Chapter 6.02
FEE AND SERVICE CHARGE REVENUE/COST COMPARISON SYSTEM
Sections:
6.02.020 Delegation of authority and direction to manager.
6.02.030 “Costs reasonably borne” defined.
6.02.040 Schedule of fees and service charges.
6.02.050 Statutory public meeting.
6.02.070 Appeal to city council.
6.02.010 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 regulations, 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 adoption of the ordinance codified in this chapter is exempt from the California Environmental Quality Act (Public Resources Code Section 2100 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)(l). [Ord. 1719 N.S. § 1, 1990].
6.02.020 Delegation of authority and direction to manager.
(a) The city manager is hereby delegated the authority and directed to provide documents to the city council to implement its policy, as set forth herein, to adjust fees and charges to recover the stated percentage of costs reasonably borne in providing the regulation, product or service as hereinafter established in this chapter.
(b) The city manager is hereby delegated authority to issue executive orders, as needed, defining terms, setting out administrative, fee collection, and financial procedures, definitions, and establishing effective dates of any fees set by the city council by resolution. All executive orders shall be originated and signed by the affected department head, shall be signed by the finance director certifying that the financial requirements of this chapter are complied with and shall be signed by the city manager stating the effective date of the executive order and new or revised rate structure, procedure or definition.
(c) “Costs reasonably borne” is defined in PGMC 6.02.030. In recommending adjustments to fees and charges, the city manager shall act in an administrative and ministerial capacity and shall consider only the standards and criteria established by this chapter, and the procedures set hereby and by applicable state law. All executive orders issued thereunder shall comply in all respects with this chapter, and the several schedules of fees and rates as set by the city council by resolution. [Ord. 1719 N.S. § 1, 1990].
6.02.030 “Costs reasonably borne” defined.
“Costs reasonably borne,” as used and ordered to be applied in this chapter, are to consist 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. An additional charge, to make up the difference between depreciation not previously recovered and the full cost of replacement, also shall be calculated and considered a cost so as to recover such unrecovered costs 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, city clerk, city treasurer, and all other staff and support 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 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, note of 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. 1719 N.S. § 1, 1990].
6.02.040 Schedule of fees and service charges.
(a) The city manager shall annually review city fees and charges and provide an adjusted fee or charge schedule to the city council for its consideration so as to recover the percentage of costs determined by the council as reasonably necessary to provide the regulation, product, or service. Fees and charges, and any determination as to recovery percentage, shall be set by the council by resolution.
(b) The resolution setting the fee and charge schedule may require minimum fee(s) that shall be charged.
(c) The schedule of frequency of rate adjustment recommendations to the city council may be varied by the city manager for good cause, such as to adjust revenues sufficient to meet debt service coverage requirements of any bond, certificate, or ordinance, resolution, indenture, contract, or action under which securities have been issued by the city that contain any coverage factor requirement.
(d) The city manager may impose an increased or decreased fee or charge that varies from the adopted schedule if, in the judgment of the city manager, a gross inequity would be perpetrated by not revising the fee or charge otherwise required by the adopted rate schedule. Any such deviation from the adopted schedule shall be reported to the city council at its next succeeding meeting. [Ord. 10-017 § 2, 2010; Ord. 1719 N.S. § 1, 1990].
6.02.050 Statutory public meeting.
Pursuant to California Government Code Sections 54992, 54994.l and 54994.2 the city clerk shall cause notice to be provided as set out in Government Code Sections 54992, 54994.1, and 6062a, and the city council periodically, at least annually, shall receive at a regularly scheduled meeting oral and written presentations concerning fees and charges proposed to be increased or added. Such notice, oral and written presentation, and a public meeting shall be provided prior to the city council taking any action on any new or increased fees or charges. At least one such public hearing shall be held annually, in conjunction with the city annual budget process and hearing. [Ord. 1719 N.S. § 1, 1990].
6.02.060 Provision of data.
Pursuant to the California Government Code at least 10 days prior to the required public hearing set out herein, the city manager shall make available to the public appropriate data indicating the cost, or estimated cost required to support the fees and charges for which charges are proposed to be made or fees or charges imposed. The city manager also shall provide a summary of the present fee and charge schedules and those proposed at such annual public hearing. A general explanation of such changes also shall be published per the requirements of Government Code Section 6062a. [Ord. 1719 N.S. § 1, 1990].
6.02.070 Appeal to city council.
(a) Any person who feels that any fee or charge determined and set is in excess of the percentage of costs reasonably borne to be recovered in accord with this chapter may appeal in writing to the city council.
(b) No fee or charge for which an appeal has been filed shall take effect until heard by the city council. Such appeal shall be placed on the agenda of the next ensuing council meeting after receipt of such appeal, and heard at the next ensuing council meeting. Such appealed fee or charge shall take effect immediately upon hearing by the city council unless ordered otherwise by the city council by ordinance amending this chapter. [Ord. 10-017 § 3, 2010; Ord. 1719 N.S. § 1, 1990].