Los Altos Municipal Code Ch. 3.20 City Fees and Service Charges

It is the intent of the council to provide for the ascertainment and recovery of costs reasonably borne from fees and charges levied therefor in providing the regulations, products, and services enumerated in this chapter.

(Prior code § 8-9.01)

The city manager is hereby delegated the authority and directed to calculate adjustments of fees and charges to recover the percentage of costs reasonably borne in providing the regulations, products, and services enumerated in this chapter. The city manager shall act in an administrative capacity in carrying out his duties under this chapter and shall consider only the standards and criteria established by this chapter.

(Prior code § 8-9.02)

For the purposes of this chapter, "costs reasonably borne," as used and ordered to be applied in this chapter, shall 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, communi-cations expenses, computer costs, printing and reproduction, and like expenses when distributed on an accounted and documented rational proration system;

C.

Fixed asset recovery expenses, consisting of the depreciation of fixed assets, calculated on the current estimated cost of replacement, divided by the approximate life expectancy of the fixed asset;

D.

General overhead, expressed as a percentage, distributing and charging the expenses of the council, city manager, city clerk, city attorney, finance and administrative and central services, volunteer program expenses, undistributed nondepartmental costs, and any other staff and support activity provided to the entire city organization as now organized and/or as it may be reorganized at any time in the future.

E.

Overhead shall be prorated between tax-financed services and fee-financed services on the basis of such percentage so that each of the taxes, fees, and charges shall proportionately defray such overhead costs;

F.

Departmental overhead, expressed as a percentage, distributing and charging the cost of each department head and his supporting expenses as enumerated in subsections A, B and C of this section; and

G.

Debt service costs, consisting of the payment of principal, the payment of interest, and trustee fees and administrative expenses for all applicable bond, certificate, or securities issues or loans. Any required coverage factor of added reserves beyond the 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.

(Prior code § 8-9.03)

A.

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 listed in a schedule adopted by the council as an appendix to this chapter (and as amended by ordinance from time to time) and calculate a schedule of fees and charges so as to recover the listed percentage of costs reasonably borne necessary to provide the listed regulations, products, and 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 policey of the council established by this chapter.

B.

The services listed in the schedule referred to in this section shall be as defined in the report entitled "Cost Control System For the City of Los Altos, California," dated March 15, 1988, as produced by Management Services Institute, Incorporated, and as periodically supplemented or updated by city staff.

C.

The frequency of adjustments may be varied by the city manager to adjust revenues sufficient to meet the debt service coverage requirements of any bond, certificate, ordinance, resolution, indenture, contract, or action under which securities have been issued by the city and which contain any coverage factor requirement.

D.

The frequency of rate adjustments may be varied by the city manager if, in his judgement 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.

(Prior code § 8-9.04)

The 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 the conclusion of the public hearing, the council shall adopt, by resolution, the fees and charges calculated by the city manager, unless the council finds that the calculations are erroneous or are at variance with the percentage of recovery specified by this chapter, in which event the council may adopt a different fee or charge.

(Prior code § 8-9.05)

A.

At least ten (10) days prior to the public hearing required by Section 3.20.050 of this chapter, the city manager shall make available to the council and the 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.

(Prior code § 8-9.06)

A.

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. Such 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, at the conclusion of the investigation or hearing, shall make such reduction in fees on a temporary basis as he 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 council.

B.

The appellant, if aggrieved by the action of the city manager, within ten (10) days after written notice of the city manager's decision, may file a written appeal with the council by delivering the appeal to the city clerk. Such appeal shall specify with particularity how and in what manner the city manager has erroneously decided the appeal or proceeded in an incorrect manner. The council may conduct an investigation, may hold a hearing if it so desires, and shall advise the appellant, in writing, of its decision. In all proceedings under this section, the burden of proof shall be on the appellant. The decision of the council shall be final and shall be subject to court review in accordance with Section 1094.5 of the Code of Civil Procedure of the state.

(Prior code § 8-9.07)