Ordinance No. 2022-05 | User Fee Schedule | Adopted 07/05/2022
ORDINANCE NO. 2022-05
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GILROY AMENDING SECTIONS 7.3, 7.4 AND 7.5 OF
CHAPTER 7 OF THE GILROY CITY CODE ENTITLED
COST COMPARISON SYSTEM FOR FEE AND SERVICE
CHARGE REVENUE
WHEREAS, pursuant to Article XIIIB of the California Constitution, it is the intent of the
City Council of the City of Gilroy to require the ascertainment and recovery of costs reasonably
borne from fees and charges levied therefor in providing the regulation, products, or services as
enumerated in the Chapter 7 of the City’s code; and
WHEREAS, a comprehensive user fee study was conducted by the City of Gilroy to
determine the costs of providing services; and
WHEREAS, section 7.3 of the Chapter 7 defines “cost reasonably borne” as used and
ordered to be applied; and
WHEREAS, it is the City’s intent to exclude certain expense types which may not be
directly attributable to a service being provided; and
WHEREAS, section 7.4 and 7.5 of the Chapter 7 provides a schedule of fees and service
charges and outlines the frequency at which the fees shall be reviewed and adjusted via an annual
public hearing; and
WHEREAS, it is the City’s intent to (1) replace the existing schedule with a revised
schedule, (2) to automatically adjust the said fees and service charges annually in July based on
the published Consumer Price Index (CPI) for the San Francisco Area or, if said index ceases to
be published, according to a comparable measure of inflation determined by the City’s Finance
Director; and (3) conduct a full analysis of City’s cost reasonably borne not less than every five
years; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION I
The forgoing recitals are true and correct and are incorporated herein by this reference.
SECTION II
Sections 7.3 through Section 7.5 of the Gilroy City Code is amended to read as follows:
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:
DocuSign Envelope ID: A2478A41-DC8F-4F91-84C3-89B29E965525
Ordinance No. 2022-05
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 2 of 9
(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 non-departmental 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)
When developing the cost allocation plan or service charge model which establishes the said fees
and service charges, certain expenses may be considered for exclusion from the calculation which
may not be directly attributable to a service being provided.
7.4 Schedule of fees and service charges.
The primary factor for the cost of a City’s service or fee is usually the costs of the personnel which
typically increase year over year. As such, tying an inflationary factor to annually adjust the fees
and services charges is deemed reasonable. Unless otherwise specified by resolution, the fees and
service charges set pursuant to this chapter shall be automatically adjusted annually in July for
Consumer Price Index (CPI) increase so as to recover the listed percentage of costs reasonably
borne necessary to provide the listed regulation, product or service. The CPI increase shall be
DocuSign Envelope ID: A2478A41-DC8F-4F91-84C3-89B29E965525
Ordinance No. 2022-05
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 3 of 9
based on the published CPI for San Francisco Area (San Francisco – Oakland – San Jose) April
Edition or, if said index ceases to be published, according to a comparable measure of inflation as
determined by the City’s Finance Director, and rounded to nearest dollar unless a different edition
or rounding is otherwise specified by resolution. The City Administrator, Finance Director and
each City department head, under the direction of the City Administrator, shall review the fees and
services charges periodically and provide, if necessary, an adjusted fee or charge schedule to the
City Council for its consideration, in place of or in addition to the automatic annual CPI increase
for the regulation, product or service below. A full analysis of City costs reasonably borne, as
defined in Section 7.3, shall be conducted not less than every five years.
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
Finance:
Business license—
New/Move/Change 100 F
Miscellaneous:
Abandoned shopping cart 100 F
Delinquent account receivables 100 H
Refuse collection lien process 100 H
Returned check fee 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
DocuSign Envelope ID: A2478A41-DC8F-4F91-84C3-89B29E965525
Ordinance No. 2022-05
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 4 of 9
Water (tank truck) 100 F
Water service initiation 100 F
Water and Wastewater Rates Fees set by resolution, not subject to CPI adjustment
Community Development Department—All Divisions:
After hours building and fire
inspection 100 H
Building and fire re-inspections 100 H
Special inspections 100 H
Community Development Department—Building:
Building plan change review 100 F
Building plan check 100 F
Building permit 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— Fire Prevention:
Fire clearance inspection 100 H
Fire code/gen. fire insp. 100 F
Fire flow test 100 F
Fire plan check, including energy
storage systems 100 F
Hazmat/CUPA Inspection 100 F
Fireworks—Aerial display 100 H
Fireworks—Retail sales 100 F
Fireworks—Warehouse 100 H
Special event 100 F
Weed abatement 100 F
DocuSign Envelope ID: A2478A41-DC8F-4F91-84C3-89B29E965525
Ordinance No. 2022-05
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 5 of 9
Community Development Department—Hazardous Materials:
Facility closure 100 H
Hazardous materials storage
permit 100 F
Hazardous waste generators 100 F
Protected aboveground or
underground 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— Pretreatment:
Pool drain inspection 100 F
Pretreatment plan check and
inspections 100 F
Special events plan check 100 F
Community Development Department—Planning:
Annexation 100 F
Appeals 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
Habitat Conservation 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
DocuSign Envelope ID: A2478A41-DC8F-4F91-84C3-89B29E965525
Ordinance No. 2022-05
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 6 of 9
Planned unit development 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
Public Works Department—Engineering:
Development impact fees 100 F
Miscellaneous:
Assessment/ 100 F reapportionment map
Certificate of compliance 100 F
Encroachment
Handicap signs 100 F
Curb painting/signage 100 F
Wide/oversized vehicle 100 F
Stormwater best management
practice (BMP) setup and
monitoring
100 F
Public improvement plan check
and inspection 100 F
Subdivision final map and parcel
map 100 F
Recreation Services—Parks and Facilities:
Facility and parks rental* 100 F
DocuSign Envelope ID: A2478A41-DC8F-4F91-84C3-89B29E965525
Ordinance No. 2022-05
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 7 of 9
*Recreation facility and park rental have 4 categories (Category A, B, C, and D) as outlined below.
