Salinas Municipal Code Ch. 11B Fee and Service Charge Revenue/ Cost Comparison System

Pursuant to Article XIII B 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. No. 2036 (NCS), § 1.)

The city manager is hereby delegated the authority and directed to adjust fees and charges to recover all costs reasonably borne in providing all regulation, products, or services based on a rate schedule approved by the Salinas city council by resolution.

"Costs reasonably borne" shall be as defined in Section 11B-3. In adjusting fees and charges, the city manager shall act in an administrative and ministerial capacity and shall consider adjusting the adopted rate schedule annually pursuant to the consumer price index of the San Francisco Bay Area or other applicable index.

(Ord. No. 2036 (NCS), § 1; Ord. No. 2428 (NCS), § 1.)

"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 expense 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, 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, finance department, city clerk, city treasurer, city attorney's office, community development, personnel office, 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 said percentage so that each of the 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.

(g) Costs for public facilities determined necessary to provide city services to new development pursuant to California Government Code Sections 66000-66008, also known as the Mitigation Fee Act, as the same may be amended or renumbered from time-to-time.

(Ord. No. 2036 (NCS), § 1.)

(Ord. No. 2548 (NCS), § 1, 4-22-2014)

The finance director, under the direction of the city manager, shall present to the city council a schedule of fees and service charges to be adopted by resolution. Said resolution shall include an inflationary index that shall allow for administrative inflationary increases, provided that such increases do not exceed the established index factor.

(Ord. No. 2428 (NCS), § 1.)

Pursuant to California Government Code Sections 66016 and 66018, the city clerk shall cause notice to be provided as set forth in California Government Code Sections 6062a, 66016, and 66018, and the city council periodically shall receive at a regularly scheduled meeting oral and written presentations concerning fees, as defined in Section 11B-4, proposed to be increased or added. Such notice, oral and written presentation, and public meeting shall be provided prior to the city council taking any action on any new or increased fees. At least one such public hearing shall be held prior to the adoption of a schedule of fees and service charges.

(Ord. No. 2036 (NCS), § 1; Ord. No. 2428 (NCS), § 1.)

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 for which changes are proposed to be made, or which are proposed to be added. The city manager shall also provide a summary of the present fee schedules and those proposed at such public hearing. A general explanation of the changes propounded shall also be published per the requirements of California Government Code Section 6062a.

(Ord. No. 2036 (NCS), § 1; Ord. No. 2428 (NCS), § 1.)

Any person who feels that any fee or charge determined and set by the city manager is in excess of the percentage of costs reasonably borne to be recovered as set out in Section 11-B-4, 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 11-B-4, may appeal in writing to the city council.

No fee 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 an ordinance amending this chapter.

(Ord. No. 2036 (NCS), § 1.)

All ordinances, municipal code sections, resolutions, city council motions, and all actions of all city boards and commissions in conflict herewith are hereby repealed. The fees and charges established by the most recently adopted resolution shall supersede all previously established fees or charges for the same regulation, product, or service, and all such previous fees and charges are hereby repealed on the effective date of the most recently adopted resolution and any subsequent inflationary cost recovery ad-justments made thereto.

(Ord. No. 2036 (NCS), § 1; Ord. No. 2428 (NCS), § 1.)