Yuba City Municipal Code Ch. 8 User Fee Recovery System

(a) Pursuant to Article XIIIB of the California Constitution, it is the intent of the City Council to recover costs reasonably borne from fees, charges and regulatory license fees levied to provide regulations, products or services.

(b) The fee recovery system set forth in this chapter provides a mechanism for ensuring that fees adopted by the City for regulations, products or services rendered do not exceed the reasonable estimated cost for providing regulations, products or services for which the fees are charged.

(c) The adoption of this chapter is exempt from the California Environmental Quality Act (Public Resources Code § 21080 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 Public Resources Code § 21080(b)(8).

(§2, Ord. 003-07, eff. April 19, 2007)

(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 to recover the percentage of costs reasonably borne as established hereby, in providing the regulation, product or service.

(b) The City Manager is hereby delegated authority to issue policies 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.

(c) "Costs reasonably borne" shall be as defined in Section 3-8.03. In adjusting fees, 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 policies issued hereunder shall comply in all respects with this chapter, and the schedules of fees as set by the City Council by resolution.

(d) The City Manager shall annually adjust the fee schedule to be effective July 1 to ensure that the recovery of the below listed percentage of costs is occurring. The fee schedule shall be adjusted for the next succeeding year by the same percentage change in the California Consumer Price Index for all Urban Consumers (CPI), as reported by the California Division of Labor Statistics, published in February of the current year, over the CPI which was published in February of the prior year.

(e) The City Manager shall annually, or as otherwise provided by this chapter, by May 1 or at least 60 days before the effective date of any fees adjusted pursuant to this section, make available to the public appropriate data indicating the cost, or estimated cost required to support the fees and charges for which adjustments are proposed.

(§2, Ord. 003-07, eff. April 19, 2007)

"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 historical 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 historical cost 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 Manager, City Clerk, City Treasurer, Economic Development, Administrative Services Department, Human Resources Department, 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 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 subsection (a), subsection (b), subsection (c) and subsection (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, 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.

(§2, Ord. 003-07, eff. April 19, 2007)

(a) The City Manager, Assistant City Manager of Administrative Services and each City department head, under the direction of the City Manager, shall periodically review the fees that are set by the City Council resolution to ensure that recovery of the following percentages of costs reasonably borne is occurring.

(b) All applicable fees set by City Council resolution pursuant to this chapter shall take effect sixty (60) days after the passage of such resolution.

(§2, Ord. 003-07, eff. April 19, 2007)

Pursuant to Government Code §§ 66016 and 66018, the City Clerk shall cause notice to be provided as set out in Government Code § 6062a, and the City Council shall receive at a regularly scheduled meeting oral and written presentations concerning fees proposed to be increased/decreased or added, other than those fees adjusted by the City Manager as provided in this chapter. Such notice, oral and written presentation, and public meeting shall be provided prior to the City Council taking any action or any new or increased fees.

(§2, Ord. 003-07, eff. April 19, 2007)

Pursuant to the California Government Code, at least ten days prior to any 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 imposed. The City Manager also shall provide a summary of the present fee schedules and those proposed at any such public hearing. A general explanation of such changes also shall be provided and published per the requirements of Government Code §§ 6062a and 66016.

(§2, Ord. 003-07, eff. April 19, 2007)

(a) Any person who feels that any fee determined and set is in excess of the percentage of costs reasonably borne to be recovered as set out in this chapter, or that such fee adjustment is not otherwise in compliance with this chapter, may appeal, in writing to the City Council before the effective date of any such adjustment.

(b) No fee for which a timely 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.

(§2, Ord. 003-07, eff. April 19, 2007)