Category D represents 100 percent cost recovery. Fees for Categories A through C are set in the adopted
resolution.
Category A ‐ City and GUSD programs and special events
Category B ‐ Non‐profit Organizations
Category C ‐ City of Gilroy Residents (Private functions and/or open to the public)
Category D ‐ Non‐Residents or any company/business or group holding an event (social, business,
education or for profit)
Recreation Services - Seasonal Classes, Programs, and Events:
Aquatics
Fees for recreation classes and programs are established seasonally
at the time recreation activity guide is prepared. As such, these fees
are to be adjusted based on seasonal market analysis and should
consider fluctuations and trends in participation rates to attain
maximum cost recovery.
Recreation programs
Adult programs
Cultural classes/events
Preschool
Youth and teen programs
Special events
Fire Department:
False alarm 100 F
Police Department:
Permits—Regulatory:
Firearms sales 100 F
Mobile vendor 100 F
Massage 100 F
Solicitor’s 100 F
Animal control 100 F
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
Tow Truck 100 F
Other Services:
Call back/2nd response 100 H
Crime analysis services 100 H
DocuSign Envelope ID: A2478A41-DC8F-4F91-84C3-89B29E965525
Ordinance No. 2022-05
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 8 of 9
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
Reproduction of documents 100 F
False alarm 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 immediately upon the passage of
a resolution by the City Council setting forth said specific fee amounts, with the exception of the
annual automatic CPI adjustment, which shall take effect every July 1 and shall not require passage
of a resolution by the City Council. Said fees and charges will be initially adopted via resol ution
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.
Section 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 public hearing. A
general explanation of such changes also shall be published per the requirements of Government
Code Section 6062.a.
SECTION III
Except as set forth in this Ordinance, all other provisions of the Gilroy Charter and City Code shall
remain in full force and effect.
SECTION IV
This Ordinance is not intended to and shall not be construed or given effect in a manner that
imposes upon the City or any officer or employee thereof a mandatory duty of care towards persons
and property within or without the City, so as to provide a basis of civil liability for damages,
except as otherwise imposed by law.
DocuSign Envelope ID: A2478A41-DC8F-4F91-84C3-89B29E965525
Ordinance No. 2022-05
User Fee Schedule
City Council Regular Meeting | July 5, 2022
Page 9 of 9
SECTION V
If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be
invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of
this ordinance. The City Council of the City of Gilroy hereby declares that it would have passed
and adopted this ordinance, and each section, subsection, sentence, clause or phrase hereof,
irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases
may be declared invalid or unconstitutional.
SECTION VI
This Ordinance shall take effect thirty (30) days after its adoption. The City Clerk is hereby
directed to publish this Ordinance or a summary thereof pursuant to Government Code Section
36933.
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF GILROY this 5th
day of July 2022 by the following vote:
AYES: COUNCIL MEMBERS: ARMENDARIZ, BRACCO, HILTON,
LEROE-MUÑOZ, MARQUES, TOVAR,
BLANKLEY
NOES: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
APPROVED:
Marie Blankley, Mayor
ATTEST:
___________________________
Thai Nam Pham, City Clerk
DocuSign Envelope ID: A2478A41-DC8F-4F91-84C3-89B29E965525
CERTIFICATE OF THE CLERK
I, THAI NAM PHAM, City Clerk of the City of Gilroy, do hereby certify that the attached
Ordinance No. 2022-05 is an original ordinance, or true and correct copy of a city Ordinance,
duly adopted by the Council of the City of Gilroy at a Regular Meeting of said held on Council
held Tuesday, July 5, 2022, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this Tuesday, July 5, 2022.
____________________________________
Thai Nam Pham, CMC, CPMC
City Clerk of the City of Gilroy
(Seal)
DocuSign Envelope ID: A2478A41-DC8F-4F91-84C3-89B29E965525