Hesperia Municipal Code Ch. 3.20 Fee and Service Charge Revenue/Cost Comparison System

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 therefore 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 the ordinance codified in this chapter is exempt from the California Environmental Quality Act (Public Resources Code Sections 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. 107 § 1, 1991)

A. The city manager is delegated the authority and directed to provide documents to the city council to implement its herein enumerated policy to adjust fees and charges to recover the percentage of costs reasonably borne as established in this chapter, in providing the regulation, product or service enumerated in this chapter in the percentage of costs reasonably borne and on the schedule of rate review and revision as hereinafter established in this chapter.

B. The city manager is delegated authority to issue executive orders defining terms, setting out administrative fee collection and financial procedures, definitions, and establishing effective dates of all fees set by the city council by resolution. The city manager shall provide for effective dates for fees set by the city council which are as early as is practically feasible considering administrative impediments. 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 connoting the effective date of the executive order and new or revised rated structure, procedure or definition.

C. "Costs reasonably borne" shall be as defined in Section 3.20.030. In adjusting 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 hereunder 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. 107 § 2, 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 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 administration, city clerk, city treasurer, economic development, finance department, personnel office, and city promotion, 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 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 or securities issued 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. 107 § 3, 1991)

A. The city manager, finance director and each city department head, under the direction of the city manager, shall review annually the fees and service charges listed following, and provide an adjusted fee or charge schedule to the city council for its consideration so as to recover the listed percentage of costs reasonably borne necessary to provide the listed regulation, product or service.

B. The services as listed in this section shall be as defined in that certain document entitled "Cost Control System For The City of Hesperia" dated January 5, 1990, as produced by Management Services Institute, Incorporated, of Anaheim, California.

C. All fees and charges set pursuant to this chapter and section shall take effect ten days after the city manager signs an executive order stipulating that all provisions of the ordinance codified in this chapter have been complied with, and no written appeal has been filed.

D. The schedule of frequency of rate 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.

E. The city manager may vary the review schedule listed in this section if, in the judgment of the city manager and a directly affected and requesting department head, a gross inequity would be perpetrated by not revising the rate schedule. Any such rate revision which deviates from the review schedule as set herein shall be reported to the city council at its next succeeding meeting.

(Ord. 107 § 4, 1991)

Pursuant to the California Government Code, at least ten 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 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 Government Code Section 6062a.

(Ord. 107 § 6, 1991)

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 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. 107 § 7, 1991)