Chapter 10 — FEE AND SERVICE CHARGE REVENUE/COST COMPARISON SYSTEM

Section

3-10.01 Intent

3-10.02 Establishment of Master Fee Resolution

3-10.03 Costs reasonably borne defined

3-10.04 Adoption of Master Fee Resolution

3-10.05 Statutory public hearings

3-10.06 Provisions of data

3-10.07 Phasing of implementation

Pursuant to Article XIIIB of the Constitution of the State, it is the intent of the City Council to require the ascertainment and recovery of costs reasonably borne from fees and charges levied therefor in providing the regulation, products or services hereinafter enumerated in this chapter.

('66 Code, § 3-10.01) (Ord. 735-C-S, passed 2-9-89)

(A) The City Manager shall at least annually recommend to the City Council adjustments to fees and charges to endeavor to recover up to the percentage of costs reasonably borne in providing the regulation, products or services as established in the Master Fee Resolution as provided for in § 3-10.04 of this chapter.

(B) Costs reasonably borne shall be defined in § 3-10.03 of this chapter.

('66 Code, § 3-10.02) (Ord. 735-C-S, passed 2-9-89, Am. Ord. 958-C-S, passed 7-27-99)

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, communica-tions expenses, computer costs, printing and reproduction, and like expenses when distributed on an accounted and documented rational proration system;

(C) Fixed assets recovery expenses, consisting of descriptions of fixed assets, and additional fixed asset expense recovery charges calculated on the current estimated costs 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, which 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) (1) General overhead, expressed as a percentage, distributing and charging the expenses of the City Council, City Manager, City Clerk, Elections, City Treasurer, Finance Department, City Attorney, unallocated non-departmental expenses, and all other staff and support service provided to the entire city organization as now organized and as it may be reorganized at any time in the future.

(2) Overhead shall be prorated between tax-financed services and fee-financed services on the basis of such percentage so that each of taxes, 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 division (A), (B), and (C) of this section; and

(F) Debt service costs, consisting of repaying of principal, payment of interest, and trustee fees and administrative expenses for all applicable bond, certificate, or securities issues or loans. Any required coverage factors of added 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 city.

('66 Code, § 3-10.03) (Ord. 735-C-S, passed 2-9-89)

(A) The City Manager, and each city department head under the direction of the City Manager, shall review the fees and service charges and recommend fee schedule on the Master Fee Resolution so as to recover to the extent practicable up to the listed percentage of costs reasonably borne necessary to provide the listed regulation, products or services. The Council shall adopt the schedule of fees by resolution, to be known as the Master Fee Resolution. Said resolution may be amended from time to time in the manner specified herein.

(B) All fees and charges set pursuant to this section shall take effect immediately upon adoption of the implementing resolution.

(C) The Council may amend the Master Fee Resolution from time to time as may be necessary or convenient, but only after having conducted the public hearing required by this chapter.

(D) The Council may add new categories of services and percentages of cost to be recovered in the Master Fee Resolution.

('66 Code, § 3-10.04) (Ord. 735-C-S, passed 2-9-89; Am. Ord. 958-C-S, passed 7-27-99)

The City Council shall conduct a public hearing regarding the adoption of any Master Fee Resolution or amendment. At least one such public hearing shall be held annually, in conjunction with the city annual budget process and hearing.

('66 Code, § 3-10.05) (Ord. 735-C-S, passed 2-9-89; Am. Ord. 958-C-S, passed 7-27-99)

Pursuant to California Government Code, at least 10 calendar days prior to the required public hearing set out in this chapter, 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 changes 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 Cal. Gov't Code § 6062(a).

('66 Code, § 3-10.06) (Ord. 735-C-S, passed 2-9-89)

Where in the opinion of the City Manager the immediate setting of fees and charges at the recommended percentage of cost would provide serious inconvenience or practical difficulty, he may recommend to the City Council a phased implementa-tion of such fee.

('66 Code, § 3-10.08) (Ord. 735-C-S, passed 2-9-89; Am. Ord. 958-C-S, passed 7-27-99)