debt service costs also shall be considered a cost if required by covenant within any securities ordinance, resolution, indenture or general law applicable to the city. (Ord. 92-10 § 1 (part), 1992)
3.25.030 Schedule of fees and service charges.
The city manager, financial services manager and each city department head, under the direction of the city manager, shall annually review all services provided by the various city departments to all users and the costs and charges, if any, associated with those services. The city manager will provide, by resolution, an adjusted schedule of services and the associated fees and charges to the city council for its consideration so as to recover the costs reasonably borne for providing those services. (Ord. 9210 § 1 (part), 1992)
3.25.040 Amendment of charges.
The charges and fees set out in this chapter may be amended or updated by resolution. Resolutions presented to the council may combine the services and their associated fees and charges allowed by this chapter with services and fees provided for in other chapters of this code. (Ord. 92-10 § 1 (part), 1992)
3.25.050 Collection of fees.
The lead department responsible for each service shall be the collector agent for the city and is authorized to take all action necessary to collect same. All receipts shall be deposited into the city’s banking agencies and any receipts and disbursements shall be accounted for by the financial services division. (Ord. 92-10 § 1 (part), 1992)