Chapter 7
COST COMPARISON SYSTEM FOR FEE AND SERVICE CHARGE REVENUE1

Sections:

7.1    Intent.

7.2    Delegation of authority and direction to city administrator.

7.3    “Costs reasonably borne” defined.

7.4    Schedule of fees and service charges.

7.4-1    Expired.

7.5    Provision of data.

7.6    Appeal to city council.

7.7    Severability.

7.1 Intent.

(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 and charges 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 Section 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 Public Resources Code Section 21080(b)(8)(1). (Ord. No. 90-5, § 1, 3-19-90; Ord. No. 91-15, § 1, 5-20-91)

7.2 Delegation of authority and direction to city administrator.

The city administrator is hereby delegated the authority and directed to adjust fees and charges to recover the percentage of costs reasonably borne in providing the regulation, products or services enumerated in this chapter in the percentage of costs reasonably borne and on the schedule of fee and service charge rate review and revision as hereinafter established.

“Costs reasonably borne” shall be as defined in section 7.3. In adjusting fees and charges, 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 by applicable state law. (Ord. No. 90-5, § 1, 3-19-90; Ord. No. 91-15, § 2, 5-20-91)

7.3 “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 services 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 administrator, 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), (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, 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. (Ord. No. 90-5, § 1, 3-19-90; Ord. No. 91-15, §§ 3, 4, 5-20-91)

7.4 Schedule of fees and service charges.

The city administrator, and each city department head, under the direction of the city administrator, shall no less frequently than annually review the schedule of fees and service charges. The city administrator thereafter shall provide to the city council for consideration an adjusted fee or charge schedule that provides for recovery of the listed percentage of costs reasonably borne to provide the following regulation, product or service:

 

Regulation, Product, or Service

Percentage of Cost Reasonably Borne to Be Recovered (percent)

Method of Cost Recovery (F=Fee) (H=Hourly)

General Administration:

Miscellaneous:

Letters of verification, certification and clearance

100

H

Notary service

100

F

Notice of intention to file

100

F

Research

100

H

Special services/inspections

100

H

Publications

100

H and F

Reproduction

100

H and F

Subpoena-witnesses/duces tecum

100

H and F

Administrative Services Department—Finance:

Business license—Change

100

F

Business license—New/Move

100

F

Miscellaneous:

Abandoned shopping cart

100

F

Delinquent account receivables

100

H

Refuse collection lien process

100

H

Returned check fee

100

F

Permits—Regulatory:

Firearms sales

100

F

Mobile vendor

100

F

Solicitor’s

100

F

Police:

Animal control

100

F

Bicycle

0

Bingo

100

F

Cardroom

100

F

Concealed weapons

100

F

Dance hall

100

F

Pawnbrokers, junk and secondhand dealers

100

F

Regulatory bar

100

F

Taxi cab—Company

100

F

Taxi cab—Driver

100

F

Rentals

100

F

Sewer enterprise

100

F

Water enterprise

100

F

Backflow inspections

100

H

Construction water

100

F

Delinquency services

100

F

Locking services

100

F

Meter installation, removal and testing

100

H and F

Portable meter rental

100

F

Water meter

100

F

Water (tank truck)

100

F

Water service initiation

100

F

Community Development Department—B.L.E.S. (All):

After hours building and fire inspection

100

H

Building and fire re-inspections

100

H

Special inspections

100

H

Community Development Department—B.L.E.S. (Building):

Building plan change review

100

F

Building plan check

100

F

Miscellaneous

Alternative materials review

100

F

Building code appeal

100

F

Building moving/demolition

100

F

Lot change

100

F

Pre-roof inspection

100

H

Temporary certificate of occupancy

100

F

Permits and inspection

100

F

Community Development Department—B.L.E.S. (Fire Prevention):

Fire clearance inspection

100

H

Fire code/gen. fire insp.

