Moreno Valley Municipal Code Ch. 3.32 Fee and Service Charge Revenue/Cost Comparison System

A. Pursuant to Chapters 5 through 9 of Division 1 of Title 7 of the California Government Code, it is the intent of the city council to require the ascertainment of costs reasonably borne in providing the regulation, product or service hereinafter enumerated in this chapter, and to establish the methods and procedures for establishing the fees and charges which shall be levied to recover such costs.

B. The fee and service charge revenue/cost comparison system set forth in this chapter provides a mechanism for ensuring that a fee adopted by the city for services rendered does not exceed the reasonable estimated cost of providing the service for which the fee is charged.

C. The adoption of this chapter is exempt from the requirements of the California Environmental Quality Act (Public Resources Code Section 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 provided in Public Resources Code Section 21080(b)(8)(1).

D. It is the intent of the city council that the cost for development services be fully recovered 100% from development services fees, causing no diversion of general fund revenues to benefit the specific purposes of parties using the development services. Considering that development activity varies from year to year and that fees and charges may be collected in advance of the appropriate time for expenditure thereof, the city council intends that revenues so collected in advance shall be placed in a dedicated reserve and used at the appropriate time to defray, in whole or in part, the cost of furnishing the service, product or facility for which the fee or charge was collected.

(Ord. 372 § 1.2, 1992)

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 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 hereinafter established in this chapter.

B. The city manager is delegated authority to issue executive orders defining terms and setting out definitions and administrative fee collection, and financial procedures. The city manager is also delegated authority to issue executive orders which temporarily decrease a fee or charge when the decrease is required in order for the fee or charge to reasonably reflect the cost of providing the related service, product or facility, and where urgent circumstances require an immediate change provided, that the city manager shall request city council ratification of each such change at the next regularly scheduled meeting after issuance of the executive order, together with justification for the change. Each such executive order shall be originated and signed by the affected department head, if any, shall be signed by the finance director certifying that the financial requirements of this chapter have been complied with, and shall be signed by the city manager approving the change and setting the effective date of the executive order and the new or revised rate structure, procedure or definition.

C. The city manager is directed to cause all personnel, who are assisting applicants regarding a service, product or regulation for which a fee deposit is required because the eventual amount of the actual fee cannot be calculated at the time the application is processed, to furnish a written estimate of the applicable fee or fees. The applicant shall be required to give a written receipt for the estimate. The estimate shall not be binding upon the city and is furnished only for the convenience of the applicant.

D. "Costs reasonably borne" shall be as defined in Section 3.32.030. In adjusting fees and charges as authorized by this section, the city manager shall act in an administrative and ministerial capacity and shall consider only the resolutions, policies, standards and criteria established or authorized to be 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, except as to changes therein authorized by this section, the several schedules of fees and rates duly established by the city council.

E. In making recommendations to the city council regarding the establishment or revision of fees or charges, or in revising fees or charges pursuant to the authority granted by subsection B of this section, the city manager is directed to make such recommendations and establish such fees and charges upon the exclusive basis of estimates to the city council of time spent by involved personnel in furnishing services, products or facilities and upon all other related costs as included within "costs reasonably borne" as defined in Section 3.32.030, as a component part of the documents provided to the city council required to implement its herein enumerated policy to adjust fees and charges. The city manager is specifically directed not to include any other cost element not included within the above definition.

(Ord. 372 § 1.2, 1992)

"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 all 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 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;

D.

General overhead, expressed as a percentage, distributing and charging the expenses of the city council, city attorney, city manager, 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 the percentage so that each tax, fee and charge shall proportionately defray such overhead costs;

E.

Departmental overhead, expressed as a percentage distribution 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 to the extent not already included;

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 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, agreement, indenture or law applicable to the city.

(Ord. 372 § 1.2, 1992)

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 adjustment 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.

1. Community Development Services.

B. The cost recovery percentages set forth in subsection A of this section may be revised by resolution of the city council without amending this chapter if all legal prerequisites for such revision have been satisfied.

C. The hereinabove services as listed in this section, and as approved by the city council, shall be as defined in that certain document entitled "Cost Control System for the city of Moreno Valley" dated February 4, 1992, as produced by Management Services Institute, Inc., of Anaheim, California, and as revised from time to time.

D. All fees and charges set pursuant to this chapter and section shall take effect immediately upon expiration of any legally-required waiting period after establishment of such fee or charge by the city council.

E. The city manager shall report promptly to the city council the need 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.

F. The city manager may vary the review schedule listed in subsection A of this section if, in the judgment of the city manager and a directly affected and requesting department head as desirable to further the policy and intent set forth in this chapter.

(Ord. 372 § 1.2, 1992)

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 new 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 provided and published in accordance with the requirements of California Government Code Section 66018.

(Ord. 372 § 1.2, 1992)

A. Provided that the requirements of subsection C of this section have been satisfied, any person who feels that any fee or charge established or assessed 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 not been reviewed in accordance with the review schedule established by this chapter, may appeal such assessment in writing to the city council.

B. No fee or charge for which an appeal has been duly filed shall take effect as to the appellant until the appeal is heard by the city council. Such appeal shall be heard at the next ensuing council meeting occurring 10 days or more after receipt of such appeal. Such appealed fee or charge or modification thereof shall take effect immediately upon completion of the appeal as determined by the city council.

C. Each person wishing to appeal the establishment or assessment of a fee or charge must first meet both of the following requirements:

1. Tendering any required fee payment in full and providing satisfactory evidence of arrangements to ensure performance of the nonmonetary conditions, if any, necessary to meet the requirements of the imposition;

2. Serving written notice on the governing body of the entity, which notice shall contain all of the following information:

a. A statement that the required payment is tendered, or that any conditions which have been imposed are provided for or satisfied, under protest,

b. A statement informing the governing body of the factual elements of the dispute and the legal theory forming the basis for the protest.

(Ord. 372 § 1.2, 1992)