Richmond Municipal Code Ch. 2.34 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.

The City Manager is hereby delegated the authority and directed to adopt and adjust fees and charges to recover the percentage of costs reasonably borne in providing the regulation, products or services enumerated in this chapter. In adopting and 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.

"Costs reasonably borne," as used in this chapter, shall mean and consist of 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 expense incurred;

(b) All applicable indirect costs including, but not restricted to, building maintenance and operations, equipment maintenance and operation, 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 costs 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, Elections, City Treasurer, Finance Department, City Attorney, 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.

(a) The City Manager shall review the fees and charges based upon the review schedule set forth below and shall set and adjust the fees or charges so as to recover up to the listed percentage of costs reasonably necessary to provide the listed regulation, products or services. The City Manager shall take such other actions as may be necessary to accomplish and to carry out the policy of the City Council established by this chapter.

City of Richmond

Master Fee Schedule

Fire Department Prevention Bureau Fees

(b) The fees for the hereinabove services shall be as set forth in the "master fee schedule," a copy of which is on file with the Finance Director of the City.

(c) All fees and charges adopted or adjusted pursuant to this section shall take effect after: (1) the City Manager certifies in writing that all provisions of this section have been complied with; (2) the City Manager has published and posted the notice of adoption of adjustment of fees and charges as set forth below; and (3) the time in which an appeal to the City Council has expired or the appeal has been resolved by the City Council, whichever is later.

(d) The schedule of frequency of rate adjustments may be changed by the City Manager: (1) to adjust revenues sufficient to meet debt service coverage requirements of any bond, certificate, ordinance, resolution, indenture, contract or action under which securities have been issued by the City which contain any coverage factor requirement, and (2), if, in the City Manager's judgment, a gross inequity would be perpetrated by the existing rate schedule due to a new or unanticipated event.

(Amended by Ordinance Nos. 47-89 N.S., 3.91 N.S., 6.91 N.S., 16-93 N.S., 41-95 N.S., 2-97 N.S., 2-03 N.S., 19-03 N.S., 21-03 N.S., 3-04 N.S., 3-07 N.S. and 15-08 N.S.; Ord. No. 6-10 N.S., § 1, 2-2-2010; Ord. No. 8-10 N.S., § I, 2-16-2010; Ord. No. 17-11 N.S., § 1, 7-19-2011; Ord. No. 25-13 N.S., § 1, 12-17-2013; Ord. No. 15-14 N.S., § 1, 7-30-2014; Ord. No. 19-15 N.S., § 1, 7-21-2015; Ord. No. 8-16 N.S., § 1, 6-7-2016; Ord. No. 17-16 N.S., § 1, 12-6-2016; Ord. No. 16-17 N.S., §§ 1—4, 7-25-2017; Ord. No. 16-18 N.S., § 1, 6-26-2018; Ord. No. 21-18 N.S., §§ 3, 4, 7-17-2018; Ord. No. 17-20 N.S., § 1, 7-21-2020; Ord. No. 04-22 N.S., § 1, 3-1-2022; Ord. No. 08-23 N.S. , §§ 1, 2, 6-6-2023; Ord. No. 06-24 N.S., § 1, 6-4-2024; Ord. No. 13-25 N.S. , § 1, 6-3-2025)