Chapter 1.64 — FEE AND SERVICE CHARGE

REVENUE/COST COMPARISON SYSTEM Section 1.64.010 Findings and intent. 1.64.020 Delegation of authority and direction to Manager. 1.64.030 “Costs reasonably borne” defined. 1.64.040 Master fee schedule. 1.64.050 Statutory public meeting. 1.64.060 Provision of data.

1.64.070 Appeal to City Council.

(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 for 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 the chapter is exempt from the California Environment Quality Act (Cal. Public Resources Code §§ 2100 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 Cal. Public Resources Code § 21080(b)(8)(1). (1995 Code, § 1.64.010)

(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 the percentage of costs reasonably borne as established hereby, in providing the regulation, product or service enumerated in this chapter in the percentage of cost reasonably borne and on the schedule of rate review and revision, as hereinafter established in this chapter. (B) The City Manager is hereby delegated the authority to issue executive orders defining terms, setting out administrative, fee collection and financial procedures, definitions 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 Manager 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 § 1.64.030. 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 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. (1995 Code, § 1.64.020) § 1.64.030 “Costs reasonably borne” defined. 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 fixes 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 copy so as to recover the 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, Finance Director/Treasurer, Economic Development, Finance Department, Personnel Office and City Promotion 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 the percentage so that each of taxes and fees and charges shall proportionately defray the 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 divisions (A), (B), (C) and (F) of this section; and (F) Debt service cost, 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 the securities ordinance, resolution, indenture or general all applicable to the city. (1995 Code, § 1.64.030)

(A) All fees and service charges are listed on the master fee schedule. (B) The City Manager, Finance Director and each city department head, under the direction of the City Manager, shall review annually the fees and service charges listed on the master fee schedule, and provide an adjusted master fee schedule, by resolution, to the City Council for its consideration so as to recover the listed percentage of cost reasonably borne necessary to provide the listed regulation, product or service. In the alternative, the Council may elect, by resolution, to automatically adjust fees by percentage equal to the Consumer Price Index as published by the Department of Labor for the preceding 12 months. Any such automatic adjustments shall not apply to fees which are based on variable factors which themselves result in an automatic adjustment or those which are specifically indicated otherwise. (C) (1) For all fees and charges for services and programs provided by the Recreation Parks Divisions of the City of Tulare, the City Council does hereby designate the Parks and Community Services Commission as the body which shall establish a list of all such fees and charges. The Recreation, Parks and Library Director shall review the fees and charges as frequently as deemed necessary and provide an adjusted fee or charge schedule to the Parks and Community Services Commission for its consideration and adoption, so as to recover the established percentage of cost reasonably borne necessary to provide the listed service or program. With regard to Parks and Recreation fees and charges, whenever in this chapter there is a reference to the City Council, it shall mean the Parks and Community Services Commission; and whenever there is a reference to the City Manager it shall mean the Recreation, Parks and Library Director. (2) For all fees and charges for services and programs provided by the Library Department of the City of Tulare, the City Council does hereby designate the Library Board as the body which shall establish a list of all such fees and charges. The Library Director shall review the fees and charges as frequently as deemed necessary and provide an adjusted fee or charge schedule to the Library Board for its consideration and adoption, so as to recover the established percentage of cost reasonably borne necessary to provide the listed service or program. With regard to Library fees and charges, whenever in this chapter there is a reference to the City Council, it shall mean the Library Board; and whenever there is a reverence to the City Manager it shall mean the Library Director. (D) All fees and charges set pursuant to this chapter and section shall take effect 60 days after the City Council adopts a resolution establishing the fee amount. (E) 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. (F) The City Manager may vary the annually scheduled review if, in the judgment of the City Manager and a directly affected and requesting department head, gross inequity would be perpetrated by not revising the rate schedule. Any such rate revision which deviates from the annually scheduled review shall be reported to the City Council at its next succeeding meeting. (G) The City Manager is further delegated the authority to round off, either upward or downward as he or she deems appropriate, to the nearest dollar, five or ten dollars, as may be appropriate in light of the magnitude of the fee, the actual fee or service charge to be imposed, after applying the appropriate percentage rate, for the sale of ease of administration, accounting and financial operations. (1995 Code, § 1.64.040) (Ord. 2020-05, passed 6-2-2020; Ord. 10-04, passed 2-16-2010; Ord. 06-2029, passed - -2006; Ord. 03-1925, passed - -2003; Ord. 03-1915, passed - -2003; Ord. 01-1887, passed - -2001; Ord. 01-1873, passed - -2001;)

Pursuant to Cal. Gov’t Code §§ 54992, 54994.1 and 54994.2, the City Clerk shall cause notice to be provided as set out in Cal. Gov’t Code §§ 54992, 54994.1 and 6062a, and the City Council periodically, at least annually, shall receive at a regularly scheduled meeting oral and written presentations concerning fees and charges proposed to be increased or added. The 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 or charges. At least one such public hearing shall be held annually, in conjunction with the city annual budget process and hearing. (1995 Code, § 1.64.050)

Pursuant to the Cal. Gov’t 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 Cal. Gov’t Code § 6062a. (1995 Code, § 1.64.060)

(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, 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. (B) No fee or charge for which an appeal has been filed shall take effect until heard by the City Council. The appeal shall be placed on the agenda of the next ensuing Council meeting after receipt of the appeal and heard at the next ensuing Council meeting. The appealed fee or charge shall take effect immediately upon hearing by the City Council unless ordered otherwise by the City Council by ordinance amending this chapter. (1995 Code, § 1.64.070)