Gilroy Municipal Code Ch. 7 Cost Comparison System for Fee and Service Charge Revenue

[1]

Editor’s note: Ord. No. 75-18, adopted Sept. 2, 1975, repealed former Ch. 7 regarding civil defense, which derived from Ord. No. 806, adopted Sept. 5, 1967.

(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 and charges 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 adoption of 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)(1).

(Ord. No. 90-5, § 1, 3-19-1990; Ord. No. 91-15, § 1, 5-20-1991)

The city administrator is hereby delegated the authority and directed to adjust fees and charges to recover the percentage of costs reasonably borne in providing the regulation, products or services enumerated in this chapter in the percentage of costs reasonably borne and on the schedule of fee and service charge rate review and revision as hereinafter established.

“Costs reasonably borne” shall be as defined in section 7.3. In adjusting fees and charges, the city administrator shall act in an administrative and ministerial capacity and shall consider only the standards and criteria established by this chapter and the procedures set by applicable state law.

(Ord. No. 90-5, § 1, 3-19-1990; Ord. No. 91-15, § 2, 5-20-1991)

“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 services 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 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)

General overhead, expressed as a percentage, distributing and charging the expenses of the city council, city administrator, city clerk, elections, city treasurer, finance department, city attorney, unallocated nondepartmental 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. 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, 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. No. 90-5, § 1, 3-19-1990; Ord. No. 91-15, §§ 3, 4, 5-20-1991; Ord. No. 2022-05, § 2, 7-5-2022)

Pursuant to the California Government Code, at least ten (10) days prior to the required public hearing set out herein, the city administrator 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 administrator also shall provide a summary of the present fee and charge schedules and those proposed at such public hearing. A general explanation of such changes also shall be published per the requirements of Government Code Section 6062.a.

(Ord. No. 91-15, § 8, 5-20-1991; Ord. No. 2022-05, § 2, 7-5-2022)

(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 as set out in this chapter, or that such fee or charge has been reviewed prior to or has not been reviewed within the review schedule as set out herein, 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. 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. No. 91-15, § 9, 5-20-1991)

If any portion of this chapter is found to be unconstitutional or invalid, the city council hereby declares that it would have enacted the remainder of this chapter regardless of the absence of any such invalid part.

(Ord. No. 90-5, § 1, 3-19-1990; Ord. No. 91-15, § 7, 5-20-1991)