Chapter 3.05
CITY SERVICES FEES AND CHARGES

Sections:

3.05.010    Purpose and intent.

3.05.020    Establishment of fees and charges for city services.

3.05.030    Adjustment of fees and charges.

3.05.040    Cost deposits.

3.05.050    Refunds.

3.05.010 Purpose and intent.

A. The purpose of this chapter is to provide the mechanism by which the city council will establish and adjust the fees and charges imposed and to be collected by the city for regulation, products and services provided by the city and city departments, in accordance with and pursuant to Article XI, Section 7 of the California Constitution, Government Code Section 66000 et seq., and Government Code Section 50076, and other applicable state laws and regulations.

B. In establishing and adjusting the fees and charges adopted pursuant to this chapter, it is the intent and goal of the city council that, unless otherwise specifically provided in the enacting resolution, those fees and charges shall reflect the “costs reasonably borne” by the city in providing the regulation, product or service for which the fee or charge is imposed and collected pursuant to this chapter. “Costs reasonably borne,” as used in this chapter and where allowed by law, shall mean and include the following:

1. All applicable direct costs of providing the regulation, product or service, including, but not limited to, salaries, benefits, services and supplies, maintenance and operation expenses, contracted services, special supplies, and any other expense incurred.

2. All applicable indirect costs of providing the regulation, product or service, including, but not limited to, building maintenance and operations, equipment maintenance and operation, communications expense, technology expense, printing and reproduction, vehicle expense, insurance, debt service, and like expenses when distributed on an accounted and documented rational proration system.

3. 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.

4. General overhead, expressed as a percentage, distributing and charging the expenses of the city council, city attorney, city administration, city clerk, city treasurer, all city departments, 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.

5. Debt service costs, consisting of repayment of principal, payment of interest, and trustee fees and administrative expenses for all applicable bonds, certificates, notes or securities issued 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.

6. Departmental overhead, expressed as a percentage, distributing and charging the cost of each department head and his or her supporting expenses as enumerated hereinabove. [Ord. 261 § 1, 2007; Code 1990 § 6.18.01.]

3.05.020 Establishment of fees and charges for city services.

A. The city council shall, by resolution, establish a comprehensive schedule of fees or charges for regulations, services and products provided by the city and city departments, to ensure that the costs reasonably borne by the city in providing those regulations, services and products are collected from the user or beneficiary of the regulation, service or product.

B. The city council shall, by resolution and otherwise in accordance with applicable provision(s) of the Calimesa Municipal Code, set forth the specific amount of the fee or charge, list the applicable direct and indirect cost of providing the service, and describe the reasonable relationship between the fee or charge and the regulation, service or product provided by the city, and set forth the time for payment of the fee or charge and the manner or form of payment.

C. The city council shall also, by resolution, establish the fully burdened rate applicable to each city employment position. Contract services provided to the city shall be charged at the contract rate plus any applicable departmental overhead. [Ord. 261 § 1, 2007; Code 1990 § 6.18.02.]

3.05.030 Adjustment of fees and charges.

A. On an annual basis, the city council shall review the fees and charges adopted pursuant to this chapter, to determine whether the fees and charges are reasonably related to the cost of the regulation, service or product provided.

B. The city council may, by resolution, adjust the fees and charges adopted pursuant to this chapter in accordance with an annual inflation adjustment factor based upon published information such as the Consumer Price Index (CPI) or the Employee Cost Index for State and Local Government Employees, Total Compensation, as released by the U.S. Department of Labor’s Bureau of Labor Statistics.

C. The city manager may recommend adjustments of fees or charges where it has become apparent that an inequity exists which should be addressed in order to ensure the cost recovery goals and purpose of this chapter.

D. All fees and charges which are based on services provided by contracted city services, or which, in the reasonable discretion of city staff are more efficiently or effectively provided by contracted or outside services, shall be billed and paid by the applicant/recipient of the service at the contract rate, plus any established city overhead charge for processing.

E. The city council may, by resolution and based on the city council’s determination that the public health, safety or welfare is protected by such action, provide reduced fees for certain regulations, services or products, with the subsidy of any such reduction a charge against the general fund. [Ord. 261 § 1, 2007; Code 1990 § 6.18.03.]

3.05.040 Cost deposits.

A. Fees for certain services may be established based on a deposit amount which is estimated to reasonably reflect the actual cost of providing a service. Initial deposits may be determined based on the amount of time historically spent on similar projects, or estimates of time based on reasonable assumptions of city staff.

B. Where a deposit is established by the city council for a particular service or project, the full deposit shall be posted by the applicant or recipient of the service. The city shall accurately account for all charges made against deposits. When 75 percent of the deposit has been expended and the department in which the deposit was posted determines that the estimated actual cost of the project or service will exceed the amount deposited, additional deposit of such estimated excess amount shall be required. Notification of additional deposit required will be mailed or delivered to the applicant, who shall deposit such additional required amount prior to the date specified in the notice. When an additional deposit has been requested, work will be suspended on the project or service when 95 percent of the deposit previously received has been expended. Projects or services will not be completed, finalized or approved with money due. If the additional deposit is not made by the date specified in the notice, the project shall be deemed denied, or the service suspended, on the date specified in the notice, without further action on the part of the city.

C. If the department head determines that the estimated cost of a project or service is likely to be less than the initial deposit, a deposit may be required which equals the estimated cost of the project or service. The applicant shall nonetheless be responsible for payment of the full cost of providing the service. [Ord. 261 § 1, 2007; Code 1990 § 6.18.04.]

3.05.050 Refunds.

The city will issue refunds on:

A. Any fee or charge paid which was erroneously paid or collected.

B. Flat fee refunds will be based on estimate of work completed on project or service for which a fee was paid, as follows:

1. Application accepted and comments requested from agencies: 80 percent of fee may be refunded.

2. Agency comment period completed: 45 percent of fee may be refunded.

3. Initial staff review process completed: 25 percent of fee may be refunded.

4. Staff report prepared and notices of hearing mailed or conditions of approval prepared: 10 percent of fee may be refunded.

5. Planning commission consideration initiated or staff/environmental analysis action completed: no refund.

C. Unused deposit amounts, based on level of completion and time and materials expended, will be refunded to the payee when all charges for the project or service have been accounted for. [Ord. 261 § 1, 2007; Code 1990 § 6.18.05.]