Scotts Valley Municipal Code Ch. 3.40 Fee and Service Charge Revenue/Cost Comparison System

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 (Public Resources Code Sections 2100 et seq.), because it approves and sets forth a procedure for determining fees for the purpose of meeting the operation expenses of city departments, as set forth in Public Resources Code Section 21080 (b) (8) (1).

(Ord. 138 § 1 (part), 1990)

A. The city administrator is 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 the percentage of costs reasonably borne as established hereby, in providing the regulation, product or service enumerated in this chapter based on the schedule of rate review and revision as hereinafter established in this chapter.

B. The city administrator is delegated authority to issue executive orders, in the exercise of reasonable discretion, defining terms, setting out administrative, fee collection, and financial procedures, and establishing effective dates of all fees set by the city council by resolution. All executive orders shall be originated and signed by the affected department head, shall be signed by the finance director certifying that the financial requirements of this chapter are complied with, and shall be signed by the city administrator connoting the effective date of the executive order and new or revised rate structure, procedure or definition.

C. "Costs reasonably borne" shall be as defined in Section 3.40.030. In performing the tasks referenced in subsection B, above, the city administrator 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. All executive orders issued hereunder shall comply in all respects with this chapter, and the several schedules of fees and rates as set by the city council by resolution.

(Ord. 138 § 1 (part), 1990)

"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, vehicle expenses, insurance, debt service, 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, 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 attorney, city administration, city clerk, city treasurer, finance department, personnel office, city promotion activities, and economic development activities, and all other staff and support services provided by 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, 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, C, and F 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, note or securities issues 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.

(Ord. 138 § 1 (part), 1990)

A. The city council shall by resolution adopted pursuant to this chapter and section, establish the rates of fees and charges to be charged and collected in order to recover the percentage of costs reasonably borne in providing the product, service or regulation, which rates shall be appropriate to recover the percentage of costs reasonably borne for the various products, services, and regulations, all as established and set forth herein below. The city administrator, finance director and each city department head, under the direction of the city administrator, shall review annually the fees and service charges set in accordance with the following list, and provide an adjusted fee or charge schedule to the city council for its consideration and adoption by resolution so as to recover the listed percentage of costs reasonably borne that are necessary to provide the listed regulation, product or service.

B. Not less than a minimum fee of ten dollars shall be charged in all instances.

C. The hereinabove services as listed in this section shall be as defined in that certain document entitled "Cost Control System for the City of Scotts Valley" dated January, 1990, as produced by Management Services Institute, Incorporated, of Anaheim, California, copies of which are on file in the office of the city clerk of the city of Scotts Valley.

D. All fees and charges set by resolution of the city council adopted pursuant to this chapter and section shall take effect ten days after the date of adoption of said resolution, provided that the city administrator signs an executive order stipulating that all provisions of this chapter have been complied with, and no written appeal has been filed. All fees and charges established by resolution adopted pursuant to this chapter and section shall be due and paid at the time of and concurrent with the filing of the subject application or prior to provision of the subject service if no application is involved, unless a different time is determined by the city administrator pursuant to executive order issued in accordance with the provisions of Section 3.40.020.

E. The schedule of frequency of rate adjustments may be varied by the city administrator 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.

F. The city administrator may vary the review schedule listed in this section if, in the judgment of the city administrator and a directly affected and requesting department head, a gross inequity would be perpetrated by not revising the rate schedule. Any such rate review which deviates from the review schedule as set herein shall be reported to the city council at its next succeeding meeting.

(Ord. 138 § 1 (part), 1990)

Pursuant to California Government Code Sections 54992, 54994.1 and 54994.2 the city clerk shall cause notice to be provided as therein set forth including, without limitation, a general explanation of the matter to be considered, and to be published in accordance with Section 6062a of the Government Code, and the city council periodically, at least annually, shall conduct a public hearing during a regularly scheduled meeting at which it shall receive oral and written presentations concerning fees and charges proposed to be increased or added. Such notice, oral and written presentation, and public hearing shall be provided and conducted prior to the city council 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. 138 § 1 (part), 1990)

Pursuant to the aforesaid sections of the California Government Code, at least ten days prior to the required public hearing set out herein, the city administrator shall make available to the public appropriate data indicating the cost, or estimated cost, required to provide the service, product or regulation for which the fee or service charge is levied and the revenue sources anticipated to provide the service, including general fund revenues. The city administrator also shall provide a listing or summary of the present fee and charge schedules and those proposed at such annual public hearing.

(Ord. 138 § 1 (part), 1990)

A. Any person who feels that any fee or charge determined or set is in excess of the percentage of costs reasonably borne to be recovered as set out in this chapter (and as it may be amended from time to time hereafter), or that such percentage of costs as set out in this chapter (and as it may be amended from time to time hereafter), is excessive, arbitrary or unreasonable, or that such fee or charge has not been reviewed within the review schedules set out herein (subject to any exceptions herein provided), may appeal in writing to the city council by filing an appeal with the city clerk, specifying the ground(s) of appeal, within ten days of the date the subject action was taken, or, in the case of a failure to annually review fees or charges as herein required, within ten days of the last date by which the action should have been taken.

B. 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 such council meeting subject to compliance with all applicable provisions of the Ralph M. Brown Act (Sections 54950 et seq. of the Government Code), as the same presently exist or may be amended from time to time hereafter. Such appealed fee or charge shall take effect immediately upon hearing by the city council unless ordered otherwise by the city council.

(Ord. 138 § 1 (part), 1990)