Rancho Mirage Municipal Code Ch. 3.50 Fee and Service Charge Revenue/Cost Comparison System

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. 417 § 1, 1988; Ord. 934 § 1, 2006)

The city manager is delegated the authority and directed to adjust 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.

Costs reasonably borne shall be as defined in Section 3.50.030. 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.

(Ord. 417 § 1, 1988; Ord. 934 § 1, 2006)

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 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, insurance premiums and self-insurance payments, 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. 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 and reserved in cash 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, personnel and merit commission, finance department and 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 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. 417 § 1, 1988; Ord. 934 § 1, 2006)

A. The city manager and each department head, under the direction of the city manager, shall review the fees and service charges listed following, on the schedule of frequency listed in this section, and the city council shall adopt by resolution the fee or charge schedule so as to recover the listed percentage of costs reasonably borne necessary to provide the listed regulation, products or services.

B. The percentage of costs to be recovered are maximum percentages. City Council may adopt fees and charges in amounts less than the maximum percentages listed in subsection A.

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

D. The schedule of frequency of rate adjustments 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 requirement.

E. The schedule of frequency of rate adjustments may be varied by the city manager if, in his judgment and that of the requesting department head, a gross inequity would be perpetrated by the existing rate schedule on a new, and unanticipated event.

(Ord. 417 § 1, 1988; Ord. 538 § 1, 1992; Ord. 934 § 1, 2006)

Pursuant to applicable provisions of the California Government Code the city clerk shall cause notice to be provided, 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 and written presentation, and public meeting shall be provided by the city council prior to the city manager 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 annual budget process and hearing.

(Ord. 417 § 1, 1988; Ord. 934 § 1, 2006)

Pursuant to the California Government Code, at least ten 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 annual public hearing. A general explanation of such changes also shall be published per the requirements of Government Code Section 6062a.

(Ord. 417 § 1, 1988; Ord. 934 § 1, 2006)

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 Section 3.50.040, or that such fee or charge has been reviewed prior to or has not been reviewed within the review schedule as set out in Section 3.50.040, may appeal in writing to the city council.

No fee or charge for which an appeal has been filed shall take effect until heard by the city council. Such appeal shall be placed on the agenda of the next ensuing council meeting after receipt of such appeal, and heard at the next ensuing council meeting. Such appealed fee or charge shall take effect immediately upon hearing by the city council unless ordered otherwise by ordinance amending this chapter.

(Ord. 417 § 1, 1988; Ord. 934 § 1, 2006)