Article XII — FEES AND CHARGES/COST CONTROL SYSTEM 1

SECTION:

2-110: Intent

2-111: Definition Of Costs

2-112: Fees And Service Charges

2-113: Statutory Public Hearing

Notes

1 1. See sections 2-27 through 2-30 of this chapter.

2-110: INTENT:

It is the intent of the city council that the cost of all city services shall be ascertained and reported to the city council annually and that fees and charges for such services shall be adopted by the council annually, or at such other times as otherwise set forth herein, following a public hearing. (Ord. 1402 § 1, 6-7-1988)

2-111: DEFINITION OF COSTS:

"Costs" shall include the following:

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.

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, and like expenses when 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 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, city attorney, finance department, purchasing, personnel, community promotion, 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, which costs are not distributed by any other direct or indirect charging system.

Overhead shall be prorated between tax financed services and fee financed services on the basis of such 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 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 bond, certificate, 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. 1402 § 1, 6-7-1988)

2-112: FEES AND SERVICE CHARGES:

A. Review Of Costs For Services: The city manager, administrative services director, or his designee, and each city department head, under the direction of the city manager, shall review the costs for services provided by the city and shall provide for council consideration a resolution containing recommended fees and service charges for each service provided by the city. Council shall act pursuant to section 2-113 of this article.

B. Contents Of Fees Schedule: Such fee schedule shall not only specify rates, but also what percentage of the rates will be used for maintenance and operation and for capital reserve. (Ord. 1402 § 1, 6-7-1988)

2-113: STATUTORY PUBLIC HEARING:

Pursuant to California Government Code sections 66016, 66017 and 66018, the city clerk shall cause notice to be provided as set out in such Government Code sections 66016, 66018 and 6062a, and the city council periodically, and at least annually, shall receive, at a public regularly scheduled meeting, oral and written presentations concerning the fees and charges proposed to be increased or added. Such notice, oral or written presentation, and public meeting shall be provided by the city council prior to 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 city's annual budget process

and hearing. (Ord. 1537 § B13, 8-6-1996)