Highland Municipal Code Ch. 2.36 Fees and Service Charges

The city council of the city of Highland, California, finds as follows:

A. 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.

B. The adoption of the ordinance codified in this chapter is exempt from the California Environmental Quality Act (Public Resources Code Sections 21000 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).

C. 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.

(Ord. 285 § 1, 2003)

A. The city manager is hereby delegated the authority and directed to review and make recommendation to the city council to implement its herein enumerated policy for the adjustment of 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 in this chapter.

B. The city manager is hereby 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. All executive orders shall be originated and signed by the affected department head, shall be signed by the finance officer 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 rate structure, procedure or definition.

C. "Costs reasonably borne" shall be as defined in HMC § 2.36.030. 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. 285 § 2, 2003)

"Costs reasonably borne," as used and ordered to be applied by 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 expenses 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 and like expenses, will be 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 the 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, elections, city treasurer, finance department, city attorney, general government, personnel, 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 the 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 subsections A, B and C of this section.

F. Debt service costs, consisting of repayment of principal, payment of interest, and trustee fees and administrative expenses for all applicable bonds, certificates 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. 285 § 3, 2003)

A. The city manager and each city department head, under the direction of the city manager, shall review the fees and service charges listed as follows, 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, products or services, and to take all the necessary to accomplish and to carry out the policy of the city council established by this chapter. The fees or charges set pursuant to this chapter shall be set by resolution of the city council.

B. Repealed by Ord. 312.

C. All fees and charges set pursuant to this section shall take effect as provided by law, and as more specifically provided by resolution of the city council.

D. The schedule of frequency of rate adjustments and review 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 requirements.

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, a gross inequity would be perpetrated by not revising the rate schedule on a new and unanticipated event. 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. 285 § 4, 2003; Ord. 312 § 2, 2007; Ord. 335 § 2, 2008; Ord. 346 § 2, 2009; Ord. 354 § 2, 2010; Ord. 371 § 2, 2012; Ord. 399 § 2, 2015; Ord. 414 § 2, 2017; Ord. 446 § 2, 2021; Ord. 472 § 2, 2025; Ord. 476 § 2, 2025)

Pursuant to California Government Code Sections 66016 and 66018, or other applicable statutory requirement, the city clerk shall cause notice to be provided as set out in Government Code Sections 66016, 66018 and 6062a, and the city council periodically, at least bi-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 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 bi-annually, in conjunction with the city bi-annual budget process and hearing.

(Ord. 285 § 5, 2003)

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 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 bi-annual public hearing. A general explanation of such changes also shall be published per the requirements of Government Code Section 6062a.

(Ord. 285 § 6, 2003)

A. Actual cost for a project is determined by the affected department heads, based upon the criteria set forth in HMC § 2.36.030.

B. Initial deposits are determined by the amount of time historically spent on similar projects. Whenever 75 percent of a deposit has been expended and the department determines that the estimated actual cost of the job will exceed the amount deposited, an additional deposit of such estimated excess amounts shall be required. Notification of additional deposits required will be mailed to the applicant, who shall deposit such additional moneys prior to the date specified in the notice. When additional deposit has been requested, work will be suspended on the project when 95 percent of the deposit previously received has been expended. Projects will not be completed with money due. If the additional deposit is not made by the date specified in the notice, the project shall be deemed denied on the date specified without further action on the part of the city.

C. If the department head determines that the estimated actual cost of a job will be less than the initial deposit, a deposit may be required which equals the estimated actual cost of the job in lieu of the initial deposit.

(Ord. 285 § 7, 2003)

The following sections of the San Bernardino County Code, as adopted by the city of Highland, are hereby repealed in their entirety:

A. Title 1, Division 6, Chapter 1, Sections 16.011 through 16.012;

B. Title 1, Division 6, Chapter 2, Sections 16.021 through 16.0231;

C. Title 2, Division 9, Chapter 1, Sections 29.011 through 29.012;

D. Title 6, Division 3, Chapter 1, Sections 63.011 through 63.014;

E. Title 6, Division 3, Chapter 2, Sections 63.021 through 63.022;

F. Title 6, Division 3, Chapter 3, Sections 63.031 through 63.035;

G. Title 6, Division 3, Chapter 4, Sections 63.041 through 63.043;

H. Title 6, Division 3, Chapter 5, Section 63.051;

I. Title 6, Division 3, Chapter 6, Sections 63.061 through 63.0629;

J. Title 6, Division 3, Chapter 7, Sections 63.071 through 63.076;

K. Title 6, Division 3, Chapter 8, Sections 63.081 through 63.0811.

(Ord. 285 § 8, 2003)

The following ordinances of the city of Highland are hereby repealed or amended:

Ordinance 30 repealed in its entirety;

Ordinance 41 repealed in its entirety;

Ordinance 55 repealed in its entirety;

Ordinance 56, Section 8 shall be amended as follows:

Section 8 – Fees Set by Resolution. Every person required to obtain a home occupation permit from the city of Highland shall pay a permit fee as prescribed by resolution;

Ordinance 92 repealed in its entirety;

Ordinance 95 repealed in its entirety;

Ordinance 117 repealed in its entirety;

Ordinance 122 repealed in its entirety;

Ordinance 133 repealed in its entirety;

Ordinance 146 repealed in its entirety;

Ordinance 160 repealed in its entirety;

Ordinance 167 repealed in its entirety;

Ordinance 185 repealed in its entirety;

Ordinance 201 repealed in its entirety;

Ordinance 206 repealed in its entirety;

Ordinance 218 repealed in its entirety;

Ordinance 241 repealed in its entirety;

Ordinance 261 repealed in its entirety.

(Ord. 285 § 9, 2003)

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Code reviser's note: This list of repealed ordinances was current as of February 23, 2003, but will not be updated to reflect future repealed ordinances.

The city council shall, by council resolution, set forth its policy for refund of fees and charges collected pursuant to this chapter. These policies may be reviewed from time to time and may be revised periodically by council resolution with this chapter being considered as enabling and directive.

(Ord. 285 § 10, 2003)

Any person who feels that any fee or charge determined and set by the city manager or department head pursuant to the authority granted herein is in excess of the percentage of costs reasonably borne to be recovered as set out in HMC § 2.36.040, or that such fee or charge has been reviewed prior to or has not been reviewed within the review schedule as set out in HMC § 2.36.040, may appeal in writing to the city council. Such written appeal must be made with the city clerk within 10 business days of the imposition or determination of the fee being appealed. The appeal shall be placed on the agenda of the next regularly scheduled meeting of the city council following time required for legal advertising. Pending determination on the appeal, no work will proceed on the project until a determination has been made by the city council on the merits of the appeal, unless the disputed amount is first posted with the city. All amounts so paid under protest will be refunded to a successful appellant. All fees or charges confirmed on appeal shall take effect immediately upon hearing by the city council.

(Ord. 285 § 11, 2003)

Any person who fails to purchase a building permit as required by city ordinances shall pay double the permit fee pursuant to the following:

2010 California Building Code, Volume 1, Section 109.4;

2010 California Plumbing Code, Section 103.4.4;

2010 California Mechanical Code, Section 115.5.

(Ord. 285 § 14, 2003; Ord. 312 § 3, 2007; Ord. 370 § 4, 2012)