It is the intention of the city council to ensure the continuing financial viability of city operations by providing an ongoing review of the cost of providing city services, the cost effectiveness of those services and the recovery of those costs reasonably borne in providing those services from fees and charges levied therefor.
(Prior code § 2960.1)
A. 
The city manager is directed to recommend to the city council the fees and charges necessary to recover the costs reasonably borne in providing the regulation, products or services enumerated in this chapter in accordance with the schedule of rate review and revision as hereinafter established in this chapter.
B. 
"Costs reasonably borne" shall be as defined in Section 3.40.030. In recommending 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.
(Prior code § 2960.2)
"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, 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 recovery of fixed asset replacement costs. Fixed asset replacement costs are calculated on the current estimated cost of replacement divided by the approximate life expectancy of the asset and subtracting therefrom the depreciation of the fixed asset.
D. 
General overhead, expressed as a percentage, distributing and charging the expenses of the city council, city manager, finance department, city clerk, city treasurer, city attorney's office, community promotion, 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 the 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, and C 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.
(Prior code § 2960.3)
The city manager, finance director and each city department head, under the direction of the city manager, shall review the city's master fee schedule on an annual basis, and will recommend to the city council the fee or charge schedule necessary so as to recover the costs reasonably borne to provide regulations, products or services.
The schedule of frequency of rate adjustments may be varied by the city council 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. Fees for newly established regulations, products or services shall be set to recover all costs reasonably borne.
(Prior code § 2960.4; Ord. 1962 § 8, 2022)
There is established an economic analysis process for review of such matters as the city council may find appropriate including any matter falling under the purview of this chapter. Such matters may include a review of the methodology used to determine fees recommended to the council, the need for a particular city service, the cost effectiveness of city services, methods of controlling costs of city services and methods of recovering costs from those utilizing city services.
(Prior code § 2960.5)
Upon the city manager's recommendation of the necessary fees and charges made pursuant to Section 3.40.040, the city manager shall forward a report to the city council. Upon receiving the report, the city council shall set a public hearing to hear oral and written presentations concerning fees and charges proposed.
(Prior code § 2960.7; Ord. 1812 § 1(B), 2006; Ord. 1962 § 10, 2022)
At the close of the hearing conducted pursuant to Section 3.40.070, the city council shall adopt appropriate resolutions or ordinances to give effect to the fees and charges found by the council to be necessary to recover the appropriate costs reasonably borne to provide the listed regulation, products or services.
(Prior code § 2960.8)
Pursuant to the requirements of California Government Code Sections 66016, et seq., the city clerk shall cause notice of the public hearing called for in Section 3.40.070 to be provided as set out in such Government Code sections.
(Prior code § 2960.9; Ord. 1812 § 1(B), 2006)
Pursuant to Section 66016, et seq. of the California Government Code, the city manager shall, at least 10 days prior to the required public hearing, make available to the public data indicating the cost, or estimated cost, required to provide the services set out in Government Code Sections 66016, et seq., along with recommended fees and charges therefor.
(Prior code § 2960.10; Ord. 1812 § 1(B), 2006)