Agenda Item No: P.1
AGENDA REPORT
DATE: April 7, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-56 CD 2026 Building Fee Study Adoption
Amending Fees for Recovery of Costs of the Building Safety Division for Counter Services, Plan Review, Inspection, Code Enforcement , and Ordering the Fees to be Adjusted Annually to Stay Current with Expenses
Funding Source: N/A
Contact: Jeff Thomas, (707) 428-7442
RECOMMENDED ACTION
Hold public hearing and adopt resolution.
STATEMENT OF ISSUE
On March 17, 2026 , staff presented to the City Council the proposed Building Safety User Fee update. At that meeting, the council received the report and provided no direction to modify the proposed fee structure.
The proposed fee structure is now presented for public hearing and adoption , with an effective date starting July 1, 2026.
DISCUSSION
The Building Safety Division last completed a comprehensive fee study five years ago. Since then, operating costs have increased, and the current fees no longer fully recover the cost of providing services. Rising costs have been caused by several factors, including:
Increased building code requirements, such as the new high fire regulations Increased technology costs
Increased liability costs
The California Construction Cost Index (CCI) is not keeping pace with the division’s operating cost
As discussed at the March 17, 2026 , council meeting, the proposed fee update is intended to achieve full cost recovery, align fee s with the actual cost of providing services, and reduce reliance on the General Fund.
The proposed fees realign operational costs on each permit and project type. Applicants will see a reduction in many basic permits and home remodel permits, such as wa ter heaters, heat ing and air conditioning, roof-mounted solar, and kitchen and bath remodels. Most of these permits would see reductions ranging from approximately 4% to over 20%.
Conversely, the study found new construction permits under-recover costs. Under the proposed update, new construction permits may increase by up to approximately 15%. The following example illustrates the impact:
Example: Single Family Dwelling 2,000-sf with a 400-sf garage. Current fee (effective July 1, 2026): approximately $5,115 Proposed fee (effective July 1, 2026): approximately $5,850
The intent of the fee update is not a revenue -generating increase, but a structural realignment to match actual service delivery costs. The proposed update reduces fees for many common homeowner improvement permits while modestly increasing fees for larger , more complex projects that require more staff time and resources . By aligning fees with actual costs, the Building Safety Division will be more financially sustainable. If adopted, the updated fee schedule will take effect July 1, 2026.
FINANCIAL IMPACT
If adopted, the updated fee schedule should improve cost recovery beginning in fiscal year 2027, reducing the impact on the General Fund by approximately $300,000 annually if permit activity remains steady.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may deny the proposed Building Fee Update , but this will maintain the current fee schedule, which may result in additional impacts to the General Fund.
COORDINATED WITH
Finance Department
STAFF CONTACT
Jeff Thomas, Chief Building Official
(707) 428-7442
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Exhibit A - Building Division User Fee Study Attachment 4: BIA to Fairfield Building Fee Study
Attachment 5: Willdan BIA Response