Red Bluff Municipal Code Art. I General Provisions

(A) 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, 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 city for services rendered do not exceed the reasonable estimated cost for providing the services for which the fees are charged.

(C) The adoption of this chapter is exempt from the California Environmental Quality Act, California Public Resources Code §§ 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 set forth in California Public Resources Code § 21080(b)(8)(1).

(`61 Code, § 11.1) (Ord. 848, passed 11-3-1992; Am. Ord. 963, passed 8-16-2005)

(A) The City Manager is hereby 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 all or part of the costs reasonably borne as established hereby and as set forth in the schedule of rates adopted by resolution and as subject to annual review and revision as hereinafter established in this chapter.

(B) (1) “Costs reasonably borne” shall be defined in § 11.3.

(2) 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 and the procedures set hereby and by applicable state law.

(`61 Code, § 11.2) (Ord. 848, passed 11-3-1992; Am. Ord. 963, passed 8-16-2005)

For the purpose of this chapter, the following definition shall apply unless the context clearly indicates or requires a different meaning.

COSTS REASONABLY BORNE.

(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 and rational proration system;

(3) Fixed assessed 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 the 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 City Council, City Attorney, City Manager, City Clerk, City Treasurer, economic development, Finance Department, Human Resources Department, city promotion and all other staff and support service provided to the entire city organization;

(5) Departmental overhead, expressed as a percentage, distributing and charging the cost of each department head and his or her supporting expenses, as enumerated herein; and

(6) Debt service costs, consisting of repayment of principal, payment of interest and trustee fees and administrative expenses for all applicable bonds, certificates or securities issued 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 city.

(`61 Code, § 11.3) (Ord. 848, passed 11-3-1992; Am. Ord. 963, passed 8-16-2005)

(A) The City Manager, Finance Director and each city department head, under the direction of City Manager, shall review annually the fees and service charges and provide an adjusted fee or charge schedule to the City Council for its consideration so as to recover all or part of the costs reasonably borne necessary to provide the regulation, product or service, as directed by the City Council.

(B) The fees and charges to recover costs reasonably borne shall be as defined and set forth in the city’s schedule of fees and charges necessary to provide the regulation, product or services, adopted by resolution as described hearing and based on the Citywide User Fee Study prepared by Maximus Inc. dated January 31, 2005 and presented at a public hearing to the City Council on February 15, 2005.

(C) All fees and charges set pursuant to this chapter and section shall take effect not sooner than 60 days after the City Council adopts a resolution stipulating that all provisions of this chapter 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 City Manager may vary the review schedule if, in the judgment of the City Manager and a directly affected and requesting department head, a gross inequity would be perpetrated by not revising the rate schedule. Any rate revision which deviates from the review schedule, as set herein, shall be reported to the City Council at its next succeeding meeting.

(`61 Code, §11.4) (Ord. 848, passed 11-3-1992; Am. Ord. 963, passed 8-16-2005)

(A) Pursuant to California Government Code §§ 66016 through 66018, the City Clerk shall cause notice to be provided as set out in California Government Code §§ 54992, 54994.1 and 6062a, and the City Council periodically, at least annually, shall receive at a regularly scheduled public hearing oral and written presentations concerning fees and charges proposed to be increased or added. The notice, oral and written presentation and public hearing shall be provided prior to the City Council taking any action on any new or increased fees or charges.

(B) At least one public hearing shall be held annually, in conjunction with the city annual budget process and hearing.

(`61 Code, § 11.5) (Ord. 848, passed 11-3-1992; Am. Ord. 963, passed 8-16-2005)

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 the annual public hearing. A general explanation of the changes also shall be published per the requirements of California Government Code § 6062a.

(`61 Code, § 11.6) (Ord. 848, passed 11-3-1992; Am. Ord. 963, passed 8-16-2005)

(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 and/or in the resolution setting fees, or that the 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 City Council. Such an appeal or challenge shall comply with the requirements of Government Code §§ 66020 through 66022.

(B) The appeal shall be placed on the agenda of the next ensuing City Council meeting after receipt of the appeal and heard at the next ensuing Council meeting.

(`61 Code, §11.7) (Ord. 848, passed 11-3-1992; Am. Ord. 936, passed 8-16-2005)