Foster City Municipal Code Ch. 3.30 Fee and Service Charge Revenue/Cost Comparison System

It is the intent of the city council to provide for 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. (Ord. 350 § 1 (part), 1988)

The city manager is delegated the authority and directed to calculate adjustment of fees and charges to recover the percentage of costs reasonably borne in providing the regulation, products or services enumerated in this chapter. The city manager shall act in an administrative capacity in carrying out his/her duties under this chapter and shall consider only the standards and criteria established by this chapter. (Ord. 350 § 1 (part), 1988)

“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 and like expenses when distributed on an accounted and documented rational proration system;

C. Fixed assets 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 valued 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. General overhead, expressed as a percentage, distributing and charging the expenses of the city council, city manager, city clerk, city attorney, finance, and general services, undistributed nondepartmental costs, and any other staff and support activities provided to the entire city organization as now organized and/or as it may be reorganized at any time in the future;

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. Department 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, and C of this section;

F. Debt service costs, consisting of payment 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 the city. (Ord. 350 § 1 (part), 1988)

The city manager, and each city department head under the direction of the city manager, at least annually, shall review the fees and service charges for the regulation, product or service listed in this section, (and as amended by ordinance from time to time) and calculate a schedule of fees and charges to as to recover the listed percentage of costs reasonably borne necessary to provide the listed regulation, products or services, taking into full consideration the in-kind services and improvements made by each recipient program. The city manager shall take all actions necessary to accomplish and carry out the policy of the city council established in this chapter.

A minimum fee or a maximum fee may be established for any of the services enumerated above.

The services listed in the schedule of fees and services shall be as defined in the report entitled “Cost Control System for the City of Foster City, California” dated February 9, 1988, as produced by Management Services Institute, Inc. and as periodically supplemented or updated by city staff.

The frequency of adjustments may be varied by the city manager 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 which contain any coverage factor requirement.

The frequency of rate adjustments may be varied by the city manager, if, in his/her judgment and that of the requesting department head, a gross inequity would be perpetrated by the existing rate schedule or because of a new, and unanticipated event. (Ord. 350 § 1 (part), 1988)

The city council periodically, and at least annually, at a noticed public hearing, shall receive oral and written presentations concerning the fees and charges proposed to be reduced, increased, or added. Following conclusion of said public hearing, the city council shall adopt, by resolution, the fees and charges calculated by the city manager, unless it finds that the calculations are erroneous, or are at variance with the percentage of recovery specified by this chapter, in which event it may adopt a different fee or charge. (Ord. 350 § 1 (part), 1988)

At least ten days prior to the required public hearing set out herein, the city manager shall make available to the council and public appropriate data indicating the estimated costs reasonably borne 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. (Ord. 350 § 1 (part), 1988)

Any person who has paid, or is liable to pay, any fee or charge, and who believes that the fee or charge has been improperly calculated, or that costs are allocated to the service or commodity which exceed the actual cost thereof, may file an appeal with the city manager. Said appeal shall be in writing, and shall contain each and every fact, contention or basis for the appeal, and appeals shall be limited to those matters in the written appeal. The city manager may make such investigation as deemed fit, may hold a hearing, and shall at the conclusion of investigation of hearing make such reduction in fees on a temporary basis as he/she shall deem justified, and shall thereafter, during the normal fee adjustment period, show such changed amount in the calculation of fees and charges submitted to the city council. (Ord. 350 § 1 (part), 1988)