P-281 Ordinance Cost Recovery SIGNED ADOPTED 10-28-20

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EXHIBIT A /o REDWppO QaQ %1 Effective Date: November 27, 2020 Operative Date: As of November 27, 2020 a� PORT OF REDWOOD CITY -- COST RECOVERY USER FEE POLICY PURPOSE: To provide general guidelines for establishing and maintaining a comprehensive user fee schedule to ensure that the Port adequately recovers costs for services including time and materials in an efficient, legal and accountable manner. POLICY STATEMENT: The Port of Redwood City (Port) provides services that are of special benefit to individuals, businesses, and entities and shall ensure that reasonable costs associated with providing the services are recovered. DEFINITIONS: Cost Recovery is recouping all costs associated with a particular service provided by an agency. A fee may not exceed the estimated reasonable cost of providing the service for which the fee is charged. Fees must be reasonable, fair and equitable and proportionally representative of the costs incurred by the Port. Costs qualify for cost recovery if they are necessary to provide the service and cost would not occur if not for the need to provide the service. Cost recovery has three important rationales: 1) improving government efficiency; 2) maintaining equity consideration in regard to the provision of services; and 3) financial stability. User Fees are fees imposed in return for a specific benefit conferred, privilege granted, or services provided directly to the payor of the fee that is not provided to those not charged. User fees are not imposed for the purpose of raising revenue. Examples of services which may be assessed user fees are leases, amendments, subleases, non- exclusive permits to use space, project and environmental review, etc. Direct Costs are the costs incurred directly by providing a specified service. These costs include staff time spent providing the service, and any costs that can be traced directly to the production of a given service or product. Third Party Direct Costs are external costs incurred directly for a specified service. These costs include but are not limited to, attorney fees and consultant fees that may be necessary to perform the specified service. Indirect Costs are the incidental costs that are incurred by the Port as a result of providing the service not directly accountable or associated with the production of a service. Indirect costs include overhead such as operating expenses and internal administrative costs. Project generally refers to entitlements, activities, events, or actions related to which individuals, businesses, or entities may request services from the Port and should be interpreted broadly in accordance with this cost recovery policy. Routine services generally refers to short-term agreement renewals with substantially the same terms, basic project reviews, simple access agreements, and other routinely provided services with minimal staff processing. PROCEDURE: 1. The Executive Director and Director of Finance determine the amount of the flat fee in providing the service based on direct and indirect costs. Indirect costs include overhead (i.e., Human Resources, Information and Technology Services, Financial Services, etc.) P-281