Mammoth Lakes Municipal Code Ch. 3.40 Revenue and Cost Comparison System

(a) Pursuant to Article XIIIB of the State constitution, it is the intent of the Town Council to require the ascertainment and recovery of costs reasonably borne from fees, charges and regulatory license fees 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 Town 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 from which this chapter is derived is exempt from the California Environmental Quality Act, Public Resources Code § 2100 et seq., because it approves and sets forth a procedure for determining fees for the purpose of meeting the operating expenses of Town departments, as set forth in Public Resources Code § 21080(b)(8).

(Code 1990, § 3.39.010; Ord. No. 91-08, § 1, 1991)

(a) The Town Manager is delegated the authority and directed to provide documents to the Town Council to implement its herein enumerated policy to adjust fees and charges to recover the percentage of costs reasonably borne as established hereby, 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 established in this chapter.

(b) The Town Manager is delegated authority to issue executive orders defining terms, definitions, setting out administrative, fee collection, and financial procedures, and establishing effective dates of all fees set by the Town Council by resolution. 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 Town Manager connoting the effective date of the executive order and new or reviewed rate structure, procedure or definition.

(c) The term "costs reasonably borne" shall be as defined in Section 3.40.030. In adjusting fees and charges, the Town 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 Town Council by resolution.

(Code 1990, § 3.39.020; Ord. No. 91-08, § 1, 1991)

The term "costs reasonably borne," as used and ordered to be applied in this chapter are to consist of the following elements:

(1) 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.

(2) 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.

(3) 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.

(4) General overhead, expressed as a percentage, distributing and charging the expenses of the Town Council, Town Attorney, Town administration, Town Clerk, Town Treasurer, Economic Development, Finance Department, Personnel Office and Town promotion; and all other staff and support service provided to the entire Town organization. Overhead shall be prorated between tax-financed services and fee-financed services on the basis of the percentage so that each of taxes and fees and charges shall proportionately defray such overhead costs.

(5) Departmental overhead, expressed as a percentage, distributing and charging the cost of each department head and supporting expenses as enumerated in Subsections (1), (2), (3) and (4) of this section.

(6) Debt service costs, consisting of repayment of principal, payment of interest and trustee fees and administrative expense for all applicable bond, certificate, note or securities issues 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 Town.

(Code 1990, § 3.39.030; Ord. No. 91-08, § 1, 1991)

(a) The Town Manager, Assistant Town Manager, and each Town department head under the direction of the Town Manager, shall review annually the Town fees and service charges, and provide an adjusted fee or charge schedule to the Town Council for its consideration so as to recover 100 percent of costs reasonably borne necessary to provide the regulation, product or service.

(b) Council by resolution may annually set a subsidy for certain fees or charges, thereby not requiring that 100 percent of costs reasonably borne is recovered by that certain fee or charge. Council by resolution may set fees and charges that shall not exceed 100 percent of the costs reasonably borne.

(c) The regulation, product or service shall be as defined in that certain document entitled "Cost Control System for the Mammoth Lakes, California" dated June 18, 1990, as produced by Management Services Institute, Incorporated, of Anaheim, California, and in addendum to the document which may be adopted by from time to time by the Council.

(d) All fees and charges set pursuant to this chapter and section shall take effect ten days after the Town Manager signs an executive order stipulating that all provisions of this chapter have been complied with, and no written appeal has been filed.

(e) The schedule of frequency of rate adjustments may be varied by the Town 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 Town which contain any coverage factor requirement.

(f) The Town Manager may vary the review schedule listed in this section if, in the judgment of the Town 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 Town Council at its next succeeding meeting.

(Code 1990, § 3.39.040; Ord. No. 08-11, § 1, 10-1-2008)

The Town Clerk shall cause notice to be provided as set out in Government Code § 6062a, and the Town Council periodically, at least annually, shall receive at the 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 Town Council taking any action on any new or increased fees or charges. At least one such public hearing shall be held annually, in conjunction with the Town annual budget process and hearing.

(Code 1990, § 3.39.050; Ord. No. 91-08, § 1, 1991)

Pursuant to the Government Code, at least ten days prior to the required public hearing set out herein, the Town Manager shall make available to the public appropriate data indicating the cost or estimated costs required to support the fees and charges for which changes are proposed to be made or fees or charges imposed. The Town 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 § 6062a.

(Code 1990, § 3.39.060; Ord. No. 91-08, § 1, 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 Town Council.

(b) No fee or charge for which an appeal has been filed shall take effect until heard by the Town 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 Town Council unless ordered otherwise by the Town Council by ordinance amending this chapter.

(Code 1990, § 3.39.070; Ord. No. 91-08, § 1, 1991)