Needles Municipal Code Art. III 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 therefore in providing the regulation, products or services hereinafter enumerated in this article.

(b) The fee and service charge revenue/cost comparison system set forth in this article 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 article is exempt from the California Environmental Quality Act (Public Resources Code Sections 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 Section 21080(b) (8). Sec. 8-12. Delegation of authority and direction to City Manager

(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 article in the percentage of costs reasonably borne and on the schedule of rate review and revision as hereinafter established in this article.

(b) "Costs reasonably borne" shall be as defined in Section 8-13. In recommending adjustments in fees and charges, the City Manager shall consider only the standards and criteria established by this article and the procedures set hereby and by applicable state law.

"Costs reasonably borne", as used and ordered to be applied in this article, 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 Manager, City Clerk, Finance Department, Personnel Office, 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 subsections (a), (b), (c), and (f) of this section.

(f) Debt service costs, consisting of repayment of principal, payment of interest, and trustee fee 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.

(a) The City Manager, Finance Director and each city department head, under the direction of the City Manager, are to review annually the fees and service charges listed below, and provide an adjusted fee or charge schedule to the City Council for its consideration so as to recover the listed percentage of costs reasonably borne necessary to provide the listed regulation, product or service.

Percentage of Costs Reasonably Borne Regulation, Product or Service To Be Recovered See Exhibit “A”, below incorporated herein and by this reference made a part hereof Exhibit "A"

(b) The hereinabove services as listed in this section shall be as defined in that certain document entitled "Cost of Services Fee Study for the City of Needles", dated May, 2002, as prepared by Revenue & Cost Specialists, LLC, of Fullerton, California. (c) All fees and charges set pursuant to this article and section shall take effect ten days after adoption of a resolution by the City Council setting the amount of such fees and charges.

Sec. 8-15. Public Meeting Pursuant to California Government Code Section 66016 and 66018, the City Clerk shall cause notice to be provided as set out in Government Code Section 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. Such 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. Sec. 8-16. Provision of data 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 such annual public hearing. A general explanation of such changes also shall be published per the requirements of Government Code Section 6062a and 66016. Sec. 8-17. 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 article 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 regular Council meeting after receipt of such appeal, and shall be heard at that same 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 article relating to Percentage of Costs Reasonably Borne to Be Recovered (Section 8-14 Schedule of fees and service charges).

Sec. 8-18. Severability If any portion of this article is found to be unconstitutional or invalid, the City Council hereby declares that it would have enacted the remainder of this article regardless of the absence of any such invalid part. Sec. 8-19. Repealer All ordinances, municipal code sections, resolutions, City Council motions, and all actions of all city boards and commissions in conflict herewith are hereby repealed. The fees and charges established by this article shall supersede all previously established fees or charges for the same regulation, product or service, and all such previous fees and charges are hereby repealed on the effective date provided in Section 8-14(c) hereof.