100

F

Fire flow test

100

F

Fire plan check

100

F

Fireworks—Aerial display

100

H

Fireworks—Retail sales

100

F

Fireworks—Warehouse

100

H

Special event

100

F

Weed abatement

100

F

Community Development Department—B.L.E.S. (Hazardous Materials):

Facility closure

100

H

Hazardous materials storage permit

100

F

Hazardous waste generators

100

F

Protected aboveground storage tank

100

F

Spill cleanup and investigation (including fire dept. costs)

100

H

Tank removal/installation

100

F

Tiered permit

100

F

Community Development Department—B.L.E.S. (Pretreatment):

Pool drain inspection

100

F

Special events plan check

100

F

Community Development Department—Engineering:

Development impact fees

100

F

Miscellaneous:

Assessment/
reapportionment map

100

F

Certificate of compliance

100

F

Handicap signs

100

F

Wide/oversized vehicle

100

F

Public improvement plan check and inspec.

100

F

Subdivision final map and parcel map

100

F

Community Development Department—Planning:

Affordable housing exemption

100

H

Annexation

100

F

Architectural and site

100

F

Conditional use

100

F

Continuance request by applicant

100

F

Development time extension

100

H

Environmental

 

 

Categorical exemption

100

F

Initial study

100

H

Expanded initial study

100

H

Initial study—City preparation

100

H

Environmental impact report

100

F

General plan map amendment

100

F

General plan text amendment

100

F

Historic neighborhood

100

F

Historic site

100

F

Home occupation

0

Home occupation appeal

100

F

Minor deviation appeal

100

F

Minor deviation variance

100

F

Mobile home rent

100

F

Planned unit development

100

F

Residential development (RDO)

100

F

Sign permit

100

F

Temporary use

100

F

Tentative parcel map

100

F

Tentative tract map

100

F

Urban service area

100

F

Variance

100

F

Williamson Act cancellation

100

F

Zoning change

100

F

Zoning code enforcement

100

H

Zoning ordinance amendment

100

F

Community Services Department—Parks and Facilities:

Facility and parks rental

100

F

Community Services Department—Recreation:

Aquatics

60

F

Golf course enterprise

100

F

Recreation programs:

 

 

Adult programs

50

F

Cultural classes/events

20

F

Preschool

100

F

Youth and teen programs

20

F

Special events

0

F—Donations

Fire Department:

False alarm

100

F

Police Department:

Call back/2nd response

100

H

Crime analysis services

100

H

DUI investigation

100

H

False alarm

100

F

Graffiti abatement

100

H

Provision of special services

100*

H

School truancy

100

H

Tow truck driver

100

F

Vehicle equipment inspection

100

F

Vehicle impound/release

100

F

*    100% cost recovery except for events where the public safety benefit, as determined by the police chief, is of community concern. In this case the event may be subsidized at 55%.

All fees and charges set pursuant to this section shall take effect after the city council has duly passed, by resolution, the city of Gilroy’s comprehensive fee schedule. Said comprehensive fee schedule will be adopted by the city council after a public hearing. The city clerk shall cause notice to be provided as set out in Government Code Section 6062.a. (Ord. No. 90-5, § 1, 3-19-90; Ord. No. 91-15, § 6, 5-20-91; Ord. No. 2000-17, § I, 11-20-00; Ord. No. 2011-03, § 2, 3-7-11)

7.4-1 Elimination of development impact fees and the charging of costs reasonably borne to development projects in the zero fee area.

Expired. (Ord. No. 2011-03, § 1, 3-7-11)

7.5 Provision of data.

Pursuant to the California Government Code, at least ten (10) 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 support the fees and charges for which changes are proposed to be made or fees or charges imposed. The city administrator also shall provide a summary of the present fee and charge schedules and those proposed at such annual public hearing. A general explanation of such changes also shall be published per the requirements of Government Code Section 6062.a. (Ord. No. 91-15, § 8, 5-20-91)

7.6 Appeal to city council.

(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 such 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. Such appeal shall be placed on the agenda of the next ensuing council meeting. Such 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. (Ord. No. 91-15, § 9, 5-20-91)

7.7 Severability.

If any portion of this chapter is found to be unconstitutional or invalid, the city council hereby declares that it would have enacted the remainder of this chapter regardless of the absence of any such invalid part. (Ord. No. 90-5, § 1, 3-19-90; Ord. No. 91-15, § 7, 5-20-91)


1

Editor’s note: Ord. No. 75-18, adopted Sept. 2, 1975, repealed former Ch. 7 regarding civil defense, which derived from Ord. No. 806, adopted Sept. 5, 1967.